Assignments for self-control

1. What is the purpose of negotiations?

2. What does the proceeding part include?

3. Name six main rules of conducting negotiations.

4. What does the method of principle negotiations presuppose?

5. What steps are characteristic of negotiations?

6. What are good negotiators like?

7. What are the main problems in negotiations because of cultural differences?

Vocabulary in need

arrogant	высокомерный
bargain	торговаться
be short of	испытывать нехватку
capitalize on	извлечь преимущество
confident	уверенный в себе
considerate	тактичный
contradiction	противоречие
courteous	вежливый
drawback, obstacle	препятствие
empathetic	эмоциональный
fair	справедливый
goal-oriented	целеустремленный
haggle	пререкаться
hitch	заминка, помеха
hostile	враждебно настроенный
incentive	стимул
indirect	уклончивый
negotiations, talks	переговоры
open-minded	непредубежденный
perceptive	восприимчивый
persistent	настойчивый
Rebate	уступка, скидка
shortage	дефицит
strength, advantage, benefit	преимущество
substantiate	обосновывать
weakness, limitation	недостаток
Expressions	Выражения
be in stock	быть в наличии (на складе)
be out of stock	отсутствовать на складе
fail to reach a deal	проиграть в переговорном процессе
Reach a deal	добиться успеха в переговорном процессе

COMMUNICATION WITH FOREIGN PARTNERS

Parkland Research Europe carried out a detailed research which gave some idea of what Europeans think of each other. Here is an example.

Businessmen were asked to imagine they were setting up a multinational company. They had to choose a nationality for the positions of president, managing director, chief cashier, public relations officer and skilled and unskilled labour.

Germans were universal choice for the top jobs and also first choice for skilled workers. The Italians were relegated to the unskilled jobs. The French received massive support for the light-weight public relations post. No European picked up an Italian as president or chief cashier. Moreover, no Italian or Frenchman picked one of his own nationalities as chief cashier.

Were you surprised at the information you’ve just read?

The first step in learning to communicate with people from other cultures is to become aware of what culture means.

We can define culture as a system of shared symbols, beliefs, attitudes, values, expectations and norms of behavior. Cultures vary widely. The major problems in inter-cultural business communication are language barriers, cultural differences and ethnocentric reactions.

Oral communication usually presents more problems than written communication. So, when speaking any foreign language, follow these simple rules:

• Pronounce words clearly.

• Don’t be afraid to repeat the question and check the listener’s comprehension.

• Rephrase your sentence when necessary.

• Use accurate language.

• Let other people finish what they have to say. Listen carefully and patiently.

• At the end of a conversation, be sure that both you and the other person agre what has been said and decided.

Misunderstandings especially occur when the people who are communicating have different backgrounds. We ignore that people from other cultures differ from us in many ways: in their religion and values, their ideas of status, their decision-making habits, their attitude toward time, their use of space, their body language and their manners. What is polite in one country may be considered rude in another. However, many of us have an ethnocentric reaction to people from other cultures – that is, we judge all other groups according to our own standards. When we react ethnocentrically, we ignore the distinctions between our own culture and the other person’s culture. Fortunately, a healthy dose of tolerance can prevent a lot of problems.

The best way to prepare yourself to do business with people from another culture is to study their culture in advance. If you plan to live in another country or to do business there repeatedly, learn the language. In addition you will learn something about the culture and its customs in the process. You should be aware with some moments. Does the business world have its own rules and protocol? Who makes decisions? How are negotiations usually conducted? Is gift giving expected? What is the etiquette for exchanging business cards? etc.

The peculiarities of etiquette in some countries

The U S A

The American style of business communication is characterized with ignorance to the traditions; the reliability of the word given; the carefulness in organization; brevity and clarity; detailed check of execution; great attention to the details; specialization of stuff and production; constructiveness.

At the talks Americans pay much attention to the problem in question. They prefer to come straight to the point. They are discussing not just general approaches to the problem, but also the details concerning realization of the agreements.

The American business is hard in its essence and the protectionism is generally accepted.

The Americans pretend to be “know-it-all” in business of any country and nationality.

