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Unit 8 Intercultural Negotiation Negotiation Negotiation is the process of discussion by which two or more parties aim to reach a mutually acceptable agreement Negotiating across borders is more complex because of the number of stakeholders involved Two common beliefs about intercultural negotiation There are two common beliefs about cross-cultural business negotiations: First, dealing in one country is totally different from dealing in any other country. So, global negotiations are likely to be completely different from domestic transactions. Second, negotiating global deals are the same as negotiating domestic business deals. They’re all business transactions. In the global arena, cultural differences produce great difficulties in the negotiation process. Cultural Barriers In a World Bank financed China rural water supply project, the World bank representatives from America and Canada, during the negotiation, insisted on telling the project beneficiaries such detailed information as project total budget, counterpart funding, beneficiaries’ contribution, total water tariff they have to pay and villagers’ monthly payment. From the Banks perspective, the purpose of doing so is to guarantee correct understanding, on the villagers’ part, of their benefits as well as their obligations. Cultural Barriers However officials from national, Provincial and county project offices refused to provide actual numbers to beneficiary villagers, and they argued that the huge project budget would frighten the villagers and drive them back to their old and unhealthy way of drinking water. All what the villagers need to know was the fact that they had to repay the loan. The two sides debated hard over the issue for a couple of days and the agreement was finally reached only on basis of mutual concessions. The Negotiation Process Stage One - Preparation Managers should find out as much as possible about The kinds of demands that might be made The composition of the opposing