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INTERNATIONAL
BUSINESS NEGOCIATIONS
Negotiation has been defined quite differently by a number of authors,

researchers and academics. Below is a sample of those definitions:
Ö “The processes by which two or more interdependent parties who do

not have identical preferences across decision alternatives make joint
decisions” (Bazerman & Carroll, 1987).
Ö “It seems best to define ‘negotiation’ as including all cases in which
two or more parties are communicating, each for the purpose of
influencing the other’s decision.” (Fisher, 1991).
Ö “Communication is at the heart of the negotiating process and is the
central instrumental process.” (Lewicki & Utterer, 1985).
Ö “Negotiation includes cooperation and competition.” (Lax & Sebenius,
1986).
4.1 Types of Negotiation
Understanding the importance of identifying the type of negotiation one is

involved in often means the difference between success and a poor outcome.
Out of habit, most people enter into every negotiation in the same way. This
is not only time-consuming, but also counter-productive. Everyone is
different. Every situation is different. So one should vary the approach to
negotiating according to the person one is dealing with, and according to the
desired outcome of the negotiation process.
International Business
There are three types of negotiation that are commonly used in the business
world. Viewed in a one-dimensional linear flow, at one end is the Quick
Type, the other end the Deliberate Type, and right in the middle is the
Compromise Type.
The Quick Type
This approach should be used when one needs to negotiate in a hurry.

The main consideration of using this type of negotiation is that the
businesses contact with that individual or organization is limited only to the
current deal. A characteristic of the quick style is that it is fairly competitive
for both the buyer and the seller. Both take a position; neither is keen to
move from that position.
Most academic researchers refer to this type of approach as a “distributive

negotiation”. The behavioral characteristics exhibited by parties using a
quick approach style of negotiation have been researched at length.
The person using this type of negotiation sees competition as a necessary
part of winning and will focus on the deal at the expense of any relationship.
Lax and Sebenius (1986) describe distributive negotiation as competitive,

with both parties attempting to claim benefits for themselves (Roy H.
Andes, art. 27, P 125). This is win-lose negotiation type, for the gains of one
party necessarily deprive the other party of the same value. This type of
negotiation often destroys relationships and the immediate value is seen as
the prize.
The Compromise Type
This type of approach to negotiation is often seen as an effective form of

negotiation, as each side walks away from the table with some form of deal.
The relationship is preserved and an outcome is achieved, often fairly
quickly.
This style is used when it is obvious that both parties want to reach an
agreement even if there still are a couple of points that need to be resolved.
Phrases such as, “Let’s split the difference!” or “Let’s meet half way!” are
commonly heard during this type of negotiation. Even if it is a win-win
approach, it often results in a sub-optimal outcome. Nevertheless, as
pressure is applied to budgets, forecasts and incentives, this type of
negotiation is becoming very popular.
International Business Negotiations
The Deliberate Type
If the quick type of negotiation is for use when there is no ongoing business
commitment, then the deliberate approach it is used in order to develop or
maintain a long-term relationship, when it is more important to come to an
agreement that satisfies both parties.
This approach is usually used when negotiating contracts that can last for
long periods of time (sometimes decades). This being the case, there are
some aspects negotiators have to take into account:
The deliberate type requires co-operation and relationship building in an

effort to reach an agreement;
It does not develop without a lot of time and hard work;

It means moving forwards, sideways, backwards and back again!
Many deliberate negotiations can turn into a quick negotiation and then back
again in a number of hours. This process continues until agreement is finally
reached. Just because one decides to adopt a deliberate style does not mean
the other side will see it the same way.
The decision about which style to use is in direct connection to the desired
outcome of the negotiation. If one faces a negotiation with the approach
“I know what I want and I’m going to get it at all costs” then the expected
outcome will reflect such lack of planning and consideration.
Outcomes
Outcomes vary with each type of negotiation − and preparation is the key.
The question of the desired outcomes is ultimately as serious as the choice
of a negotiating style. Without realizing that the different outcomes exist, it
is difficult to know:
where to start a negotiation, and
if one has achieved the best outcome.
One should also know when is the time to leave a negotiation. Sometimes
the outcome is simply not going to be worth the effort involved to close the
deal. It is helpful to have a model against which to measure the resulting
outcome. Negotiators who have a number of predetermined possibilities as
outcomes have a better chance of getting what they want than negotiators
who aim only for the right result. Aim high, yes – but spend time in
preparing more than one desired outcome.
Realistic Outcomes
This is the best result – both parties are satisfied by the transaction. This
could result from the quick, compromise or the deliberate approach. These
outcomes offer the classic satisfaction of mutual benefits: both sides feel
they would like to do business again. This is the outcome for which one
should strive in every situation.
Although it can and does happen that both sides have that success feeling
after a quick negotiation, usually this kind of outcome is the result of the
deliberate approach, where both sides are working together in a creative
manner to achieve a realistic result.
Acceptable Outcomes
As we move down the scale, the outcomes start to represent more closely
the quick approach of negotiating. In the case of the acceptable outcome,
one will get to the end of the negotiation and feel that, while the deal might
be acceptable, one could have had a better outcome. If this is the case, one
should not accept the other side’s position as given and should always ask
for a better deal.
Worst possible outcome
One can be faced with the worst possible outcome in all negotiation types,
but it is a far more common outcome of the quick type. This is a lose-lose
situation.
If one uses the deliberate negotiation style and still comes to the worst
possible outcome, it is usually because someone becomes emotionally
involved in the process. Many times companies have lost thousands of
dollars due to managerial ego standing in the way of a good deal. Creative
problem solving does not have a chance − because someone is standing
there stubbornly with only one thought paramount:
“I'm absolutely right and you’re definitely wrong.”

If the worst possible outcome is considered as an option, then it is far easier

to make a decision and look for creative solutions. Many negotiators invite
the worst possible outcome because of their method of planning – or more
accurately their lack of planning. The worst possible outcome is vital in the
planning process because after going past this point, the negotiation should
stop. The worst possible outcome should still be one the parties involved
should be able to live with.
Negotiating across cultures is far more complex than negotiating within a

culture because foreign negotiators have to deal with differing negotiating
styles and cultural variables simultaneously. In other words, the negotiating
styles that work at home generally do not work in other cultures. Thus,
cross-cultural business negotiators have one of the most complicated
business roles to play in organizations. They are often thrust into a foreign
society consisting of what appears to be “hostile” strangers. They are put in
the position of negotiating profitable business relationship with these people
or suffering the negative consequences of failure. And quite often they find
themselves at a loss as to why their best efforts and intentions have failed
them.
Negotiators in a foreign country often fail because the local counterparts

have taken more time to learn how to overcome the obstacles normally
associated with international/cross-cultural negotiations. Failure may occur
because of time and/or cost constraints. For example, a negotiator may be
given a short period of time to attempt to obtain better contract terms to in
country A, where negotiations typically take a long time, than the terms to
which country B agreed. A negotiator may simply feel that „what works in
the home country is good enough for the rest of the world”, which is far
from the truth. In fact, strategies that fail to take into account cultural factors
are usually naïve or misconceived. Typically, the obstacles to overcome
include:
Learning the local language, or at least being able to select and use an
effective language translator;
Learning the local culture, including learning how the culture handles
conflict, its business practices, and its business ethics, or at least being able
to select and use an effective cultural translator;
Becoming well prepared for the negotiations, that is, the negotiator must
have a thorough knowledge of the subjective matter being negotiated.
Thus, effective cross-cultural negotiators understand the cultural differences

existing between all parties involved; and they understand clearly that not
understanding the differences serves only to destroy potential business
success.
Realistically, it is nearly impossible to learn “everything” about another

culture. This is because each culture has developed, over time, multifaceted
structures that are much to complex for any foreigner to understand totally.
Therefore, foreign negotiators need not require total awareness of the
foreign culture, they do not need to know as much about that culture as the
locals. However, they will need to know enough about the culture and about
the locals’ negotiation styles so as not to feel uncomfortable during (and
after) negotiations. Besides knowing enough not to fail, they also need to
know enough to win. For example, in negotiations between Japanese and
American business people, Japanese negotiators have sometimes used their
knowledge that Americans have a low tolerance for silence to their
advantage.
In order to succeed in international negotiation, business people have to

develop a cross-cultural process. This usually includes both strategy and
tactics. Strategy refers to a long-term plan, and tactics refers to the actual
means used to implement the strategy.
Strategic Planning for International Negotiations
Strategic planning for international negotiations involves several stages:

preparations for face-to-face meetings, determining settlement range,
selecting the form of negotiations, determining where negotiation should
take place, deciding whether to use an individual or a group of individuals
in the negotiations, and learning about the country‘s views on
agreements/contracts.
Preparation for Face-to-Face Negotiations
Generally, at the preparation stage, the issues to be identified are common

interests, desired outcomes, possible conflicts (and tactics for handling
them), participants’ abilities and limitations, business markets, financial
status, participants’ reputation and similar products/services. Typically, the
negotiating strategy that is effective in the home market will have to be
modified for negotiating with foreign businesses, as cultural factors,

business customs and ethical standards of the foreign country must be
considered. For instance, in negotiating with the Chinese, Americans want
to agree on specific terms first while the Chinese want to determine general
principles (the “spirit of the contract”) and then discuss specifics. In other
words, Americans tend to be concerned with short-term goals, such as
profits, while the Chinese are more concerned with long-term interests, such
as the procurement of American technology and business techniques.
Determining a Settlement Range
At this phase, a negotiation or settlement range 1 must be established. The

“least acceptable result” (LAR) and a “maximum supportable position”
(MPS) must be identified. In this respect, the Japanese have a saying:
“Banana no tataki uri”, which would translate into “ask outrageous prices
and lower them when fared with buyer objections”. Establishing a range
provides negotiators with the ability to make concessions, and therefore
more flexibility in the negotiations. Some cultures, Russians, for example,
view concessions as a sign of weakness, not gestures of goodwill or
flexibility. To be able to establish a reasonable negotiating range, an
accurate analysis on the nature of all relevant markets must be conducted. If
there are other options, that is, if either the seller or the buyer has other
forms of leverage or enticement, he or she may not need to make as many
concessions, or may not need to make any at all.
Form of Negotiations
International negotiations can take place via telephone, telex, or fax, face-to-
face video conferencing, face-to-face in-person meetings, and use of third
parties. Using a telephone, telex or fax is relatively inexpensive, but because
it lacks personal presence, it is usually not a viable approach on important
negotiations.
Global video conferencing can bean effective negotiating form. There is

face-to-face communication, yet, unlike face-to-face in-person negotiations,
negotiators do not have to travel to strange physical environments and the
costs of airfaire and lodging are saved. However, the development of global
1
Settlement range – all possible settlements a negotiator would be willing to make
(Carl Rodrigues, “International Management – A Cultural Approach”, West Publishing
Company, 1996)
video conferencing technologies is still at an early stage. It is not yet widely

used by negotiators, but as technological advancements are made, its use is
more likely. Also, video conferencing are not a viable form for all face-to-
face negotiations. In many cultures, carrying out certain rituals and
ceremonies are an important part of negotiations, and in many negotiating
situations in-person presence is needed. Thus, in important negotiations, the
face-to-face in-person form is the most widely used and it is likely to
continue to be. Using a third party in face-to-face in-person negotiations
sometimes works best, especially when one or both of the parties involved
are not knowledgeable about cross-cultural negotiations, and when there is
much political and/or social hostility between the two countries involved in
the process.
Where Should Negotiations Take Place?
Negotiations can take place in the home country, in the counterpart‘s home
country, or at a neutral site. Most negotiators would prefer that negotiations
take place on their home turf. Familiar surroundings and easy access to
information provide more leverage; fatigue and stress associated with travel
to the foreign country are not experienced; and, of course, lower travel costs
are incurred. On the other hand, negotiating in the foreign country does have
its advantages, such as sometimes receiving certain concessions because one
has endured the burdens of travelling. And quite often it is a good idea to
base decisions on site observations – for example, it is a good idea to see the
plant where the product is going to be manufactured.
A neutral site that s equally advantageous to both parties is often ideal. For
example, an American executive from Park Avenue in New York City may
not adapt well in a village in the Amazons, Brazil, and an executive from
this village may not adapt well in New York City. Thus a negotiating site
that falls between the two extremes may be the most viable.
Individual or Team Negotiations?
An organization can assign one individual or a group of individuals to

conduct the negotiations. The obvious advantages of using one person are
that it is cheaper and a decision can be made quickly. An obvious
disadvantage is that one person may not have sufficient ability to deal with
the other side, which typically consists of a group of experts and negotiating
specialists – an advantage of the group approach. Furthermore, in some

cultures, Japan, for example, not using a group may be interpreted to mean a
lack of interest in the negotiation. Also, the individual negotiator often finds
himself or herself pressed to make a decision when it is not the right time to
do so. In a group, the members can always take a break to confer, therefore
“buying time” to assess the situation and develop new strategies and tactics
(the Japanese typically use this method because their decision usually
require group consensus). Thus, in negotiating situations where cost and
speed of a decision are more important than the other factors, one should use
only one negotiator; otherwise use a group of experts and negotiating
specialists.
To help speed up decision making a bit and still have access to expert input,
a team of negotiators can be used, but one member is given full negotiating
authority (Americans usually use this approach). Of course, the other side
may know this. And in the negotiation game, for tactical reasons, both
parties try to learn who the decision maker is. In this respect, American
decision-makers usually reveal themselves quickly because they tend to be
very active in the negotiation. On the other hand, Japanese decision-makers
are usually not very active in the negotiations – they simply remain silent
and listen. The Japanese also tend to include several young executives in the
negotiation team simply for exposure and on-site development purposes.
What Are the Country‘s Views on Agreements/Contracts?
Countries existing on a high commercial level have generally developed a

working base on which agreements can rest. The base may be on one or a
combination of three types:
Rules that are spelled out technically as laws or regulations.
Moral practices mutually agreed and taught to the young as a set of
principles.
Informal customs to which everyone conforms without being able to
state the exact rules.
Some cultures favor one, and some another. Americans, for example, rely
heavily on written contracts, and they tend to consider the negotiations
ended when the contract is signed. Many societies, however, do not place
much importance on written contracts; they rely more on the development
of a social relationship. And in many cultures, Greece, for instance, a signed

