‘’Año del Fortalecimiento de la Soberanía Nacional’’

Carrera: Administración y Negocios

Internacionales ADM-5 semestre

Curso: Inglés Básico

Prof.: Harold Delfin Angulo Bustinza
Tema: NEGOTIATION WITH A FOREIGN COUNTRY

Integrantes:
- Hosmar Dandy Rojas Chavez
-Bruno Marcelo Vilca Medina
-Nicole Noelia Paricahua Pari
-Fabian Andres Castillo Diaz

2022
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1.NEGOTIATION WITH A FOREIGN COUNTRY

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2. EXECUTIVE SUMMARY

The purpose of this summary is to capture the interest of the negotiation of both companies

since Forty Burguer, which specializes in the commercialization of natural products based on

lentils, more specifically in the form of hamburgers, is a natural way of betting on nutrition.

and the natural flavor, so the company knows its potential as an exporter, that is why we want

to carry out a negotiation from one country to another with the company Broadway at the

Beach, which is a tourist shopping center that is very visited due to the variety of products ,

places of entertainment and for having a cultural diversity through tourism being seen many

times by a variety of people. That is why a complete plan is carried out which benefits both

companies.

In order to achieve the negotiation, an investigation was first carried out as well as the

customs and the set of non-specialized knowledge and ideas acquired thanks to the

development of the intellectual faculties, through reading, study and work of each country,

both the Peruvian negotiating country and the foreign country that is the United States, it was

also investigated which of these customs influence the negotiators at the time of carrying out

a negotiation, on the other hand, the variables that will be taken into account were

determined, thus having related variables and other different ones that are part very important

of our work, finally a conclusion was made about the work where everything that this

negotiation entailed and what were the most notorious points are specifically indicated.

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 3. TABLE OF CONTENTS

1. NEGOTIATION WITH A FOREIGN COUNTRY…………………………….2

2. EXECUTIVE SUMMARY………………………………………………………..3

3. TABLE OF CONTENTS………………………………………………………….4

4. INTRODUCTION……………………………………………………………........5

4.1Presentation of the companies…………………………………………………7

5. CULTURE AND NEGOTIATIONS……………………………………………..9

5.1 Cultural variables and US negotiating style………………………………...9

5.2 Cultural variables and negotiation style of the Peruvian Negotiator……...12

6. VARIABLES: PERU - FOREIGN COUNTRY…………………………………15

7. CONCLUSIONES………………………………………………………………...16

8. REFERENCES……………………………………………………………………17

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4. INTRODUCTION

It is understood that negotiation in which parties from different countries participate, that is,

that move in foreign markets. The negotiation with another country of commercial type,

focuses on companies that come from different countries and seek agreements to

commercialize goods and services in countries other than the one of the supplier of the good

or service. Among these agreements can be named: international sale, agreement with an

intermediary or strategic alliance.

In the negotiation with another country, very different factors intervene than those found in a

local negotiation; In the first place, the parties must negotiate on a different legal framework;

in the best of cases, the parties choose to resort to international entities; secondly, the

differences in the economic environment are also very significant, therefore it is very

important that the negotiations be carried out asymmetrically, that is, taking into account the

differences between the parties and finally the differences in the commercial environment

which they modify the international negotiation in three areas: the contact, the adaptation of

the proposals and the margin of negotiation.

We often see the type of negotiations that we have in our Peruvian country as some

characteristics of it we can see that in the informal negotiations that are done daily haggling

can be noticed, also when negotiating goods almost always Peruvians try to choose that our

interests are covered and we take into account that the counterpart with whom we are going

to carry out the negotiation is in a friendly and fraternal climate as a clear example it can be

denoted that when negotiating with foreigners it is always about them having a lunch before

or after the negotiation since our nation has a very impressive gastronomy.

Another important point when negotiating with foreigners in our country is friendly

negotiators who try to have a friendly relationship, since the friendlier it is, the better the

negotiations can be carried out.

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When dealing with United States negotiators, they are generally known as very extroverted

people who try to talk little about their personal and family life since they consider that this

should always be a reserved topic and more so when meeting other people and relating.

therefore, Americans will enjoy talking about their hobbies and personality and their work

and especially sports and about the great respect they have for their nation and especially

when making a deal they take punctuality into account, which in some way They have to take

into account the Peruvians, as it is known, they do not have it as marked as the Americans.

