While managers are, in general, quite familiar with the art and science of domestic business negotiations, in international negotiations, the approach and emphasis on various dimensions would need to be customized to match with the cultural backgrounds of the parties involved. This article provides the theoretical framework pertaining to cross-cultural business negotiations and their applications in selected cultural contexts.

With rapid globalization, businesses are becoming increasingly dependent on transnational associations. Far more businesses than earlier now procure physical inputs or services from outside their own country or supply products/components or services to customers in other countries. There are also situations where different aspects of development, production or marketing activity are shared by business units or organizations spread across several countries, leading to multipartite relationships. As a result, it has become quite important for managers to gain competence in cross-cultural interactions for successfully striking business deals and also for resolving any disputes that may arise.

As cultural boundaries are viewed here as being synonymous with national boundaries, as this is in tune with the current business milieu, the emphasis is primarily on face-to-face communication, where both verbal and non-verbal behaviors are interpreted. Brief references are also made to written/electronic communication and to communication through agents/intermediaries.

When two parties from different cultures meet at a negotiating table, they bring their respective cultures along with them. Their interests and priorities and also their negotiation strategies are influenced by their cultures (Refer Exhibit 1). For example, negotiators from cultures that value tradition over change may be more reserved about economic development that affects their cherished way of life than negotiators from cultures that are driven by change and development.

The basic tenets of cross-cultural communication and business negotiations,managers,domestic business,international negotiations,rapid globalization,supply products,services to customers,marketing activity,
electronic communication,agents,intermediaries,BATNA,interpersonal relationships,national cultures,Power distance,business meetings,Meeting and greeting,Gift giving,Personal space,Visiting cards,Presentation of information.