contract is simply a starting point for negotiations, which end only when the
project is completed – the clauses in the contract are subject to
renegotiation. Thus, the international negotiator must understand the nature
of the other country‘s views and practices relating to agreements and
contracts.
4.2 Tactical Planning for International Negotiation
Tactical planning for international negotiation involve determining how to

obtain leverage, use delay, and deal with emotions.
Leverage
In negotiations, it is usually accepted that the more options one has the more
leverage one has and the more concessions one‘s opponents may be willing
to make. For example, when negotiating with an Argentinean government to
establish a manufacture subsidiary in Argentina, and the government
representatives know that their site is the only viable one, they will not
make any concessions, but they are likely to ask for some concessions.
However, if the Argentinean negotiators believe that one can as easily set up
subsidiary in Peru or Brazil, and they need the technology – and most Third
World nations do – they are likely to be willing to make concessions.
Third World countries appear to have leverage over multinational

companies. This is because they have control over access to their own
territory, including markets, the local labor supplies, investment
opportunities, sources of raw materials, and other resources that
multinationals corporations need and desire. China, for instance, had a
rather fast economical development. Its 1.3 billion prospective customers,
along with its relatively inexpensive cost of labor, make China an attractive
place for many foreign companies to establish operations. This, it seems,
would give Chinese negotiators considerable leverage, and concessions
would often have to be made by foreign negotiators. This may be true in
some cases, but in many instances, multinational corporations have
negotiating advantages because they possess the capital, technology,
managerial skills, access to global markets, and other resources that
governments in the Third World need for economic development.
Delay
Applying delay tactics is another form of leverage. If one walks away from
the negotiations and the opponents become overly anxious, they may be
willing to make some concessions. On the other hand, one may have to
make some concessions, if one becomes anxious before the opponent does.
Furthermore, the pause in the negotiations enables one to rest and
recuperate, assess progress, obtain other information, and reformulate
strategy. In this context, patience is generally recognized as being a key
personal attribute in negotiations. Americans tend to be low on patience,
while the Japanese tend to be high. As an illustration, refer to Exhibit 2.1.
Emotions
Even though behavior in negotiations is mainly intuitive, it should never be

judgmental. To be able to listen to other negotiators, one should exclude his
or her subjective opinions, preconceptions, and emotional filters. By
becoming aware of one‘s emotions, one can learn to change the reactions
and avoid being manipulated by others or by the emotions themselves – one
can prevent emotions from controlling a negotiation. On the other hand, if
one negotiates solely on the basis of logic, one will miss emotional signals
sent out by the other negotiator. Thus, the key to negotiations is to be
perceptive of feelings without being reactive. As an illustration, refer again
to Exhibit 2.1.
Exhibit 4.1 Don’t Just Sit There – Do Something!
In the opinion of a Japanese executive: “You Americans are fond of the

expression ‘Don’t just sit there – do something!’ once in a while you
should reverse that advice. We Japanese would prefer to say ‘Don‘t just do
something – sit there!’. Contemplation may be more productive than
action.” It is true that U.S. businessmen have always been action-oriented.
Only when rushing to an endless series of appointments and conferences
do they feel productive. For many, to be in perpetual motion seems to be
their ultimate goal. It was Santayana who once observed that Americans
are possessed by an obscure compulsion that will not let them rest, that
drives them on faster and faster. The greatest compliment that can be paid
to an U.S. executive is to call him dynamic. Furthermore, foreign visitors
are startled by Americans’ typically low tolerance of silence. Most Asians,
in contrast, can endure long periods during which nobody says anything.
They feel that these opportunities for organizing and evaluating one‘s
thoughts may be the most productive in any conference or negotiation.
Their relative inability to tolerate long periods of silence has gotten many
Americans negotiators into serious trouble when the other side feels no
comparable frustration and tension.
The international vice president of a large U.S. corporation confessed to

his own experience with the consequences of failing to understand foreign
negotiating patterns. He said, “In one of my company’s deals overseas, our
buyer was sitting across the table from the Japanese manufacturer‘s
representative for the purpose of bidding on an item in which we were
interested. Following the usual niceties, our man offered $150,000 per
batch. On hearing the bid, the Japanese sat back and relaxed in his chair to
meditate. Our buyer, interpreting this silence to be disapproval, instantly
pushed his offer higher. It was only after the session was over he realized
he had paid too much”.
It is true that Americans are considered an outspoken lot. Madaaki Imai

contrasts this with the behavior of his own countrymen in saying, “Sitting
mute is clearly a minus at the Western conference, while silence is still
silver, if not golden, in the Japanese mind-set. Many Japanese sit silent
throughout the conference. Nobody thinks the worse of them for that. They
are like oxygen: their views may not be visible, but they are making a
positive contribution nonetheless”.
Unless and until American business leaders can learn to live more
comfortably with silence, and to value thinking and listening as highly as
mere physical activity, foreign executives will enjoy an easy advantage. It
has been suggested that top U.S. executives keep a tiny replica of the giant
Buddha of Kmakura, Japan, on their desk at all times. Its typical posture of
quiet and peaceful meditation should serve as a constant reminder that
great leaders are remembered for their thoughts as well as their deeds.
Source: Carl Rodrigues, “International Management – A Cultural Approach”,

p. 328 2
2
The exhibit is an excerpt from Arthur M. Whitehill, American Executives Through
Foreign Eyes, Business Horizons (May-June 1989), p. 44
4.3 International Negotiator Profiles
4.3.1 Relationship-Focused, Formal, Polychronic and Reserved
The Chinese Negotiator
The Language of Business: Today more and more Chinese negotiators speak
foreign languages, especially English. Nevertheless it is advisable to employ
an interpreter. When working on a major deal it is also recommendable to
hire one’s own interpreter rather than relying on one supplied by the other
party.
Make Initial Contact Indirectly: A major dynamic of Chinese society is

Guanxi, which refers to the special relationship two people have with each
other. The two individuals who share this relationship assume that each is
fully committed to the other; that they have agreed to exchange favors, even
when official commands mandate that they act neutrally. The guanxi
relationship, even though it is preferred, does not have to be between
friends. In the relationship, an individual who refuses to return a favor loses
face and becomes known as untrustworthy. Foreigners wishing to do
business in China who have not established a guanxi relationship may very
well have to deal with uninterested officials 3 . That is why, Chinese
companies usually do not do business with strangers. A good way to make
contact is at a trade show or with an official trade mission. Another way is
to be introduced through an intermediary, preferably a person or
organization that knows both companies. The bank or a trading company,
law firm or embassy official could also introduce one’s company.
Build a Relationship before Talking Business: In China, developing rapport

is a critical and time-consuming part of the overall negotiating process. It is
important to get to know one’s counterparts well before starting to discuss
business. Socializing over drinks and dinner is a good way to build rapport.
Orientation on Time: The Chinese generally value punctuality and

adherence to schedules. They expect the same of their foreign counterparts –
especially potential suppliers.
3
Carl Rodrigues, International Management – A Cultural Approach, West Publishing
Company, 1996, p. 310
Hierarchy and Status in China: Younger, subordinate individuals are

expected to defer to older, higher-ranking persons. Young marketers for
example must be careful to show respect to older, more senior Chinese
buyers.
Maintaining Surface Harmony: Open displays of anger or impatience are

seen as infantile and offensive behavior. The Chinese quickly lose respect
for people who cannot retain a calm exterior under stress. Foreign
negotiators are advised to stay cool and to avoid open confrontation at all
cost. A false smile is preferable to an honest scowl.
Concern with “Face”: Face has to do with self-respect, dignity, and

reputation. One can “lose face” by appearing childish or lacking in self-
control – for example by losing one’s temper. One can cause the
counterparts to lose face by expressing sharp disagreement, embarrassing
them, criticizing them in public or by showing disrespect. Causing serious
loss of face can completely disrupt a promising business negotiation. One
can give the counterpart face by using polite forms of address and observing
local customs and traditions. Giving face is an effective way to build a solid
relationship. If one makes a mistake he/she may be able to save face with a
humble apology. And one can save the other party’s face for example by
allowing him a graceful exit from a difficult negotiating position.
Formality: Chinese negotiators tend to behave rather formally and are more
comfortable with visitors who do likewise.
Verbal Communication: Reserved and formal. Less reliance on written and

telephone communication, more emphasis on meeting face-to-face. The
Chinese at times employ indirect, vague, oblique language wherein the
meaning is deliberately ambiguous and implicit rather than clear and
explicit. They may use circumlocutions and evasive language to avoid
offending the other party. For example, many Chinese consider it offending
to reply to a request with a blunt “no”. So a negotiator might answer “That
will require further study” or “That will be difficult” instead. The result is
that politeness is sometimes confusing for the foreigners. The Chinese tend
to rely as much on paraverbal and non-verbal as on verbal communication.
Paraverbal Communication: Chinese speak more softly than people of some

other cultures. They also try to avoid interrupting the other party, since this
would be very rude. A laugh or a giggle sometimes signals stress,
nervousness or embarrassment rather then amusement. Foreign negotiators
should avoid loud talking and carefully wait until their Chinese counterpart
has finished speaking before saying their piece.
Non-verbal Communication: When meeting and greeting, expect a gentle

handshake and moderate eye contact. Strong, direct eye contact may be
misinterpreted as an attempt to intimidate or indicate of outright hostility.
China is a low-contact culture, with little touching. Body language is
restrained, with small gestures. Avoid arm waving and wide, expansive
gestures. If the Chinese partner raises his or her eyebrows it could indicate
disagreement. Touching thumb and forefinger together while raising the
third, fourth and fifth fingers signals the number 3. Since gesture closely
resembles the “A-OK” sign, it can lead to confusion. Taboo gestures include
arm grabbing, backslapping and striking palm of hand with fist.
Sales Presentation: Avoid opening with a joke or humorous anecdote. This

would show inappropriate informality. Speak clearly and simply. Avoid
using double negatives and convoluted sentences, jargon, slang or unusual
words. Take care not to over-praise the product or company. Instead offer
testimonials or articles written about the firm. Likewise, avoid making
negative comments about the competitors. Let others criticize the
competitors and their products.
Determining Your Bargaining Range: Chinese negotiators often bargain

vigorously and expect their counterparts to grant major concessions on price
and terms during the course of the negotiation. They may measure their
success at the bargaining table by how far they are able to move their
counterpart from his/her opening offer. So wise negotiators build some
margin into their opening offer so as to leave themselves room for
bargaining.
Concession Behavior: be prepared for bazaar haggling. Take care to make

any concession with great reluctance, and only on a strict “if…then”
conditional basis, demanding something equivalent in return. Also be
prepared for pressure tactics. For example, at a critical point in the
negotiation you may spot your chief competitor seated in the reception area,
waiting to meet your Chinese counterpart after your session. A great way to
push you into a concession you do not want to make.
Plays and Counter-Plays: Although Chinese negotiators generally mask

negative emotions, they may on occasion display anger as a pressure tactic.
Government negotiators sometimes plead the poverty of their country to
obtain a lower price. They may also flatter you as an “old friend”. Be aware
that friends are expected to help China by offering better terms.
Decision-Making Behavior: negotiating in China tends to be a long, time-

consuming process requiring patience and a calm disposition. This is
especially true when doing business with a government entity or a public
sector company. Decisions take time.
Role of the Contract: Chinese may regard the final written agreement as less
important than the strength of the relationship with you and your company.
This does not mean that you should not get everything in writing too. The
Chinese may expect to renegotiate the contract if circumstances change. For
them, a contract is more an expression of intent.
Business Protocol: Dress code: suit, white shirt, conservative tie for men.
Conservative suit or dress for women.
Meeting and Greeting: expect as oft handshake and moderate eye contact.
Avoid a bone-crashing handshake or an overly direct gaze.
Forms of Address: use the person’s family name or organizational title.

Thus, Lee Er Peng is Mr. Lee, not Mr. Peng. Avoid calling a Chinese person
by his or her given name unless specifically asked to do so. On business
cards printed in Chinese the family name comes first, followed by two given
names. But on cards printed in Western languages some Chinese reverse the
order. When in doubt, ask which is the family name.
Exchange of Business Cards: the exchange of name cards is done using both
hands. When one receives the counterpart’s card, one reads it and puts it
away in a leather card case or places it on the table. By no means one should
write on someone’s name card in the presence of the giver.
Gift Giving and Receiving: Exchanging gifts is an important part of the

business culture, contributing to relationship building and the development
of guanxi. One should be prepared with appropriate gifts for one’s
counterparts. A good choice would be an expensive cognac, other ideas are
items typical of one’s own country or tasteful logo gifts. The gift should be
presented with both hands. The recipient will probably put it aside and open
it after the meeting. The gift should also be received with both hands and
opened later.
Wining and Dining: Entertaining and being entertained is an essential part of

building a close relationship with one’s counterpart. In China one may be
incited to one or more formal banquets, depending on the length of one’s stay.
One should always reciprocate with an appropriate banquet. In one’s
homeland or a third country, a restaurant offering local specialties is usually a
good choice, however, business people travelling abroad will often appreciate
a good Chinese meal as well. To show one’s commitment to Chinese
customs, one should master the fine arts of eating with chopsticks and
toasting one’s counterparts appropriately. Women are not expected to keep up
with the rounds of banquet toasts and they are definitely not expected to get
drunk. Males who prefer not to drink alcohol can legitimately excuse
themselves on the grounds of religious objection or ill health.
Maintaining the Relationship: Between visits one should stay in contact

with one’s Chinese counterpart by phone and correspondence.
Exhibit 4.2 Negotiating with the Chinese
Foreign business people often complain about the length of the negotiation
process in China. Efficiency needs to be improved and the process speeded
up, but foreigners also have to keep in mind that the pace of life in China is
slower than in, for example, the U.S. After all, Americans have a reputation
for the quickest pace of life in the world. They move in a hurry and are
result oriented. To ensure a smooth negotiation process, it is important that
foreign negotiators know about their counterparts. They should know, for
example, whether their Chinese partners have the legal capacity or authority
to negotiate or conclude a deal, whether they fully understand all aspects of
the transaction, and so on.
Foreigners also need to realize that they cannot deal with a government
entity in China in the same way they might deal with a home-country
government entity or company. In addition, to differentiate between big,
fundamental issues Chinese have their own way of doing business. For
example, in a negotiation between an American and a Chinese party, the
Chinese insisted that the contract be based on the chinese format, while
the Americans thought that their format was more sophisticated. A seesaw
battle ensued. The American side finally took to China a draft based on
the chinese format but marked with additions and changes. On looking
back, the question of which format to use seems a minor issue. But the
underlying point is that negotiations will not work if one party tries to
over-power the other. For many Chinese companies, doing business with
the West is a new experience. Lacking experience – and confidence – they

