IC Chap 5

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Questions and Answers

What is the difference between affective, axiomatic, and factual appeals?

Affective appeals are based on emotions (used by Arabs), axiomatic appeals are based on societal ideals (used by Russians), and factual appeals are based on objective information (used by North Americans).

How can modern technology, such as negotiation support systems (NSS), improve the negotiating process?

NSS can increase the likelihood that an agreement is reached, decrease negotiation costs, and maximize chances for optimal outcomes.

How is conflict handled in high-context versus low-context cultures?

In low-context cultures, conflict is handled directly and explicitly; in high-context cultures, it is handled indirectly and implicitly.

What is the difference between an internal locus of control and an external locus of control?

An internal locus of control is when individuals believe they can control outcomes, while an external locus of control is the belief that outside forces dictate outcomes. Signup and view all the answers

In what ways might the American style of negotiation be misinterpreted in another culture?

It might be seen as lacking concern for process or relationship building, or as showing a lack of commitment. Signup and view all the answers

Which city in China has people who are business-savvy, confident, career-oriented, and materialistic according to research by Tung et al.?

Shanghai Signup and view all the answers

People in which city are bureaucratic, educated, diversified, highly relationship-oriented, and more direct?

Beijing Signup and view all the answers

Business people report two major areas of conflict in negotiating with the Chinese. What is one of them?

The amount of details desired about product characteristics Signup and view all the answers

Which cultural norm greatly affects the negotiation process for the Chinese?

Ingrained politeness and emotional restraint Signup and view all the answers

In Chinese culture, the term ___ refers to a person's moral character and is essential for societal function.

lien Signup and view all the answers

When negotiating with Chinese investors, Linda should focus on which approach?

Be focused on establishing long-term, trusting relationships Signup and view all the answers

Which of the following best defines guanxi?

Network of personal relations Signup and view all the answers

What strengthens the argument that Kevin should make token concessions to the Chinese during negotiations?

Fizzy executives hope to have other business deals with the Chinese firm in the future. Signup and view all the answers

Why should Kevin be prepared with specific details about product specifications and technology?

The Chinese firm uses a two-stage negotiation process: the technical and the commercial. Signup and view all the answers

What supports Kevin's argument that he should be the primary negotiator?

Kevin is the oldest and the most experienced person on the negotiating team. Signup and view all the answers

What are the two negotiation stages that Americans should expect when negotiating with the Chinese?

Technical and commercial. Signup and view all the answers

Which of the following is a common Chinese tactic used during negotiations with Americans?

Suggesting that the Americans are reneging on their friendship Signup and view all the answers

Since the Chinese have a preference for emotional restraint and saving face, aggressive attempts at persuasion are likely to fail.

True Signup and view all the answers

Which culture views formal contracts as insulting and prefers mutual understanding and trust?

Japanese Signup and view all the answers

Which of the following is true about Japanese negotiators?

They are calm, patient, and accustomed to long negotiating sessions Signup and view all the answers

Japanese negotiators tend to ___ .

Hide emotions Signup and view all the answers

In Japanese culture, the term ___ refers to a process for gaining approval on a proposal.

ringi Signup and view all the answers

Which of the following is a typical characteristic of a Japanese work group?

Decision making based on a patient, long-term perspective Signup and view all the answers

Fundamental to American culture is a concern for the welfare of the group.

False Signup and view all the answers

Risk tolerance is one of the cultural variables that never affects decision making.

False Signup and view all the answers

The ringi process involves gaining approval on a proposal by circulating documents throughout the company.

True Signup and view all the answers

What are the main differences between Japanese and American negotiators?

Japanese negotiators are calm, quiet, and patient, prioritizing long-term relationships, while Americans often focus on immediate matters. Signup and view all the answers

Describe the process of decision making common in Japanese companies.

Japanese decision making is participative, characterized by consensus-building and the ringi system consisting of proposal, circulation, approval, and record. Signup and view all the answers

Which of the following terms refers to the process by which two or more parties meet to try to reach an agreement regarding conflicting interests?

Negotiation Signup and view all the answers

Which of the following is most likely to be a reason for ineffective international business negotiations?

Differences in cultural values and problem-solving techniques Signup and view all the answers

For long-term positive relations, the goal of negotiation should most likely be to _____ .

reach a settlement that benefits all parties Signup and view all the answers

Which of the following terms best describes the Frenchman's mistake in assuming the Brazilian will perceive and reason the way he does?

Projective cognitive similarity Signup and view all the answers

Which of the following is one of the stages in the negotiation process?

Preparation Signup and view all the answers

Which of the following variables is LEAST relevant to the profile of an opposing party in a cross-cultural negotiation?

Location of the negotiation Signup and view all the answers

Relationship building is the process of getting to know one's contacts in a host country and building mutual trust before embarking on business discussions and transactions.

