International Negotiation: Cross-Cultural Analysis Essay (INB730)

This essay delves into the cross-cultural intricacies of international negotiation, examining the processes and practices involved. It highlights the importance of understanding cultural differences and applying appropriate negotiation frameworks. The essay explores a real-world scenario involving waste technology between China and Japan, illustrating how cultural nuances and business styles impact negotiation outcomes. It analyzes potential misunderstandings stemming from communication gaps and differing cultural perspectives, providing insights into best practices for successful international negotiations. The discussion covers topics such as creating an expert journey, expectations, dispute resolution, and contract termination. The document also analyzes classic frameworks like the behavioral approach, and culture-specific business styles of China and Japan. The essay concludes by emphasizing the need for clear contract terms, research, positive attitudes, and attention to detail to mitigate risks and achieve favorable outcomes. This essay provides a comprehensive analysis and is available on Desklib for students seeking to understand international negotiation.

Reading Head: INTERNATIONAL NEGOTIATION 0
Management
April 6
2020

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Introduction
The culture of every country differs from each other. Therefore, there are chances that they
may involve in some conflicts. Negotiation is used to solve these conflicts as much as
possible. This is done without changing any powers, values, relations, and interests.
International negotiations are the process through which goals can be achieved. The main
aim of this concept is also to solve disputes and provide satisfaction to both the parties
involved. There can be many forms of international negotiation and that can also be at
different levels (Gardner, 2018). In this discussion, the main focus will be on the process and
framework of international negotiation. Theories and consequences of international
negotiation that have to be faced by both parties will also be presented.
Processes and Practices
The Negotiation Process is considered to be an essential factor because it helps in
determining the success or failure of the negotiation. This process needs to be effective so
that it can manage the overall policy and strategy. But there are different types of process
which varies in different cultures. The process of negotiation involves effective
communication that is a successful international negotiation (Saee, 2008). These are six
practices that are involved in it and these are:
1. Creation of Expert Journey
It is very important to clarify international agreement that is related to working with overseas
parties related to business. It is also suggested that terms and conditions should be mentioned
in the agreement. The responsibilities of each article should also be mentioned clearly.
Intermediaries that are involved in the business should also be mentioned.
2. Expectations and Sales goals
The main component of agreement with overseas is accountability. Expectations of
performance should also be mentioned clearly. It should be mentioned with the requirements
that will be needed to satisfy the defined volume and period. These decisions should be taken
according to the country that is been involved in the agreement.
3. Dispute Resolution process

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The contract is an important aspect when dealing with a business with overseas parties.
Therefore contract must include the rights of the parties. This agreement will require when
parties have to recover their amount that is being damaged. This contract will prevent parties
from getting involved in disputes.
4. Arbitration Clause
This clause is considered to the best contract that can resolve between two parties. This
clause can also suggest the ways through which disputes can be solved easily. This clause is
especially used when a party is involved in doing business with the United States. The main
resource that is been used in this clause is the Internal Court of Arbitration. This is handled
and control by the International Chamber of Commerce.
5. Legal Jurisdiction
The section of the contract that contains the dispute resolution section should also clearly
mention the law that is been involved in the contract. This will include a specific legal
jurisdiction. There is one more important aspect that has to be covered in this section is the
language in which the contract is written. Because there are chances that different versions of
language may often create disputes among parties (The President and Fellows of Harvard
College, 2020).
6. Contract Termination
Companies need to protect their assets. It is very important to mention the terms and
conditions in which the contract may be terminated. Conditions in which contract can be
considered a breach of contract should also be mentioned (Sandler, 2017).
Classic Framework
“Behavioural Approach” is considered to be the classic framework that helps to identify the
role of negotiators. The behavioral characteristic plays an important role in determining the
results of agreements. This approach explains international negotiations as the interaction of
two personalities. In this process, both parties are either battling or fulfilling the needs and
requirements of another party. But there can be times when some probes arise between both
the parties. These problems may be termed as “Negotiation Dilemma”. This approach deals
with the psychological and traditional traditions of an individual. The behavioral approach

