Cultural_Differences_in_International_Business2

Cultural Differences in International Business International business negotiation is playing a more and more important role in modem society. We can see clear that there are great differences in international business negotiation. Specially, culture can influence negotiating styles in numerous ways, because negotiator who may come from another nation is different from us, in language, beliefs, and behaviors. Different cultures employ different ways of doing business. Nowadays, the world is developing quickly in the age of economic globalization. Under this circumstance, opportunities for international business negotiation are on the dramatic increase. Negotiators from different countries conduct business in different ways, which are influenced by their given cultures. Thus, international negotiators tend to act according to their own values shaped by culture. Negotiators from different cultures prefer different approaches to negotiate. So, there is a closed link between negotiation and culture. Negotiating in domestic culture is easier because the two sides are relatively familiar with each other's cultural background, but it is not the case for international negotiations. When the two parties at the negotiating table pursue their own interests respectively, problems often crop up and the potential for misunderstanding each other is great. Discussions are frequently hindered because of different communication styles. Even though negotiators are technologically well prepared, it is not so easy to reach a satisfactory agreement between negotiators across cultures. Negotiations can be easily broken down due to a lack of mutual understanding of the cultures. Culture affects negotiation even before negotiators meet with face to face. It conditions how they view the negotiation, a human activity based on communication. For instance, negotiation is viewed as a competitive game full of power confrontations while in another culture as a cooperative exercise in which harmonious relationships come first. Understandings of negotiation vary from culture to culture. According to Moran (1991, p. 94), there are two basic concepts of negotiation: strategic and synergistic. Americans tend to be strategic while Japanese is a reflection of the latter. They are quite different from each other. So even in the beginning, there may be difference in the feeling the parties have about negotiation. Culture forces people to view and value differently when meeting in negotiation. Aggressive implication of negotiation still remains in Japanese perception; while in the United States, it is quite agreeable method of solving conflicts Americans see negotiation as a competitive process while a collaborative exercise for Japanese. Americans negotiate a contract; Japanese negotiate a personal relationship. By understanding your counterpart's viewpoints of negotiations, negotiators can make appropriate strategies to arrive at an early agreement. During negotiation, culture difference is one of the factors that have important impacts on business negotiations. Therefore, learning the opponent's culture and having a good understanding of how cultural differences affect negotiation will be critically important if one wants to succeed in cross-cultural negotiations. Impacts of Cultural Differences on International Business Negotiation ABSTRACT: This article analyzes the impacts of cultural differences on international business negotiation. As we all know, different countries have different cultures. 'Culture is the collective programming of the mind which distinguishes the members of one category of people from another.' (Hofstede, 1991), Nowadays, the world is developing quickly in the age of economic globalization. Business contacts among nations get increasingly close, which has brought more and more opportunities to deal with businesses. actually, international business Negotiation is the best important part on international business, meantime, we also know that cultural differences have  many influence on international business negotiation, such as languages, manners, Privacy, Food custom, time, thinking, value and attitudes and so on, analyses of their differences as well as similarities so as to find out some effective ways to avoid or mitigate the adverse impacts the cross-cultural elements might produce on international business negotiation. From the eye of the writer, every time a language and cultural barrier must be crossed, there is a potential communication problem, which will largely decide success or failure of an international transaction; Successful international business negotiation certainly will benefit the development of the enterprises. During negotiation, culture difference is one of the factors that have important impacts on business negotiations; The failure of international business negotiation, which has seriously affected the smooth progress of exchanges, therefore,  we are very deep-seated need to find out the best negotiation way, avoid conflicts. KEY WORDS: culture differences, international business, affect, conflicts, elements, cross-cultural CONTENTS PART I Introduction          1.1Fundamentals of International Business PART II Cultural Differences       2.1 The difference of Privacy       2.2 The difference Of Time       2.3 Courtesy of the phrase difference       2.4 Food practices difference PART III cultural phenomenon of the reasons       3.1 Different values 3.2 language impact 3.3 The code and the conduct is not the same 3.4 Differences in thinking mode Part IV Negotiation Skills: correctly to deal with the cultural differences Part V How to negotiation and to deal with cultural differences in negotiation Part VI Conclusion PART I Introduction This article analyzes the impacts of cultural differences on international business negotiations. Nowadays, the world is developing quickly in the age of economic globalization. Business contacts among nations get increasingly close, which has brought more and more opportunities to deal with businesses. Successful international business negotiations certainly will benefit the development of the enterprises. During negotiation, culture difference is one of the factors that have important impacts on business negotiations. The failure of international business negotiation has seriously affected the smooth progress of exchanges. 