True Signup and view all the answers

The relationship-building process during negotiation is over as soon as a negotiator is done exchanging task-related information.

False Signup and view all the answers

What is projective cognitive similarity?

It refers to the assumption that those you are negotiating with perceive, judge, think, and reason in the same way. Signup and view all the answers

What is negotiation?

The process of discussion between two or more parties aimed at reaching a mutually acceptable agreement. Signup and view all the answers

Which aspect of the negotiation process will most likely occur on a continuous basis?

Relationship building Signup and view all the answers

Which of the following statements is true regarding a negotiation process?

The cultural norms of the place determine the order of the negotiation process stages. Signup and view all the answers

_____ is the process of getting to know one's contacts in a host country and building mutual trust before embarking on business discussions and transactions.

Relationship building Signup and view all the answers

One of the primary purposes of relationship building during the negotiation process is to _____ .

build mutual trust Signup and view all the answers

In the negotiation process, participation in social events, tours, ceremonies, and informal conversation is a characteristic of the _____ stage.

relationship building Signup and view all the answers

Which of the following aspects of negotiating is most closely associated with nontask sounding?

Relationship building Signup and view all the answers

Which of the following terms refers to general, polite conversation and informal communication before meetings?

Nontask sounding Signup and view all the answers

Which of the following serves as a bridge from relationship building to the more formal stages of negotiating?

Posturing Signup and view all the answers

Which of the following benefits will be most likely achieved by Yu Fei if she listens to her seniors' advice to completely understand the Americans' viewpoint?

It will encourage Yu Fei to assess a wide range of alternatives for a resolution. Signup and view all the answers

According to Adler, in order to understand the perspectives of both sides and to prepare for meetings effectively, a negotiator must _____ .

practice role reversal Signup and view all the answers

During which stage of the negotiations process does hard bargaining begin?

Persuasion Signup and view all the answers

In the American culture, which of the following is most likely to be considered a 'dirty trick' during cross-cultural negotiations?

Deliberately distorting facts Signup and view all the answers

In the American culture, which of the following is most likely considered a rough tactic used during negotiations?

Uncomfortable room temperatures Signup and view all the answers

Which of the following stages of negotiations is most likely to take place immediately after the exchange of task-related information?

Persuasion Signup and view all the answers

Which of the following is most likely a subtle and complex behavior that makes cross-cultural negotiations difficult?

Nonverbal communication Signup and view all the answers

Which of the following is most likely the last stage of negotiation?

Concessions and agreement Signup and view all the answers

Research in the United States indicates that during the final stage of negotiations, it is best to start with _____ .

Extreme positions Signup and view all the answers

Which of the following is most likely to be true about negotiators in the Far East?

Negotiators approach issues in a holistic manner, deciding on the whole deal at the end. Signup and view all the answers

The method of using extreme positions during the concessions and agreement stage of negotiation involves _____ .

Careful timing of the disclosure of information and concessions Signup and view all the answers

Relationship building is the process of getting to know one's contacts in a host country and building mutual trust before embarking on business discussions and transactions.

True Signup and view all the answers

Nontask sounding involves general, polite conversation and informal communication before meetings.

True Signup and view all the answers

During exchange of task-related information, Mexicans tend to engage in lengthy, evasive conversation.

False Signup and view all the answers

Culturally based differences in verbal and nonverbal negotiation behavior influence the negotiation process at every stage.

True Signup and view all the answers

During the stage of concessions and agreement, Russians and Chinese generally take extreme positions.

True Signup and view all the answers

Negotiators in the Far East address issues one at a time, in a linear fashion.

False Signup and view all the answers

How does nonverbal communication affect the negotiation process?

Nonverbal messages, such as voice intonation and body language, are ingrained cultural aspects that can be influential in negotiation dynamics. Signup and view all the answers

When preparing for cross-cultural negotiations, managers should first evaluate their own negotiation styles in order to _____ .

Determine how they differ from the norm in other countries Signup and view all the answers

Which of the following is a similarity between the negotiation styles of both North Americans and Latin Americans?

They tend to be argumentative when they think they are right. Signup and view all the answers

Many Arab negotiators, following Islamic tradition, use mediators to settle disputes.

True Signup and view all the answers

What forms the basis for the enforcement of most business contracts in Mexico and China?

Personal commitments to individuals Signup and view all the answers

From an American perspective, the _____ stage of negotiation is straightforward, objective, efficient, and direct.

Exchanging task-related information Signup and view all the answers

During the exchange of task-related information, who among the following people would most likely ask many questions of their counterparts, delve specifically and repeatedly into the details at hand, and provide only vague and ambiguous material during a presentation?

