Question

Discuss the impact of culture on international contract negotiations.

Answer 1

For any negotiation, trust should be established to create common ground to deal with any situation arise. Some of the ways the culture may impact are, such as -

-          There is difference in viewing the available negotiation opportunity suitable for more integration in business and may influence distributive bargaining

-          Many cultures differ in selecting the negotiators based on the demographics which lead to different outcomes and expectations in the contract. Most of the time subject matter experts are valued.

-          Protocols to be set in terms of remain formal or informal otherwise this may be interpreted as a lack of respect.

-          Communication ways (verbal and non-verbal aspects)

-          Time sensitivity or time management with respect to the international contract negotiations

-          Decision making and risk propensity

-          Nature of agreements in the contract whether it should be a detailed contract or in the form of general principles