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perceiveddistanceisshrinkingduetoadvancesintransportationandtelecommunicationstechnology;
materialcultureisstartingtolooksimilartheworldover;
andnationaleconomiesaremergingintoaninterdependent,integratedglobaleconomicsystem”.
TheChinesemarkethasbeenattractinglotsofbusiness.Thousandyearsago,manybusinessmenfromRomeorsomewesterncountrieswentthroughtheSilkRoadtoChinaforChinesebeautifulporcelain,silksandtea.Theopiumwarinthe19thcenturybroughtdisasterstoChinawhilealsopromptedalargenumberofadventurersandbusinesspeoplefromtheWestcountriestosearchtheriches.Sincethelate1970s,China’s“opendoor”policyandunprecedentedacquisitionofforeigninvestmentwasconsideredadreamcometruefortheWesternbusinesspeople(Fang1999).AfterthattimemanybusinessmanbeganswarmintoChina,thetotalvaluesofimportsandexportwasfromalmostzeroin1979increasedto14219.1(100millionUS)in2005.Foreigndirectinvestmentwasalsofromalmostzeroin1979increasedto603.25(100millionUS)in2005(Chinastatisticalyearbook2006).Aftertwodecades’development,ChinabecamethelargestrecipientofforeigndirectinvestmentamongdevelopingcountriesandbecamethesecondlargestintheworldaftertheUnitedStates.
Theworldeconomyisbecomingglobalized,asnewblocksandrelationshipsemergetocreatearadicallydifferentbusinessenvironment.Internationalbusinessnegotiationsareincreasinglyrecognizedasapartofthemanagerialprocess,highlyrelevantfortheimplementationofbusinessstrategies.Negotiationcanbedefinedas“aprocessbywhichdisputantscommunicatetheirdifferencestooneanotherthroughconference,discussionandcompromise,inordertoresolvethem”,or“Anaspectofhumanactivityinfluencedbytheculturalbehaviorofsocieties”.Moreovermanyscholarsrecognizedthat,differentculturesamongdifferentcountriesplayedveryimportantrolesininternationalbusinessnegotiationsprocess.AsGulbroandHerbigsaid“Differentculturescangeneratedifferentnegotiatingstyles,whichareshapedbyeachnation’sculture,geography,history,andpoliticalsystem”.
Somescholarspointedoutthatmorethantwo-thirdsofmanynegotiationeffortsfaileventhoughbothsideshavecommongoalstoreachasuccessfulbusinessagreement.Alackofknowledgeunderstandingofthedifferentculturesmaycompletelyexplainthissituation.“Thewayonesucceedsincross-culturalnegotiationsisbyfullyunderstandingothers,usingthatunderstandingtoone’sownadvantagetorealizewhateachpartywantsfromthenegotiations,andturningthenegotiationsintoawin-winsituationforbothsides”.
1.InternationalBusinessNegotiation
1.1Negotiation
Negotiatingisabasic,generichumanactivityaprocessthatisoftenusedinlabor-managementrelations,inbusinessdealslikemergersandsales,ininternationalaffairs,andinoureverydayactivities.Thenegotiationsthattakeplacetofreehostages,tokeeppeacebetweennations,ortoendalaborstrikedramatizetheneedforbargaininganditscapabilitiesasadisputemanagementprocess.Negotiationisnotaprocessreservedfortheskilleddiplomat,thetopsalesperson,ortheardentadvocatefororganizedlabor;
itissomethingthatwealldo,almostonadailybasis.Althoughourdailynegotiationsarenotusuallyasdramaticasfreeinghostagesorkeepingpeace,everyonenegotiates;
sometimesonmajorthingslikeajob,atothertimesonrelativelyminorissues,suchaswhowillwashthedishes.Thestructureandprocessesofnegotiationarefundamentallythesameatthepersonallevelastheyareatthediplomaticandcorporatelevels.Aboveall,weshouldunderstandthemeaningofnegotiation.
1.1.1CommentsonDefinitionsofANegotiation
AccordingtoLongmanDictionaryofContemporaryEnglish,negotiationsare“officialdiscussionsbetweentherepresentativesofopposinggroups,whoaretryingtoreachanagreement,especiallyinbusinessorpolitics”.Scholarshaveofferedfromdifferentperspectivesanumberofthought-provokingdefinitionsofnegotiation.Forthepurposeofthisthesis,theauthorquotesthedescriptivedefinitionofnegotiationproposedbyscholarLindaBeamer“Negotiatingisaspecialcommunicationtask.Itoccurswhentwoormorepartieshavecommoninterestsandthereforehaveareasontoworktogether,butwhentheyalsohaveintereststhatconflict,whichmaypreventthemfromworkingtogether.Morespecifically,negotiationisthecommunicationthattakesplaceinordertoreachagreementabouthowtohandlebothcommonandconflictinginterestsbetweentwoormoreparties”.Inthisdefinition,weunderstandthebasicconditionsofbeinganegotiation(commonandconflictinginterests)andaimsofanegotiation(reachagreementabouthowtohandlebothcommonandconflictinginterestsbetweentwoormoreparties).Inshort,“anegotiationisaprocessofcommunicationbetweenpartiestomanageconflictsinorderforthemtocometoanagreement,solveaproblemormakearrangements”.Negotiationisabasicmeansofgettingwhatonewantsfromothers.Itisback-and-forthcommunicationdesignedtoreachanagreementwhenoneandtheothersideshavesomeintereststhataresharedandothersthatareopposed.
