Intercultural Negotiation

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Summary
Introduction 2
I. Intercultural Negotiation 2
1. Main factors in international negotiation 2
a. Negotiation Objectives 2
b. Relationships 3
c. Decision making 3
2. Negotiation Techniques 4
3. The final stage in Negotiation 5
Canadian Timber vs. Japanese culture 6
1. Summary of the case. 6
2. Analysis: What went wrong? 7
a. The Canadian point of view vs. the Japanese point of view of the situation. 7
b. Short-term orientation vs. Long-term orientation. 9
c. Individualism vs. Collectivism. 9
d. High context culture vs. Low context culture. 10
e. Proximity in Japan vs. Proximity in Canada. 10
f. Main other mistakes done by Canadian Timber. 10
3. Recommendations. 11
Case: The Danone-Wahaha Joint Venture in China 12
1. Summary of the case. 12
2. Analysis 13
a. Negotiation preparation 14
b. Relationship Building 16
c. Power Distance 16
d. Individualism/Collectivism 17
e. High and Low context culture 17
f. Masculinity/ Femininity 18
g. Uncertainty Avoidance 18
h. Long term orientation 18
3. Critics 19
Conclusion 19
Bibliography 19

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Introduction

It is a huge challenge to understand the other domestic negotiator party; however it is much more difficult to understand the objectives and strategies of an international negotiator party. For that reason it is very important to prepare for any international negotiation by collecting as much information as possible about the other party not just from business perspective but from cultural, social and personal perspective as well. Simply the more information you have the more advantage you get on the negotiation table. Lack of knowledge about the other party can lead to the failure of the negotiation without even starting it.
In this work, firstly the terms related to the intercultural negotiation will be explained...