In this work, the information of the companies, the objective of the negotiation, the cultural

variables and the negotiation style of both Peruvians and Americans will be taken into

account and finally the main variables of the negotiation and finally the conclusions will be

named.

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4.1 Presentation of the companies

-Peruvian Company: Forty Burguer

Mission: Satisfy the nutritional needs of the vegetarian population, offering an innovative

food product with excellent nutritional and hygienic food conditions, our customers are the

most important thing in our business and our first priority is to think about their satisfaction,

their economy and above all their health. so that in this way they prefer us, look for us and

invite us or the rest of the population to get to know our product and start other healthier

eating habits.

Vision: To be an internationally recognized company for the production of meat for

hamburgers based on lentils, a one hundred percent natural vegetarian product, at the

forefront of the food sector. For satisfying the needs of its consumers and clients, with highly

preferred products for their quality and affordable prices, supported by a human team of

experience and ethical conduct.

The company Forty Burger specialized in the commercialization of natural products based on

lentils, more specifically in the form of hamburgers, is a natural way to opt for natural

nutrition and flavor, for which the company knows its potential as an exporter and its

distribution throughout the world. Throughout the country, considering that it has companies

that are rivals or competitors, this company has managed to remain among the most

profitable and with a quality prestige that exceeds its monetary gain.

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-US company: Broadway at the Beach

Mission: Broadway Inbound Worldwide is to educate the tourism industry about Broadway

and the world-class entertainment New York City has to offer. Our select team of

international sales and press representatives have taken Broadway to hundreds of trade

shows, special events and sales missions in dozens of countries.

Vision: Broadway at the Beach stands out as the most popular tourist destination in the entire

Myrtle Beach area. With its great location, convenient parking, and wide range of featured

activities for visitors of all ages, it's the perfect place to create your own magical memories

and you want to keep those goals going in your future.

The company is a very visited tourist shopping center for the variety of products, places of

recreation and for having a cultural diversity through tourism being often seen by a variety of

people.

Year after year, Broadway at the Beach stands alone as by far the most popular tourist

destination in the entire Myrtle Beach area. With its great location, convenient parking and

wide range of outstanding activities for visitors of all ages, it's the perfect place to make

magical memories of your own.

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5. CULTURE AND NEGOTIATIONS

5.1 Cultural variables and US negotiating style

As it is known, Americans are very outgoing and hospitable, they are also usually very direct

and open-minded, which can surprise people from other countries. Many cultures are more

conservative and are a bit louder and more talkative than the average person, which can lead

to heated interactions, which are the cultural aspects that are most influential. They have the

following as the most important cultural variables:

❖ Time: Americans take their time very seriously. They may feel frustrated if they feel

that someone or something has wasted their time. Some Americans plan their time in

detail, with daily schedules for work and private life. There's a saying in America:

time is money, because being on time and thinking about the weather is a cultural

difference that you may have to adjust to, because if you're late, you may lose your

job, miss an appointment, or hurt feelings. of someone.

❖ Independence: Sometimes independence is spoken of as individualism. Americans

take great pride in being self-sufficient, in being able to take care of themselves, and

tend to think that everyone else should be, too. When someone achieves a goal, it is

usually understood as the result of their dedication. This is different from many other

cultures, which are more collective. Collective cultures tend to see achievement as a

reflection of an entire family or community.

❖ Competitiveness: Americans can be competitive and often work hard to achieve their

goals. This competition often keeps Americans very busy. Many Americans see

competitiveness as a positive thing. In general, the value they place on

competitiveness can make you feel culture shock, especially if you come from a

culture that is more collaborative than competitive.

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 ❖ Privacy: Americans value privacy and their own space. While wanting privacy can be

seen as a bad thing in some cultures, many Americans like to have time to themselves

and can be secretive about certain topics.

❖ Equality: The American Declaration of Independence declares that “All men are

created equal”. There are actually people in America who don't treat everyone the

same, but many Americans find the idea of ​equality very important. There are many

examples in US history where not everyone was treated the same, such as the

enslavement of African-American citizens. However, Americans like to believe in the

idea that everyone should have the same opportunities. This is part of what we call the

“American dream”. Many of the first immigrants moved to the United States in search

of the American dream. They believed that if they worked hard they could climb the

social ladder, just as it is useful to remember that there may be invisible hierarchies

between one person and another. These are usually more based on individual

achievements; for example, one's job, wealth, or education.

