RANGAMATI SCIENCE & TECHNOLOGY UNIVERSITY

Assignment On: Negotiation process

Course Name: Corporate Conflict Management
Course Code: MGT-509
SUBMITTED TO
Farha Sultana
Assistant Professor
Department of Management
SUBMITTED BY
Md. Jamelur Rahman
Reg. No: 2018-21-32
Roll No: 32
Submission Date: 07 August 2021
Negotiation
Negotiation is a process of resolving a conflict between two or more parties whereby both
or all parties modify their demands to reach a compromise acceptable to all.
Negotiation is a process of setting up an achievable result, the views of both parties on what
constitutes the ideal result.
Types of negotiation
There are four types of negotiations
1. Distributive
2. Integrative
3. Attitudinal structuring
4. Intra-organizational
Distributive Negotiation
It is a competitive negotiation strategy. That is used to decide how to distribute a fixed
resource such as money. The parties assume that there is not enough to go around, and
they cannot "expand the pie," so the more one side gets, the less the other side gets. Since
the opposing goals, interests or preferences are at stake, the most effective method of
attaining one's objective is to try to secure concessions from the other party, though
implicitly, one is willing to grant some to the opponent. The bargaining process ends in win-
lose outcomes.
Integrative Negotiation
This is a cooperative approach to negotiation. The negotiators understand the importance
of all stakeholders winning something and so try to find out a wide range of interests to be
addressed and served. They follow a strategy of collaboration that leads to "win-win"
solution to their dispute. This is known as interest-based negotiation where the parties
focus on their individual interests and the interests of the other parties to find a common
ground for building a mutually acceptable agreement. They understand that negotiation is
not a zero-sum game but a way to create value for all the parties involved. This strategy
focuses on developing mutually beneficial agreements based on the interests of the
disputants. It helps in building long-term mutually beneficial relationships.
Attitudinal Structuring
It is the process by which the parties seek to establish desired attitudes and relationships
[14]. During the period of negotiation, parties express different attitudes like. Hostility,
competitiveness or cooperativeness. A third party mediator can be used to manage the
relationship between two parties so that working relationship can be maintained between
them.
Intra-organizational Negotiations In Intra-organizational negotiations, each set of
negotiators tries to build consensus for agreement and resolve intra-group conflict before
dealing with the other group's negotiators [14]. The two groups, before coming to the
negotiating table, have to first sort out the issues, attitudes and practices among
themselves. It is necessary for successful negotiated agreement.
NEGOTIATION PROCESS Negotiation process consists of certain phases. They are-
1. Preparing phase( information gathering)
2. Developing and selecting strategy (setting the ground rules); 3.Opening moves (exploring
and proposing the matter);
4. Bargaining and problem solving; and
5. Closure and implementation of the negotiation process.

Preparing phase

In the preparation and planning stage, you (as a party in the negotiation) need to determine
and clarify your own goals in the negotiation. This is a time when you take a moment to
define and truly understand the terms and conditions of the exchange and the nature of the
conflict. What do you want to walk away with?

You should also take this moment to anticipate the same for the other party. What are their
goals in this negotiation? What will they ask for? Do they have any hidden agendas that may
come as a surprise to you? What might they settle for, and how does that differ from the
outcome you’re hoping for?

This is a time to develop a strategy for the negotiation. We’ll talk more about strategies in
the next section.

Developing and selecting strategy

After the planning and strategy development stage is complete, it’s time to work with the
other party to define the ground rules and procedures for the negotiation. This is the time
when you and the other party will come to agreement on questions like

• Who will do the negotiating—will we do it personally or invite a third party?

• Where will the negotiation take place?
• Will there be time constraints placed on this negotiation process?
• Will there be any limits to the negotiation?
• If an agreement can’t be reached, will there be any specific process to
handle that?

Usually it’s during this phase that the parties exchange their initial positions.
Opening moves

Once initial positions have been exchanged, the clarification and justification stage can
begin. Both you and the other party will explain, clarify, bolster and justify your original
position or demands. For you, this is an opportunity to educate the other side on your
position, and gain further understanding about the other party and how they feel about
their side. You might each take the opportunity to explain how you arrived at your current
position, and include any supporting documentation. Each party might take this opportunity
to review the strategy they planned for the negotiation to determine if it’s still an
appropriate approach.

