Most researchers differentiate five separate steps in the negotiating process: preparation, relationship building, information exchange, persuasion and, finally, agreement. In an international negotiation, the steps are the same, but they are influenced by the nature of the culture with which you are negotiating. Therefore, the first step to a successful international negotiation is to understand the culture that you will be dealing with. Be especially aware of how that culture’s style differs from your own and be prepared to deal with it.

Americans tend to question and challenge points presented at business meetings. We are quick to jump into a presentation or business discussion and stay with it long into dinner and afterward. We tend to be direct and to focus our efforts on completing the task at hand. We use a competitive and confrontational communication style. Americans usually operate under time pressure, which sometimes leads us to betray our impatience during protracted business meetings. In general, we approach a meeting with target deadlines for signatures and closure. We tend to assume that one individual, with the approval of upper management, can have full control of the decision-making process.

When Americans make an agreement, it is usually the value of the deal that makes it attractive to them. Americans are less concerned about from whom they buy their products and services, and more concerned with cost, features and value for the money. We tend to approach a product or sale from a marketing standpoint, trying to weigh the value and opportunities the products offer our customers. When buying product packages, Americans will keep trying to improve the deal with features or enhancements before making their final offer. Americans believe in contracts and adhere to their terms.

Researchers who have studied negotiating:European styleEuropean negotiating styles note significant differences between Americans and Europeans, and even among the Europeans themselves. They suggest that the British use a "soft sell" (less direct) compared to Americans, while the Germans use a "hard sell" (more direct). The French are confrontational and welcome competitive debate; the Italians must develop interpersonal comfort before negotiating. The styles of what many business people consider the "big four" European cultures (France, Germany, Britain, Italy) are described in more detail below.

The French have been described as less team-oriented than the other "big four" European cultures, so negotiating at the individual level may be preferred. However, if there is a French negotiating team, there will most likely be a leader. Most people who deal with the French tend to agree that they are more argumentative than Americans in every aspect of business, including the negotiation, so be prepared. Although Americans will participate in debate if it is rational and necessary to clear up differing opinions, they prefer to strive for cooperation. The French, however, view debate as a stimulating part of a negotiation.

Americans will tend to work more quickly than the French and desire closure quickly, while the French will be more patient. Important negotiations will be treated as formal meetings in France. This may mean more elaborate openings than Americans typically are accustomed to, however creative ideas that are well-presented and well-researched are still positively received. Preliminary steps of a negotiation may include some intellectual debate and discussion to get a feel for your capabilities, although Americans may view these techniques as argumentative and unproductive. Expect conflict and challenge during the negotiation, and expect to defend your proposals. The French tend to be stubborn, and they may push points to an extreme. Details are important, but tend to be dealt with at the end of the negotiation.

Germans are viewed as prepared, serious, and well-organized about negotiations and are seen as the toughest of the Europeans in their negotiating stances, and the least influenced by interpersonal issues. Germans try not to allow relationships to interfere with the job. For this reason, in the preliminary stages of negotiations, German managers may appear to be cold and impassive. They will be very well-prepared and will focus on the technical aspects of the discussion, expecting fully-detailed data responses. Because of this, sessions might become quite long.

Negotiations with Germans will be formal and will follow an agenda. Germans will select negotiators who are knowledgeable on the subject under discussion and will frequently include technical staff. They will expect proposals that are technical in nature, with details spelled out. They will expect you to have researched their products and their markets thoroughly.

Germans are not known as risk-takers and so will be more cautious and slower than Americans in business sessions. Despite this, decisions do tend to be made in the meetings. They want to invest in sound projects that have a good chance to show a profit. In addition to high quality, they will expect solid warranties and excellent delivery dates. Conflict during negotiation is viewed as inadequate preparation, which leads to confusion. Emotional outbursts and frequent interruptions are not appreciated. The Germans prefer discussions to be direct, detailed, and precise. They will tell you exactly what they want and will have planned counter arguments and back-up arguments. However the Germans will, more than other European cultures, look for common ground on which to make progress.

Decision-making with the Germans will take more time than Americans are used to, since they will want to analyze all the details of the presentations and discussions. It is a good idea to have copies of all materials, brochures, technical data, etc., as well as the minutes of the meetings, available for review. Top management must approve decisions, but once approved the Germans will tend to stick to the final agreement and not reopen the closed deal for re-negotiation later.