Americans try to focus on issues positively. They go to the point to find valid and timely

solutions. They show the differences in a sincere way and without any kind of manipulation,

inviting "the other party" to do the same. Your arguments are reasonable and forcefully

presented; based on your safety and own experiences.

They like to take risks: they are not afraid of taking risks, on the contrary, they like it; but

they are reassured to negotiate with people who offer them some kind.

● Greeting: When meeting a colleague or client, it is polite to stand up and offer a brief,

firm handshake with eye contact and a smile. This is universally appropriate,

regardless of someone's age, gender, or seniority. Employees often refer to superiors

by first name, rather than last name. When you're not sure, you can ask how he prefers

you address your superior, or make a mistake on the side of formality.

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● Hours of Work: Unlike many countries, the United States does not have laws limiting

the number of hours worked per week, and many salaried employees are expected to

work longer hours or be available for meetings after hours. Since the US establishes

labor laws at both the national and state levels, there can be significant differences

between working in, say, New York State and California. Americans also work longer

hours and take fewer vacations than most other industrialized countries. A 2016 study

shows that Americans work approximately 20% more hours than their European

counterparts (the equivalent of one extra day per week), and take fewer days off per

year.

● Meetings: Meetings are generally 30 to 60 minutes, with a free agenda. Punctuality is

important. The boss may be late, but the reporting employees must be on time.

Attendees are expected to listen and actively participate. Staying quiet or using

laptops or phones can be interpreted as disinterest, when meeting with clients,

business cards can be exchanged.

● Meals and tips: The host or most senior employee will usually pay for a business

meal, but be prepared to pay your way, just in case. At team lunches, junior

employees generally avoid ordering alcohol unless invited to do so by their superiors.

It is normal to tip the waiters; leave a tip of 15-25% of your bill for good service

received.

● Attire: Dress codes vary widely in the United States, with some areas still requiring

formal attire such as a suit and tie. Your corporate culture, field, seniority level, and

even the climate of your city will affect dress standards in the workplace.

● Body language: Americans like colleagues who are approachable and friendly, and

tend to smile more than other cultures. But as a "no contact culture," Americans also

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 prefer to have a "bubble" of personal space. Keep in mind not to stand too close when

talking, and minimize physical contact.

● Communication: The communication style of Americans is direct and to the point.

This may seem strict to some, but Americans consider simple people to be reliable

and efficient. Knowing this, direct criticism will not be well received.

5.2 Cultural variables and negotiation style of the Peruvian Negotiator

You have to know that the negotiations in Peru are very similar to the rest of Latin America,

the negotiations are done in the medium and long term and usually there is a time when you

haggle and you have to know how to react in these cases

● At the beginning of the negotiation, a somewhat high price should be offered in order

to have room to adjust it throughout the negotiation.

● Human contact is important, Peruvians like negotiations with human contact and the

transmission of emotions, which is why, if possible, a meeting is held in person. It is

completely normal to have a short chat that is not related to work before the

negotiations and once they are over it is important not to refuse an invitation to eat or

drink something.

● Peruvians play with emotions: they can be very cold and disinterested at first, and

suddenly start laughing and asking about the product. You have to be prepared for

these drastic changes in behavior.

● Meetings are usually long, it's normal, that's not a bad sign: Peruvians like to talk for a

long time, whether it's about business or other topics.

● Decision-making is done with the people with the highest position in the company.

Even if we meet with the purchasing manager, it will probably be the manager who

will make the decision without having attended the meeting.

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Of course, these data are general, and each person is different. But at least there are some tips

so that you have a global idea of ​how to negotiate in Peru.

Peru, like many Latin American countries, is characterized by having a remarkable cultural

and ethnic diversity. The territory is home to two important cultures: the first of Hispanic and

European origin, which generally dominates the power groups in the country, and the second

of Andean origin. Peru is also the result of this cultural interaction, a mestizo country,

although it does not tend to accept it. Another important and notorious aspect is that it

constitutes a centralized country.

In Peruvian culture, a friendly relationship is preferred in negotiations, for which cordiality

and courtesy are expressed, since conflicts are resolved in a friendly atmosphere. Possibly

this is part of a negative conception of conflicts and a fear that they will be resolved by

confrontation (however constructive it may be). At the beginning, they act very cordially but

with reserve, caution and careful observation of the counterpart. Some are positively

surprised to find a culture of great collaboration and smoothness, with negotiators almost

always seeking to reach an agreement.

❖ Punctuality: Peruvian culture is very flexible in the use of time and this is a

characteristic element of negotiation. Behavior is frequently dominated by lateness

and informality.

