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Chapter 12 International Business Negotiation Styles

I. Multiple choices.

1. The American negotiation style has the features of ( ).

A．Being frank and confident

B．Being realistic and pragmatic

C．Respect law and efficiency

D．Being shy.

Answer: ABC

2. The Latin American negotiation style has the features of ( ).

A．Respect and equality

B． No politics involved

C．Be aware of foreign exchange control

D．Value friendship

Answer: ABCD

3. The German negotiation style has the features of ( ).

A．Being efficient and practical

B．It seemed that German lack the flexibility

C．Be aware of foreign exchange control

D．Being responsible

Answer: ABD

4. The French negotiation style has the features of ( ).

A．Personal Friendship has effect on Business relationship.

B．French only.

C．Horizontal negotiation.

D．Being responsible

Answer: ABC

5. The British negotiation style has the features of ( ).

A．Appropriateness in building social relation.

B．Do not think negotiation as important as the Japanese and the American do.

C．Be bold and eloquent.

D．Be Inflexibility.

Answer: ABCD

6. The Italian negotiation style has the features of ( ).

A．

Keeping no strict time tableB．Smart-dressed

C．Extrovert and sentimental

D．Less rigid

Answer: ABCD

7. The Scandinavian negotiation style has the features of ( ).

A．Be careful and strict with the schedule

B．Be modest, frank, persevere and conservative

C．Simple life

D．Dislike endless bargaining

Answer: ABCD

8. The Russian negotiation style has the features of ( ).





(2) Clear Target and Opinion

The Jews will make sufficient preparation for any negotiation, which is well recognized in business world and diplomat arena. Jews always show clear attitude in negotiation. They will

definitely say “will not take” if they think the offerings from the counterpart are unacceptable.(3) The Key Role

Jews only negotiate with the person who makes the final decision. They will investigate their

counterpart about their position and decision level. Jews will tactfully ask the questions like :“ can you help me with this?” or “do you agree with us on this point?” If the answer is “no” or

with a lot of hesitation, they will turn to the person of higher position.

(4) KnowledgeableJews are well-known for their wide knowledge. They are ready to take notes about everything that

they think important. This note-taking help them to make sufficient preparation for negotiation.

3. Introduce the features of African negotiation style.Answer: (1) Language and Communication

Most of the African like to interrupt others during the conversation. This should not be interpretedas annoyance in Africa. The African culture encourages self-expression and considers interruption

a common behavior. Most of the African avoid direct refuse, and believe a indirect expression ofunhappy things will be more of politeness. “Yes” doesn’t mean they agree with you unless theystrongly repeat their confirmation.(2) Personal distance

Most of the Africans have rich body languages. Half an arms’ distance is considered a comfortablespace in this continent. Africans like frequent contact, but only keep hand contact with common

friends.(3) Time and schedule

Time concept is weak in Af rican Culture. International business people will find it’s unfair on time

issues. For instance, the business people and government officials in Islamic countries in northAfrica will often come late for the meeting, while visitors are required to be punctuate.

(4) Negotiation StyleThe North African negotiators are enthusiastic bargainers and always expect large discount and

sacrifice from their counterparts. Some local business people judge their successes from the

degree of discount they win.

4. What is “International business negotiation style”?

Answer: The stable negotiating characters derived from the background of nation, country, culture,education and are reserved by the group within the same area or nation.

5. What are the specific steps in the signing ceremony?

Answer: (1) Announcement of the opening.

At this moment all the participants enter the signing hall and take their seats.(2) Signing of the document

The signing rule is: each party signs its own copy of contract first and then the copy of the other

party. In accordance with the etiquette of signing, one’s signature should be the first on one's owncopy and the second one on the copy of the other party. This method is called “signing by turn”.

This is to make sure that both parties are obviously equal in rights and responsibilities.(3) Exchange of copies

While exchanging the copies, the signer shall shake hands with other party to express

congratulations on the successful cooperation. Sometimes they might exchange the pens they have just used, to be kept as a memento. All the people then warmly applaud to express their

happiness.(4)The congratulatory toast

At the end of ceremony, people will toast with a cup of champagne to celebrate. This is a common

practice around the world.

III. Case Study【Case】The Shanghai-Hangzhou MAGLEV project is a big cooperation between Chinese



government and the German government. There are two options for the project cooperation. One

is the two governments setting up a Joint Venture and taking the majority production of Maglev.This is favored by Chinese government. Another is Chinese government buy the technology from

German. The latter is favored by German side.In negotiation, the first one is not accepted by German side, while the second option is also denied

by Chinese government. German believes the project has been part of the 11th 5year plan of the

state, so Chinese government must build the maglev. While Chinese government has prepared twoalternatives for the maglev project, that is the high-speed rail and domestic researched maglev.

Then the negotiation enters into a subtle stage.

[Discussion questions]

Conclude German negotiation style.Answers: 1. German, with highly developed industry, is one of the strongest economies in theworld. The superior quality of the German product is based on their sophisticated technological

standard. German people are persistent, prudent, and creative, that is why this country can make

them within short period after War.1、 being well-prepared German will make full preparation

for the negotiation. Their research not only includes the product itself, but also include thecompany analysis, the macro environment, the credit, finance, management, and production of the

company. German companies avoid the involvement with low credit business, which win Germancompany the reputation of being conservative. In international purchase, German companies adopttheir domestic standards as their benchmark. The product quality and production management are

the key topic of the negotiation. The integrity and responsibility will greatly be cherished byGerman.

(1) Being efficient and practical

German enjoys the praise of being highly efficient. They believe in the principle of “ at once”, andresist the negotiation that winding around the topic. They arrange well for work and leave no files

overnight. German believes that the proficiency of a negotiator lies in the ability of fast problemsettlement.(2) It seemed that German lack the flexibility, so the changes in price will cause confusion on

German side, or even lose the opportunity. The same is true that once German give the price, the

condition will be fixed. Thus it is not difficult to understand that Germans seldom bargain or onlymake a small bargain which is generally within the range of 20%.

(3) Being responsibleGerman are good at negotiation and very responsible with the contract. They will study and check

every item in the contract. Once the contracts come into effect, German will observe them withoutany hesitation. It is natural that German will also be strict with the counterpart.

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