Most Americans feel quite comfortable negotiating with the British, probably due to the language and cultural similarities between their countries. When it comes to business negotiations, the British are also similar to Americans in that they share concerns for bottom-line profits and short-term results. However, their negotiating styles are different: The British are open about their opinions, but they will present them in a less direct manner, emphasizing courtesy, formality, and tact. The British will be less likely than Americans to show their true emotions, so it can be difficult to read their responses. Everything is very reserved and understated in Great Britain; people there try to conduct business in a proper manner without offense or imposition, and will use humor to ease any tensions that may arise in a business discussion. Americans will tend to focus on getting the job done quickly, and tend to be much more blunt and straightforward, putting everything on the table at once. The British are risk-averse and will therefore be more cautious in negotiations, favoring security and status quo.

Interpersonal relationships are very important in Italy. Italian executives need to feel that they can get along with you in order to do business with you. At the same time, it is important to note that Italian businesspeople are confident, shrewd, and competent negotiators. Initial negotiations with Italians can include a lot of casual talk and positioning tactics. These initial getting-to-know-you tactics will last until they feel comfortable; then the negotiation process will start.

It is important for the American executive to realize that negotiators are quite different in Italy than in other countries of Europe, although the specific manner in which the negotiation is conducted depends on the person’s individual style. Italian executives make take a long time to get to the point, interrupting each other and maintaining multiple conversations at once. In a formal negotiation, the lead negotiator may spend a great deal of time building an emotional appeal with some theatrics thrown in. For the most part, you will need to sit through the soliloquy until it is done, and this may take some time. As far as the Italians are concerned, they are giving you the benefit of a complete understanding of their position, both the tactical and the emotional. If you are planning to give a presentation during a negotiation, make sure it is organized, clear, and to the point, but with polish and dramatic appeal to your audience. Concluding a negotiation with Italian managers can go quite quickly. However, be aware that identifying the decision-maker is not always easy. Many times those whom you might believe are there to close the deal are merely there to watch the meeting or offer more variables.

Asians use the business meeting for information gathering, for presenting ideas, and for developing consensus. Much of the material they want to cover at the meeting can therefore seem obvious or even intrusive to the American business executive. While the American concept of privacy is growing in Asia, it still does not meet Americans’ expectations. For example, you may be asked very personal questions, such as your age or your salary.

Business privacy is of even more concern. Most Asian firms know everything about their competitors’ activities within the region. Accordingly, they may ask you questions about competitors that you do not wish to answer. Try to deal with these issues tactfully without causing a loss of face. These questions are actually efforts by your Asian associates to get to know you and their competition better. It is important for Asians to trust the people they work with first, before the quality and reliability of the products are taken into consideration. However, they may also want to understand your competition, so you must be tactful in how much information you share.

The Chinese can be unexpectedly blunt and direct in their dealings with Americans, while the Koreans can be very emotional. The Koreans have the strongest, most visible pride of the four "Asian tiger" countries (Hong Kong, Singapore, South Korea and Taiwan), and a discussion with Koreans can take a turn for the worse if they feel you have issued them a challenge. The Chinese tend be more forthright, so their business dealings may appear more aggressive than those of the Koreans.

In general, Asian cultures do not resolve issues or make decisions at the negotiating table. This is done in between or after meetings. It is customary for them to informally and unofficially drop hints and make inquiries outside of the meeting rooms during breaks and in the evening. When things are not going well, they may deliberately delay proceedings through a variety of tactics rather than admit that something is not working out, and may even report that things are going well when they are not. You must therefore exercise caution before accepting anything at face value.

Asians do not look upon a contract as the end of the negotiations. To them it is just the beginning of a relationship that will change continuously as it is reevaluated and renegotiated. Frequently, it is after the agreement is signed that problems arise. In their desire to ensure harmony, Asians may give answers they believe Americans want to hear, rather than true answers. This can prevent you from obtaining a realistic picture of what is going on and lead you to assume that the deal has come to closure. Complications arise when you proceed as if the deal has been closed and the Asians continue to explore more areas for compromise. A savvy businessperson will therefore continue to assess whether every aspect of the business discussion has been accepted to ensure that both sides are comfortable with each point of the agreement before moving on to the next.