This doesn’t need to be—and should not be—confrontational, though in some negotiations
that’s hard to avoid. But if tempers are high moving into this portion of the negotiation
process, then those emotions will start to come to a head here. It’s important for you to
manage those emotions so serious bargaining can begin.

Bargaining and problem solving

This is the essence of the negotiation process, where the give and take begins. You and the
other party will use various negotiation strategies to achieve the goals established during
the preparation and planning process. You will use all the information you gathered during
the preparation and planning process to present your argument and strengthen your
position, or even change your position if the other party’s argument is sound and makes
sense. The communication skills of active listening and feedback serve the parties of a
negotiation well. It’s also important to stick to the issues and allow for an objective
discussion to occur. Emotions should be kept under control. Eventually, both parties should
come to an agreement.

Closure and implementation

Once an agreement has been met, this is the stage in which procedures need to be
developed to implement and monitor the terms of the agreement. They put all of the
information into a format that’s acceptable to both parties, and they formalize
it.Formalizing the agreement can mean everything from a handshake to a written

Contract.

Bangladesh

Although many individuals speak of Bangladesh as a booming trading partner, in reality,

negotiating for business in Bangladesh is systematic work. In the age of globalization and an
increasingly globally integrated economy, businesspeople across the world negotiate with
counterparts of different cultural backgrounds more often than ever before. However, little
research has been conducted to identify the influence of culture on business negotiation in
Bangladesh. This study examines the relationship between culture and negotiation style in
Bangladesh. The data were collected from Bangladeshi business executives who have
enormous experience in business dealings. The results suggest that it is important to
consider the culture within a country when examining positive business outcomes.
Introduction- Negotiation styles and practices differ from culture to culture (Salacuse,
1998). From a behavioral perspective, as individuals in different cultures resolve their social
interaction issues differently, their negotiation practices vary (Brett, 2017). In the age of
globalization, businesspeople across the world negotiate with counterparts of different
cultural backgrounds more often than ever before. Due to this change in today’s global
economic environment, both top executives and researchers need to understand how
culture influences negotiations (Gelfand et al., 2013). Today, many organizations see
negotiation practice as a competitive necessity when negotiating with partners from other
regions (Sobral et al., 2008). For this reason, cross-cultural negotiators generally leave more
value on the table when trying to capture their counterparts’ interests and trade them off
against their own interests (Brett, 2017).

Successful negotiation in business is one of the greatest challenges that the top executives
in an international environment face when doing business with their foreign counterparts
(Deresky, 2017). The negotiating process with members of a foreign culture is both complex
and dynamic, requiring significant time and effort for top executives. A lack of knowledge of
the concurrent influence of culture and context can be problematic from a practical
perspective, as it may render top executives ill prepared for business negotiations (Gelfand
et al., 2013).

Many countries have moved their business operations and manufacturing bases to
Bangladesh, as it is strategically important as an economic hub for Northeast India, Nepal,
and Bhutan. The country is also considered as a potential gateway for China (Rahmatullah,
2009). Nowadays a strategic highway is proposed from the southwest of China to south of
Bangladesh via Myanmar.

Therefore, it would be very meaningful to identify and understand the cultural dimensions
that influence business negotiation style in a Bangladeshi context. Moreover, considering
the recent surge in the privatizemany public companies and the opening up of their markets
in foreign regions, this study is even timelier.

