Paper

How cultural differences impact business negotiations in international organizations?

Presented by:

Iwona Jeanbaptiste

AMBA 600

Professor Mona Endvig

Summer 2012

Executive Summary

The purpose of this paper is to take a closer look at elements of business negotiations in today’s global business world and the importance the culture have on how the organizations adapt to new environments. In order to understand the differences within different cultures, the theory of Geert Hofstede is being explained. There are some elements of the culture that is considered to be universal and can be applied on regular bases to all cultures. Unfortunately, this is not enough to cover the cultural differences among negotiating countries. This is where the depth of cultural differences comes in place. Negotiators are required to study the elements of foreign cultures in order to familiarize themselves with the purpose of certain acts and the consequences of actions. Some cultural differences cannot be explained without studying the meaning of it. The language difference is just one of the visible barriers that can be overtaken with translators. There is more that needs to be taken under consideration when doing business globally. Hofstede with his theory of cultural dimensions stressed out the importance of understanding the difference in order to find the clear communication between cultures. Based on that, we can find two types of cultures: low-context cultures and high-cultures countries. To recognize the differences and find the way of implementing strategies in both cultures is a key element to successful negotiations. Each culture value different elements different way. The goal of international negotiators is to get familiar with the differences and overcome the challenge of working in a foreign environment. After taking a closer look at the background of the international negotiations, the cultural variables are being...