Americans and Chinese usually send only one or two people to business meetings to be responsible for the negotiations and decisions. Americans expect that this limited staff can cover all the issues, and often these participants are prepared to present terms and conditions to close a deal with their Asian counterparts. The Koreans and the Japanese generally bring a team of people who are adept in their field of expertise so that all the information is directly at hand. It is very difficult for these cultures to understand how one person could be knowledgeable enough to represent all the corporate disciplines and answer all the possible questions that could arise. Americans likewise may wonder how Asians can afford to send so many staff members and allow them to be away for so much time. If you cannot bring your team along, offer to carry back questions you can’t answer or locate the needed information by faxing, e-mailing, or phoning the head office.

When you are negotiating with Asian counterparts, you will likely need to adjust your style to be more compatible with the culture in which you are working. For most Americans, this means toning things down. For example, Asian companies are often hierarchical, but every level has input in the final decision. In contrast, Americans tend to focus on the key decision-maker, such as the president, to ultimately endorse our products or presentations. Americans have less regard for hierarchy than our Asian counterparts, so will often try to jump rank to quickly talk to a high-ranking decision maker. However, using this American style in Asia is not advisable. Instead, you should operate within the Asian system and gradually elevate your ideas from lower to upper management.

Americans tend to talk more than listen. We use business meetings to brainstorm, throwing out ideas and examining them on the spot. Asians, on the other hand, use business meetings to share information on issues that have already been resolved. Working with Asia can accordingly be frustrating if you work on short deadlines — or rewarding if you have patience and endurance. Try to have the patience to listen to your Asian counterparts and watch their body language as they speak. Often a yes is used simply to acknowledge your statement. Americans often misinterpret this as solid agreement and become confused later when they find they have not closed the deal.

Work with your Asian counterparts, not against them. Focus your negotiations on how both of you can benefit. And finally, know both your products and theirs. Knowing your product line and understanding how it can fit into their strategy will help strengthen your position. View the negotiations as a key to establishing and retaining a long-term relationship. Take care to work out any points of disagreement that may arise during your discussions.

 

• Prepare an agenda. Find out who will be attending, and match them rank for rank. Assign someone at the meeting to take notes. Review the notes at the end of the meeting to make sure both sides are in agreement. Make copies of the notes so that the appropriate parties can follow up on any items that have not been resolved or which need more discussion. This allows you to address any concerns or miscommunications immediately.

• Use the first meeting to build your relationship and establish a working rapport. It is best not to launch directly into your business proposal.

• Make sure that you are well-prepared before entering into negotiations. Asians in general will be prepared to cover many aspects of the business with you. Have a clear understanding of what you want, your must-haves, give-aways, and your fallback position. Remember that "saving face" is an important concept in Asia. Instead of saying no to your request, your Asian business contacts may say "yes," even if they don’t mean it, to avoid upsetting you.

• The best approach is not to ask yes-no questions, but rather open-ended questions that will initiate some dialogue between you.

• Observe your Asian contacts closely, since you may be able to spot nonverbal clues that indicate they do not agree with a point. A "yes" response or a smile may mean merely "I hear and understand you." Draw out the discussion further to find out what their position is.

Latin Americans generally prefer to conduct business negotiations face to face. The personal aspects of business – developing and maintaining relationships -- are very important here, and the hard, direct approach frequently associated with the U.S. negotiating style does not work well in any country in Latin America.

Most Latin American business people prefer to work with people they consider friends, rather than people with whom they have not established rapport – even if the strangers have a good deal to offer. In this scenario, the person who is viewed as most trustworthy, or even just better known, will get the business.

Negotiating in Latin American countries generally takes longer than in the U.S. and will include many more dialogues and interactions. It is important to position yourself as a trustworthy, sincere businessperson. Sensitive situations such as disagreements should be dealt with delicately as Latin Americans are less direct than Americans and they would not put you nor expect you to put them in an embarrassing situation.

Argentineans prefer to conduct business face-to-face rather than by telephone. When you assemble the negotiating team, make sure your team includes someone with a good working knowledge and understanding of Argentina, the Spanish language, and local customs, as well as of their own business and the specific project.

The decision-making process in Argentina is centralized and top management will most likely need to provide final approval. Understand who is at the table, how much authority they have, and when and who needs to approve the agreements. Argentineans tend not to bargain, but prefer a win-win approach that provides mutually acceptable terms for both sides. This culture will value a relationship as part of the business agreement. In general the negotiations will be held in a meeting room. Subordinates will arrive early and higher status executives will arrive later, usually with a personal secretary and an interpreter; knowing this can help you identify the key negotiators. Negotiations are started with welcome remarks from both sides initiated by the host.

