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Beyond Virginia
 
NEGOTIATING STRATEGIES IN A GLOBAL CONTEXT
Negotiation is an integral part of our day-to-day living: we negotiate with our families, co-workers, school teachers, bankers, sales assistants, neighbors, commuters. However, we don’t think about most of these encounters as negotiation: we subconsciously expect predictable responses within our familiar context.

Conducting business negotiations with our foreign counterparts tends to be a more complex and challenging process. As we take a lot of our own behavior for granted, we may automatically project our value system on negotiators from other countries, expecting them to behave in a certain way. This phenomenon is sometimes called “mirror imaging”.

Understanding more about our own cultural conditioning and value system is instrumental to analyzing the negotiating behavior of the opposite side and working out strategies for effective communication through contrasts and comparisons to our own cultural context.

We can only generalize certain negotiating behavior, as we are all individuals and each of us has a unique makeup. However, cultural generalizations have proven to be a useful reference point when dealing with foreign negotiators.

For example, U.S. negotiators tend to move from specifics to a bigger picture, favoring a linear approach. The goal is to open with sequential moves to advance quickly in early stages and obtain tangible results.

In contrast, in a lot of other countries negotiators require time to build trust, which tends to be reflected in the sometimes slow negotiating process. A lot of effort may be dedicated to working out a larger picture, which requires time and results in very little initial progress.

These key differences in conceptualizing and planning negotiations are also reflected in the approaches to time and relationship-building during negotiating.

Adjusting our expectations and tactics allows us to minimize tension and frustration, as well as improve mutual understanding and respect during the negotiating process.

Practical recommendations for successful negotiations:
  • Read and learn about your foreign counterparts’ culture and tradition before you engage in a negotiating process. This will provide you with valuable insights into social and negotiating behavior.
  • Adopt a long-term approach and commit to investing time in relationship building.
  • Explain your business model to your foreign counterparts. Do not assume they are familiar with it.
  • Ask a lot of probing questions.
  • Become an active listener; observe non-verbal behavior.
  • Maintain a firm and consistent position at all negotiating stages. However, draw a fine line between a firm position and a position of power. Avoid treating an opponent from a position of power or in a condescending way. Such behavior causes “loss of face” for both sides and may cause your opponent to walk out.
  • Address politely issues of “stalling” and “going in-circles.”
  • Learn to be comfortable with “strategic” delays. Do not show irritation or impatience.
  • Avoid making quick concessions, particularly at the initial stages. Your opponent may keep coming for more, and you won’t be able to provide it.
  • If you are not fluent in a target language and your foreign counterpart provides translation services, consider bringing your own interpreter, even if he/she sits there just listening and taking notes. This allows for an extra cross-check to avoid misinterpretation or possible misunderstanding.
  • Always have a contingency plan. Business environments can turn volatile depending on social, political and financial indicators. Being aware of the current business climate and aligning your strategy accordingly should protect your business from unexpected surprises.


Gaining awareness of your personal communication preferences and learning about negotiating styles of your foreign counterparts are essential to the success of a business venture. Understanding the dual perspective enables businesspeople to negotiate with confidence and gain an edge over the competition.

Natasha Crundwell
People Going Global, LLC
natasha@PeopleGoingGlobal.com

www.PeopleGoingGlobal.com

 

DISCLAIMER – The contents of this article are intended to provide pertinent inform-ation for Beyond Virginia subscribers interested or already involved in international trade. While every effort is made to convey accurate and timely information, the contents of this article are not intended as specific advice to its readers. Our intent is solely to convey information.