Setting the Context: Bangladesh

Bangladesh is, by nature, historically a business hub and has been treated as such since
ancient times, even before becoming independent. In ancient times, Bangladesh was called
the heaven of wealth and attracted Western and Middle Eastern business people (Van,
2009). Businessmen from various parts of the world came to Bangla (now Bangladesh) for
commerce and the trade of various goods and products in this region before returning to
their home countries. Among them, Portuguese, English, French, Dutch, and Arab traders
were prominent and well known. Business relationships were developed between Bangas’
Banik (local businessmen) and foreign businessmen of different origins with their own
styles. Local businesses had to mix and make business deals with foreign buyers and traders.
Accordingly, cultural issues naturally came to be and were transmitted in both directions, so
human behavior, values, and thoughts played a vital role in negotiation and bargaining
(Hashim, 2010).
Over the past several decades, there has been a tremendous increase in international
business and trade as countries have privatized their publicly owned business and have
opened their markets to foreign products and investment (Adhikary, 2010). Bangladesh is
now considered to be one of the important economic cases and interesting places to do
business in the world. Despite suffering from political instability, intense conflicts, domestic
strife, a financial crisis, and inadequate infrastructure, Bangladesh continues to grow its
economy by an average of 6.3 percent over the past seven years (FY2009-10 to FY2015-16).
According to the final estimates of the Bangladesh Bureau of Statistics, GDP growth in the
fiscal year 2015-16 stood at 7.11 percent (BBS, 2016), significantly up from 6.55 percent in
FY2014-15. The economic capacity of Bangladesh has seen rapid positivechanges in recent
years. Its per-capita income has reached $1,416, and it has been committed to continuing
the development efforts along with Commonwealth of Nations, the D-8 Organization for
Economic Cooperation, the EU, the South Asia Association for Regional Cooperation, the
International Monetary Fund, the World Bank, the World Trade Organization, the Asia
Infrastructure Investment Bank, and the Asian Development Bank. The economic sector of
the country has been able to utilize internal resources and cheap labor opportunities to
attract economic entrepreneurs, national investors, policymakers, foreign investors, and
economic development partners.

In the early 1980s, there were about 12 RMGs in the country, but at present, more than
4,000 RMGs prevail and produce to meet the internal and foreign demand. Industries such
as plastics, textiles, garments, garment accessories, leather, agriculture, frozen food, food
processing, medicine, real estate, shipping, ceramics, cement, information technology, and
small and medium enterprises have been established to attract foreign investment and
create employment opportunities for the unemployed members of the population (Yunus, &
Yamagata, 2012).

The Cultural Spectrum in Bangladesh

As Bangladesh was ruled by sultanate emperors and was then a colony of the British Empire
around 200 years, the culture is very diverse (Reaiche et al., 2016). This cultural spectrum is
widely covered by every sphere of people’s lives. As a result, it is very difficult to explain in a
single dimension. There exist multiple subcultures stemming from multiple nationalities. In
order to understand the impact of culture on Bangladeshi business negotiators, it is
important to consider certain cultural contexts. Like many other colonized countries,
Bangladesh went through centuries of struggle before finally attaining independence. Tribal
and religious subcultures are very well practiced in many ancient towns, and the number of
archeological sites and attractions can be overwhelming (World Archaeology, 2002).

Bangladesh has a rich, diverse culture. Its deeply rooted heritage is thoroughly reflected in
its architecture, literature, dance, music, painting, and clothing. The three main religions of
Bangladesh (Islam, Hinduism, and Buddhism) have had a significant influence on its history
and culture. Therefore, cultural diversity is present in Bangladesh. This cultural diversity can
also be seen in folklore, tribal dances, festivities, and even in contemporary pop songs.
Understanding the cultural values and diversity in Bangladesh is important for negotiators
because these may influence the negotiation process involving Bangladeshi people and
businessmen (Abdullah et al., 2011).
Up The primary language is Bangla, which is called Bengali by most nonnatives. Bangla varies
by region, and a person from one district may not understand the language of a person from
another district. However, differences in dialect consist primarily of slight differences in
accents or pronunciations and minor grammatical usages. Among the Muslim Bangladeshis,
personal interactions are initiated with the greeting “As-Salaam-Alaikum” ("Peace be upon
you"), to which the required response is “Wa-Alaikum-Salaam” ("And upon you, peace").
Among Hindus, the correct greeting is “Nomoshkar,” as the hands are brought together
under the chin. Differences in age and status are marked through language conventions.
Individuals with higher status are not addressed by personal names; instead, a title or
kinship term is used.