Other points to keep in mind in these negotiations:

• Argentineans tend to present a united front at the table and defer to a key negotiator.

• Often the main spokesperson is the only person who speaks during the meeting; the rest of the team remains silent.

• Argentineans emphasize persuasiveness and use friendship to secure concessions. You should respond to this by separating the personality from the issue.

• Temper may be used as a tactic to secure concessions. Be patient and calmly get the negotiations back on track.

• Argentineans will use contracts and have lawyers and accountants review them in depth.

Brazilians view a negotiation as a relationship and a long-term agreement; therefore you need to spend time building rapport with your colleagues. The negotiation process will take longer in Brazil than the U.S., although it will be somewhat faster in the major city of Sao Paulo. When you select your negotiation team, keep in mind that the Brazilians will send a person who is well-educated, informed on the issues, and well-versed on American protocol.

Keep in mind:

 

• Many Brazilian firms are privately owned, therefore it is important to understand with whom you are conducting business and who will be making the decisions.

• Brazil is a hierarchical society, therefore it is important to understand how decisions are made. Decisions may be made at the top and these participants may not be present at your meeting. Therefore don’t push for a result but rather understand what the other side needs and who needs to participate in the decision.

• Compared to other Latin American countries, Brazilians are more individualistic and have less concern for team consensus. You may be faced with one person trying to "out do" the other.

• Brazil is a risk-averse culture so many times you will be faced with an attitude of playing it safe rather than taking risks to accomplish the goal. Also, power and prestige may come into play.

• Agreements will be confirmed with a handshake and a formal agreement.

• If this is your first time working with Brazilians, you may want to use an agent who is adept at Brazilian business, contracts, and culture.

Mexico is a relationship-oriented culture in which family is a primary concern. Take the time to discuss and develop relationships with your Mexican counterparts. They may want to discuss their family and inquire about yours. They will expect a fair amount of socialization in a relaxed manner before proceeding into business, so plan some socialization time into your schedule. In addition, plan to spend more time at meetings than you are accustomed to in the U.S., although this will differ among locations in Mexico. Some American business people suggest that scheduling two meetings per day is the maximum recommended in Mexico. Mexican laws and culture are different than in the U.S. If it is your first visit it is worth hiring a professional advisor to help you through the business process. Choose your advisor carefully and get strong referrals on their work. Your advisor should be well-versed in Mexican accounting, legal practices, and customs.

When negotiating with Mexicans, also consider:

• Mexicans do not rush into business, so you need to slow your pace and not put all your cards on the table right away.

• Mexico is an insular community; therefore developing and keeping relationships are important. If you offend someone it may carry over into business with others who appear not to be related.

• If the business situation does not work, exit humbly and quietly so that you don’t hamper future negotiations or other business networks.

• Don’t bargain during negotiations. The negotiations are much stronger if you work on winning solutions for both sides.

• Be prepared to discuss items not on the agenda. While an agenda is important in a negotiation, Mexicans may deviate from the topics. Be flexible and when appropriate gently ease back to your key items.

• Mexican negotiators have been reported to posture during a negotiation session. Keep this in mind and don’t react negatively to the behavior, but rather try to be sensitive to what is being expressed.

   

This is part 2 of an excerpt from International Business: A Basic Guide for Women, copyright Tracey Wilen, 2001. Part 2 will discuss cultural differences in negotiating styles. Dr. Tracey Wilen is the author of International Business: A Basic Guide for Women (2001), Europe for Women in Business, and co-author of Asia for Woman in Business, Doing Business with Japanese Men, and Doing Business with Western Women (Tokyo Only), All books are available at www.amazon.com. She has published numerous articles, chapters, and essays on International business. She holds a Doctorate and MBA in International Business. Tracey is in Business management at Cisco Systems Inc. She is an adjunct professor for MBA programs for San Francisco Bay Area universities and teaches corporate seminars (Apple Computer, IBM, Hewlett Packard) on International business topics. She is a frequent guest on national and television shows radio (CNN, FNN, ABC, NBC, CBS) and a speaker at universities (Stanford, UCLA, UCSF) and business groups (WITI, NAWBO,AMA)