Chinese Signup and view all the answers

Which of the following cultural groups enjoys debate and conflicts and will often interrupt presentations to argue about an issue even if it has little relevance to the topic being presented?

French Signup and view all the answers

In the Far East, details are likely to be worked out ahead of time through the 'backdoor' approach. Which of the following terms refers to this approach?

Houmani Signup and view all the answers

In which of the following countries do people typically begin the concessions and agreement stage of negotiation with what they are prepared to accept rather than take extreme positions?

Sweden Signup and view all the answers

In the _____ culture, negotiators tend to use the word 'no' repeatedly, and they are best described as spontaneous and talkative.

Brazilian Signup and view all the answers

_____ are based on what North Americans believe is objective information, presented with the assumption that it is understood by the other side on a logical basis.

Factual appeals Signup and view all the answers

Which of the following types of appeals, typically used by Arabs, is based on emotions and subjective feelings?

Affective appeals Signup and view all the answers

Axiomatic appeals are generally based on _____ .

socially accepted ideals Signup and view all the answers

Which of the following is true about the negotiating tactics used by the Russians?

They stall for time. Signup and view all the answers

Arab negotiators will most likely make concessions because of their interest in _____ .

Forming long-term relationships Signup and view all the answers

Which of the following behaviors is NOT consistent with Casse's profile of successful American negotiators?

Never compromises Signup and view all the answers

According to Pierre Casse, which of the following is a typical characteristic of a successful Indian negotiator?

Stays humble and trusts the opponent Signup and view all the answers

According to Pierre Casse, Arab negotiators _____ .

Are able to resist any kind of pressure Signup and view all the answers

According to Pierre Casse, which of the following is a typical characteristic of a Swedish negotiator?

Down to earth and overcautious Signup and view all the answers

Which of the following is true about Arab negotiators?

Arab negotiators use mediators to settle disputes. Signup and view all the answers

Which of the following terms refers to the nature and appearance of the relationship between the people pursuing common goals in a negotiation?

Software of negotiation Signup and view all the answers

Using a problem-solving approach during cross-cultural negotiations requires a negotiator to _____ .

Avoid criticizing the other party in a personal way Signup and view all the answers

A negotiation support system provides support to the negotiation process by _____ .

Increasing the likelihood that an agreement is reached when a zone of agreement exists Signup and view all the answers

The _____ approach to conflict is being used when both parties negotiate on the basis of factual information and logical analysis.

Instrumental-oriented Signup and view all the answers

Which of the following approaches to conflict involves handling the situation indirectly and implicitly without clear delineation of the situation from the person handling it?

Expressive-oriented Signup and view all the answers

Which of the following is a part of the rational decision-making process?

Gathering and analyzing relevant data Signup and view all the answers

Research shows that managers from _____ have the highest tolerance for risk.

America Signup and view all the answers

American managers believe strongly in self-determination and perceive problem situations as something they can change. This shows that they _____ .

Have internal locus of control Signup and view all the answers

Which of the following types of decision making is generally used in China, Germany, Turkey, and India?

Autocratic Signup and view all the answers

Middle Easterners avoid hiring mediators, as they cannot deal with direct conflicts.

False Signup and view all the answers

Americans are calm, quiet, patient negotiators; they are accustomed to long, detailed negotiating sessions.

False Signup and view all the answers

Russians employ axiomatic appeals---that is, their appeals are based on the ideals generally accepted in their society.

True Signup and view all the answers

Compared to Indian negotiators, American negotiators are more likely to withdraw, use silence, and learn from within.

False Signup and view all the answers

Italian negotiators have a sense of drama and are not afraid to hide their emotions.

True Signup and view all the answers

The term 'software of negotiation' refers to the contractual terms mentioned in a written document.

False Signup and view all the answers

Negotiation support systems can provide support for the negotiation process by maximizing the chances for optimal outcomes.

True Signup and view all the answers

Study Notes

Negotiation

Negotiation is the process of discussion between two or more parties aimed at reaching a mutually acceptable agreement.
The goal of negotiation is to reach a settlement that benefits all parties and establishes long-term positive relations.
Projective Cognitive Similarity: The common assumption that those you are negotiating with perceive, judge, think, and reason in the same way.
Successful negotiators avoid Projective Cognitive Similarity by empathizing with counterparts and sharing their own viewpoint.

Stages of Negotiation

Negotiation is a continuous process, with relationship building occurring throughout.
Cultural norms determine the order of the negotiation process stages.
Relationship Building: The process of getting to know contacts in a host country and building trust before business discussions.
Nontask Sounding: General, polite conversation and informal communication before meetings, serving as a bridge from relationship building to more formal negotiation stages.

Relationship Building

Primary purpose of relationship building is to build mutual trust.
Participation in social events, tours, ceremonies, and informal conversation are characteristics of relationship building.