India

India’s pluralistic population consists of about 80 percent Hindus, 14 percent Muslims, and 6
percent members of other ethnic groups. Among the Hindus, the oft-quoted caste system
plays only a small role in business. The business culture can be quite diverse and regional
style differences may be significant. While Southern Indian companies, especially those
around Bangalore and Hyderabad, tend to be progressive in some ways, Southern Indians
are often more sober and conservative than the more extroverted Northerners. Another
factor that influences styles is whether people work in the government or traditional
manufacturing sectors, versus the more flexible and faster-moving technology and service
sectors. Business practices may sometimes differ from what we describe in this section.

Outside of the country’s business centers, such as Bangalore (now Bangalore), Chennai,
Hyderabad, Mumbai, New Delhi, or Kolkata, businesspeople and officials in India usually
have only limited exposure to other cultures. When negotiating business here, realize that
people may expect things to be done “their way.’ Most Indians are proud of their country’s
progress, its achievements, and its dynamism. Your partners like to see you acknowledge
and respect this.

Relationships and Respect

India’s culture is generally group-oriented. Asserting individual preferences can be seen as

less important than having a sense of belonging to a group, conforming to its norms, and
maintaining harmony among its members. Building lasting and trusting personal
relationships is therefore very important, though to a lesser degree than in several other
Asian countries. Some Indians may engage in business while the relationship building
process is still ongoing. This is especially the case with internet-based businesses. Others in
the country may expect to establish strong relationships prior to closing any deals, though.
Generally, it is beneficial to allow some time for your Indian counterparts to get to know
and become comfortable with you prior to proceeding with serious business discussions.
Talking about your friend’s and family is an important part of establishing a relationship with
those involved in the negotiating process. Many Indian companies are still family
businesses. In any case, your local partners will expect you to be committed to the business
relationship for many years.
Relationships are based on mutual trust and respect, which can take a long time to
establish. Business relationships in this country exist both at the individual and company
level. Indians usually want to do business only with those they like and trust. However, if
your company replaces you with someone else over the course of a negotiation, it may not
be overly difficult for your replacement to take things over from where you left them.

Communication

Although Hindi is the official language across all of India, many of its states have different
local languages, some more than one. Almost all businesspeople speak English well.
However, it is advisable to speak in short, simple sentences and avoid using jargon and
slang.

Unless they hold senior positions, Indians, especially those in the southern and western
parts of the country, usually speak in quiet, gentle tones. At times, they may even appear
shy. Do not mistake this for a lack of confidence. Their reticence and humility only reflect
their politeness and respect for others. Loud and boisterous behavior is often perceived as a
lack of self-control. Loudness may also be equated with dishonesty. However, positive
emotions may be shown openly. Indians generally converse while standing around three
feet apart. Because being friendly is so important in this culture, communication is generally
indirect. When responding to a direct question, Indians may answer ‘yes’ only to signal that
they heard what you said, not that they agree with it.

Initial Contacts and Meetings

Before initiating business negotiations in India, it is highly advantageous to identify and

engage a local intermediary, especially if you represent a small company. This person will
help bridge the cultural and communications gap and maneuver within India’s intricate
bureaucracy, getting the necessary papers signed and stamped.

Negotiations in India may be conducted by individuals or teams of negotiators. Teams

should be well aligned, with roles clearly assigned to each member. Changing a team
member could require the relationship building process to start over and should be avoided.

Negotiation

Attitudes and Styles - In India, the primary approach to negotiating is to employ distributive
and contingency bargaining. While the buyer is in a superior position, both sides in a
business deal own the responsibility to reach agreement. They expect long-term
commitments from their business partners and will focus mostly on long-term benefits.
Although the primary negotiation style is somewhat competitive, Indians nevertheless value
long-term relationships and look for win-win solutions. They may occasionally appear to be
pursuing a win-lose approach, in which case it pays to help them focus on mutual benefit.

