COURSE CODE: GOVT.

3055

TITLE: THEORY AND PRACTICES OF INTERNATIONAL NEGOTIATIONS

STUDENT ID: 815010687

DATE: 16/11/2020

QUESTION: Outline examples of cross-cultural negotiations from at least 3 different countries,

one from Asia, Europe and America. Critically analyze how significant are these differences for
the success of the negotiation.
 Cultural differences play a very important role in international negotiations because
culture profoundly influences how people think, communicate and behave and as a result affects
the way they negotiate. In this paper we will look at three different countries from three different
continents and examine how differences or a lack thereof influence the outcome of a negotiation.
Cultures are characterized by different behaviors, communication styles and norms. Research has
shown that deal making across cultures tend to lead to worse outcomes than within cultures.
Conflict occurs for two main reasons, stereotyping and seeing other cultures through the lens of
your own culture. To overcome these tendencies, one has to learn as much of the other party’s
culture in order to have a better chance at success at the negotiating table.

After losing an important deal in India, a business negotiator learned that her counterpart
felt as if she had been rushing through the talks. The business negotiator thought she was being
efficient with time but learned too late that her Indian counterpart would have appreciated a
slower pace with more opportunities for relationship building because in India it is important to
build a relationship of trust before doing business. The cultural difference is that in the business
negotiator’s country greater emphasis is placed on managing time efficiently in negotiations. If
the business negotiator had not stereotyped or seen her Indian counterpart’s culture through her
own eyes and had done proper research about her client’s cultural prototype, she might have had
a more favorable outcome.

America along with other members of the United Nations Security Council began
negotiations with Iran on an agreement in 2014 called the Joint Comprehensive Plan of Action
(JCPOA) which ensured the exclusively peaceful nature of Iran’s nuclear program. Iran gave the
assurance that it will under no circumstances seek to develop or acquire any nuclear weapons.
They also agreed to reduce their stockpile of enriched uranium by 98% to 300kg (660lbs) for 15
years. After a number of rounds of negotiations, no conclusive and definitive agreement was
made and in fact, by only the fifth round Iran stated that the US was making unreasonable
demands. US Secretary of State John Kerry stated that it was time for Iran to decide whether it
wants to remain in isolation or co-operate with the world community. Iran asked for an extension
of negotiations, but the US Congress opposed. US House Committee on Foreign Affairs
Chairman Ed Royce said he hoped “the administration will finally engage in robust discussions
with Congress about preparing additional sanctions against Iran.” When the new US
administration led by President Donald Trump came into office in 2016, a much more aggressive
stance was taken on Iran that led to the US withdrawing from the JCPOA deal on May 8, 2018.
Trump said that there was “definitive proof that this Iranian promise was a lie”

In this negotiation, Hofstede’s Power distance index came into play as the US felt that
their hierarchy clearly should have influence Iran to submit to most or all of American demands
laid on the negotiation table. And Iran’s defiance led to a breakdown in negotiations. Instead, if
the US had not taken such a high-handed approach, the negotiation could have ended more
favorable.

The UK signed a trade deal with Japan in record time even after they exited the European
Union. The deal called the UK Japan Comprehensive Economic Partnership Agreement brings
big benefits for digital data, financial services, food and drink and creative industries. It brings
together two of the world’s most technologically advanced nations, placing the UK at the
forefront of shaping new global standards on digital trade. Estimated boost to trade between the
UK and Japan is over 15 billion pounds sterling, which is crucial to build back the UK economy
after Covid. In this deal we see two like-minded democracies knowledgeable of their different
cultures resulting in a win-win negotiation.

It is therefore clear to see that different cultures can have a decisive effect on negotiations
which can determine the outcome of such. Not researching, understanding or respecting the other
negotiating party’ culture would most often breakdown negotiations while doing the opposite
often brings success.
Reference: Priya Mahraj, 2020 Theory and Practices of International Negotiations

UK and Japan sign free trade agreement-GOV.UK

Joint Comprehensive Plan of Action- Wikipedia