1.1        Fundamentals of International Business As we know, everybody negotiates all the time, at work, at home, and as a consumer. We can say that since the beginning of times, or since the development of human language, there are negotiations made amongst humans. Negotiation as a significant social activity is a means of dealing with human relationships and resolving conflicts and has never been nonsexist. On the other hand, negotiation as a product of social competition has got its different meaning and content with the development of the times. “According to Dr. Nierenberg, was an example of “perfect” negotiation, which vividly manifests the following “fundamental principles” of negotiation: First, “negotiation” is an element of human behavior. It depends on communication, that is, it occurs between individuals. Whenever people exchange ideas with the intention of changing relationships, and whenever they consider for agreement, they are negotiating. Secondly, “negotiation” takes place only over issues that are “negotiation”. Thirdly, “negotiation” takes place only between people who have the same interest. Fourthly, “negotiation” takes place only when negotiators are interested not only in taking but also in giving, and finally, “negotiation” takes place only when negotiating parties trust each other to some extent.” ①We also can consider that business negotiation as a process in which two or more parties come together to discuss common and respective interests in order to reach an agreement. In my opinion, I think that the business negotiation is communion, not only business, not only negotiation, not only a meet. It is like a cultural communion, thinking communion, even country communion. Actually, when we are first time to see a person's, we often according feeling to know a person, maybe a one words, one behavior, a smiling face to know him or feel him, then we can truly understand him, this is the called first impression, if this impressions are very good, we can talk about fluency, but if the impression not very good, we can not interest in the negotiations, this is decide a good start or bad start, but also determines the success or failure of negotiations , how to give a good impression depends on whether have common hobbies, common values and common culture. culture which I think is more important. whatever, it is in the negotiations, or in international exchanges, we should respect each other's cultural differences, respect for cultural differences not only her personal respect, but also a culture of respect on both sides, it is reflects our sincerity in the negotiations, progress of the negotiation can smoothly, what effect are cause by cultural differences? PART II Cultural Differences Now, with the rapid development of economic globalization and the prosperity of international business, international business negotiations are a very common and important activity in the world on the dramatic increase. But during negotiation, it is all too natural that conflicts occur where both sides have different or separate views concerning their own interest or culture. Specially, conflicts over goals and procedures of negotiation are often intensified by cultural differences. To be fully prepared before the negotiation, negotiators should pay attention to the cultural differences such as privacy, time, Food practices, and so on. In addition to language differences, different cultures have differing values, perceptions and philosophies. All these elements will directly or indirectly influence the negotiation. Since culture does matter much in international negotiations, the first step is to focuses on impacts of cultural differences on business negotiations. With the world is developing, the Western society have more and more things into our vision, in this situation, transnational domain, cross-ethnic, cross-cultural will be growth in economic and social, it brought more and more opportunities to contact with Westerners, as this will deepen our understanding of Western society ,this is a good thing, but this is not a simple matter, because we are face to unfamiliar culture and the state, ways of thinking, living habits, behavior, and with our very different people, during affiliate with the people, the culture conflicts phenomenon. is not avoid . PART II cultural communication often appear in the cultural differences Early in the international negotiations, how to leave a good impression, on the other side of the smooth progress of the negotiations is extremely important, firstly, we must understand the cultural differences the two sides. Avoid the conflict on the start of negonation. Understanding cultural differences, and rational use of cultural differences , Beneficial contacts between people, it is advantage to development of a good start, it is the basis of  the exchange, cultural differences have a lot of kinds, it is impossible to describe here, we can only list four point: the difference of privacy, the difference of time, Courtesy of the phrase difference, Food practices difference. 2.1 The difference of Privacy Chinese people's privacy concepts are relatively weak, and that individuals should vest in the collective, together emphasize unity and friendship,  and therefore the Chinese people are often very willing to understand other people's feeling, the other side the peoples willing frankly talk each other about himself feeling, but personal privacy are very importance for westerners, emphasize personal space, they are not willing to mention their own affairs, even they do not like others person interfere. So on the issue of privacy, Chinese and westerners frequent conflicts between the two sides, such as: for the first met Chinese people often asked about each other's age, marital status, children, occupation, income and so on, Chinese people think this is an manners, but the West people think these problems are violated their privacy. 2.2 The difference Of Time Westerners time concept and the money concept are close contact, time is money concepts ingrained, they are very treasured time, in their life, they are often careful arrangements and plans the time, and He contracted habit of in time. In the West, to visit someone, we must advance notice or agreement, and indicate the purpose of visit, time and place, to be agreed later. Chinese people are more accustomed to the time the country, in the use of time is very arbitrary, generally chinese people are not same as Westerners strict accordance with the plan, Westerners often feel are not suited to this. 2.3 Courtesy of the phrase difference Chinese people are attach importance to modest, when communication with the people, and stress " for himself humble, respect for others, " as a virtue, which is a rich Chinese cultural characteristics courtesy phenomenon. When Other person are praise us, we tend to a self-criticism to show modest and polite. Western countries have not this cultural practices, when they are praised, they will pleased to say "Thank you" expressed acceptance. Because of cultural differences, we think that Westerners are too self-confidence, without modesty; When Westerners hear that the Chinese people deny other person’s praised or hear their denying their own achievements, even when their criticism of worthless, they would be very surprised that the Chinese people dishonest. 