Intercultural negotiation is one of many specialized areas within the broader field of intercultural communications. By receiving cross-cultural negotiation training, negotiators and sales staff gain an edge over competitors.

There is an argument that culture is irrelevant to cross-cultural negotiation. It holds that as long as a proposal is financially attractive, it will be successful. However, this is a naive way of approaching international business.

Let’s look at a brief example of how intercultural negotiation training can benefit the international business person:

There are two negotiators dealing with the same potential client in the Middle East. Both have identical propositions and packages. One ignores the importance of intercultural negotiation training believing that the proposal will speak for itself. The other undertakes some kind of intercultural training. He learns about culture, values, beliefs, etiquette, and approaches to business, meetings, and negotiations. Nine times out of ten the latter will triumph over the rival.

This is because 1) they are likely to have endeared themselves more to the host negotiation team and 2) they could tailor their approach to negotiations in a way that maximizes the potential for a positive outcome.

Intercultural negotiations are more than just how foreigners close deals. It is about looking at all the factors that can influence the procedures. To highlight this, some brief examples of topics covered in the intercultural negotiation training will be provided.

Eye Contact: In the US, UK, and much of Northern Europe, strong, direct eye contact conveys trust and sincerity. In South America it is a sign of reliability. However, in some cultures, such as the Japanese, prolonged eye contact is considered rude and is generally avoided.

Personal space and touch: In Europe and North America, business people often leave a certain distance between each other when they interact. Contact only takes place between friends. In South America or the Middle East, business people are tactile and like to get up close. In Japan or China, it’s not uncommon for people to leave a four-foot space when conversing. Contact only takes place between close friends and family members.

Time: Western societies are very ‘clock conscious’. Time is money and punctuality is crucial. This is also the case in countries like Japan or China, where being late would be taken as an insult. However, in South America, southern Europe and the Middle East, getting to a meeting on time does not carry the same sense of urgency.

Meet and greet: Most international businessmen meet with a handshake. In some countries this is not appropriate between genders. Some may see a weak handshake as a sign of weakness, while others would perceive a firm handshake as aggressive. How should people be managed? Is it by first name, last name or title? Is small talk part of the procedure or not?

Gift-giving: In Japan and China, gift-giving is an integral part of business protocol; however, in the US or UK it has negative connotations. When gifts are exchanged, should one give lavish gifts? Are they always reciprocated? Should they be wrapped? Are there numbers or colors that should be avoided?

All of the above, in one way or another, will have an impact on intercultural negotiation and can only be learned through intercultural training. Doing or saying the wrong thing at the wrong time, miscommunication and cross-cultural misunderstandings can have detrimental consequences.

Cross-cultural negotiation training builds on an understanding of foreign business etiquettes and approaches before focusing on cultural differences in negotiation styles and techniques.

There are three interconnected aspects that must be taken into account before entering into an intercultural negotiation.

The Basis of the Relationship: In much of Europe and North America, business is contractual in nature. Personal relationships are considered unhealthy as they can cloud objectivity and lead to complications. In South America and much of Asia, business is personal. Partnerships will only be made with those you know, trust, and feel comfortable with. Therefore, it is necessary to invest in building relationships before doing business.

Information in the negotiations: Western business culture emphasizes business proposals that are clearly presented and rationally argued using statistics and facts. Other business cultures are based on similar information but with differences. For example, visual and oral communicators such as South Americans may prefer information presented through speech or using maps, graphs, and charts.

Negotiation Styles: The way we approach negotiation differs across cultures. For example, in the Middle East, instead of addressing issues sequentially, negotiators can discuss issues simultaneously.

South Americans can become quite vocal and lively. The Japanese will negotiate in teams and decisions will be based on a consensual agreement. In Asia, decisions are usually made by the most important figure or the head of the family. In China, negotiators are highly trained in the art of extracting concessions. In Germany, decisions can take a long time due to the need to analyze information and statistics in great depth. In the UK, pressure tactics and the imposition of deadlines are ways to close deals, while in Greece this would backfire.

Clearly, there are many factors that need to be considered when approaching intercultural negotiation. Through cross-cultural negotiation training, sales staff receive the right knowledge that can help them prepare their presentations and sales pitches effectively. By adapting your behavior and the way you approach the negotiation, you will be able to maximize your potential.