want to hold on to something familiar. Once they gain experience, they
will relax more. One more point: foreign companies can help shorten the
negotiation process by doing their homework before making the journey
to China. They should consult their legal counsel before they bring up
issues for discussion with the Chinese.
Source: Carl Rodrigues, International Management – A Cultural Approach,

p. 319 4
The Indian Negotiator
In the Hindi language, kal means both “yesterday” and “tomorrow”. That
makes kal (pronounced “cull”) an apt symbol for India –a land of the future
hamstrung by the red tape of its bureaucratic past.
Bureaucratic Red Tape: Regulatory obstructionism provides the toughest

obstacle for foreigners trying to do business in the world’s second most
populous country. With a population of over 1 billion the Indian market is a
powerful magnet for exporters and investors. Unfortunately, the unprepared
business visitor is liable to get snarled up in the ubiquitous red tape.
Any Old India Hand will tell one that there are three keys to success in this
enormous market. One is patience. Another is the right local partner. And
the third is a basic grasp of the business customs and practices.
Patience will serve one especially well when dealing with officialdom. Time
has a different meaning in India, taking the above linguistic example a step
further: kal-kal means both “the day before yesterday” and “the day after
tomorrow”. Minutes just do not count for much in this highly polychronic,
fluid-time culture.
Meeting with a senior government official? Prepare to be kept waiting half

an hour to an hour without the courtesy of an apology. Nor should one be
surprised if the important meeting is interrupted every few minutes while
the harried official across the desk takes phone calls, signs piles of
documents and receives impromptu visitors. With a little bit of luck, a one-
hour meeting will take half the day. It would be a mistake to interpret this
4
The source of the quoted article is Jia Zhao, Doing Business with China, East Asian
Executive reports, January 1991, p. 10
behavior as rude or reflective of sloppy work habits. Clocks in South Asia

simply tick to a slower beat. It is a question of culture and climate.
The right local partner will have the connections to reduce – but not
eliminate – those frustrating delays. But avoid setting one’s hopes too high.
While finding the right partner is an essential condition for success in India,
it is hardly a sufficient one.
Some knowledge of local business customs and practices will help one find
the right partner. That same cross-cultural knowledge will also help one
work effectively with this partner, client, customer or supplier. One should
always have in mind the following aspects:
Communication: India is a linguistic mosaic with over 300 different
languages – and that does not include dialects. While Hindi is the most
widely spoken, 14 other major tongues are official languages. Luckily,
English is the language used for international business. However, Indian
English is sprinkled with local terms that sometimes confuse foreign
visitors. For instance, if one’s partner refers to “a lack of rupees” he may be
talking about a lakh of rupees … meaning 100,000 of them.
Indian business culture of course reflects the basic values of the society.
One such value is the importance of family, which explains the structure of
most small and medium businesses from Chandigar to Calcutta. Indians also
value respect for age and authority. Youngsters are expected to defer to
elders; white hair confers status. The concept of status leads logically to a
discussion of caste. Hindus belong to whatever caste they are born into.
They cannot move up the caste ladder by getting a Ph.D., by getting elected
to high office or by becoming a millionaire. Some 14% of Hindus fail to
qualify for even the bottom rung of the caste ladder. These are untouchables,
currently known as “dalits”.
Europeans and North Americans also need to be aware that Indians are
strongly relationship-focused. One should budget plenty of time to get to
know one’s counterpart before launching into the sales pitch. In India one
should first make a friend before one can make a deal.
Greeting: When meeting and greeting people, many Indian women prefer to
give the graceful namaste gesture (namaskar in the South) rather than shake
hands. One should return this greeting by placing both hands together just
below the chin, finger tips up, while inclining the head in a slight nod.
Another charming South Asian custom is the garlanding of important
visitors. Business visitors often wonder what to do with the garland after it
has been draped around their neck. The appropriate response is to smile in
thanks, remove it and carry it in hand until the host relieves one of the
“fragrant burden”.
Wining and Dining: When entertaining Indian guests, one should remember
that most Hindus are serious vegetarians. And because of the importance of
the family one can expect some of the invitees to bring along a few relatives
to the dinner. For both those reasons one should throw buffet dinners. The
buffet format not only provides flexible seating for unexpected guests, it
also allows the food to be displayed on two tables at opposite ends of the
room – one for vegetarians and the other for the meat eaters. Another
important aspect is that Hindus (80% of the population) do not eat beef and
that neither Muslims (12%) nor Hindus eat pork. Hindus revere the cow
while both religious groups consider the pig unclean.
When a guest in a traditional Indian home, politely decline food or
refreshments the first time they are offered. To accept immediately signifies
greediness and poor breeding. By the same token, one could expect the
Indian guests to similarly refuse. The gracious host or hostess responds by
repeating the offer at least twice.
Negotiating Behavior: Once a comfortable relationship with the local
counterpart has been built, the negotiation process can begin. Indian
business people are often real experts at bazaar haggling, so one should be
prepared for a tough, drawn-out bargaining session. At some point in the
bargaining process the counterpart could play the “poverty card”, assessing
that one should be willing to pay the higher prices of Indian products to help
India develop. The reason behind these prices, usually much higher than the
world market levels, are the decades of protectionism and over-regulation,
which have made India a high-cost economy despite low labor costs.
4.3.2 Relationship-Focused, Formal, Monochronic and Reserved
The Japanese Negotiator
The Language of Business: Today more and more Japanese negotiators

speak foreign languages, especially English. Nevertheless, because so many
Japanese executives read English better than they speak or understand it, it
would be better considering employing an interpreter. When working on a
major deal it might be better hiring an interpreter than relying on one
supplied by the other party.
Make Initial Contact Indirectly: Japanese do not like to do business with

strangers. A good way to make initial contact is at a trade show or on an
official trade mission. Or one could arrange for an introduction by a
respected third party of high status, ideally someone known to both
companies involved in the deal. One’s bank trading firm, law firm,
consulting firm, embassy or JETRO could introduce one’s company to the
Japanese counterpart.
Build a Relationship Before Talking Business: The Japanese concept of wa

necessitates that members of a group, be it a work team, a company, or a
nation, cooperate with and trust each other. Thus, the Japanese usually
prefer, or even demand, that business dealings occur among friends, and not
like to deal with strangers. Therefore, proper introductions are crucial when
business relationships are launched. Before business transactions can begin,
the Japanese must first place the foreigner within some group context (a wa
relationship must be established) 5. That is why developing rapport is the
most important and often the most time-consuming component of the
overall negotiating process. It is essential to get to know the counterpart
before starting to discuss business. Socializing over drinks and dinner is a
good way to build rapport. One should not be offended if the Japanese tend
to inquire about one’s religious or political beliefs. These are common
questions used in Japan because they are interested in knowing as much
about their partners and their companies, it is a confidence builder.
Orientation on Time: Japanese value punctuality and strict adherence to

schedules. And they expect the same of their foreign counterparts, especially
potential suppliers. However rude it may be considered being late for a
business meeting, it is quite acceptable to be late for a social occasion.
Hierarchy, Status and Gender in Japan: Younger, subordinate individuals

are expected to defer to older, higher-ranking persons. Since few women
have reached positions of authority in Japanese companies, most Japanese
men are not used to dealing with females on the basis of equality in a
business context. In Japan, buyers automatically enjoy higher status than
sellers and expect to be treated with great respect. Hence young foreigners –
especially if they are women – tend to face significant cultural obstacles
when trying to sell to Japanese customers.
5
Carl Rodrigues, International Management – A Cultural Approach, West Publishing
Company, 1996, p. 314
Four ways to overcome age and gender barriers are 6 :
Be introduced by the eldest, most senior male colleague available. Status is

a transferable asset.
As a seller, learn the verbal, paraverbal and nonverbal ways of showing

proper respect and deference to your customer. Showing respect gains you
respect.
Gradually establish your professional or technical credentials – being

careful not to appear cocky or boastful. Expertise confers status.
Many women are more skilled than their male counterparts in reading body
language. This ability is very valuable when dealing with Japanese, who
employ a great deal of nonverbal communication. Learn to read body
language.
Maintaining Surface Harmony: Japanese regard open displays of anger or

impatience as infantile and offensive. They quickly lose respect for people
who cannot retain a calm exterior under stress. Foreign negotiators are
advised to stay cool and to avoid open confrontation at all cost. A false
smile is preferable to an honest scowl.
Concern with “Face”: Face has to do with self-respect, dignity, and

reputation. One can “lose face” by appearing childish or lacking in self-
control – for example by losing one’s temper. One can cause the
counterparts to lose face by expressing sharp disagreement, embarrassing
them, criticizing them in public or by showing disrespect. Causing serious
loss of face can completely disrupt a promising business negotiation. One
can give the counterpart face by using polite forms of address and observing
local customs and traditions. Giving face is an effective way to build a solid
relationship. If one makes a mistake he/she may be able to save face with a
humble apology. And one can save the other party’s face for example by
allowing him a graceful exit from a difficult negotiating position.
Formality and Rituals: To help maintain surface harmony and prevent loss
of face, Japanese rely on a number of ritualized codes of behavior.
Examples are the tea ceremony and the exchange of business cards.
Japanese negotiators tend to dress and behave rather formally and are more
6
Richard R. Gesteland, Cross-Cultural Business Behavior, Copenhagen Business School
Press, 1997, p. 150
comfortable with visitors who do likewise. One should try to be formal.

Do not ask if it would be O.K. to call them by their first names or if
everyone can take off their suit coats to relax. This type of atmosphere or
approach tends to give the Japanese a feeling of a lack of sincerity.
Communication Style: Reticent and formal. Less reliance on written and

telephone communication, more emphasis on meeting face-to-face.
Verbal Communication: The Japanese frequently employ indirect, vague,

oblique language wherein the meaning is deliberately ambiguous and
implicit rather than clear and explicit. They may use circumlocutions and
evasive language to avoid offending the other party. For example, many
Japanese consider it offending to reply to a request with a blunt “no”. So a
negotiator might answer, “That will require further study” or “That will be
difficult” instead. The result is that politeness is sometimes confusing for
the foreigners. Surface harmony has been maintained at the cost of clarity.
Japanese distrust glibness. They use fewer words than many Westerners and
tend to rely more on paraverbal and non-verbal communication.
Paraverbal Communication: Japanese tend to speak softly and hesitantly

and employ frequent silences. They may pause at considerable length before
answering a question or responding to a request and try to avoid interrupting
the other party, since this would be very rude. A laugh or a giggle
sometimes signals stress, nervousness or embarrassment rather then
amusement. Foreign negotiators should avoid loud talking and carefully
wait until their Japanese counterpart has finished speaking before saying
their piece.
Non-verbal Communication: When meeting and greeting, expect a gentle

handshake and moderate eye contact. Strong, direct eye contact may be
misinterpreted as an attempt to intimidate or indicate of outright hostility.
A smile may mask disapproval or anger. Body language is very restrained,
formal with small gestures. Avoid arm waving and other vigorous gestures.
Japan is a low-contact culture. The Japanese, like the Chinese, avoid
physical contact as much as possible, and they require even more space than
Americans.
Making a Presentation: Avoid opening with a joke or humorous anecdote.

This would show inappropriate informality. Speak clearly and simply.
Avoid using double negatives and convoluted sentences, jargon, slang or
unusual words. Do not rattle off numbers to indicate the knowledge of the
project. Japanese can study Numbers in detail at a later date. Always bring
as much information as possible about the company and its plans. Also, take
care not to over-praise the product or company. Instead offer testimonials or
articles written about the firm. Likewise, avoid making negative comments
about the competitors. Let others criticize the competitors and their
products. Be prepared for misunderstandings and clarify the points with
sincerity and willingness to assist.
Determining the Bargaining Range: In some business cultures, starting off

with a high price so as to leave room for bargaining is an effective strategy.
This approach may backfire with the Japanese. One should have a cogent
reason for any major concession on price or terms.
Concession Behavior: Japanese often find it difficult to grant concessions

during a negotiation. This is because their bargaining position was usually
arrived at via long, drawn out process within their company. Any change in
the “package” may require a lengthy internal discussion.
Decision-Making Behavior: Although things are changing, many Japanese

companies still make decisions by consensus. Do not demand an immediate
decision on points covered in the meetings. As most decisions are made in
groups, the Japanese team needs time to compare notes and discuss matters.
This is a time-consuming process, another reason to bring patience to the
negotiation table.
Role of the Contract: The final written agreement is less important than the
strength of the relationship with the counterpart. However, it is better to put
everything in writing anyway. The Japanese side may expect to renegotiate
the contract if circumstances change. For them, the contract is an expression
of intent.
Some Westerners like to hand the other side a draft contract to be used as
the outline for negotiation, and proceed to discuss each item point by point.
With the Japanese it is better to keep the draft to oneself. Look for areas of
agreement before discussing the difficult items. And call in the lawyers only
at the end of the negotiating process, after agreement has been reached.
Business Protocol: Dress code: suit, white shirt, conservative tie for men.
Conservative suit or dress for women.
Meeting and Greeting: One should hand over the business card using both
hands, holding it between thumb and forefinger with a slight bow and state
one’s name and one’s company’s name. Receive the counterpart’s business
card with both hands, study it for several seconds and then place it
respectfully on the conference table or in a leather (not plastic) cardholder.
Expect a bow and a soft handshake. Avoid an excessively firm handshake or
overly direct eye contact.
Form of Address: Address one’s counterpart with his or her family name
plus the suffix san, as in Watanabe-san. In Japan the family name comes
first, followed by given names. But on business cards meant for foreigners
the order may be reversed.
Gift Giving and Receiving: Exchanging gifts is an important part of the

business culture, contributing to relationship building and the development
of guanxi. One should be prepared with appropriate gifts for one’s
counterparts. A good choice would be an expensive cognac, a good single
malt whisky or a tasteful item that is typical of one’s city, region or country.
Note that the wrapping and presentation of the gift are more important than
the content. The gift should be wrapped in Japan or by someone
knowledgeable of Japanese customs. It should be presented with both hands.
The recipient will probably put it aside and open it after the meeting.
The gift should also be received with both hands and opened later.
Wining and Dining: Entertaining and being entertained is an essential part of

building a close relationship with one’s counterpart. In Japan one may wish
to reciprocate with an invitation to a Western style restaurant serving for
example French or Italian cuisine. In one’s homeland or a third country, a
restaurant offering local specialties is usually a good choice. To show one’s
commitment to Chinese customs, one should master the fine arts of eating
with chopsticks and toasting one’s counterparts appropriately.
For males, ritual drinking is a traditional way to get to know one’s

counterpart. It is sometimes appropriate to drink heavily, even get drunk.
Alcohol seems to dissolve the stiffness and formality one may encounter
during business meetings.
Japanese rely heavily on tatemae or surface communication, telling one

what they think one wants to hear. After a few drinks many Japanese
businessmen let their hair down and indulge in honne communication,
telling what they really think. So alcohol can be a good lubricant to a sticky
negotiation.
Women are not expected to keep up with the rounds of banquet toasts and
they are definitely not expected to get drunk. Not being able to take part in
the male drinking ritual could represent a slight handicap for women trying
to do business with the Japanese. Males who prefer not to drink alcohol can
legitimately excuse themselves on the grounds of religious objection or ill
health. They may however thereby miss out on some opportunities to
deepen the relationship and to learn more about their Japanese partners.
Maintaining the Relationship: it is advisable to stay in close contact with the

Japanese customers and partners. Between visits one should stay in regular
contact by phone and correspondence.
4.3.3 Relationship-Focused, Formal, Polychronic and Expressive
The Arab Negotiator
The Language of Business: Many Arabs speak English fluently.