Sharing of Information

Indian negotiators will first spend some time gathering information and discussing various
details before the bargaining stage of a negotiation can begin. People may share
information quite openly in an effort to build trust. This does not mean that they will readily
reveal everything you might want to know during your negotiation. However, negotiations
can become very disinformation one side appears to be hiding information from the other,
which may result in attempts to outsmart each other.

Pace of Negotiation

Expect negotiations to be slow and protracted. Delays are often inevitable, particularly
when dealing with government bureaucracy. Be prepared to make several trips if necessary
to achieve your objectives. Throughout the negotiation, be patient, control your emotions,
and accept that delays occur. Indians view impatience or pushiness as rude. Indians
generally employ a polychromic work style. They are used to pursuing multiple actions and
goals in parallel. When negotiating, they often take a holistic approach and may jump back
and forth between topics rather than addressing them in sequential order. Negotiators from
strongly monochromic cultures, such as Germany, the United Kingdom, or the United States,
could find this style confusing, irritating, even annoying.

Bargaining

Indian businesspeople are often shrewd negotiators who should not be underestimated.
Most of them love bargaining and haggling, although they may not do it as extensively as
other Asians. The bargaining stage of a negotiation can be extensive. Prices often move
more than 40 percent between initial offers and final agreement. However, technical
assistance, training, and other costs may also be important bargaining factors and Indians
remain flexible throughout most of the bargaining. Leave yourself a lot of room for
concessions at different stages. Ask the other side to reciprocate if you made one. You can
use the fact that aspects can be re-visited to your advantage, for instance by offering further
concessions under the condition that the Indian side reciprocate in areas that had already
been agreed upon.

Decision Making

Most companies here tend to be very hierarchical, and people expect to work within clearly
established lines of authority. Disagreeing with or criticizing superiors is often viewed as
unacceptable. Decision making is a slow and deliberate process in India. Decision makers are
usually top executives who consider the best interest of the group or organization. They
might consult with others before making the call. Subordinates may be reluctant to accept
responsibility. Decision makers also rarely delegate their authority, so it is important to deal
with senior executives. They expect to deal with equals. People may not always be open to
new ideas. You best chance for success is to give the decider time and do some lobbying
with key influencers.

Agreements and Contracts

Capturing and exchanging meeting summaries can be an effective way to verify

understanding and commitments. Indians may signal consensus through enthusiastic
statements that phrase the agreement in their own words. Interim agreements, even oral
ones, are considered binding and usually kept. Nevertheless, it is best to consider only a
final contract that has been signed by both parties a binding agreement.

Written contracts should be clear and concise, without too many detailed terms and
conditions. Signing the contract is important not only from a legal perspective, but also as a
strong confirmation of your Indian partners’ commitment.

Women in Business

While India is still a male-dominated society, there are many women in professional
positions, some with significant authority and influence. At the same time, women are still
struggling to attain posiproble of similar income and authority as men. Nevertheless, visiting
businesswomen should have few problems in the country as long as they act professionally
in business and social situations.

Japanese negotiate process

Culture has a significant role in communication styles. In recent years, more and more
Japanese companies are expanding into the international market. When negotiating with
other parties from different perspectives, values, and beliefs, the knowledge of the other
parties would determine the outcome of the negotiation. This article introduces the
fundamental elements of cultural behaviors or attitudes observed in business negotiations,
especially by the Japanese.

Japanese Business Manners

When people first meet before negotiations, an appropriate greeting is able to show a
serious interest in building business relationship with a foreign counterpart. In Japan,
business starts with the exchanging of business cards. In general, two businessmen stand up
and both offer business cards with their two hands. In doing so,they need to turn it for the
receivers to see the information of the card easily.Furthermore, it would be slightly rude if
you put away a received card before you find out the name and title of the other
businessman. Since the hierarchy systemwhich is still based on seniority and merit is still
alive, it is obvious to assume eachperson’s responsibility by knowing his or her
administrative status. Finding out who has the higher social status is very important for the
Japanese to identify themselves in the right spot by means of relative power. They respect
status and titles of their own group as well as counterparts. Thus, it is the first step for them
to read through a business card to make themselves comfortable in business contexts.