Thefundamentaldefinitionofwhatnegotiationis,orofwhatoccurswhenonenegotiates,candiffergreatlyacrosscultures.Forinstance,“Americanstendtoviewnegotiatingasacompetitiveprocessofoffersandcounteroffers,whiletheJapanesetendtoviewthenegotiationasanopportunityforinformation-sharing”.BecauseofAmericanvalueofcompetitionandJapanesevalueofinterpersonalrelationships,AmericansandtheJapanesetendtoviewthenegotiationdifferently.WewillcompareAmericanvalueofcompetitionandChinesevalueoffaceandrelationshipsinSino-USbusinessnegotiationslater.
1.2InternationalBusinessNegotiation
Internationalbusinessnegotiationisasocialprocessthatisusedtoresolvedisputesbetweenbusinessesindifferentcountries.Itusuallymeansmorethanonecultureisinvolved,makingnegotiationamuchmorecomplicatedprocesswhenitoccursacrossborders.Sointernationalbusinessnegotiationisalsocategorizedintointerculturalnegotiation.
1.2.1EmpiricalBaseofInternationalBusinessNegotiation
GrahamandhiscolleagueshaveconductedaseriesofexperimentscomparingnegotiatorsfromtheUnitedStatesand15othercountries,includingJapan,China,Canada,Brazil,andMexico.Thesestudieseachusedthesameresearchmaterials—aversionofthebuyer/sellernegotiationsimulationdevelopedbyKelley,inwhichnegotiatorshavetodecideonthepricesofthreeproducts(televisions,typewriters,airconditioners).Theparticipantsinthestudieswerebusinesspeoplewhowereeitherattendingmanagementseminarsorgraduatebusinesscourses.Participantsinallthesestudiesnegotiatedwithpeoplefromtheirowncountries(thesewereintraculturalnegotiations,notinterculturalnegotiations).Themajordependentmeasuresinthesestudieswere
(1)theindividualprofitlevelmadebythetwonegotiatorsinthesimulationand
(2)thelevelofsatisfactionthatthenegotiatorshadwiththenegotiationoutcomes.
Theresultsofthisresearchhavebeenquiteconsistentacrossstudies.GrahamandhiscolleaguesfoundnodifferencesintheprofitlevelsobtainedbynegotiatorsinthesimulationfromtheUnitedStatesandtheothercountriesstudied,including:
Japan,China,Canada,Brazil,andMexico.Takenasawhole,theseresultssuggestthatnegotiatorsfromthedifferentcountriesstudiedwereequallyeffectiveinobtainingnegotiationoutcomes.Oneconclusionfromthisresearch,then,isthatbusinessnegotiatorsfromdifferentcountriesappeartoobtainsimilarnegotiationoutcomeswhentheynegotiatewithotherpeoplefromtheirowncountry.
Insummary,theprogramofresearchdonebyGrahamandhiscolleaguessuggeststhatnegotiatorsfromdifferentculturesusedifferentnegotiationstrategiesandcommunicationpatternswhentheynegotiatewithotherpeoplefromtheirownculture.Importantly,however,therewasnodifferenceinthenegotiationoutcomesattainedbythenegotiatorsacrossthesestudies.Thissuggeststhattherearemanydifferentwaystonegotiateagreementsthatare,onaverage,worththesamevalue,andthatanegotiatormustemploytheprocessthat“fits”theculturetheyarein.Further,thecultureofthenegotiatorappearstobeanimportantpredictorofthenegotiationprocessthatwilloccurandhownegotiationstrategieswillinfluencenegotiationoutcomesindifferentcultures.Inaddition,theirresearchsuggeststhatinterculturalnegotiationsmayyieldpooreroutcomesthanintraculturalnegotiations,atleastonsomeoccasions.
1.2.2FactorsInfluencingInternationalBusinessNegotiation
Therearethreefactorsthatmakeinternationalbusinessnegotiationsmorechallengingthandomesticnegotiations.Thesefactorscanacttolimitorconstrainorganizationsthatoperateintheinternationalarena,anditisimportantthatnegotiatorswhobargainacrossbordersunderstandandappreciatetheireffects.
PoliticalandLegalPluralism
Whenorganizationsmakebusinessdealsthatcrossanationalborder,theycomeintocontactwiththelegalandpoliticalsystemofanothercountry.Theremaybeimplic