Nevertheless, one should be prepared to employ an interpreter in case of
need. When working on a major deal it might be better hiring an interpreter
than relying on one supplied by the other party.
Making the Initial Contact: In all Arab countries one is required by law to
do business through a local agent. The success will depend largely on the
choice of agent and the working relationship with this agent. The agent
should have good contacts, with access to the right people and channels of
distribution. While agent commissions vary, it usually lays around 5 to 8
percent.
Build a Solid Relationship before Talking Business: Developing a strong

personal relationship is the real key to doing business with Arabs. Personal
contacts make things happen. It is very important to get to know one’s
counterpart before starting to discuss business. Socializing is a good way to
build and maintain good rapport.
Exchanging Favors: The exchange of mutual favors is the cornerstone of

any relationship with an Arab. If one is asked for a favor, one should agree
to do it even if one thinks one may not be able or willing to do it. The Arab
will understand that circumstances later make it impossible to fulfill his

request and will appreciate the fact that one agreed to try to help.
Orientation to Time: Arabs look at time differently than people from

monochronic cultures. People and relationship are more important than the
clock. So one may be kept waiting while the Arab partner deals with
unexpected visitors or family emergencies. He may be late for any number
of pressing reasons. Once the meeting starts, it may be frequently
interrupted by phone calls, papers to sign and drop-in visits by old friends
and relatives.
As to deadlines, only God knows the future so it is unwise to push hard for
something to be done by a specific date. Schedule flexibility is
recommendable, so that a few days or weeks delay will not cause serious
problems. Patience is a major virtue in Saudi Arabia and the Gulf.
Hierarchy, Status and Gender: An Arab’s status is determined primarily by

his or her social class and family background. Saudis and many other Arabs
are not used to seeing women in business. For this reason they may have
difficulty in relating to female executives. As a women doing business in the
Arab world, one should be introduced by an older, high-ranking male and
gradually establish one’s professional or technical credentials, without
appearing cocky or boastfull 7 . With luck one may be regarded as a foreigner
who happens to be a female.
The Role of Islam: The Arab world is a conservative, traditional society

strongly influenced by Islam, which pervades every aspect of life. Visitors
are advised to learn as much as possible about Arab customs, practices and
taboos before arriving.
Honor and the Family: An Arab’s honor, dignity and reputation are precious
to him and must be protected at all cost. Loyalty to the family is a
paramount value. Family needs often come before individual needs.
Expressive, Indirect Communication Style: Arabs readily express emotion

and use elaborate verbal language marked by frequent exaggeration for
effect. Because Arab negotiators try to avoid confrontation they usually
7
Richard R. Gesteland, Cross-Cultural Business Behavior, Copenhagen Business School
Press, 1997
avoid saying no to one’s face. A similar style should be adopted when doing
business in the Arab world.
Nonverbal Communication: When meeting and greeting expect a gentle

handshake and strong, direct eye contact. Arabs of the same sex like to stand
or sit very close to each other, closer than many foreigners are accustomed
to. One should not move away, since this would signal coldness to the Arab
counterpart.
As an expressive culture Arabs engage in frequent touching among friends

but the amount of physical contact between business acquaintances varies
within the Arab world. The right hand should always be used for eating or
passing something to an Arab, as the left hand it is considered unclean. The
left-handed should train themselves to use the right hand as much as
possible. When seated avoid showing the soles of the shoes to an Arab. The
feet and shoes are considered unclean.
Determining the Bargaining Range: Arab negotiators tend to be enthusiastic

bargainers and may expect their counterparts to grant major concessions on
the price and terms during the course of the negotiation. Some Arab
businessmen measure their success at the bargaining table by how far they
are able to change one’s opening offer. They think of negotiating as a
challenging contest, a competition sport. Hence it is wise to build plenty of
margins into the initial offer so as to leave room for maneuver during
lengthy negotiating process.
Concession Behavior: One should be prepared for some bazaar haggling and
take care to make each concession with great reluctance and only on a strict
“if…then” conditional basis. Always something equivalent should be
demanded in return for each concession in price, terms or other issues.
Decision-Making Behavior: Negotiating in the Arab world tends to proceed

at a leisurely pace. It would be a tactical error to press hard for a quick
decision. Decisions take time, so one should adjust one’s time and
expectations accordingly.
Contractual Behavior: It is a good idea to get everything in writing to avoid

future misunderstandings.
Business Protocol: Dress code – suit and tie.

Meeting and greeting – Arabs usually give a gentle handshake, but prefer
intense eye contact.
Forms of address – address the Arab counterpart by the first name of his
three names, preceded by “Mr.”. The Arab will use the same manner of
addressing, for example “Mr. Bob”. Titles are important, widely used in
Arabic than in English. “Sheikh” is a title of respect for a wealthy,
influential or elderly man. Government ministers should be addressed by
“Excellency”. It is a good idea to find out any titles a person may have and
use them.
Exchanging business cards – the business card should only be presented

with the right (clean) hand. It should be received in the same way.
Refreshments – the Arabs will offer their partners tea or coffee. This is an
important feature of Arab hospitality; it is impolite not to accept.
Gift Giving: Gifts are always welcome but not expected. Something for
which one’s country is well-known is a good idea, but alcohol or any other
item forbidden to Muslims should be avoided. Be careful about admiring
any of the counterpart’s possessions. He might present you with the object
of your admiration and feel insulted if you decline.
Entertaining: Entertaining and being entertained is an essential part of

building a close relationship with your counterpart. If invited to dinner at an
Arab businessman’s home expect to eat a great deal as a way of showing
your appreciation. The host will press you to eat more than you really want.
Eat as much as you can. When you have reached your limit, you may have
to decline further helpings three times, emphatically, in order to make the
point.
Similarly, when hosting Arabs you must keep pushing them to eat and
drink. But remember that alcoholic beverages and pork products are
forbidden to Muslims.
Maintaining the Relationship: it is important to stay in close contact with

your Arab customers and partners. Between visits make sure to stay in touch
by phone and fax. In the Arab world personal connections are the key to
business success.
The Greek Negotiator
It is said there are two keys to successful business in Greece: “the first is
having the right contacts, the second is developing close relationship with
those contacts”. But how should one get started without these right
contacts?
Getting Started: One proven method of making initial contact is to attend

specialized trade shows where one can meet potential customers,
distributors, agents or partners. Although in principle Greeks do not like
doing business with strangers, trade fairs provide an acceptable way to get
in touch with them. Another effective option, when available, is to join an
official trade mission organized by the government, chamber of commerce
or private organizations. A third option is to arrange for an intermediary to
introduce you to Greek prospects. For instance, a mutual friend, business
associate, bank, chamber of commerce or trade association can make a call
on your behalf or write a letter of introduction.
Business people lacking existing contacts really need to employ one of these
contact strategies, because cold calls do not work in Greece.
Building Relationship: Having made initial contact, the next step is to build
a personal relationship, a process that takes time and patience. Fortunately
one can usually expect the Greek counterpart to either speak English or
provide a fluent English speaker for the meeting. However, one should not
expect to talk business at the first meeting. This is the time to relax, sip
coffee and get to know each other a little. Ask questions about Greek food,
wine, sightseeing attractions and the like, and respond with similar
information about one’s own country. The Greek counterparts will signal
their readiness to talk business by asking detailed questions about the
company and product or service.
Sharing a meal is a great way to learn about each other, to develop a

relationship. And Greeks are very generous hosts. Forget about power
breakfasts, though – think lunch instead. In Athens most business people get
to the office early, say between 7:00 and 7:30, and except for a mid-morning
break work straight through until around 3:00 or 3:30. An invitation to lunch
means good progress in getting to know the local partner.
Wining and Dining: Dinnertime is usually around 9 pm or later. Greeks

normally entertain business visitors in restaurants, so if you are honored
with an invitation to dinner at home be sure to accept. In such cases suitable

hostess gifts are chocolates, pastries or fine cognac. A potted plant also
makes an excellent gift, but remember that it should be wrapped when it is
presented to the hostess.
During the meal expect the host to insist that you sample everything and
take second helpings. Be sure to keep both wrists on the table – Greeks
would wonder what you are doing with the hand in your lap. To signal that
you really had enough to eat, place the napkin on the table. It is polite to
stay at least until 11 pm.
When it is your turn to host a lunch or a dinner it is a good idea to ask your
Greek partners to select the restaurant. And be sure to urge them repeatedly
to eat and drink. Whereas North Americans may feel uncomfortable with
such pushing, in the Near East this comes across as the ultimate good
manners.
Wining and dinning is an important feature for building a close relationship

in Mediterranean cultures. One’s counterpart wants to get to know one
personally as well as from a business point of view, which is why face-to-
face contact is so important. In the more task-focused markets of northern
Europe one can conduct a lot of business by fax, E-mail and telephone. But
in Greece, a strongly relationship-focused culture, one needs to visit one’s
customers and business partners more frequently.
Business Protocol: Doing business in Greece calls for a certain level of

formality. Men should wear a suit and tie, women a dress or suit, even if the
local counterpart is dressed more casually. During the hot summer months
men will be invited to doff jackets and loosen ties and women can wear
lighter weight business attire.
As in the rest of Europe, do address Greeks by their family name until they
suggest moving to a first-name basis. However, in contrast with many other
European cultures one can normally dispense with formal academic and
professional titles.
Male visitors being introduced to a Greek male should give a very firm
handshake and look the other party in the eye. Shake hands whenever you
meet and again when you take leave.
Punctuality and meeting agendas are other interesting aspects of Greek

business protocol and etiquette. While locals often turn up half an hour or so
late, visitors are expected to be on time. Nor should you be offended if your
meeting is frequently interrupted with phone calls and casuals drop-ins.
Greeks are clever enough to conduct several meetings simultaneously and
are usually quick to pick up the thread of your conversation after each
interruption.
Expressive communication Style: Like others Mediterranean most Greeks

too are masters of what academics call “conversational overlap”. By the
time you are halfway through your statement a Greek has already figured
out what you are going to say next, so he exuberantly breaks in to agree,
disagree or change the subject. While many North Americans and northern
Europeans find this behavior rude, it is simply an example of the outgoing,
expressive Hellenic communication style.
Body Language: Greeks also tend to speak loudly and communicate with
lots of facial expression and gestures – other signs of expressiveness.
Unfortunately, business visitors sometimes misunderstand the local body
language. For example, to signify “no” many Greeks tip their head back
without saying a word, a movement which foreigners may misinterpret as a
nod of the head meaning “yes”.
And for Greeks, lifting one’s eyebrows is another nonverbal way of saying
“no”. to make things even more interesting, should one hear a word that
sounds like “nay”, one should be aware that it could be the Greek word for
“yes”.
Hellenes also sometimes misinterpret foreigners’ body language. As an

example, the familiar “thumbs up” sign is an obscene sexual gesture in
northern Greece. And a friendly wave with palm showing and fingers
extended is a serious nonverbal insult to a Greek.
Another source of misunderstanding is gaze behavior. When negotiating

with Greeks, be sure to maintain strong eye contact whenever you are
speaking or being spoken to. Letting your gaze wander during a discussion
is rude, indicating lack of interest on your part.
Varying Space Bubbles: A very subtle problem in nonverbal communication

is often caused by the north/south difference in European space behavior.
Northern Europeans move around with larger “space bubble” 8 than southern
Europeans. For example, most Germans feel comfortable at an arm’s length
distance from other people in a business or social setting. Greeks in contrast
display their friendliness and warmth by standing or sitting much closer. If
one unconsciously steps back Greeks may read this retreat as a sign of
unfriendliness, while one tends to see them as pushy, aggressive.
Women in business: Older Greeks executives may have trouble relating to

female business visitors. Even so there are some things a businesswoman
could take into consideration to get accepted by the Greek business world:
Get introduced by an older, high-ranking male.
Be a true expert in your line of business. Expertise gives you status,
even in a male-dominated business culture.
Learn the nuances of how to communicate respect. For example, greet
the oldest person in a group first, pay him special attention throughout
the meeting, and when hosting a meal keep urging him to eat. 9
There are also some things all businesspersons should pay attention when
dealing with Greeks. For example, one should budget plenty of time and
patience. The negotiation process may take longer than expected, and
decision-making also takes time. One should avoid showing irritation or
impatience. Greeks enjoy vigorous bargaining, sometimes to the point of
bazaar haggling. They are usually reluctant to accept an initial quotation as
final. Therefore it is wise to build some bargaining room into the opening
offer so as to leave room for concessions. Any concession should be granted
with a show of great reluctance, even pain, and should always be made
conditional (i.e. demand a quid pro quo each time).
One should try to keep smiling, even in the face of occasional