You should determine the result desired in advance and plan your conversation so to touch your main tasks and advantages. Find the specific unusual features in your proposal which distinguish you from the other firms and always attract attention of your partner to this fact.

They are energetic and demonstrate friendliness and openness. Americans don’t like too formal atmosphere during the talks. They may insist on first name terms, they appreciate humour and jokes.

American style of negotiation is characterized by high professionalism. You can hardly find an incompetent member in an American delegation. That’s why they are rather independent in making decisions.

Punctuality is extremely important for Americans.

The style of your clothes is conservative, neat and fashionable simultaneously.

The meetings should be talked about beforehand. And, certainly, try to inform about your visit some days before your arrival.

Shaking hands is not so common in the USA.

The business cards are sometimes exchanged not at the beginning of the negotiations but after the question “How can I contact with you?”. The gifts connected with the foreign culture are appreciated.

Avoid the racial, religious, social or political topics and the discussion of previous or present wars the America took part in during the conversation. Some common topics are the person’s job, travel, foods and dieting, sports, music, movies, etc.

Americans start talking about business after a very brief exchange of small talk.

Business is done at lightning speed in comparison to many countries.

Great Britain

English business is characterized with social conservatism.

British representatives don’t pay much attention to the preparation for the negotiations. Their approach is very pragmatic: they believe that it is at the negotiations that they can find the best solution. The British are flexible enough.

You should negotiate only after you have found out the approximate level of prices and their tendencies, the peculiarities of the firm and obtained the information about the staff.

The English businessmen occupy the hard position at the negotiations. The numerous factual, statistic and reference material are applied.

The British are normally more interested in short-term results than in the long-term future.

Avoid the hard sell.

Don’t make comparisons with the USA out loud.

Don’t rush the English toward a decision.

The English are even more direct than US executives.

They are calm, reserved, open-minded, trustworthy. And at the same time insular and superior. But they have an excellent sense of humour.

Remember! The Scots, Welsh and Irish do not call themselves “English”. The English do not consider themselves “European”.

Customs, etiquette and social rules of behavior are strictly kept.

You should be aware of titles.

The elder people are respected and appreciated.

Handshake is necessary.

The business cards are exchanged at the beginning of the negotiations.

The punctuality is appreciated highly.

Gratitude speeches and letters are also welcomed.

Avoid the conversation about the politics, money, prices, religion and the Northern Ireland. The English enjoy talking about animals, sports, travel and gardening.

Do not make jokes about the royal family.

The souvenirs accepted are calendars, notebooks, lighters, pens, alcohol drinks.

You should be acquainted with the distinguishing features of British English and American English languages.

The best clothes for any meeting is the traditional business suit. You shouldn’t be too well-dressed.

Germany

People get acquainted introducing each other. Titles are very important. Address to each other as “герр”, “фрау”, “Professor”. The Germans prefer officiality in business relations. Everybody is polite.

It’s better to have business cards, simple and elegant, on German or English languages.

Handshake is accepted here as much as nowhere else.

The talks don’t begin before 10 a.m. and are over not late than 4 p.m. You are expected to possess the entire information. Tour speech, in its essence, should be clear and strict. The Germans are neat and punctual. If you doubt in your intensions to observe the arrangement conditions and terms, you’d better to refuse from your proposals.

Don’t doubt in knowledge and abilities of the Germans.

Don’t be offended if your German partners lock the telephone or any other apparatus in your presence. It is only German economy.

The Germans can hold the business telephone talks. They don’t spare the time to begin the conversation. It has the specific character.

Gratitude and response speeches are necessary. They are carefully prepared and are said without any notes. The following topics as the Second World War, Nazism, the Jews. The Germany separation are not concerned.

The souvenirs are not exchanged during the establishing of business relations. The gifts are often presented for Christmas.

If you are invited to the restaurant, keep in mind, that bills are paid by the person inviting and the guests separately. The tips are included into your dinner.

France

Having known as much as possible about the firms you’re interested in, send a set of brochures and catalogues on your enterprise production. The materials should be written in French, the Frenchmen don’t accept English or German in business communication, believing it infringes their national dignity.

