We are probably most familiar with the process of cross-cultural negotiations in our experience of current affairs. Hardly a day passes without some mention of high-level negotiations attempting to resolve inter-country differences, or conferences being held to try to obtain an international consensus on issues such as environmental pollution, whaling and so forth.

Even within EU-based negotiations we frequently reveal differences of opinion, which have their bases in national cultural differences, such as the centralism of France versus the ‘laissez-faire’ approach of the British government towards industrial and fiscal policy.

The politicians involved in all these settings have to agree, not only on action, but also over some deep-seated aspects of national pride and national culture through a process of compromise and diplomacy.

In business, similar problems occur. Negotiation of an agreement is subject to many cultural rules as well as commercial ones. This is an area where cultural differences can play a significant part. Arriving at agreement is a complex process and many factors must be explored by the parties concerned, while maintaining an understanding of the negotiating issues and continually checking for mutual understanding.

Many specialist books on negotiating skills have been published; several use what we could classify as a ‘cookbook’ approach, providing recipes for the dos and don'ts of negotiating. These tend to provide a surface approach to understanding cultural differences. Books, which look at doing business in various countries, provide more information about the country but tend to generalize about the negotiating processes. Finally, there are those books which seek to explore the cultural heritage of a country, as well as providing a goodly measure of business advice. An example of this is represented by Schecter’s book on Russian Negotiating Behavior. Schecters’s book highlights the importance of history and country-related historical development in understanding the background cultural environment of negotiating.

In international business, there are many agreements to be negotiated, drafted, signed and finally implemented: supply of services and raw materials, supply of marketing and design expertise, strategic alliances and joint venture agreements, export and distribution agreements, to mention just a few.

What makes cross-border negotiation different from purely domestic negotiation is that cross-border agreements are much more complex because the negotiators must deal with varied frameworks, such as legal and political pluralism, currency fluctuations (and other forms of economic risk) government intervention, instability and change, ideological and cultural diversity. International business negotiations involve interactions between managers from disparate cultures. Cultural norms and differences between the negotiators have a significant influence on how they behave throughout the process.

What makes cross-border negotiation different from purely domestic negotiation is that cross-border agreements are much more complex because the negotiators must deal with varied frameworks, such as legal and political pluralism, currency fluctuations (and other forms of economic risk) government intervention, instability and change, ideological and cultural diversity. International business negotiations involve interactions between managers from disparate cultures. Cultural norms and differences between the negotiators have a significant influence on how they behave throughout the process.

Gesteland (1999) suggests that there are two golden rules in international business:

1. The seller is expected to adapt to the buyer
2. The visitor is expected to observe local customs,

There are exceptions, of course, but these rules have fairly general application. Be yourself, advises Gesteland, but also be aware of local customs, traditions and habits, adapting to them as necessary.

There are exceptions, of course, but these rules have fairly general application. Be yourself, advises Gesteland, but also be aware of local customs, traditions and habits, adapting to them as necessary. In this section, we will explore the process of negotiation in an international context , outlining important elements of negotiation behaviour. A good deal of information is available from Gesteland’s book and from

"Executive Planet website - <http://www.executiveplanet.com/index.php?title=Main_Page>"_ - which contains good country-specific and detailed information on several relevant factors.

How might cultural differences impact on negotiations? Make a list of points now.

Let us take the example of timing and scheduling as an example.

Gesteland (1999) suggests that people perceive time very differently across cultures; this view is comparable with both Trompenaars’ and Kluckhohn and Stodbeck’s dimensions of temporal activity. Hall (he of the high and low context approach to culture ) calls those cultures in which timing and scheduling matters a great deal, ‘monochronic’ examples being Nordic and Germanic Europe, North America and Japan. Polychronic cultures value loose scheduling and have a relaxed approach to timing, examples being the Arab world, most of Africa, Latin America and south and south-east Asia. The remainder can be described as moderately monochronic! We are reminded that this is a very general description; in fact there are subtle differences within countries, as well as between them. Northern Italy, for example, is more monochronic than the south of the country, similar differences existing between northern and southern Spain.

Knowledge of differences and, much more, ability to adapt to differences without affecting performance are vital. Arrive late for a business meeting in Germany and you will create the impression that you will be also late in delivering any promised goods or services. This type of culture shock can be avoided with some careful planning and intelligence gathering beforehand (see the slide on preparation and planning for negotiations below). Living and working in a monochronic culture perhaps makes us less tolerant of situations in which we are kept waiting; the difficulty in making a change of mind-set to deal with foreign situations takes more than mere knowledge of the differences in behavior - we have to prepare ourselves

Visit "Executive Planet website - <http://www.executiveplanet.com/index.php?title=Main_Page>"_ and/or alternatively http://www.bspage.com/1netiq/Netiq.html and carry out a cross-country comparison of timing, classifying your selected countries according to Hall’s view of time-dependent and time-relaxed countries.