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The Importance of Tourism to a Country

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Running head: Different Cultures

The Impact of Cultural Differences on International Business Negotiation
Chang Su
The University of Findlay

The Impact of Cultural Differences on International Business Negotiation
What is the relationship between cultural differences and business negotiation? Actually, there is a close connection. “Culture is defined as the particular system of art, thought, and customs of a society” (Gray and Summers, 1997, p.292). People from different countries have different “systems”. Their backgrounds, values and experiences differ from one another. Cultural differences can be used as directions or references in negotiation, which is a dominant process of trans-cultural import and export business. During a negotiation, the buyer and the seller get together with an aim of common interest. The more we understand our partner’s culture, the more we win in business deals. So, being aware of different cultural factors all over the world is extremely essential in international business negotiations. Cultural differences can affect business negotiation on the points of language, habits and values.
Among all the factors or barriers international negotiators must face, language is the most outstanding one. The methods of communication adopted by people are distinguished from one group to another. This directly affects business negotiations. Let’s take Americans and Chinese for example. The two nations on the use of languages are quite different. The language style of Americans is very direct and they also expect their partners would respond in the same way. It is very common for Americans to disagree or reject a contract clause directly and openly, if it is not beneficial (Different, 2006); while Chinese incline to deal with business negotiations in an indirect way, which is totally opposed to that of American style. They are used to have a greeting first, and then give a set of preparation, and finally make statement. That is the typical...

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