International Business Case Study

Topic 5 2015-2016

1

Different approaches to international business negotiations and various practices to gain successful

Mohja Loussif, International Business Negotiations, EMUNI

One of the most difficult and important tasks facing international managers is negotiation. International negotiation is very complex and difficult because it involves different laws, regulations, standards, business practices and above all cultural differences

(Fatehi, 2008).

From the previous assignments and topics treated before, we have learned that companies need to know how to negotiate effectively to succeed in the international business world.

However the same negotiation style may not work in other environment. That‟s why it is important not to allow cultural

In Japan, the business society is based on recommendations and having contacts, without recommendations and contacts it is hard to build a business and to meet the right people.

In Turkey for example, as the culture is generally group-oriented. Asserting individual preferences may be seen as less important than having a sense of belonging to a group, conforming to its norms, and maintaining harmony among its members. Building lasting and trusting personal relationships is therefore very important to most Turks, who often expect to establish strong bonds prior to closing any deals. People in this country usually want to do business only with those they know and like. Establishing productive business cooperation requires a long-term perspective and commitment. Consequently, proceed with serious business discussions only after your counterparts have become very comfortable with you.

Establishing personal relationships with others in Turkey can create powerful networks.

Maintaining cordial relations is crucial. Third party introductions can be very helpful as

Americans are sensitive to time. They view it as a limited resource that must not be wasted. Japanese regard time as long duration, spending time to learn counterparts.

Being culturally literate and easy to adapt

In an international business negotiation, differences in values make it more difficult for partners to understand each other. Being consistent, logical, and understandable would facilitate the mutual understanding needed for success.

Focusing on the differences helps negotiators to understand the positions being considered and to realize the potential mutual opportunities available.

And as Cultural differences have a major influence on many of the process factors,this suggests that a greater awareness of how culture relates to the negotiation process would enhance the success of the negotiation. Negotiators will need to consider global and local cues to determine how the negotiation process will develop. (Dimensions of Success in

International Business Negotiations)

Also, they need to adapt the negotiating strategies by planning how they would negotiate and which points they should respect in the negotiation