❖ Formality: In the Peruvian negotiation culture, very formal protocols are not followed,

Peruvians are more likely to reach an agreement depending on the type of business.

❖ Emotionality: In negotiations in Peru there are frequent expressions of emotionality,

which can be temperamental, friendship and enmity, courtesy and indifference.

❖ Compliance and commitment: This variable is related to informality; the degree of

commitment they adopt is related to the degree of friendship that has been established

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 with the counterpart; Another variable that affects compliance is the economic

situation of the country.

❖ Flexibility: A culture that opens with very high proposals and is willing to haggle and

substantially change its expectations is naturally a very flexible culture, because it is a

custom and the way a negotiation process is conceived to be.

❖ Type of agreement: In the Peruvian negotiation culture, there is an oscillation between

verbal agreements and written agreements; generally, when people fear that they will

not be able to fulfill, they resort to verbal commitments. Conversely, they look for

minute deals when they are unsure of their counterpart.

You have to know that the negotiations in Peru are very similar to the rest of Latin America,

the negotiations are done in the medium and long term and there is usually a moment when

you haggle and you have to know how to react in these cases. At the beginning of the

negotiation, a somewhat high price should be offered in order to have room to adjust it

throughout the negotiation.

Human contact is important, Peruvians like to negotiate with human contact and the

transmission of emotions, so if possible, a face-to-face meeting is held. It is completely

normal to have a short chat that has nothing to do with work before the negotiations and after

the negotiations are over it is important not to refuse an invitation to eat or drink something.

Peruvians play with emotions: they can be very cold and uninterested at first, then suddenly

start laughing and asking about the product. You have to be prepared for these drastic

changes in behavior.

Meetings tend to be long, it's normal, that's not a bad sign: Peruvians like to talk a lot,

whether it's about business or other topics. Decision-making is done with the people with the

highest position in the company. Even if we meet with the purchasing manager, it is probably

the person in charge who makes the decision without having attended the meeting. Of course,

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these data are general and each person is different. But at least there are some tips so that you

have a global idea of ​how to negotiate in Peru.

6. VARIABLES: PERU - FOREIGN COUNTRY

- Perú variables

❖ Minimum price: This price is based on our financial statements since this price is the

one that our company has considered so that it is profitable to make this negotiation,

the price is 12,500 million dollars.

❖ Guarantee: This is very important because through it we can guarantee that in case of

vices or defects our product is not affected and if it does, they will take care that it

returns to optimal conditions of use.

❖ Unit Price: The unit price is $18.00.

- US variables

❖ Minimum price: This price is based on our financial statements since this price is the

one that our company has considered so that it is profitable to carry out this

negotiation. The price is 11,500 million dollars.

❖ Bilateral real exchange rate: Merchandise exports from Peru to the United States.They

are made at the cost of the currency of the importing country. In this case, as.The

currency in the North American country is the American dollar, the transactions are

made in US$ (American dollars). Therefore it is necessary the current balance that

does not exceed the increase of your Peruvian currency to ours at 4.0

❖ Unit Price: The unit price is $18.00

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7. CONCLUSIONS

- The negotiation process supposes a preliminary agreement of both companies, once

this initial agreement has been reached, the parties look for a way to benefit without

affecting the other, such as the points that we involve in the elaboration of the

conditions of sale, looking for an equitable shared risk between what we assume as a

seller and what the buyer is willing to accept.

- The objective of the negotiation with which part of different countries are involved is

to seek agreements to carry out a commercialization of goods or services and for this

we carry out an investigation of the country that we wish to commercialize on its

customs.

- In short, it is understood that both Peru and the United States have the particularity of

doing business in a friendly and cordial manner, being that they prefer to know the

negotiating counterpart and try to reach a point where both benefit and, on the other

hand, as a great The difference is punctuality because while for Americans it is very

important and you can even get fired for being late, for Peruvians it is not such a

applied soft skill.

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8. REFERENCES

● https://www.hotcourseslatinoamerica.com/study-in-usa/essentials/culture/#:~:text=Cul

tura%20estadounidense&text=es%20famoso%20por%20muchas%20cosas,se%20jue

gan%20en%20el%20pa%C3%ADs.

● https://es.wikipedia.org/wiki/Cultura_de_Estados_Unidos

● https://www.xn--viviendoelsueo-2nb.com/viajar-a-estados-unidos/costumbres-tradicio

nes/

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