confrontational tactics.
8
Richard R. Geateland, Cross-Cultural Business Behavior, Copenhagen Business School
Press, 1997
9
Idem
4.3.4 Relationship-Focused, Formal, Polychronic and Expressive
The Brazilian Negotiator
The Language of Business: The national language is Portuguese. Only a

minority of Brazilian business people speaks fluent English. Spanish-
speaking visitors should be aware that using that language implies to some
Brazilians that Spanish is a more important language than Portuguese. One
should inquire about the possible need for an interpreter during the business
visit.
Initial Contact: In Brazil local contacts are essential. Potential buyers do not
react well to direct, “cold” approach. In order to meet interested parties, one
should try to attend a trade show or join a trade mission. A chamber of
commerce, trade association, government agency or bank could also
introduce one to Brazilian companies.
The initial written correspondence should be in Portuguese, stating that if

possible the future correspondence should be carried in English. An
appointment should be requested two weeks in advance. The meeting would
most likely take place in an office, rather than in a restaurant or bar. One
should not schedule more than two meetings per day: one between 10 and
11:30 am and the second starting at 3 pm.
Importance of Relationship: Before discussing business, a good rapport and

a pleasant, relaxed relationship should be developed. This requires a
considerable amount of time, but establishing an atmosphere of trust is a
precondition to a successful business relationship.
Good topics for small talk are football, Brazilian history, literature and
places to visit as well as information about one’ home town and region. Two
or three visit to Brazil may be needed before doing some serious business.
Like other Lain Americans, Brazilians value deep, long-lasting
relationships.
Orientation on Time: In the southern part of Brazil business people

increasingly value firm schedules and punctuality – particularly in Sao
Paulo, the commercial capital of the country. This is in marked contrast to
tropical Brazil. However, the clock ticks at a different speed for the fun-
loving Cariocas of the Rio de Janeiro, for example. There one may find
oneself waiting an hour or more for the local counterpart. But visitors
should always make it a point to be punctual.
Hierarchy, Status and Respect: In Brazil one’s status depends more on

social class, education and family background than on personal
achievement. Business visitors can enhance their status by displaying a
lively interest in intellectual pursuits, dressing elegantly and staying in top
hotels.
Expressive Communication Style: A warm and friendly people, Brazilians

tend to be very talkative, nonverbally expressive and open about showing
emotions in public. Conversational over-lap is not rude in Brazil and often
mid-sentence interruptions may occur. However, direct confrontation during
the negotiation should be avoided.
Indirect Language: Brazilians need some time to get to know their

counterparts, so one should not expect to get down to business quickly.
Nonverbal Behavior: Men and women shake hands warmly when

introduced and again when departing. Visiting men should expect to shake
hands with another man for a considerable length of time – one should not
withdraw the hand prematurely.
Brazil is definitely a high-contact culture. After they get to know each other
two men will shake hands and touch each other on the elbow or forearm,
perhaps slap each other on the back or shoulder. Male friends will exchange
the abraço or embrace while women friends brush cheeks with a kissing
motion of the lips.
In another sign of friendliness Brazilians stand very close to each other

when talking and maintain strong eye contact with the person they are
conversing with. Both sexes use frequent gestures. Avoid using the “A-OK”
sign, a very rude gesture in Brazil. On the other hand the “fig” sign,
considered vulgar in some other Latin American countries, signifies good
luck. This gesture involves clenching the fist with the thumb pointing
upwards between the index and middle fingers.
Business Customs and Protocol: Although Brazilians interact fairly

informally, business visitors need to take note of certain customs. Address
the male counterpart as Senhor plus the family name. For women it is
Senhora and her family name. Medical doctor, lawyers and all university
graduates are addressed as Doutor (Doctor). One should expect to move to a

first-name basis fairly soon, but should wait until the Brazilian party starts
using the given name.
Male executives tend to wear fashionable three-piece suits. Office workers

wear the two-piece version. Male visitors should note that proper business
attire always includes long-sleeved shirts, even in hot weather. Women in
business wear elegant suits or dresses as well as blouses and skirts. Blouses
and jackets may have short sleeves. Both sexes should avoid wearing green
and yellow – the colors of the Brazilian flag.
One should expect frequent interruptions during business meetings,

especially in government offices. This is not regarded as rude or improper
behavior.
Wining and Dining: Women drink wine, spirits and liqueurs – beer is
considered a man’s drink. Brazilians normally eat a light breakfast between
7 and 9 A.M. and a substantial lunch between noon and 2 P.M.. Dinner
usually starts after 7 P.M. but dinner parties do not normally get underway
until after 10 P.M..
Avoid using the side of the fork to cut anything and do not pick up food of
any kind with the hands. Although they are a very expressive people,
Brazilians do not like a lot of conversation during meals. Wait until coffee is
served before talking business.
Wise negotiators should include plenty of time for socializing during the
drawn-out negotiation sessions. When wishing to entertain a high-level
executive, one should ask his secretary to recommend a restaurant. It is
important to host the dinners only in elegant, prestigious establishments.
Similarly, business visitors should only stay in top hotels while in Brazil.
Gift Giving: Good gifts to bring from abroad for men are music tapes and
small electronic gadgets such as good quality calculators. For women,
perfume. If invited to dinner at home bring chocolates, champagne or a
container of fresh strawberries. Avoid purple flowers, which are associated
with funerals.
Women in Business: Female business visitors who dress and act

professionally encounter no great barriers to getting things done in Brazil.
Unwanted male attention should be politely but firmly ignored.
Exchanging Favors: Brazilians frequently ask friends and business

acquaintances for small and large favors and expect these requests to be
granted. Be very careful of asking favors of Brazilians however. They might
very well agree to do what one asks even if they would much rather not,
since refusing would be rude.
Negotiation Style: Brazilians are widely known as tough bargainers, not

afraid to turn down offers rather bluntly. Such frankness is however not
intended to be rude or confrontational. They simply want one to know
where they stand. The negotiation process is usually a long one; the opening
offer should include substantial margins so as to leave room for
concessions. One should expect very few silences during the negotiations
sessions: Brazilians seem to talk constantly.
The Mexican Negotiator
The Language of Business: Fluency in Spanish is a great asset to doing

business, though today more Mexican businessmen speak English. This is
especially the case in Monterrey, along the northern border and to a lesser
extent in Mexico City and Guadalajara. It would be wise to look into the
possible need for an interpreter during the visit. Remember to have the
company and product literature translated into Spanish before arriving in
Mexico.
Making Contact: A local connection is very important. Avoid a “cold”

approach to a prospective business partner. Instead plan to attend a trade
show or join a trade mission to meet interested parties, or arrange for a
chamber of commerce, trade association, government agency or bank to
introduce you to Mexican firms.
Start at the top: approach the most senior person in the company. The first
letter or fax should be in Spanish, but specify that, if possible
correspondence in English would be preferable from then on. Request an
appointment about two weeks in advance; let the Mexican party decide the
time and place to meet.
Build a Relationship before Talking Business: One should budget enough

time to get to know the counterpart before starting to talk business. Good
topics for small talk are Mexican art and literature as well as information
about one’s hometown. Lots of “face time” 10 will be needed. Two or three
meetings may be needed to establish trust, after which serious business
discussions can begin. Mexicans value deep, long-lasting relationships.
Personal contacts and relationships are major factors in business success.
One needs a palanca – “pull” or “clout” – to get things done quickly. It is
very often whom one knows that counts.
Orientation on Time: Although things are a changing in the northern part of

the country, one should not expect absolute punctuality in Mexico. Local
business people may be half an hour late without causing offence. Visitors
however should always be punctual.
One should avoid scheduling multiple meetings in any one day. One
meeting at 10 am and another in the late afternoon is about right. If someone
schedules a meeting at a certain hour and adds a la gringa, he/she should be
roughly on time. On the other hand, a la mexicana would indicate a more
relaxed approach to scheduling.
Formality, Hierarchy and Status: Mexicans value formality more than most
North Americans. Until one gets to know the counterpart the title and family
name should be used, e.g. Doctor Morales, Director Reyes, Profesor
Santana. Later one can switch to just the title without family name. For
example, Licenciado can be used to refer to someone with a university
degree. First names should not be used until the Mexican party suggests it.
In Mexico, a person’s “middle name” is part of his/her family name.
Dress Code: Men should wear dark suit and black shoes, women a good
dress or suit with heels, makeup and jewelry. Staying at a top hotel gives
one status – as do age, level of education, position in the company and a
basic knowledge of Mexican history, geography and culture.
Expressive Communication Style: Mexicans are expressive, both verbally

and nonverbally. During a lively discussion they may start talking before
one has quite finished. This is not considered rude behavior.
Indirect Language: They often communicate in an indirect way. For

example, during a negotiation they may avoid a direct answer to a question.
One may have to rephrase the question or ask in a different way.
10
Richard R. Gesteland, Cross-Cultural business Behavior, Copenhagen Business School
Press, 1997
Nonverbal Behavior: Shake hands with men both when meeting and
departing, using a moderate grip. Avoid further physical contact until one
knows the person very well. Give women a slight bow and wait for them to
extend their hand.
Like other Latinos, Mexicans tend to stand and sit closer to others than
northern Europeans and North Americans are accustomed to, and to use
frequent hand and arm gestures. Try to maintain steady eye contact with the
person one is conversing with.
It is impolite to appear in public with hands in pockets. And putting hands on

hips signifies a challenge or threat to others. If someone shakes his hand from
side to side with forefinger extended, he is saying “no”. In contrast, the
“thumbs up” sign indicates “yes” or approval of what has just been referred to.
Business Customs and Protocol: Even if one does not speak Spanish,
learning the principal greetings will be appreciated. During meetings one
can expect frequent interruptions: phone calls as well as visitors dropping in
without an appointment. These interruptions are not considered impolite.
Rather, Mexicans would consider it rude to turn away drop-in visitors or to
refuse to take phone calls.
Refer to an office secretary as “Seniorita” whether she is young or not and

whether she is single or married. On the second trip to Mexico, one should
bring a small gift such as perfume for the secretaries of important people.
Tell her your wife bought it for her.
Good business gifts are premium cognacs and Scotches, cocktail table
books, desk clocks and gold pens or lighters. Silver objects are only for
tourists. One’s business contacts should receive gold items.
Women in Business: women business visitors may not be treated with the
same respect they are used at home, since Mexicans men are not used to
dealing with female executives. Women are advised to dress conservatively
and to behave professionally at all times.
Negotiating Style: The negotiation process can be long and vigorous, and
Mexicans tend to be hard bargainers. They also may be optimistic with
deadlines and schedules, so it is wise to mentally add a few days or weeks to
any target date they may suggest.
One should always take time to think over any proposal made by the
Mexican counterpart. Quick acceptance makes the other party think they
may have conceded too much. One should ask for some time to consider the
idea. Similarly, Mexicans take their time coming to a decision about any
proposal.
Wining and Dining: Any Mexican business partner should be entertained

only at top restaurants. One should suggest several and let the guests choose
the one they prefer. Breakfast and lunch are good opportunities to talk
business, while dinner should be reserved strictly for socializing. Breakfast
can be as early as 8 A.M., lunch normally starts around 2 P.M. and dinner
begins after 9 P.M. All meal invitations should be reciprocated.
If accompanied by one’s spouse it is ok to invite the counterpart’s spouse as

well. Foreign businesswomen should always include the wives of their
Mexican male customers or contacts in any dinner invitation. When
entertaining male guests, women should also make prior arrangements with
the headwaiter for payment, since otherwise Mexican men will absolutely
insist on picking up the check.
4.3.5 Moderately Deal-Focused, Formal, Polychronic and Expressive
The Italian Negotiator
Everybody knows the old saying: “When in Rome, do as the Romans do”.
But for business people a variation on that seems to be more appropriately.
“When in Rome, observe how the Romans are doing things … and then act
appropriately”. This seems to be true especially when confronted with the
very different approach Italians have on time and schedules. If the Italian
counterpart shows up half an hour late for a major meeting offering a big
smile and no excuse, one should not be offended. Almost certainly he meant
no offence by that. Instead, one could use the time to catch up with some
over-due paper work. But, by no means should one match this casual
attitude towards punctuality, especially if one is the seller. All over the
world today the customer is king. If one comes from a clock worshiping
culture such as North America, turning up late would show disrespect for
the prospective buyer. And Italians tend to be very sensitive to issues of
rispetto and honore.
Spatial Behavior: When there are only two passengers in an Italian elevator
they stand close to each other. In fact in both social and business situations
Italians like to stand relatively close to others, which can be disconcerting
for visitors with big “space bubbles”. As friendly, expressive people they do
not feel comfortable at arm’s length.
The Importance of Face-to-Face Contact: The Italians prefer to conduct

important business face-to-face rather than by phone, fax or E-mail.
Whether buying, selling or negotiating a joint venture the results will be
better by honoring this preference.
Building a Relationship: It is the same with relationship-building. While

