International Business and Cross-cultural Communication
The increase in international business and in foreign investment has
created a need for executives with knowledge of foreign languages and
skills in cross-cultural communication. Americans, however, have not been
well trained in either area and, consequently, have not enjoyed the same
level of success in negotiation in an international arena as have their
foreign counterparts.
Negotiating is the process of communicating back and forth for the purpose
of reaching an agreement. It involves persuasion and compromise, but in
order to participate in either one, the negotiators must understand the
ways in which people are persuaded and how compromise is reached within
the culture of the negotiation.
In many international business negotiations abroad, Americans are perceived
as wealthy and impersonal. It often appears to the foreign
negotiator that the American represents a large multi-million-dollar
corporation that can afford to pay the price without bargaining further.
The American negotiator's role becomes that of an impersonal purveyor of
information and cash.
In studies of American negotiators abroad, several traits have been
identified that may serve to confirm this stereotypical perception, while
undermining the negotiator's position. Two traits in particular that cause
cross-cultural misunderstanding are directness and impatience on the part
of the American negotiator. Furthermore, American negotiators
often insist on realizing short-term goals. Foreign negotiators, on the
other hand, may value the relationship established between negotiators and
may be willing to invest time in it for long-term benefits. In order to
solidify the relationship, they may opt for indirect interactions
without regard for the time
involved in getting to know the other negotiator.
Clearly, perceptions and differences in values affect the outcomes of
negotiations and the success of negotiators. For Americans to play a
more effective role in international business negotiations, they must put
forth more effort to improve cross-cultural understanding.