In addition to card excising manners, gift-giving is an interesting custom in Japanese

business. Exchanging gifts usually occurs at the first meeting and symbolizes the deep and
strong business relationship to the Japanese. As courtesy, the Japanese would never open a
gift in front of the giver since the process of giving and receiving gifts is more important the
actual gift .In consideration of international business negotiations, Japanese businessmen
also tend to bring a gift, which usually indicates the form of greeting. It does not mean that
Japanese businessmen expect a foreign counterpart to do the same or even expect business
favors in return.

Japanese Negotiation Styles

A general negotiation framework has four stages: “1) nontask sounding; 2) task-related
exchange of information; 3) persuasion; and 4) concessions and agreement”. The Japanese
tend to spend much time on the stage one and two before actually getting to the start a
business. Since Japanese culture is known as high context culture, their identity is strongly
influenced by the relationship with others. Additionally, the Japanese have an island
psychometric, so that they are eager to know about their neighborhoods and establish
social relationships. For theJapanese, it is more valuable to build a reliable rapport than to
merely have a business contract. Thus, as a pre-negotiation stage, it is essential to build
relationships with other parties for doing business. It is why the Japanese tend to talk in the
form of questions in negotiations to reveal the information of the other parties [8].
Moreover, if the agreement of the negotiation is very important for the Japanese, they are
likely to spend more time to get to know the other parties because they seek for
maintaining long-term relationship in the future, and they must be sure the other parties
are trustworthy after a contract is signcontrol.This maintaining of relationships also
indicates the notion to the Japanese that current business benefits lead to the long-term
benefits [8]. That is the reason the Japanese are more flexible about time regard to building
a true relationship. Therefore, even though it may take time to proceed to negotiations with
the Japanese, a high priority should be given to getting to know other partiers.

Language factors in Japanese negotiation styles

Negotiations between two countries are usually conducted in one of the negotiating side’s
mother tongue or in English as a lingua franca. Although two people use the same language,
it could cause some misunderstanding as they have different connotations of the same
expressions. For instance, the English word, “difficult” could be translated into a Japanese
word “mazurkas,” which could mean “out of question,” in business settings.

Thus, even though two parties are using English as a lingua franca, their first language may
affect how they express their thought. Additionally, using the concept of “amae,”
dependency in English, could get concession from the Japanese. It has characterized
Japanese mentality, and this idea appears in how they use the language. For instance, it is
better to say “I cannot make any money unless you do…” instead of saying “I can make
more money if you do…”since the Japanese are not good at facing aggressive mode of
communication. Utilizing the tactic may lead to an effective flow of negotiation.

USA negotiation process

There is probably a greater diversity of business cultures and styles in the United States than
in any other country in the world. This makes preparing for specific c business interactions
difficult. Because of the wide spectrum of heterogeneous cultural influence however,
Americans are usually tolerant of unconventional negotiation styles and habits as long as
they do not conflict with their own values. On the other hand, many share a strong belief
that the country’s culture and value system are superior to all others, which members of
other cultures sometimes interpret as arrogant. People in the country may be convinced
that the American way is the only morally acceptable one, insisting that everyone play by a
common set of ‘ground rules.’ While we strive to explain critical beliefs throughout this
section, business practices may deviate from the general guidelines provided in the
following. Always expect the unexpected when doing business in this country.

The primary aspects that may influence how your American counterparts do business are
worth analyzing prior to negotiating with them. The most relevant factors are as follows:

Regional Influences – Historically, there was significant variance in business practices

between the country’s geographic regions. Style differences across the U.S. can still be
pronounced in smaller cities and rural areas. For instance, competitiveness and
aggressiveness in business can be even stronger in the Northeast and at the West Coast
than they are in the rest of the country. Californians are usually open to doing business with
people from many different countries and cultures, while people in the northeastern states
can appear regionally focused and somewhat closed-minded.