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includes factors such as relationship, culture, skill, attitude, experience, and loyalty. This
approach can also be influenced by the emotions of an individual. Negotiations approaches
are also based on maximizing profit and minimizing loss (Alfredson & Cungu, 2008).
The implication of Behavioural Theory
There is a case of China and Japan are been involved. In Japan, there is a company that owns
waste technology and it has to be used in China for a project. There was a war in China and
in that war Japan has left a lot of waste in China. For the last many years both countries are
involved in a decision who should bear the cost of cleaning that waste. In the end, Japan got
agrees to bear the cost. A company was undertaken in Japan to select the technology that will
be used in this project. But Japan feels that there is no support from China and this project
has become a problem for the Japanese Government. Since Japan has only agreed for waste
not for polluted soil so they believe that that cost will be bear by China. According to China,
all the work should be taken by them but another party should supply all the resources. This
third party, the company that is undertaken by the Japanese is dealing with both the countries.
Japan only wants to clear its waste but China wants to take advantage of this situation. Both
countries believe that work should be done according to them. But the third party wants their
technology should be used and for that, both the companies should be agreed. With the
understanding of both the companies a memorandum has been created. In that, it is
mentioned that the technology of the third party will be used. The company has understood
that they should apply behavioral theory so that China will be agreed on this decision. But
there are some technological issues. It is very important to build a relationship with parties. In
this case, because of relationship negotiation is possible. Building friendly relations and
sharing knowledge is one of the crucial knowledge. If both the parties come together then it
will become a positive situation for both of them (March, 2020).
Culture-specific and business styles
China
The Chinese word that is used for negotiation is “Tan-pan”. The meaning of this word is “to
discuss” and “to judge”. For Chinese, it is very important to build trust so that it can benefit
both the parties. Trust is built through communication because it helps in judging and
evaluates the thinking of the other party. In China negotiation is a continuous process that
considers all the practical aspects that may occur. Five main factors are considered by the

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Chinese success. These factors are: It is very important to know the context of the deal, it is
also essential to know the party with whom business dealing is made, to know self-
capabilities is also very essential, to consider strengths and weaknesses are also important and
to strive for operational readiness is also essential. Chinese also believes in dealing with long
term contracts, clarity in dealings, patience, stability, control emotions, knowledge about the
culture (Neidel, 2010).
Japan
Some specific ways are used by Japanese in dealing. These are considered to be their
business styles. The first person whom other contacted will be present through the period of
the contract. Japanese believes in working in teams rather than working alone, members that
are involved in the contract may increase or decrease according to wish of the company,
Senior staff will also be involved in business dealing but they will not involve in asking
questions their teams will ask questions regarding the contract. The questions that are asked
are to gather the information decisions that are not based on answers. There is flexibility in
involving contracts while with a Japanese company. If a company has made a decision then
the negotiation team will work more effectively, the Japanese may also break the contract if
another party is rude to them. Japanese can also cancel the meeting if they feel that conditions
are changed. There should be middlemen which are trusted by both parties so that harmony
can be maintained (LEWIS, 2014).
Misunderstandings
There are several places in b=which misunderstandings can occur while dealing with
contracts with overseas companies. These misunderstanding can occur when:
1. Communication Gap
If the language of the parties differs from each other there are high chances of occurring
misunderstanding between those two parties. The translation may also create a barrier
because the meaning of words of every language is different. If the contract is prepared in the
local language of both parties it may create a problem for them in the future (Peleckis, 2014).
2. Culture
The culture of every country may also vary from each other. This can also create some
problems because there are times when some actions are positive signs in one culture but

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negative in another. As a result, there are also chances that the other party may get offended
and they can also cancel the contract. This may result in heavy losses for both parties
(SHONK, 2020).
Best Practice for Negotiations
There are some ways by which the best negotiations can be possible. These are as follows:
1. Research: It is very important to research and acquire information about the other
party. This will be able to create a trust and loyalty base of the company. This will
also help in knowing the knowledge and culture of the other party. Their purpose and
behavior can also be evaluated (Llamazares, 2014).
2. The contract should be initiated with a positive attitude. It can enhance the
motivation of employees who are involved in it and another party will also be
motivated (Finkel, 2020).
3. The problem should be addressed rather than addressing the personality (Brooks,
2015).
4. Attention should be paid to little factors. This will help in preventing the company
from major losses. The more idealistic environment can be created (Brothers, 2019).
Conclusion
Negations are done many between many countries. But it is important to set some rules and
regulations for negotiations. The contract that is created by companies should have clarity
regarding terms and conditions. Many frameworks are used in negotiations. But there are
times when some misunderstandings are also created between parties. Companies should take
major steps to overcome these misunderstandings.

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References
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