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Negotiations in a CrossCultural Environment

In the current business world, most multinational companies have adopted various strategies in order to ensure their survival in the present competitive and challenging business environment. As part of their strategy, it has become important for MNCs to expand into emerging and developing countries, as opposed to national markets only. Expansion of MNCs into global markets is a challenging process that presents various problems. Therefore, it remains important for managers to equip themselves with effective negotiation skills to ensure a successful entry into foreign markets.

&nbsp.The first part addresses the cultural factors of USA and China, showing the cultural differences between the two countries, while the second section is about some of the aspects that influence negotiation, in the context of China and USA. The third section focuses on the factors that affect cross-cultural negotiation and decision making, with special reference to the USA and China. The final part is the conclusion and recommendations for successful negotiations.

Chinese and American cultures are different. Therefore, when interacting with the Chinese, Americans should be well knowledgeable in Chinese culture to ensure effective intercultural communication. According to Chang (2003), culture refers to the unique characteristics that any social group exhibits. These characteristics include norms and values that members of a social group share and which distinguish them from other social groups. Culture is also all-encompassing and includes the political, social, and economic structure of a social group, as well as the language, education, and religion of the group.

Hofstede was a popular cross-cultural researcher, who specialized in studying aspects of different cultures (Chang 2003). The fact that different groups and countries exhibit varying cultures prompted Hofstede to develop a model, namely the four-dimension of culture model.

Negotiations in a CrossCultural Environment