International Business Communications
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The company should find out as much as they can about the social customs of the countries that it is trying to business with. The etiquette of these countries can have a big impact on the success of the business negotiations, although there is not a set of written rules to abide by there are some unwritten rules that must be acknowledged to do business with these countries. Avoid being embarrassed at any time because in the Asian culture, “losing face” is a big embarrassment and this can cause a loss of respect in this culture. The respect of personal space is another aspect of international business etiquette that is crucial to business. Trust is a big part of the Asian social culture, to do business with any of these Asian countries a good relationship must exist. This relationship to some extent will enable the Asian businessman to trust their western counterpart. (9781256766223 – Intercultural Business Communication, Fifth Edition | CourseSmart Solutions:, 2012) The expectations of the relationship and trust factors are a big difference between the Asian and American culture.
The Asian countries view contracts as not as binding as the western countries do. The Asian businessman would not expect to comply with all of the provisions of the contract if certain circumstances have changed or was in their best interests. To the Asian countries, the contract is a place to start the discussions about the business dealings. The Asian businessman is more likely to be more comfortable with a contract that is less detailed and leaving some matters to be resolved through discussions when they arise. (9781256766223 – Intercultural Business Communication, Fifth Edition | CourseSmart Solutions:, 2012)
In preparation for the negotiations, the site for the negotiations to be conducted needs to be thought-out and be prepared for the culture of the country that is being negotiated. The site should include a place that would make the business team from the countries involved feel comfortable. The selection of a negotiation team is the next step in the negotiation process. In this step the number of the team, age, gender, rank, and expertise must be carefully considered. If possible, it is also a good idea to have a member of the team to either be close to the target culture or have a member that has spent time in the target country. Keeping the same team throughout the negotiations is very important to the Asian businessmen because of the relationships that are made between the teams. (9781256766223 – Intercultural Business Communication, Fifth Edition | CourseSmart Solutions:, 2012) Building relationships between the teams seems to come up a lot in the negotiation process and seem important to U.S. companies, but is very important to the Asian companies. The opening talks with the target countries the top-level executives need to be present. The discussion should be moved to an informal location that gives a sense of equal ground, such as a restaurant. The negotiation should start with the highest-ranking official from the U.S. Company starting the negotiation process, as hierarchy is a part of the culture of the Asian countries. In the intercultural negotiation process, the negotiator has to know the negotiation model used by the target country. The negotiation practices for the Japanese companies are based on the keiretsu system. (9781256766223 – Intercultural Business Communication, Fifth Edition | CourseSmart Solutions:, 2012) South Korean companies typically being with extreme positions and are willing to compromise to assure a win-win situation.
By using the win-win negotiations concept for successful negotiations, the approach for a win-win agreement should be pursued. This means that the correct through effective use for framing, research and the building of relationships at all the right levels is necessary. The win-win concept is a negotiated agreement that is reached and cannot be improved on by any further discussions. By using this concept, all of the options have been explored and exploited and there is nothing left for negotiation. The winning strategies that should be used include asking smart questions, playing fair,