It must be remembered, that different relations and acquaintances are very important in business life of France.

The requirements to the appearance of the business person are generally the same as in the other European countries. But there is one main rule: the clothes should be of high quality and made of natural material. The special attention is paid to the shoes.

The business card is necessary during the first meeting.

Addressing by name is not accepted. “Monsieur” and “Madame” are usually used.

Sometimes during the conversation the French businessmen interrupt their interlocutor, speaking out the critical notes. But it is generally accepted here and it does not show disrespect.

Some important decisions are accepted not only in the office, but at the dinner table. But you should be cautious in touching the questions of religion, personal problems, incomes, expenditures, diseases, marital status, political likes. The bill is paid, as a rule, by the person who has invited.

Italy

The acquaintance begins with the exchange of business cards, you should have a lot of them. Business cards should be in Italian, English or French languages.

The Italians communicate with their partners even in spare time. Moreover many business items are discussed preferably unofficially, for example, in the restaurant.

Clothes for business: the official suit and natural jewelry only.

Forbidden topics: Mussollini, fascism, Mafia, criminal, politics.

The gifts should be of high quality and elegant.

Taking taxi, occupy the back right seat. Pay according to the meter, those, who don’t waste money, are respected here.

China

Although China is an Asian country, the business etiquette is, mainly, European here.

The official suit is also important. Business cards are necessary. One side of them is in Chinese, another one – in English.

The old age is the sign of wisdom and the elder people are respected. The forty-years people are considered to be young.

The Chinese are non-categorical in their opinions. You also should avoid the word “no”.

The negotiations with Chinese partners are rather long: from some days to some months because the Chinese accept any decisions only after thorough studying of all aspects.

At first, the Chinese appreciate the status of each participant at the negotiations. The appearance, behavior, relations inside the delegation are taken into consideration.

The talks are successful if you can persuade the Chinese partner in real advantages of cooperation with you. Your delegation should include highly qualified specialists able to solve technical questions at once and a good interpreter, who knows the specific terms in your business and local dialect.

They give the enormous significance to the establishment of friendly, informal relations with foreign partners.

Japan

The business etiquette of Japanese businessmen differs greatly from that one of the European countries.

The style in clothes is very strict and neat: in winter the suit is dark, in summer it is light.

Get acquainted with the help of the third person. Pronounce your name distinctly. Acquaintance begins with the exchange of business cards. It should be both presented and taken with two hands, read your partner’s card carefully. It’s impolite to keep business cards merely in your pocket.

The accepted addressing is Mr. Sudzuki or Sudzuki-san.

Avoid the physical contacts: don’t touch your partner, lean yourself against somebody, grab somebody’s hands or tap the shoulder.

Bowing substitute handshaking. The older and more significant person, the lower he is bowed. If you are presented a souvenir you should also bow.

Numerous ceremonies are important for Japanese because they can characterize the person. The Japanese give great significance to the order or the rules of business etiquette.

The Japanese are rather “closed” and speak any foreign language badly, especially Russian. You should have a good interpreter. All materials should be in Japanese. And learn some Japanese phrases.

Be punctual at the talks. If you can’t arrive in time, say beforehand and the duration of the meeting should be reduced then on the late time.

Japanese see negotiations as a ritualized process with harmony and the saving of face at all stages being paramount. It is usually inappropriate ‘to get down to business’ immediately.

If the counterpart is making a concession the Japanese party will most probably do the same.

The working day is one of the longest in the world. It isn’t accepted to leave for home before the boss’s departure. The holiday is quite short because the Japanese can’t have a rest for a long time. They are very hard-working people.

The peculiarity of the Japanese business is the loyalty to the firm, state, nation and therefore self-discipline, the high level of corporative culture, unselfishness, patriotism.

You can hardly meet women in business.

Be as polite as you can. Don’t loose the self-possession in the presence of Japanese partners, even if you are very angry, keep yourself in hands.

Don’t press the Japanese or make him do some actions.

Don’t be verbose. The silence is more appreciated than speech in Japanese ethics and culture.

The best topics for conversation are your country and national culture, hobbies, children and business. Try not to speak about the Emperor and the Second World War.

