Remember Cultural Sensitivity in International Negotiations
By Darin T. Allen and Nicholas Bajwa
Darin T. Allen is an attorney and qualified mediator and arbitrator in Minneapolis. Nicholas Bajwa is a recent graduate of the University of Minnesota Law School.
As businesses, government organizations, and financial institutions increase their participation in international transactions, it is important for lawyers to become proficient in cross-cultural negotiation. Effective international negotiation requires cultural sensitivity and an awareness of international business and legal protocols. Below are tips to conduct such negotiations successfully.
Recognize Procedural Differences
Many aspects of an international negotiation may appear similar to a domestic negotiation, but parties may not act as expected. For instance, in Japan, mid-level associates may conduct negotiations but will not finalize any agreement until their superiors have approved the agreement or indicated an internal consensus to accepting a deal. Misunderstanding this cultural practice could lead a U.S.-trained lawyer or business associate to consider a deal final, only to find out later that the agreement was modified or even rejected.
Understand Cultural Practices and Communication Styles
Many cultural customs in international negotiations may be unfamiliar to participants from the United States. Misunderstandings can occur and perceived disrespect may not be intended. A difference in a country’s cultural perception of time, for example, may mean that a negotiator from Latin America who arrives 30 minutes late for a meeting will not mind if the meeting runs longer than scheduled.
The goal of negotiation sessions for many U.S.-trained legal and business professionals may be a signature on a contract or agreement on key issues, but international negotiators may focus more on establishing a relationship between the parties and laying the foundation for future sessions.
Learn a few general customs to facilitate understanding and develop consensus before negotiating with parties from another country. Many are professionals from other countries who have either studied in the United States or possess at least a basic understanding of U.S. culture. Demonstrating a willingness to recognize and embrace cultural customs increases the odds for a successful international negotiation.
Consider Mediation
Mediation can be effective when communication difficulties hinder a deal. Use a neutral third party to prevent and avoid any cultural misunderstanding and help to build trust between the parties.
Before Your First (or Next) International Negotiation
• Identify procedural strategies and customs particular to the location or parties;
• Anticipate cultural differences and how they might impact the negotiation;
• Respect cultural diversity and avoid ethnocentric behavior; and
• Understand that the process may be longer and more informal than a domestic negotiation.
To learn more about cultural customs and international practices, review information on specific countries on the Internet. Examples of two sites that might be helpful are www.cyborlink.com/besite/ and www.leadershipcrossroads.com/resources.htm.
Do not be overwhelmed by the international negotiation process. Remember, as in any other negotiation, both parties seek a common goal. While various paths may be available to achieve a satisfactory result for all parties, the key is to pay attention to cultural differences and to enter the negotiation process with an awareness of international legal and business practices.
FOR MORE INFO
The Section of International Law features articles about 13 cities abroad on its
Web site, www.abanet.org/intlaw/pubs/csg.html. Written by Section members and originally published in International Law News, the articles provide insight on business hours, etiquette, transportation, hotels, and other tips that will enhance your professional and personal international experience.
READY RESOURCES
• The Negotiator’s Fieldbook. 2006. PC #4740062. Section of Dispute Resolution.
• International Lawyer’s Deskbook, Second Edition. 2002. PC #5210135. Section of International Law.
• ABA Guide to International Business Negotiations: A Comparison of Cross-Cultural Issues and Successful Approaches, Second Edition. 2000. PC #5210127. Sections of International Law and Law Practice Management. Section members receive a discounted price. To order online, visit www.ababooks.org.
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