Cultural Heritage – About 65 percent of the population is Whites (Caucasians ), 15 percent

Hispanics,13 percent Blacks (properly referred to as African-Americans ), and 4 percent
Asians. Business stylesand practices vary between these groups, which in themselves are
also far from homogeneous. An estimated 10 percent of the population is foreign-born,
often bringing in their own experiences of how business is conducted. However, the
country’s dominant culture represents a powerful integrative force and may be quickly
adopted and internalized by immigrants. It is crucially important to treat everyone the
same, since even unintentional behaviors that may be read as discrimination can have huge
negative consequences.

Specific Industries and Company Cultures – As in all countries, matters of etiquette e are
influencedby the type of business a person or company engages in. For instance, people in
banking, personalfinance, or many consulting roles dress and act more formally than others
might. Personal relationship’s also play a greater role in these industries. However, U.S.
company cultures may show substantialdifference even within the same industry.
Stereotypes about industries or about the age or structure of companies can be misleading
and may therefore not be helpful. It will be highly beneficial to familiarize yourself with the
specificculture of a company you are about to engage with, for instance by talking with
insiders or others who dealt with the company before.

Relationships and Respect- U.S. culture strongly encourages individualism and personal
initiative. Generally, business relationships are only moderately important in this country.
They are usually not a necessary precondition for initial business interactions. Your
counterparts’ expectation may be to get to know you better as you do business together. As
long as they think the other side plays fair and do not waste their time, Americans tend to
be friendly and collaborative. Otherwise, they can quickly become aggressive and somewhat
hostile. In any case, most people in this country think it acceptable for partners in a
productive business relationship to cooperate and compete at the same time, a view that
others from strongly relationship-oriented cultures rarely share.
Communication

American English is different from British English to the point where misunderstandings may
happen easily. If necessary, familiarize yourself with the differences upfront. Business
people in this country may speak louder than you may be used to. A strong voice is generally
associated with authority and leadership qualities. At restaurants, including those used for
business lunches and dinners, conversations can get much noisier than in most other
countries Americans tend to show at least some of their emotions, though not as openly as
Latin Americans. People generally converse standing around three to four feet apart.

There is a distinct difference in the level of directness between the North and the South of
the country. Northerners, also many Californians, are often quite direct. They dislike vague
statementcountryman openly share their opinions and concerns. Too much diplomacy may
confuse and irritate them and can give the impression of insincerity.

Negotiation

Attitudes and Styles – To Americans, negotiating is usually a joint problem-solving process.

While the buyer is in a superior position, both sides in a business deal own the responsibility
to reach agreement. American negotiators may focus mostly on near-term benefit. The
primary negotiation style is competitive, sometimes intensely so. Although people will look
for win-win solutions, they may strive to ‘win more’ than the other side does. Power factors
such as company size and financialstrength play a major role and may frequently be
emphasized. When negotiating, Americans may appear fiercely competitive or even
combative. However, they will ultimately be interested in fi nudging a solution that both
sides can accept. It is best to remain calm, firm and persistent. At the same time show a
positive and constructive attitude without taking things personally.

Agreements and Contracts

Capturing and exchanging meeting summaries can be an effefctive way to verify

understanding and commitments. Many Americans pride themselves with being consistent,
so they will likely keep their commitments, at least if they are sufficiently documented.
While you should not consider interims agreements final, avoid the impression that you are
not willing to hold up your commitments. Nevertheless, only a contract signed by both
parties constitutes a binding agreement. Negotiators sometimes request to document the
progress of a negotiation by both parties signing a Letter of Intent (LOI) or Memorandum of
Understanding (MOU). While much weaker than signed contracts, these documents may
have legal implications.

Women in Business

While women enjoy the same rights in the United States as men, many are still struggling to
attain positions of similar income and authority. However, they are generally treated as
equals in business situations, and women can be found in senior leadership roles.

Women in the United States expect to be treated very seriously and respectfully. They can
be as competitive and even as combative as men. Making improper jokes or otherwise
behaving inappropriately will not only trigger sharp reprimands but may have very serious
disciplinary and legal implications. It is considered highly inappropriate to ask a woman
whether she is married or if sheplans to have children. Generally, it is crucial to treat
everyone with great respect and dignity.

A visiting businesswoman should have few problems in the country. She may often fi and a
greater degree of freedom and flexibility than she may be used to in her home country.