Chapter 7

1. Why is it better to find a cultural mentor to deal with cultural shock?

Ask for advice from others who have negotiating experience in the areas of the world where you will be doing business. Talk with both people who have had successful negotiating experiences there and those who have had bad experiences there. In this way you can get a balanced view of the host country and its negotiators.

2. What does keeping a sense of humor about yourself and your situation mean?

This doesn't mean joke telling, but rather, keeping a sense of proportion and a positive attitude about whatever culturally irritating situation you find yourself in.

3. Why is it important to negotiate with your own team before your presenting your position to TOS?

You have to manage the egos, roles, and expectations of the team members. You must negotiate with your own team before you can present your position to TOS. The opportunity for internal disagreement is substantial: differences regarding the priorities of your side and that of TOS; differences as to the roles of the team members; and differences in the overall negotiating skill of each team member.

4. Gifts are an important tradition in some countries, aren’t they?

Small gifts—such as pens, cups, and key rings en-graved with your company logo—are not only acceptable, but virtually essential in global business. Home and office decorations and books and magazines are also popular.

5. What major parties do Joint Ventures usually involve?

Joint ventures usually involve at least three major parties: (1) a multinational corporation, (2) a national partner, and (3) the government of the host country. Other parties may include national investors and the U.S. government (e.g., when the joint venture deals with national security)

6. What are advantages of holding the negotiation on your turf?

First, you are more comfortable and probably more confident there. Second, it gives you an opportunity to treat TOS like a king or queen, thereby enhancing the relationship you want to build. Your playing the role of gracious host also does something else: It often makes TOS feel like the guests that they are. And how do guests normally treat you? That's right: with respect. Here's a chance to set the stage for concessions from TOS.

Chapter 8

1. What is difficult when you negotiate in Europe?

Remember that negotiating there can sometimes be quite difficult and that negotiating styles differ from country to country. If your experience in Europe is limited to vacations, you will probably find that behavior in business situations is quite different from what you have experienced.

2. What are the goals of The EC?

The EC’s goals are to reregulate a Europe that is a single market: a Europe without frontiers, where there will be an unrestricted movement of money, products, services, and people.

3. What is optimistic opinion about the growth of the EC?

Those who are optimistic about the growth of the EC as a powerful economic force make some underlying assumptions. Among them are that:

■Europe will succeed as an economic unit and as a political confederation, with perhaps a supernational federal entity that will provide a loose government for Europe as a whole.

■Europe is likely to establish both a federal bank and a common currency.

■At least half of all key legislation affecting economic, political, and technological decisions will be determined by Euro-wide institutions rather than by national institutions.

4. How do western Europeans use their time?

The Western Europeans, more than any of the other cultures that we examine, share common views of time with North Americans. Business life is generally quite fast-paced, and meetings almost always start and end on time. Expect negotiations to move crisply in most of Western Europe.

5. Are Europeans individualists or collectivists?

Western Europeans are generally quite individualistic. There is generally a distinction between one's core of intimate associates and those outside that core. Status and class consciousness are prevalent. One joins groups that are within one's class status. Friendships usually take a long time to develop. As with other high individualism parts of the world the individual is emotionally independent from the work organization. The emphasis is on individual initiative and achievement.

6. Order, discipline, and responsibility are highly valued, aren’t they?

Order, discipline, and responsibility are highly valued in the family and at work. The path to the corporate world is a mixture of education and connections. Leisure time with the family is extremely important, and month-long summer holidays (vacations) are typical.

Power in organizations flows from the top down, and the hierarchy is important. Top managers usually have a great deal of technical expertise and tend to dislike power-sharing and delegation of responsibility. In addition, top managers do not communicate regularly with lower management. Consequently, lower-level managers may not have much information about the corporate goals or mission. An exception is Scandinavia, where top management communicates regularly with middle management, and substantial power is delegated for key decisions.