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DIFFERENCES IN BUSINESS NEGOTIATIONS BETWEEN

DIFFERENT CULTURES
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By Dr. Lieh-Ching Chang
Cultural Differences and Negotiations

The methods of negotiation vary with culture. Some people may
adopt a more direct or simple method of communication, whereas others
may adopt a method that is more indirect or complex. Each culture has
its own standards, and one behavior that has a certain meaning in a

certain culture could be interpreted differently in another. For example,
calling others by their family names in the U.S. or Australia is a friendly
gesture; however, doing so in France, Japan, or Egypt is a sign of

disrespect. When negotiating with people from foreign nations or
regions of great cultural differences, their cultural traditions should be
observed. Since the style and pattern of negotiating are influenced by

cultural characteristics, the process and result of negotiating will also
differ because of negotiators’ cognitive differences in interpreting each
other’s interdependence and authority. Different strategies or tactics may

be adopted, nullifying a potentially win-win situation because of the
decline of mutual trust.
Different cultures also have different core values that determine the
courses of action. Since cultural differences often lead to behavioral

differences, it is indeed difficult for people of different cultural
backgrounds to communicate with each other. Communicative
difficulties are often influenced by the following eight cultural factors:

(1) attitude, (2) social structure, (3), cognitive pattern, (4), roles and role
interpretation, (5) language, (6), non-verbal expressions, (7) spatial
usage and organization, and (8) the understanding of time. Since
different cultures may lead to errors in cognition, understanding, and

evaluation, a singular theory of negotiation may not be applied to
different cultures.
The existence of cultural differences is an undisputed fact. Foster

(1992) believes that the influences of cultural differences on

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Lieh-Ching Ch. Differences in Business Negotiations between Different Cultures /
Chang Lieh-Ching // The Journal of Human Resource and Adult Learning. – Available
at: http://www.hraljournal.com/Page/18%20Lieh-Ching%20Chang.pdf