2.4 Food practices difference The Chinese nation has been called the fine tradition of hospitality. In communication occasions and banquet, the enthusiasm of the Chinese people often offers their cigarettes each other. Chinese banquet, even Put all the delicious on the table, the owner also say," please understanding " and the owner will use chopsticks help guest nip some foods, and persuade guests are more drink, more eat. In Western countries, people are stress respect for individual rights and privacy, and therefore they will not do help guest nip foods. What you want, you can eat and drinking. They did not care whether you would be drunk or not. PART III Cultural phenomenon of the reasons Since there are so many cultural differences, then conflict is inevitable. A cultural diversity have many reasons, in a word, eastern and Western cultures have different cultures, historical background, it will inevitably bring some thinking, behavior, and many other differences, even conflicts. 3.1Different values People's communicative competence is come from the process of socialization ,and it contact with values together. Every culture has own unique value systems, the system can help people distinguish between beauty and ugliness, goodness and evil, this is the people's philosophy of life, morality and behavior standards. But it can not existence depart from the specific culture, every culture have different criteria, this culture think that is good, another culture might consider bad, but their existence is reasonable in their own cultural systems, it does not think that this values are advanced, and the other values are behind. For example of eastern and Western cultures, in the Chinese culture, people are respected modest and ceremony, easterner are pursue “ make the best of things Take things as they come” , and do not like win over, while the social atmosphere is often blocked too prominent individuals, In Chinese culture, the collective orientation is the dominant position, pursue personal development was a serious individualism, it will be condemned.however, Western culture is very individualistic, “ make the best of things Take things as they come” be seen  a lack  go-aheadism of the performance, are lazy, incompetent thesaurus, the community and individuals are not allow. “For instance, Americans and Japanese tend to have a different view of the purpose of negotiations. Americans see the goal of negotiations as to produce a binding contract, which creates rights and obligations. But Japanese see the goal of negotiations as to create a relationship between the two parties, and the written contract is an expression of the relationship. What the Japanese see as a reasonable willingness to modify a contract to reflect changes in the parties relationship, Americans see as a tendency to renege. American insistence on adherence to the original terms of the contract, and point between East and West was particularly obvious. Western culture mode of thinking will pay attention of logic and analysis, Oriental culture will pay attention intuition, which is also the thinking of traditional Chinese culture characteristics. Due to the impact of this traditional culture, the Chinese people are often special attention to intuition, pay attention to the process of understanding the experience and feeling, The exchanges are often in this experience and feeling to "measure another's foot by one's own last." And compared with the Westerns' mode of thinking, Chinese people of this mode of thinking has obvious vague and ambiguous. In essence, Things are often overlooked individual differences, while some are wrong and will have direct impact on cross-cultural communication, a communication error. PART IV Negotiation Skills: correctly to deal with the cultural differences As we all know, different countries have different cultures. 'Culture is the collective programming of the mind which distinguishes the members of one category of people from another.' (Hofstede, 1991) According to the culture of different countries adopt different strategies in the international business negotiations, in order to ensure that negotiations can be expected to achieve, decision-making must based on cultural differences, To comply with international business etiquette and practices, respect each other's cultural practices, so negotiations will be guarantee successfully. For example: First, American consumers prefer the small light trucks. Toyota was provided products, sales of small trucks body are smaller, American consumers with a favorite by GM and Ford provide the rugged small truck competition, surviving gap, so far from satisfactory results. In 2002, when the Toyota Motor was show the SUV Pilot, Engineers finally agreed to the views of the United States, the development of the United States vehicle. Then and there, Japanese think Pilot only need two rows of seats, and the United States designers insist 4 t-greater loaded with three rows of seats of vehicles. Japanese reason is that consumers want three rows of seats, they can buy small trucks. In order to recover the Japanese stereotypes, the United States designers requested several Honda designers senior managers from Japan to the United States, spend a few days Those driving inspected the large Ford Expedition American family. The Japanese saw the mothers how to make use of this three rows of seats - when they saw the soccer, they can bring their kids and neighbors kids, and families will leave the third row position on her family's dog. So eventually, Honda company designers are agree with the views of the United States, it is to respect the culture of the United States. Second, the US-based music television network (MTV) was founded in 1981 , since 1987 it opened the MTV Europe, Taiwan and so on, on the outside of the North American expansion. In 1995, MTV Network was use of localization strategy, the different parts of Western Europe was made different feed. Now is divided into eight categories: one part are the United Kingdom and Ireland; Germany, Austria, Switzerland as a class; Scandinavian region as a class; Ital