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CHAPTER 7Cross-Cultural Negotiation What Makes Cross-Border Negotiations Different? Environmental Context Forces in the environment that are beyond the control of either party Political and Legal Pluralism International Economics Foreign Governments and Bureaucracies Instability Ideology Culture External Stakeholders Immediate Context Factors over which the negotiators have influence and some measure of control Relative Bargaining Power Levels of Conflict Relationship between Negotiators Desired Outcomes Immediate Stakeholders Defining Culture 1. Unique character of a social group; shared values and norms that set it apart from other groups 2. Concerns economic, social, political, and religious institutions; also the unique products produced by these groups 3. Cultural institutions preserve and promote culture’s ideologies 4. Culture influences mental models, behavior, and cause-and-effect relationships 5. Avoid temptation to think of culture and diversity as a single dimension; culture is a complex whole Figure 7-1: Culture as an Iceberg Conceptualizing Culture and Negotiation Culture as Learned Behavior A catalogue of behaviors the foreign negotiator should expect. Culture as Shared Values Building a model for how the central values and norms influence negotiations. Culture as Dialectic All cultures contain dimensions or tensions that are called dialectics. Example: Judeo-Christian parables “too many cooks spoil the broth” and “two heads are better than one” offer conflicting guidance. This can explain variations within cultures. Conceptualizing Culture and Negotiation Culture in Context No human behavior is determined by a single cause. All behavior may be understood at many different levels simultaneously. Hofstede’s Dimensions of Culture Individualism/Collectivism Power Distance Masculinity/Femininity Uncertainty Avoidance Individualism/Collectivism Definition: the extent to which the society is organized around individuals or the group I
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