Take off your shoes before the entry into the dwelling, restaurant etc. (Don’t step on the threshold because it is considered to be the place where kind spirits live.)

Finland

The features of national Finnish character are industriousness, solidness, persistence. Modern Finnish business ethics is characterized with reliability, correctness, precision and honesty in relations and as well punctuality and pedantism. You are expected to be careful and to carry out your obligations.

The style in clothes is also official. The business cards are widely used. They should be in English or Swedish, many people know German. Russian is a little spoken.

The Finnish are straightforward. The compliments are rarely used, but politeness is appreciated. You shouldn’t speak out on the relations between Finland and the USSR.

Many business problems are solved in sauna or restaurant. You shouldn’t refuse from these invitations.

There is a strict law as for the smoking in the country. It is banned in public places and offices.

Turkey

Business clothes, business cards, acquaintance, speeches and etiquette are of western style.

The Turkish are very polite, brought up and hospitable, but terribly unpunctual. It is accepted to be late for an hour in Istanbul. The Turkish consider themselves the Europeans. Most of them are Muslims, but they are quite free in their thoughts and opinions. They are rather tolerable to the people of other beliefs.

A lot of conversations begins in the café while drinking tea with cakes. The Turkish are sweet teeth. They have the proverb “Eaten sweetly – spoken sweetly”.

To meet with the Turkish you should have enough time, because business conversation will be proceeded by the conversation about nothing, tea or coffee. But, may be, it is during this conversation the fate of your proposal about cooperation will be solved.

Arab countries

Islam is not just a religion, it’s a mode of life. You shouldn’t touch upon religious topics. They have specific sense of humour. Arabs don’t understand intellectual jokes, they prefer straightforward jokes. They are self-conceited people, having a high opinion of themselves. That is why they prefer to be flattered and not to be criticized. They are quick to take offence.

The most important factor in business relations is personal contacts. Many problems can be solved easier, if an Arab knows and respects the counterpart. Arabs are very precise in discussing the details in question.

Due to the Islamic philosophy Arabs have peculiar attitude towards time and punctuality. Being late and not fulfilling agreements are common things for them. To express your resentment is of no use.

Many Arabs, even those who received their education in western countries, are not interested in music or literature. They may be interested in politics if it influences their personal or business interests.

As a rule, Arabs don’t drink alcohol, although using drugs is quite common.

In the Middle East, for example, a skilled negotiator would get down to real business only after a lengthy and polite discussion of more general topics. In contrast, an American negotiator would value a more direct approach to negotiation. The Arab negotiator considers the American rude, the American negotiator sees the Arab as wasting valuable time.

Russia

It is usual for Russians to be one or two hours late to an appointment. Patience, not punctuality is considered a virtue in Russia. Allow plenty of time for each appointment. Not only may they start late but they may run two or three times longer than originally planned.

Be sure to take enough business cards. Do not be surprised if you do not receive a Russian’s business card in exchange for yours. They may not have them.

Peace, international relations, and the changes in Russia are all common topics of conversation.

In the former USSR, managers used to say “no” at every opportunity. First of all, people were afraid that if they gave go ahead and a project failed, they would be held responsible. And, secondly, you rarely met a Russian bureaucrat who had the power to push a project forward without the agreement of others. The ability to say “no” was the only real power many bureaucrats possessed. However, Russian businessmen now often say “yes” to proposal – even if they lack the authority to arrange the project. They make promises in order to continue the contacts they want with foreigners.

It is said that Russians are great “sitters” during negotiations. Many Russians regard compromise as a sign of weakness; compromise is morally incorrect. Russians would rather outsit the other negotiator and gain more concessions from the other side.

Know and agree on exactly what you want out of the deal. Do not show the Russians anything other than unity among your team.

Be factual and include all technical details. You may be asked to sign a “Protokol” after each meeting. This is a joint statement. It is not a formal agreement.

“Final Offers” are never final during initial negotiations. Be prepared to wait.

Get your own expert in Russian law. Don’t be surprised when something you did yesterday is disallowed tomorrow; the interpretation of many laws is subjected to change.