Information Exchange

Understanding the other party's viewpoint helps assess a wide range of alternatives for resolution.
To understand both sides, negotiators can use role reversal.
Negotiators in the Far East approach issues holistically, deciding on the whole deal at the end.

Persuasion

Hard bargaining begins during the persuasion stage.
Cultural norms dictate what is considered a "dirty trick" or rough tactic:
- Deliberately Distorting Facts is considered a "dirty trick" in the American culture.
- Uncomfortable Room Temperatures as a tactic is considered rough in the American culture.
Negotiators in the Far East use "backdoor" approach, referred to as houmani, where details are addressed beforehand.

Concessions and Agreement

The final stage of negotiation.
Negotiators in the United States typically start with extreme positions.
Negotiators in Sweden start with positions they are prepared to accept.
Negotiators in the Far East approach issues holistically rather than linearly.

Nonverbal Communication

A subtle and complex behavior affecting negotiation, often varying by culture.

Negotiation Tactics and Appeals

Negotiators may use promises, threats, initial concessions, silent periods, interruptions, facial gazing, and touching.
Some use "dirty tricks" to gain advantage.
Americans often use factual appeals based on objective information.
Arabs use affective appeals based on emotions and subjective feelings.
Russians use axiomatic appeals based on socially accepted ideals.

Cultural Differences in Negotiation

Americans are direct, objective, and efficient during information exchange.
Chinese delve into details repeatedly and provide vague information.
French enjoy debates and argumentative interruptions.
Mexicans engage in lengthy, evasive conversation.

Key Cultural Groups and Negotiation

Arabs: Use mediators to settle disputes and value long-term relationships.
Chinese: Engage in prolonged negotiations with hidden agendas.
Russians: Stall for time and employ delaying tactics.
Italians: Exhibit a sense of drama and are not afraid to show emotion.
Mexico: Place emphasis on personal commitments over written contracts.
Sweden: Are down-to-earth and overcautious.

Conflict in Negotiations

High-Context Cultures (e.g., Middle East): Handle conflict indirectly and implicitly, known as "expressive-oriented conflict."
Low-Context Cultures (e.g., United States): Handle conflict directly and explicitly, known as "instrumental-oriented conflict."

Decision-Making Styles

Internal Locus of Control: Managers believe they control events.
External Locus of Control: Managers believe events are beyond their control.
Participative Decision-Making: Involves collaboration.
Autocratic Decision-Making: Decisions are made by a single leader.
Risk Tolerance varies by country: Americans have the highest risk tolerance.

Negotiation Support Systems (NSS)

NSS can increase the likelihood of reaching an agreement, decrease negotiation costs, and maximize chances for optimal outcomes.
Provide support throughout the stages of negotiation.

Locus of Control

Managers with an internal locus of control believe they have control over their future
- American managers often have an internal locus of control
- This is in contrast to Indonesian and Malaysian managers who have an external locus of control
Managers with an external locus of control believe outside forces like fate, God, or nature, control the future
- They do not believe they have much control over events

Cultural Differences in Negotiation Styles

American negotiators may be perceived as:
- Lacking concern for rigorous process or relationship building due to their desire to get down to business quickly
- Lacking commitment because of their rational (unemotional) approach
- Using pressure tactics due to their emphasis on time
Chinese negotiators are often perceived as:
- Insincere about reaching an agreement
- Demanding too much detail about product characteristics

Cultural Influences on Negotiation

Chinese negotiators prioritize building long-term relationships and are sensitive to face,
- They have a strong emphasis on emotional restraint
- The concept of lien defines a person’s moral character, which is deeply important within their society
- The term guanxi refers to a network of personal relations, which is essential in Chinese business interactions
Japanese negotiators prioritize building relationships and consensus
- They are calm, quiet, and patient with a preference for detailed negotiations
- The ringi process, a formal system for gaining approval on a proposal, involves:
  - Proposal
  - Circulation
  - Approval
  - Record
- The main goal of negotiation is to reach a win-win solution

Key Differences between Negotiation Styles

American negotiators are often direct and focused on achieving a specific goal quickly
Japanese negotiators are more indirect and emphasize developing trust and long-term relationships
Chinese negotiators are focused on maintaining face and avoiding conflict

Cultural Considerations for Negotiations

It is important to be aware of cultural differences and adjust negotiation styles accordingly
Building relationships and understanding cultural norms are crucial for successful negotiations
In China, it is essential to know the importance of face and guanxi
In Japan, the ringi process is essential for achieving consensus and understanding.

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Description

This quiz explores the fundamentals of negotiation, including its definition, goals, and the importance of understanding cultural norms. Additionally, it covers the stages of negotiation, emphasizing relationship building and effective communication techniques. Test your knowledge of successful negotiation strategies and concepts.