Imagine being in a long line of people waiting for a taxi at the busy airport in Paris, France. People swarming everywhere. Traffic swarming everywhere. Car horns going off. And then you hear such a large commotion you think it is yet another bomb scare. And it's close, right up at the front of your taxi line. But then you hear people starting to laugh as well. What happened?
It was only someone who tried bargaining for the price of his ride before he got inside the taxi.
Different cultural practices in negotiation tactics
In other countries the locals would laugh at anyone who did not bargain for the price of the ride.
Negotiation tactics differ from country to country. In some cultures clients are expected to negotiate over things that would be totally unacceptable in other countries. Some cultures get upset or angry by things that are totally acceptable in other cultures.
Different cultures simply have different approaches to when it comes to negotiation.
This can be intimidating when you travel to a new country to negotiate for business. And even more so if it is your first time.
It is very important to know what is culturally expected of you when it comes to negotiation.
If you are just starting out in developing your international markets, it is wise to do some homework and identify the standard expected negotiating habits in the country you are traveling to.
Here is an 8 Point Guideline For Beginners:
If you find yourself on your own in a country where negotiation practices are different to your own, there is a strategy to follow.
Prior to your negotiations
Do your research on what will be expected of you. Define your schedule, and what you are expected to wear and bring. If you are a woman, be sure to verify standard practices beforehand.
Are there any standard negotiating habits?
Remember to ask for advice prior to cross-cultural negotiations. If you feel you will be in a different environment than you are used to, arrange for local representation when you can. Some large multi-national companies hire local company representatives to facilitate all business procedures in certain countries in the Middle East and the Far East.
A local third party there to tell you if you are making any cultural blunders will give you a certain peace of mind.
Prior research helps, but even so, it is not always easy. You will also need to keep your own behavior and attitudes turned towards your negotiation. This is where the following 8 points are important.
Best Practices During Your First Cross Cultural Negotiation
1. Ask and find out what is expected of you.
2. Explain that you are look forward to the business opportunities open to both of you.
3. Explain that this is your first trip and you have not done business in their country before.
4. Apologize if you do or say something that seems to be out of place.
5. State your good will and that you do not mean to do anything awkward.
6. Ask to be told or shown what to do.
7. Continue to show your desire to proceed in the negotiations.
8. Continue to say that your look forward to doing business with them and learning more about their culture.
Keep this guideline in mind during your negotiations. But do not go overboard. Overly stating your enthusiasm or apologizing incessantly can be destructive too.
Use this guideline as a gentle reminder to stay tuned to where the other party is at. If you feel in any way that you need to refer to one of the points above, do so, and continue after feedback.
Cross cultural communication is a process where you adjust your communication a little and learn to meet another culture in the area where you both feel comfortable.
If you follow these guidelines for your first cross cultural negotiation, the minefield of possible cultural blunders will no longer be a minefield. Your first cross cultural negotiation will simply be a first step in the process of adjusting to another culture.
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