Americans and many northern Europeans expect to get right down to
business, Italians prefer to build a personal relationship first. And it takes
more than just a few minutes of small talk for that … though a plate of good
pasta and a couple glasses of wine can certainly accelerate the process.
Wining and dining is a key part of the business scene in this part of the
world. So one should take one’s time, not rushing things. One may even
discover that it is actually fun to do as the locals do.
Dress Code: The way one dresses for business meetings should also be
influenced by the way Italians do things. Italian businessmen and women
dress with style and elegance, setting great store by the concept of la bella
figura. Milan and Florence are among the fashion capitals of Europe. One’s
outward appearance reflects one’s inner values. So proper respect for one’s
business counterparts is shown by dressing appropriately.
Forms of Address: another occasion to defer to the local custom is in forms

of address. Some informal Americans for instance are mislead by the
warmth and friendliness of Italians into moving to quickly to a first-name
basis. But in a business setting it is customary to start off using any
applicable academic title or honorific, followed by the person’s last name.
One should start calling Italian acquaintances by their first name only after
they invite one.
Paraverbal Communication: There are other instances where it is safer to

just take note of the local customs while sticking to one’s own rules of
behavior. One good example is what scholars call conversational over-lap.
A business discussion in Rome or Naples frequently evolves into what
appears to be a verbal free-for-all. Italians are exuberant, enthusiastic
talkers. They are also quick thinkers who can figure out what one is going to
say long before one finishes saying it. So they often jump in with their
response while one is still talking. This kind of behavior is especially
puzzling for North Americans who polite behavior is conversational turn-
talking. In any case, one should not try to outshoot the locals, since things
could quickly get out of hand.
Nonverbal Communication: Another example of contrasting behavior is the

use of eye contact. In Italy, direct eye contact shows interest in what the
other person is saying while lack of steady eye contact indicates lack of
interest.
“Campanilismo” – Local Patriotism: One complication of trying to decide
which local customs one should adopt is that one will encounter major
cultural variations within the peninsula. People sometimes say, “There are
57 million people in this country, but not a single Italian”. This exaggeration
points up the important fact that many inhabitants think of themselves first
of as Florentines, Milanese, Venetians, Romans, Calabresi, Sicilians et
cetera and secondarily as Italians.
4.3.6 Moderately Deal-Focused, Formal, Moderately Monochronic,

Expressive
The French Negotiator
French negotiators belong to a class by themselves. A product of Teutonic

influences from the north of Europe and Latin infusions from the south,
France’s business culture is unique. For example, while the French are
relationship-focused they are at the same time a nation of individualists.
Moreover though they dislike getting straight to the point and often employ
indirect, high-context communication, they are also quick to argue and
bluntly disagree across the negotiation table. And despite the fact that the
word “egalitarian” is derived from egalité France remains one of Europe’s
most hierarchical societies today.
In other words, French business executives tend to be relationship-focused,

high-context, highly status-conscious individualists – an unusual combination
of cultural traits.
The Language of Business: It is definitely French, even if so many French

business people speak English well. While foreign buyers can get by with
English or German, export marketers are usually expected to speak French.
Parisians especially seem to find it physically painful to hear their language
spoken poorly. Written correspondence should likewise be in French and the

key parts of the product literature should be translated as well.
Good interpreters are easy to find in Paris or Lyon, but marketers who do
not speak the language are likely to find themselves at a disadvantage.
Despite the local sensitivity to the language, it is better to try to use the
French language even if one makes mistakes or has a foreign accent.
Making the Initial Contact: Connections count heavily in this market. Trade
shows and official trade promotion missions are good ways to make initial
contact. The alternative is to arrange for a formal introduction to potential
customers, distributors or partners; the embassy could introduce one, for
example. Other useful intermediaries are chambers of commerce, trade
associations and international banks, law and accounting firms.
The letter requesting a meeting should be in a flawless business French. As

in other hierarchical cultures, it is wise to start at the top. The letter should
be addressed to the President/Directeur General and if one is a senior person
in the company, one could request a meeting with him.
Importance of Relationship: France is definitely a country of personal

networks. One gets things done more quickly by working through inside
contacts than by “going through channels”.
The French want to know a good deal about their business counterparts
before discussing business, but building rapport involves less small talk than
in some other cultures. Showing good knowledge of French history,
literature, art and philosophy is a good way to build rapport. Discussing
French cuisine and wine over meal is another good way.
Orientation to Time: Visitors are expected to be roughly on time for

business meetings, particularly if they are selling. Outside of Paris and Lyon
however, it is not unusual for the local counterpart to appear a few minutes
late. Nor do meetings always follow a fixed agenda as they commonly do
across the border in Germany. Instead one can expect free-form discussions
with everyone present having his say.
Hierarchy and Status: Level of education along with family background and
wealth determine status in France. Graduates of the select Grandes Écoles hold
high positions in government and industry. Three out of four top managers of
the 200 largest French companies come from wealthy families, whereas in
Germany the figure is one out of four and in the U.S.A. one out of ten.
French bosses tend to run their companies in an authoritarian style. They are
expected to be highly competent and to know the answer to virtually every
question that arises. Executives are often reluctant to delegate authority.
Fraternization with the rank and file is not common.
Communication Style: The French are verbally and nonverbally expressive.

They love to argue, often engaging in spirited debate during business
meetings. Negotiators from less confrontational cultures such as East Asia
should not mistake this love of debate for hostility.
Verbal Communication: While they relish verbal conflict the French dislike
getting straight to the point. They tend to favor subtle, indirect language and
like to present their point of view with Cartesian logic, elegant phrasing and
verbal flourishes. This is one reason Gaelic business people prefer to
negotiate in French: their verbal pyrotechnics are lost when expressed in
another language.
Nonverbal Communication: Among friends and relatives the French display

high-contact behavior, including in public. A study of comparative touch
behavior at cafes in Paris and London showed that within the space of an
hour French couples touched each other more than one hundred times while
the British couples did not touch each other at all.
Always shake hands both when meeting and when leaving someone
The French use many more hand and arm gestures than Asians and Anglo-
Saxons. The thumb-and-forefinger circle signifies “zero” in France. To
indicate “A-OK” they flash the thumb-up sign instead. Taboos include
standing or speaking with hands in one’s pockets and slapping the palm of
one hand over a closed fist.
Making a Sales Presentation: One should avoid hard-sell tactics, hyperbole

and flippant humor. The presentation should be sober, with a logical
sequence of arguments. Forceful disagreement on some points can be
responded with factual counter-arguments. Vigorous disagreement with
specific issues does not necessarily signal lack of interest in the overall
proposal.
Bargaining Style: The negotiation sessions are long relatively unstructured,

punctuated frequently with verbal confrontation. The French counterpart
may attack the thought behind one’s bargaining position. The French pride
themselves on their logical thinking and often seem to relish faulting the
logic of others.
Although the senior member of the French team is likely to make most of
the decisions, that does not mean those decisions will be made quickly. The
decision-making process takes longer than in Anglo-Saxon countries.
Business Protocol: As might be expected in a hierarchical, status-conscious

society the French dress and behave formally in a business setting. And of
course being French they dress with style, panache and elegance. Male
business visitors should wear a dark suit; women should choose tasteful,
somewhat conservative clothing and accessories.
Meeting and Greeting: Handshake with moderate pressure and steady eye
contact. Among males the older or higher status person should initiate the
handshake. Women of any rank can decide whether or not to offer their
hand.
Forms of Address: The local counterpart should be greeted with Monsieur,

Madame or Mademoiselle without the person’s name. One should always
use the vous (formal) pronoun rather than the informal tu.
Being a foreigner, once a relationship has been built it is possible that the
French counterpart may suggest using first names. However, it is better to
wait for the local person to take this step. But even when on a first-name
basis the vous-pronoun will continue being used.
Women in Business: Because relatively few women have reached high

positions in French companies, female business visitors may feel somewhat
out of place. Businesswomen should dress and act professionally at all times
and should avoid negotiating behavior that could be interpreted as overly
aggressive.
Wining and Dining: entertaining and being entertained is an important way

to build rapport. According to a recent study two out of three French
business people regularly lunch in restaurants while more than eight out of
ten of their Dutch and British colleagues wolf a sandwich at their desks.
And while almost half of the Brits and Germans surveyed felt business
lunches were a waste of time, 70% of the French think they are an important
part of doing business.
There is a certain ceremonial aspect to dining in France. Many Western

ideas of proper table manners originated in France, so visitors are advised to
observe some key rules of etiquette.
Breakfast usually consists of coffee and a roll, but the American custom of
the “power breakfast” is being adopted by an increasing number of
Frenchmen. Business lunches often last two to three hours over at least that
many glasses of wine. In some cultures it is a sign of generosity to fill a
wine glass to the brim. In France – as elsewhere in Europe and North
America – when pouring wine for one’s neighbour at table the glass should
be filled only two-thirds full. Business should not be discussed at least until
dessert is served unless the host broaches the subject earlier.
Invitations to Dinner at home are more common in the provinces than in

Paris. Always accept such an invitation and plan to arrive about 15 minutes
after the appointed time. Selecting a gift for the hostess may turn out a very
difficult thing. Flowers are not the best choice: the hostess may not
appreciate having to search for the right size vase in the midst of all her
other duties. And then one should remember to bring an uneven number (but
never 13), to avoid chrysanthemums (funerals only), red roses (they signify
having an affair with the hostess) and yellow flowers (they imply the host is
having an affair with someone else).
Nor is wine a better choice. A bottle of undistinguished plunk brands one as

ignorant or cheap while with a good stuff one runs the risk of insulting the
host by insinuating that his cellar is inadequate. The best solution therefore
is usually a box of the very best chocolates one can find.
One should wait at the door until the host or hostess invites one in. Men
should not take off their jackets unless encouraged to do so by the host.
Wait for the host or hostess to start eating. If one is accustomed to keeping
one hand in the lap, one should leave this custom behind. The table
companions are liable to roll their eyes and ask each other what one is doing
under the table.
When the salad arrives, do not cut the lettuce with a knife. Instead fold it
into small pieces with the fork. Peel the fruit with a knife and eat it with a
fork. It is impolite to take two servings of cheese, and extremely gauche to
slice the tip from a wedge of cheese.
4.3.7 Deal-Focused, Moderately Formal, Monochronic and Reserved
The German Negotiator
Like many other northern Europeans, Germans tend to take a deal-focused,

low context and monochronic approach to doing business. North Americans
and Australians find Germans relatively formal, southern Europeans often
describe them as reserved and Asians consider them very direct. Of course
there are important north/south and east/west differences in German
business customs, not to mention significant individual variations. There
are, however, some general tendencies that describe the profile of a
businessperson be he/she from Hamburg, Munich, Leipzig or Cologne.
Language of Business: Many German managers are comfortable conducting

business in foreign languages, especially English. Larger companies usually
have competent English speakers on staff. However, since the language of
business is the language of the customer, a professional export sales team
should include a fluent speaker of German. If the purpose of the meeting is
to negotiate a purchase, a joint venture or strategic alliance, the possibility
of using an interpreter should be discussed.
Making Initial Contact: Banks play a powerful role in the German business
world. That is why it would be better to arrange an introduction with an
international bank. However, in contrast with more relationship-oriented
business cultures such as Japan, Korea, Brazil or Saudi Arabia, making
direct contact is also a viable option in Germany.
The basic information about the company and the purpose of the meeting
should be sent in a letter written in good business German. An appointment
should be required with two or three weeks’ advance notice. In case of a
“cold” approach it would be appropriate to address the correspondence to
the department concerned rather than to a specific individual.
Avoid asking for a meeting during the months of July, August and
December as well as during the Easter holidays. Also avoid Friday
afternoons and late afternoons appointments on any day.
Deal-Focused: Most Germans tend to be deal-focused in business. That

means they are generally ready to negotiate based on the perceived merits of
the deal and do not feel the need to develop a close personal relationship
with the other party before talking business. Rather, rapport building takes
place while the two sides are discussing the deal. Visiting negotiators can
usually expect to get down to business after just a few minutes of general
conversation.
Orientation on Time: Germany is a strongly monochronic culture. That is,

pünktlichkeit is very important, schedules and meeting agendas are rigidly
adhered to and business meetings are rarely interrupted. Being on time may
actually mean arriving a few minutes early: tardiness signals unreliability. If
one is a half an hour late for a meeting, one is likely to be a half a month late
with a delivery. Therefore, should one be unavoidably detained one should
be sure to phone the counterpart as soon as possible to reschedule the
meeting.
In Frankfurt or Düsseldorf one can expect to follow a prepared meeting

agenda whereas in Paris or Lyon business discussions are usually less
structured. Business meetings are rarely if ever interrupted by phone calls or
unscheduled visitors.
Formality, Hierarchy and Status: German society retains a certain level of

social formality which is reflected in business protocol. Formal behavior is a
way to show appropriate respect to people with high rank, professional titles
and higher academic qualifications, especially in southern Germany. This
can be very important since more German managers have PhD’s than
anywhere else in the world. About 40% of the board members of the 100
largest corporations have a doctor’s degree.
One should address Dr. Wilhelm Schmidt as “Dr. Schmidt” or “Herr

Doktor”. His female colleague with Ph.D. would be “Frau Doktor”. It is
polite to address less exalted business contacts with “Herr”, “Frau” or
“Fräulein” followed by their last mane. This includes secretaries. Whereas
in the U.S. for example female secretaries are usually addressed by their
first name, in Germany it is accustomed to address them with “Frau”
followed by their last name. Also remember that women about 20 or older
should be addressed as ”Frau” whether married or not.
As is the case with most other European tongues, the German language
employs two different personal pronouns for “you”. “Sie” is the formal
pronoun appropriate for business relationships while the informal “Du” is
reserved for close friends, small children and pets. One should use titles,
family names and the “Sie”-pronoun unless and until the counterpart
suggests moving to a less formal mode of address. One can expect to work
with German business counterparts for many years without shifting to first
names.
German formality is also expressed in meeting and greeting protocol.

Handshakes are expected whenever meeting or leaving someone and this
greeting is not always accompanied with a broad smile many Germans save
their smiles for family and friends, regarding smiling at strangers as a silly,
even false mannerism.
Business Communication Style: Relatively reserved, not given to

enthusiastic public displays of emotion – although southern Germans are
somewhat more expressive. As opposed to Latin Europeans and Latin
Americans, most Germans eschew wide gestures, animated facial
expressions and conversational overlap. Interrupting another speaker is
regarded as very rude.
Verbal Communication: Germans pride themselves on speaking their mind.

