International Negotiation and Cross-Cultural Decision-Making

Vocabulary practice flashcards covering key definitions, stages, and cultural variables in international business negotiations and cross-cultural decision-making.

Negotiation

A discussion process in which two or more parties aim to reach a mutually acceptable agreement.

Projective cognitive similarity

The assumption that other people perceive, judge, think, and reason the same way you do; an assumption negotiators should avoid.

Relationship between negotiation and decision-making

An interdependent relationship where negotiation cannot occur without decisions, which are made explicitly and implicitly before, during, and after negotiation.

Five stages of negotiation

Preparation, relationship building, exchanging task-related information, persuasion, and concessions and agreement.

Counterpart profile

Information researched by adept negotiators during preparation to understand what to expect, how to prepare, and how to react.

Relationship building

The negotiation stage focused on getting to know contacts in the host country and establishing mutual trust before business discussions and transactions begin.

Nontask sounding

General, polite conversation and informal communication before meetings used to get acquainted.

Intermediary

A person trusted by both sides who acts as a bridge and helps establish a relationship with foreign managers.

Exchanging task-related information

The negotiation stage where each party presents its position, situation, and needs, while also showing understanding of the counterpart's viewpoint.

Persuasion

The negotiation stage when hard bargaining begins and each party attempts to persuade the other to accept more of its position and concede some of its own.

Stress tactics

Negotiation tactics using physical or psychological irritations, such as uncomfortable room temperatures, overly bright lighting, rudeness, and interruptions.

Concessions

Things a negotiating party gives up or adjusts in order to move toward an agreement.

Linear negotiation approach

A sequential approach that deals with issues step by step and typically involves incremental concessions.

Holistic negotiation approach

A whole-deal approach in which the entire package is considered together, with decisions potentially made on the whole deal at the end.

Top-down decision-making

A decision-making style that centers on a key person who makes or directs the decision.

Consensus decision-making

A decision-making style involving extensive interaction within the company before a decision is reached, requiring the group to agree.

Coalition building

Building support among relevant people or groups to help a decision or agreement succeed.

Cognitive trust

Trust based on evidence of competence or results, summarized as: "I can trust you because your outcomes are good."

Affective trust

Trust based on personal feelings, rapport, or personality, summarized as: "I can trust you because of your personality."

Three possible meanings of "a deal"

A completed deal; a non-legally binding commitment to do business; or the beginning of a business relationship.

Instrumental-oriented conflict

An approach that handles negotiation conflict using factual information and logical analysis.

Expressive-oriented conflict

An approach that handles conflict indirectly and implicitly without clearly delineating the issue, avoiding confrontation to prevent a loss of face.

Risk tolerance

A cultural variable affecting decision-making that describes differences in how much risk cultures and managers are willing to accept.

Locus of control over outcomes

A manager's perception of how much control they have over outcomes, ranging from internal control to external attribution to fate, God, or nature.