Six Ways to Negotiate with Other Cultures



Six Ways to Negotiate with Other Cultures

Nov-Dec 2008  Print


Did you know that 80 percent of people prefer to understand complex situations with visual aids? 

Tools such as pictures, graphs and models can potentially sway an audience to adopt your point of view.

You can persuade the other 20 percent of your audience by paraphrasing them, acting confidently, or simply waiting until they have finished speaking.

Of course, these methods do not exist in a vacuum as negotiation takes place amidst a variety of other factors including personality, attitudes, appearance, intelligence and other historical influences.


How to Start the Perfect Cross-Cultural Business Meeting

Another factor that can greatly impact the success of negotiations is cultural difference.

Australia is in a unique position because it is closely aligned with two of the world’s economic powerhouses; China and the US. Despite this, many business people have little appreciation for the cultural differences that exist.

Following are six behaviours that can contribute to successful international negotiation;

  • Time

Punctuality is universally important to varying extents. Many Western societies are punctual because it minimises money wasting. Punctuality is particularly important in Japan and China where being late can be seen as an insult. South America, Southern Europe and the Middle East regard punctuality as less important and it’s not unusual for business people to show up late for a meeting.

  • Greetings

After arriving, the greeting is crucial because it immediately alerts both parties to attitude and personality; both of which will contribute to the negotiation. Most people in international business will greet with a handshake. However those from the Middle East – particularly Muslims – will not make body contact with the opposite sex. A smile means friendliness in most cultures however in some Asian cultures, smiling is reserved for informal occasions and may be offensive when used to commence a formal business meeting. Be aware of how to present business cards and bow when meeting with those from Asia.

  • Eye contact

In the US, UK and much of Northern Europe, strong eye contact conveys confidence and sincerity, both of which are important in negotiations. In South America it is a sign of trustworthiness. However in some Asian cultures such as in Japan, prolonged eye contact is considered rude.

  • Personal space

In Europe, North America, Japan and China, business people will usually leave a certain amount of distance between themselves when interacting. Getting too close may cause the other parties to become frustrated or defensive during negotiations. In South America and the Middle East, business people are tactile and like to get up close. Not doing so may result in a perception of distrust.

  • Gift-Giving

In Japan and China, gift-giving is an integral part of business negotiations however in the US or UK, as in Australia, strict corporate governance laws mean it can be seen as bribery. In China, it is very important to reciprocate gift-giving so be prepared; it may be considered rude if you can’t. In Japan, gift-giving is central part of business meetings and gifts can be expensive – again, reciprocation is very important. Presenting the gift with both hands is also important. And in Saudi Arabia, gifts are only exchanged between intimate friends.

  • Commencing the negotiation

Those from the US are often accused of short-lived friendliness when meeting in a business context. If negotiating with Americans, mirror this by sharing a greeting and then diving straight into the negotiation; they will respect your assertiveness and appreciate they you are not wasting their time. In China, be prepared for long meetings and lengthy negotiations – some negotiations may go for up to 10 days.

Cultural differences in negotiations are part of DDLS’ two day Negotiations Skills training course. To book this course, please contact DDLS on 13 12 01.