Clarity of understanding is the prime goal of communication. Whereas
relationship-focused negotiators often use indirect, oblique communication,
Germans value direct, frank, explicit, low-context language. They
sometimes suspect Arabs, Asian and Latin Americans negotiators of trying
to mislead them with vague, ambiguous responses when in reality these
high-context people are simply trying to maintain harmony and avoid giving
offence. Conversely, business visitors from cultures that favor indirect
verbal language should realize that Teutonic bluntness is not meant to
offend them.
These days many German executives responsible for international business

are aware that Japanese, Thais, Arabs and others value indirect, roundabout
ways of saying things. But they may be less aware of such differences
within northern Europe. Research 11 conducted by Dr. Malene Djuraa of the
Copenhagen Business School shows that German negotiators are more low-
context (direct) than the Danes and considerably more direct than the
English. This means that negotiators from even closely-related northern
European cultures may not be fully prepared for Germanic abruptness and
readiness to “get to the point”. Expect Germans to answer the telephone by
giving their last name rather than saying “hello”.
11
Research results are presented in Richard R. Gasteland’s work, Cross-Cultural Business
Behavior, Copenhagen Business School Press, 1997
Nonverbal Communication: when meeting and departing expect a firm

handshake (one or two pumps) with direct eye contact. Since some Germans
believe that a soft handshake reflects weakness and that lack of eye contact
indicates shiftiness, unreliability or even dishonesty, East and Southeast
Asians accustomed to a gentler grip and less intense gaze behavior should
prepare themselves accordingly.
The normal interpersonal distance in a business context is about an arm’s

length. Germans tend to stand and sit further apart than Arabs and Latinos
and may feel ill at ease when their “space bubble” is invaded. Germany is
also a low-contact culture, so expect little physical contact beyond the
obligatory handshake.
Hand and arm gestures are restrained. It is rude (as well as against the law)
to tap one’s forehead while looking at another person. This is a potential
problem for business visitors from the U.K. and Spain where the same
gesture means “I am very clever” rather than “You are an idiot”.
If a German suddenly raises his eyebrows during a business meeting he is

probably complimenting his counterpart for having come up with a good
idea or a clever remark. This could confuse Britons to whom raised
eyebrows signify skepticism as well as Arabs to whom raised eyebrows is
often a nonverbal way of saying “no”.
Making a Sales Presentation: Germans respond best to thorough, detailed

presentations supported by copious facts. They look for plenty of history
and background information rather than fancy visuals. Use references and
testimonials whenever possible. Be wary of including jokes into the
presentation. Humor rarely translates well and sales presentations are a
serious business in Germany.
Determining the Bargaining Range: Most Germans respond better to

realistic initial quotations than to the classic “high-low” tactic. They may
react negatively to what they perceive as bazaar haggling. One should
consider building a small margin into the opening bid to cover unexpected
developments, but should also take care not to over-inflate this initial offer.
Negotiation Style: Like the Japanese, German negotiators are known for
very thorough preparation. They are also well known for sticking steadfastly
to their negotiating positions in the face of pressure tactics.
Decision-Making Process: Germans take their time to deliberate and to

confer with responsible colleagues before making an important decision.
Expect them to take more time than Americans but perhaps less than
Japanese and most other Asians.
Contractual Behavior: Germans place heavy emphasis on the legal aspects

and the fine points of the written agreements and they tend to depend more
on the wording of the contract than on the relationship with their counterpart
to solve any problems and disagreements that may develop. Contract terms
are considered “cast in concrete”, so attempts to renegotiate the contract
soon after it has been signed may not be welcomed.
Business Protocol: The dress code is a dark suit and a conservative tie for
men, suit or dress for women. The exchange of business cards is less formal
than in East and Southeast Asia but less casual than in North America. The
card should be presented after greeting the counterpart and shaking hands.
Business Gifts: This is a definitely not a gift-giving culture. German

negotiators are likely to feel uncomfortable if presented with an expensive
gift. If one wishes to bring something small, a good idea would be a tasteful
logo gift or an item one’s country or region is famous for.
Wining and Dining: Many Germans prefer to maintain a clear separation

between their professional and private lives. Although they can be excellent
hosts, Germans tend to place less emphasis on business entertainment than
do visitors from many relationship-focused cultures.
Do not expect to talk business over Frühstuck: the “power breakfast” has yet
to make an impact in the Federal Republic. When out to lunch or dinner,
expect to talk business before or after rather than during the meal, unless the
German partner takes the initiative.
A German host may well consider it impolite to repeatedly urge guests to

eat or drink, so one should be sure to speak up if one wishes to have
something that is offered. Do not wait to be asked twice or thrice, as is often
the custom in the Middle East, Brazil and other traditional cultures.
Dinner at Home: If invited to a German home for dinner, be sure to accept.

Avoid arriving early, but do show up within 10 or 15 minutes of the given
time.
A hostess gift is appropriate, but avoid bringing wine unless it is a good

vintage from a top wine-producing area. Flowers make a good Mitgringsel
but avoid red roses (for lovers only) and canna lilies or chrysanthemums
(for funerals only). Bring an uneven number, except for 6 or 12, but never
13 and remember to unwrap the bouquet before presenting it to the hostess.
A box of high quality chocolates is always an excellent alternative.
Social Etiquette: A man precedes a woman when entering a bar, restaurants

or other public place and walks to the lady’s left when outdoors. It is polite
to stand when a woman, older person or an individual of high rank enters
the room.
Germans tend to be uncomfortable with the effusive compliments that are

common in some cultures. Similarly, foreigners are unlikely to be
overwhelmed with flattery – with one exception: Germans are quick to show
appreciation for visitor’s efforts to speak their language.
Germans take business very seriously and expect their counterparts to do the
same. Competence more than connections is the key to business success in
Germany.
The Dutch Negotiator
The Netherlands is an attractive market for three main reasons. First, its
15 million inhabitants enjoy a high per capita income. Second, its central
location within Europe makes the country a good entry point to the
Continent as well as an excellent distribution center for the European Union.
Third, the Dutch have been world traders for centuries, so they really know
how to do business.
Most foreign visitors find it relatively easy to get around there because the
Dutch are among the best English speakers on the Continent and their
business customs and practices are similar to those of the Anglo-Saxon area.
However, the very ease of communication may cause visitors to overlook
certain key differences that can get in the way of closing a deal. The Dutch
mindset may differ just enough to cause an occasional problem.
Language of Business: Even though most Dutch business people speak

English fluently it is polite to offer to bring an interpreter to the first
meeting, just in case. Most of the times the Dutch business people will
decline the offer.
Making the Initial Contact: Like Americans, the Dutch are quite open to
doing business with strangers, including foreigners. This means that one
only needs a name in order to make direct contact with the potential
customer or partner rather than being introduced by someone else.
One may phone for an appointment and then confirm the arrangement in
writing. The letter should be addressed to the person one wishes to see and
include all the information that person may need to prepare for the meeting.
It should be also formal, using the addressee’s correct title.
One should give the counterpart several weeks notice – impromptu meetings
are not popular with the well-organized Dutch. Avoid July and August as
well as the Christmas holiday season.
Meeting Protocol: Perhaps the most important rule of Dutch business

protocol is to be on time for meetings. If one cannot arrive on time, it would
be better to telephone the counterpart, explaining the problem.
Men should wear a suit or a blazer and slacks, women neat business attire.
When introduced, repeat one’s name while shaking hands. At gathering,

when introducing oneself, just give the last name. It is not necessary to say
“Hello” or “How are you?” One should shake hands again when departing.
Men wait for women to offer their hand. At a social gathering one should
also shake hands with the children one meets. Avoid using first names until
the counterpart suggests it.
This is a low-contact culture. Until becoming good friends avoid slapping a

Dutchman on the back or seizing his upper arm to display friendliness. In
fact, it is a good idea to avoid any physical contact beyond the handshake.
Although very few local women have reached senior positions in Dutch
companies, businesswomen should encounter no particular problems doing
business in the Low Countries. One should remember that Holland refers to
only a part of the country; the correct name is The Netherlands.
Verbal Communication: The Dutch value direct, straightforward language.

They like to get right to the point, avoiding polite circumlocution. When
they mix directness with assertiveness it can be misunderstood. In some
cases, even the Americans, who also value frankness, were offended by the
Dutch bluntness.
Dutch distrust flowery language and empty rhetoric. They expect one to say
what one means and mean what one says. In contrast with some other
cultures, a Dutch “yes” can be taken as a commitment. And when they mean
“no” they will say it quite plainly rather than mincing words to spare one’s
feelings.
Despite their facility with English the Dutch occasionally get their numbers
turned around. For example, they may quote $53,000 but really mean
$35,000. All discussions involving numbers and quantities should be
carefully confirmed in writing to avoid confusion.
Business Communication Style: Expect a sober, somewhat reserved

approach until one gets to know the counterpart. The Dutch sometimes
accuse Americans of superficial friendliness. They are less likely to smile at
people they have just met.
Nonverbal Communication: The handshake should be firm and

accompanied with strong eye contact. Avoid chewing gum in public and
keep the hands out of the pockets when talking to people, even in a fairly
relaxed situation.
In France, Italy or Germany tapping one’s head while looking at someone

means one thinks they are crazy or stupid (in Germany this gesture is also
illegal). So it is important to know that when a Dutch taps the right side of
his head while looking his counterpart’s way it actually has the opposite
meaning: he is complimenting him/her on his/her intelligence. Had he want
to impugn the sanity of his counterpart, he would have pointed his finger at
the middle of his forehead. Or perhaps grabbed at an imaginary fly in front
of his face.
Making a Sales Presentation: Like many other European business people,

the Dutch are putt off by hard sell tactics and hype. The presentation should
be straightforward, and every claim made in it should be fully supported by
the facts. On the other hand, there is no need to understate or to downplay
the benefits of a proposal. One just has to be as factual as possible, even at
the risk of being slightly boring. To the Dutch business is inherently
interesting. There is no need to put on “a dog and pony show” to hold the
audience’s attention.
Negotiation Style: The Dutch are usually tough, shrewd negotiators. One
should not insult their intelligence by heavily padding the opening offer in
the expectation of granting generous concessions later. Just as most Dutch

negotiators want to get down to business quickly and avoid lengthily
preliminaries, they also value a realistic bargaining range.
Within Europe the Dutch are known to be tenacious and persistent, at times
perhaps even a little bit stubborn. When things get tense at the negotiating
table raising the voice would certainly be counter-productive.
Decision-Making: Dutch negotiators rarely make snap judgments but neither

do they agonize unnecessarily over business decisions.
Business Gifts: The Netherlands is not a gift-giving business culture. If one

wishes to bring something small, a good idea would be a tasteful logo gift or
an item one’s country or region is famous for. The gift should be presented
at the end of the meeting.
Wining and Dining: Remember that the expression “going Dutch” reflects
an important local custom. Unless one has been unambiguously invited as a
guest, one should be prepared to pay for one’s share of the meal. If the
counterpart has treated one to lunch or dinner, one has to reciprocate as soon
as it is practical. A female business visitor entertaining her local male
counterpart normally encounters little serious resistance when she insists on
picking up the check, especially if she pays with a credit card.
The Dutch normally drink wine with lunch and dinner unless eating
Chinese, Indian or Indonesian food, when beer is usually the beverage of
choice.
Social Etiquette: When outdoors it is polite for men to walk on the street
side. This custom arose as way of protecting the lady from the mud splashed
up by passing carriages.
Since business entertainment in the Netherlands usually takes place at

restaurants, an invitation to dinner at home is a very friendly gesture. Do
send or bring flowers for the hostess, remembering that red roses are for
lovers and white lilies for funerals. Unwrap the bouquet before presenting it
to the hostess.
Avoid bringing a bottle of wine for the host. Some men would take it as a
comment on the inadequacy of their cellar.
Men stand until ladies are seated, and everyone waits for the hostess to start
eating. Keep both hands above the table. Plan to stay for an hour and a half
or so after dinner.
4.3.8 Deal-Focused, Moderately Informal, Monochronic and Reserved
The Danish Negotiator
To negotiators from deal-focused cultures, doing business in Denmark looks

deceptively easy. The Danish business culture is deal-focused – more so
than the British, though a bit less than the Germans and distinctly less than
Americans. Danes negotiators also tend to be moderately informal,
relatively monochronic and quite reserved.
Language of Business: Most Danish people speak and read English fluently.
Visiting negotiators who do not command English should have no problem
arranging for a competent interpreter.
Making Contact: as with other deal-oriented cultures, an introduction can be

helpful but is not necessary. Danes are relatively open to dealing with
foreigners.
Time and Scheduling: Visitors are expected to be on time for meetings,

which often follow a written agenda and are unlikely to be interrupted.
A Reserved Culture: At sales training seminars in the U.S., Americans are

typically taught to move in close to a male prospect, grab his upper arm
while shaking hands and perhaps add a hearty slap on the back at the end of
the meeting.
This approach works well in the relatively expressive U.S. culture but can
be a real turnoff in Denmark. Visitors from expressive cultures should take
note: Danes tend to be reserved, especially at first contact.
Sales Presentation: As for the verbal part of the presentation, many Danish
managers are irritated by “hard selling” tactics. They react better to a well-
documented, straightforward approach with no exaggerated claims.
Social Behavior: During the first meeting it is a good ideas to try to

maintain about an arm’s length distance between one and one’s counterpart.
And avoid physical contact other than the handshake. Of course, a couple of
glasses of beer after the business meeting help shrink that “space bubble”.
Conversational Turn-taking: Negotiators from more expressive cultures

sometimes cause offense by interrupting their Danish counterparts in mid-
sentence. While “conversational overlap” is common practice in Athens,
Rio de Janeiro and New York, interrupting people is considered very rude
behavior in Copenhagen.
Negotiation Style: Many Danes dislike that common international

negotiating tactic, the “high-low” gambit – starting off with a highly inflated
initial offer. Business visitors fresh from negotiating in the Middle East,
China or Brazil where negotiators expect this tactic will do better opening
with a more realistic offer in Denmark. Equally irritating to Danes is the use
of artificial deadlines as a pressure tactic.
Management Style: The Scandinavian Model: today more and more foreign
companies are forming joint ventures in Denmark to help them access
emerging markets in the Baltic states, Poland and Russia.
Although expatriate managers generally enjoy their stint in Copenhagen,

many encounter unexpected problems in dealing with the Scandinavian
model of management. For instance, Danish managing directors may
completely ignore the corporate chain of command to talk directly with a
junior executive on a project. This is normal behavior in many Danish
companies, but it can be unsettling to a middle manager from a more
hierarchical culture. Many U.S. executives for example are used to a more
formal leadership style.
Expatriate managers newly arrived from more expressive cultures also tend
to come on too strong. Americans in particular are criticized for being too
aggressive, being boastful of past accomplishments and “blowing their own
horn”.
Egalitarism: what provokes this particular criticism? The answer is simple:

Danes tend to be governed to some extent by the Nordic egalitarian code of
conduct called Janteloven. This “Law of Jante” ordains that no one should
set himself or herself up as better, smarter or richer than anyone else.
Modesty: Danes are so self-effacing and modest that they usually mumble
their name when introducing themselves. Moreover they typically
understate their achievements and make a lot of self-depreciating remarks.
Indeed, it would be fair to say that modesty is a national characteristic of
Danes – who may in turn be put off by the breezy self-confidence and self-
promotion they see in people from certain other cultures. Foreign visitors
will make a far more favorable impression by letting the Danes find out for
themselves how smart they are.
Regional Differences: of course there are cultural contrasts between

different regions of Denmark, just as there are within other countries. For
example, Danes observe that the people of Jutland are relatively taciturn
compared to their more loquacious Copenhagen compatriots. And Jutlanders
also tend to say things more directly … straight to the point.
But despite some minor variations in cross-cultural behavior Danes

obviously get along quite well together. Just as business visitors get along
very well in Denmark, one of Europe’s friendliest and most hospitable
countries.
4.3.9 Deal-Focused, Informal, Monochronic and Moderately Expressive
The American 12 Negotiator
The USA is a complex multi-ethnic, multiracial, multicultural society.

Because of this diversity it is not possible to predict in detail the negotiating
behavior of any individual American. That said, there is such a thing as a
mainstream U.S. business culture. For example, most American negotiators
tend to be time-conscious (“Time is money”), deal-focused (“Let’s get down
to business”) and informal (“What’s your first name?”)
The Language of Business: Is the American English. Very few Americans

speak a foreign language well enough to handle a complex business
negotiation. In order to avoid any misunderstandings, consider hiring an
interpreter or ask the counterpart to do so.
12
Properly speaking all citizens of North and South American countries are Americans.
However, since there is no other convenient way of referring to U.S. citizens, for the use of
this profile the term “American” will be used to refer to people from the United States.
Making Contact: Perhaps because the USA is an immigrant society with a

high degree of geographical mobility, most Americans are used to doing
business with strangers. That means that while a referral or introduction is
always helpful, in most cases a prospective counterpart can be approached
directly, without going through an intermediary.
The initial contact should be made through a letter, a fax or E-mail with the
basic information about the company and the product, also stating the
interest in a future appointment. The meeting should be requested two or
three weeks in advance, eventually by phone. The counterpart will suggest a
time and a place.
Deal-Focused: Americans are usually ready to “get down to brass tasks”

shortly after meeting a potential business partner for the first time. It is not
that the US negotiators are unaware of the importance of getting to know
their counterpart, of building relationship. It is simply that the deal-focused
American prefers to build trust and rapport while the business discussions
are proceeding. They tend to regard extended small talk and preliminaries as
a waste of precious time.
Orientation on Time: Americans are as obsessed with time as many other

cultures are with relationship-building. Famously monochronic, they treat
time as a tangible asset that can be saved, spent, lost, found, invested and
wasted.
If US business people have an appointment in someone’s office at 9:00 they

expect their counterpart to see them right on the dot. They regard a person
who keeps them waiting for longer than 10 minutes as either hopelessly
undisciplined, intolerably rude or both.
Similarly, once the meeting starts Americans expect discussions to proceed

to conclusion without interruption. When doing business in polychronic
cultures they become easily upset when discussions are interrupted by
phone calls, drop-in visitors or secretaries bringing in papers to be signed.
This means that visiting negotiators should take care to be on time for all
meetings in the USA and can expect an apology if they are kept waiting for
more than a few minutes.
Informality: A key American value is egalitarianism. They tend to feel

uncomfortable in the face of overt status distinctions. Women and young
men face relatively few obstacles to doing business in the US, where
individual achievement is generally regarded as more important than one’s
social class, family background or gender.
The relative lack of class distinction is reflected in the breezy informality for
which Americans are famous. They want to get on a first name basis
quickly, even with people they have just met. This informality is meant to
show friendliness and warmth. Business visitors from more formal cultures
should realize that easy familiarity is not intended to show disrespect to
persons of high status.
The casual way Americans greet people and exchange business cards is
another reflection of egalitarian values. The East Asian who politely offers
his business card with both hands should not be offended if his US
counterpart stuffs the card in his pocket without reading it.
Communication Style: Depending on their ethnic background as well as

their individual personality, US negotiators show great variations in the way
they communicate. Also, compared with northern Europeans and East
Asians Americans may appear more expressive, more extroverted. But when
compared with southern Europeans and Latin Americans they usually seem
bland and introverted.
Direct Verbal Communication: The low-context Americans tend to “say it

like it is”. They value frank, straightforward exchange of information and
are usually unaware that East and Southeast Asians might be offended by
their directness. They may even be suspicious of negotiators who prefer
indirect, oblique, ambiguous communication.
Paraverbal Communication: US negotiators tend to speak louder at the

bargaining table than people from more reserved cultures. Uncomfortable
with silence, they may also feel compelled to quickly fill in any gaps in the
conversation – a behavior that many Japanese for example find offensive.
Americans also know it is rude to interrupt others in mid-sentence; if they
do this anyway in the course of a lively discussion no offence is intended.
Nonverbal Communication: When meeting and greeting expect a firm

handshake and direct eye contact. Some Americans believe that a soft
handshake reflects weakness and that lack of direct gaze indicates
unreliability or dishonesty. They shake hands much less often than most
Europeans and their handshakes are quite brief compared to those of most
South and Central Americans.
The normal interpersonal distance in a business context is about an arm’s

length. Americans generally stand and sit further apart than Arabs, southern
Europeans and Latin Americans. Touch behavior is moderate. Some
Americans slap each other on the back and grab one another by the elbow or
upper arm to express friendliness.
Making a Presentation: Americans respond best to brisk, factual presentations

delivered by a competent speaker of English and enlivened by visual aids
where appropriate. They may interrupt with questions rather than hold their
questions until the end.
Bargaining Range: US negotiators experienced in international business are

used to a wide variation in bargaining ranges. Expect them to test the
opening offer for flexibility. They may respond better to realistic quotations
than to the overused high-low tactic. Build a safety margin into the opening
bid to cover unexpected developments but avoid over-inflating the offer.
Concession Behavior: Americans are tough negotiators. Each concession

should be carefully made and only on a strict “if…then” conditional basis
and something of equivalent value should be demanded in return.
Ploys and Counter Ploys: A favorite American bargaining tactic is time

pressure: “Next week our prices go up seven percent”. The best way to
counter this ploy is to simply ignore it.
Another favorite ploy is to ask quotation on sliding scale by quantity. For

example, if the quoted prices are based on 1000, 10,000 and 50,000 units,
the American counterpart is likely to ask for 12,500 units but at a lower
price than quoted for 50,000 units. Counter this ploy by smiling and
repeating that the lower price is valid only for orders of the indicated
quantity.
The Trial order gambit is another tactic Americans negotiators use. They
may demand the lowest price even for a small test order. If one is tempted to
buy a customer’s business with a low “introductory” offer, one may face
some difficulties when trying to move him up to the normal price.
Decision-Making Behavior: American negotiators are probably the fastest

decision-makers in the world – sometimes perhaps to their own detriment.
Some US executives live by the motto, “Right or wrong, but never in
doubt”. Expect expressions of impatience if the decision-making process
seems to be taking too much time.
Role of the Contract: Americans emphases the legal aspects and the fine
points of the written agreement. Many US negotiators include lawyers in the
discussion from the start until the signing ceremony. They often bring a
draft agreement to the bargaining table and proceed to negotiate clause by
clause.
Should a dispute or disagreement arise later the American side may rely
strictly on the terms of the contract and could become suspicious if their
counterpart invokes non-contract issues as the importance of the long-term
relationship.
Business Protocol: While the dress code varies somewhat according to

location and type of business, visitors are well advised to wear a suit and tie
to the first meeting with a new contact. Americans may not initiate the
exchange of business cards and they may offer their card at the end of the
meeting rather than at the beginning.
Forms of Address: start out with Mr., Mrs., Miss. or Ms. but do not be
surprised if the counterpart suggests switching to a first-name basis soon
after meeting. If such informality is uncomfortable, one should make it quite
clear which form of address one prefers. Titles are likely to be ignored
except in formal meetings – exceptions are the medical doctors and high
government officials. Most Americans are uncomfortable using honorifics
and titles.
Gift Giving: The US business world is not a gift-giving culture. Many

American negotiators feel unease if presented with an expensive gift. If one
wishes to bring something small, a good idea would be a tasteful logo gift or
an item one’s country or region is famous for. The counterpart may unwrap
the gift after receiving it. This is the American custom.
Wining and Dining: Many American negotiators prefer to maintain a

separation between their professional and private lives as well as between
business and pleasure. They may not always value entertaining as a way of
building a close personal relationship with their business partners.
If invited to that quintessentially American invention, the cocktail party,

expect to mix informally with a large number of complete strangers.
According to American custom it is considered rude to push food or drink
on a reluctant guest. So one should respond quickly in the affirmative if one
wishes to have something that is offered.
As one can see, the literature on international negotiation is rich in

intercultural approaches outlining cultural characteristics or cultural
typologies of the negotiators. They go as far as prescribing “recipes” about
dealing with Americans, Japanese, Arabs, etc. The utility of these
approaches is, however, limited. Usually they are based on opinions,
common observations, instead of scientific analysis (which is very difficult
to make). Since many of these models are created by authors coming from
“Western” schools, they present only one side of the story: the Western
perspective. The styles presented in these models are not static. They are
complex and dynamic, evolving and continuously changing. Furthermore,
most of these models do not take into consideration the fact that some
cultural dimensions are becoming more homogenous due to the
globalization process.
However, knowing these different styles can be useful for the negotiator as
they provide him with an image of the cultural differences throughout the
world and some general guiding lines for understanding and dealing with
cultures. The professional negotiator will go beyond these stereotypes and
will be careful about using some “recipes” in intercultural negotiations.
These models also show that every culture, drawing on its special talents,
has its own contribution to make to international negotiation. The American
genius is using plentiful resources to promote ingenious technical fixes. In
the Middle East tahkim, formal arbitration, and wasata, informal mediation-
arbitration, are proven methods of conflict resolution, sensitive to issues of
standing and exploiting symbolic and ceremonial assets. The afu custom of
begging pardon can be more helpful in some circumstances than the Anglo-
Saxon concept of apologizing. In the Far East relationships and consensus
are cherished and it is recognized that painstaking groundwork and sure and
steady implementation may be preferable to impatient negotiating and
rushed decision-making. In Europe, the source of modern diplomacy,
linguistic skills of drafting have been honed to a fine art. Tactical gimmicks
and dramatic stunts are less valued than the insight that negotiation is
mostly about the careful, unhurried joint formulations of texts and finding
the “mot juste”. The time has arrived for everyone to learn from everyone,
recognizing that no one has a monopoly on wisdom.

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4

Negotiation has been defined quite differently by a number of authors,

Ö “The processes by which two or more interdependent parties who do

4.1 Types of Negotiation

Understanding the importance of identifying the type of negotiation one is

The Quick Type

This approach should be used when one needs to negotiate in a hurry.

Most academic researchers refer to this type of approach as a “distributive

Lax and Sebenius (1986) describe distributive negotiation as competitive,

The Compromise Type

This type of approach to negotiation is often seen as an effective form of

The Deliberate Type

The deliberate type requires co-operation and relationship building in an

 It does not develop without a lot of time and hard work;

Worst possible outcome

 “I'm absolutely right and you’re definitely wrong.”

If the worst possible outcome is considered as an option, then it is far easier

Negotiating across cultures is far more complex than negotiating within a

Negotiators in a foreign country often fail because the local counterparts

Thus, effective cross-cultural negotiators understand the cultural differences

Realistically, it is nearly impossible to learn “everything” about another

In order to succeed in international negotiation, business people have to

Strategic Planning for International Negotiations

Strategic planning for international negotiations involves several stages:

Preparation for Face-to-Face Negotiations

Generally, at the preparation stage, the issues to be identified are common

modified for negotiating with foreign businesses, as cultural factors,

Determining a Settlement Range

At this phase, a negotiation or settlement range 1 must be established. The

Global video conferencing can bean effective negotiating form. There is

video conferencing technologies is still at an early stage. It is not yet widely

Where Should Negotiations Take Place?

Individual or Team Negotiations?

An organization can assign one individual or a group of individuals to

specialists – an advantage of the group approach. Furthermore, in some

What Are the Country‘s Views on Agreements/Contracts?

Countries existing on a high commercial level have generally developed a

of a social relationship. And in many cultures, Greece, for instance, a signed

4.2 Tactical Planning for International Negotiation

Tactical planning for international negotiation involve determining how to

Third World countries appear to have leverage over multinational

Even though behavior in negotiations is mainly intuitive, it should never be

Exhibit 4.1 Don’t Just Sit There – Do Something!

In the opinion of a Japanese executive: “You Americans are fond of the

The international vice president of a large U.S. corporation confessed to

It is true that Americans are considered an outspoken lot. Madaaki Imai

Source: Carl Rodrigues, “International Management – A Cultural Approach”,

4.3 International Negotiator Profiles

4.3.1 Relationship-Focused, Formal, Polychronic and Reserved

The Chinese Negotiator

Make Initial Contact Indirectly: A major dynamic of Chinese society is

Build a Relationship before Talking Business: In China, developing rapport

Orientation on Time: The Chinese generally value punctuality and

Hierarchy and Status in China: Younger, subordinate individuals are

Maintaining Surface Harmony: Open displays of anger or impatience are

Concern with “Face”: Face has to do with self-respect, dignity, and

Verbal Communication: Reserved and formal. Less reliance on written and

Paraverbal Communication: Chinese speak more softly than people of some

Non-verbal Communication: When meeting and greeting, expect a gentle

Sales Presentation: Avoid opening with a joke or humorous anecdote. This

Determining Your Bargaining Range: Chinese negotiators often bargain

Concession Behavior: be prepared for bazaar haggling. Take care to make

Plays and Counter-Plays: Although Chinese negotiators generally mask

It does not develop without a lot of time and hard work;

“I'm absolutely right and you’re definitely wrong.”