Chapter Five

Cross-Cultural Communication
and Negotiation

McGraw-Hill/Irwin
 Chapter 5
Objectives:
1. DEFINE the term communication
2. EXAMINE the barriers to effective international
communications.
3. PRESENT the steps to overcome international
communication problems.
4. DEVELOP approaches to international negotiations.
 Chapter 5
1. The overall communication process
2. Communication barriers
3. Achieving communication effectiveness
4. Managing cross cultural negotiations
 1. The Overall Communication Process

• Communication
• The process of transferring meanings from
sender to receiver.

• Context plays a key role

Verbal Communication Styles

High-context Low-context

§ Messages are § Messages are explicit

often highly coded and the speaker says
and implicit precisely what he
means.
 Verbal Communication Styles
High-context Low-context

§ Messages are § Messages are explicit

often highly coded and the speaker says
and implicit precisely what he
means.
2. Communication barriers
2.1. Language barriers
2.2. Perceptual barriers
2.3. Nonverbal communication
a) Kinesics c) Chronemics (Thời gian)

b) Proxemics
(Khoảng cách) d) Chromatics (Màu sắc)
2. Communication barriers

2.1. Language barriers

• Knowledge of the language used at headquarters is
not enough
• Language of host country, technical knowledge, and
writing skills are also important
Especially: Letter writing!
 2.1. Language barriers
E.g: A bad-news letter in US and UK

suggest
refusal in
pleasant/ positive
a
neutral reasons explain alternatives
positive
statement that build
manner
goodwill

Americans’ letter
referring to bad news
apology or
the reasons (often
statement of
situation bluntly)
regret

British letter. Let’s compare!

2.1. Language barriers
E.g: A bad-news letter in US and UK
suggest
refusal in
pleasant/ positive
a
neutral reasons explain alternatives
positive
statement that build
manner
goodwill
Americans’ letter: be viewed as overly indirect and insincere

referring to bad news

apology or
the reasons (often
statement
situation bluntly)
of regret

British letter: be viewed as blunt and tactless

2. Communication Barriers

2.2. Perceptual barriers

• Perception: A person’s view of
reality.

§ Advertising messages: countless

advertising blunders when words
are misinterpreted.
 Advertising messages
o Ford “Fiera” meant “ugly old woman” in Spanish.

“Fiera”
Pepsi:
• Chinese – Pepsi brings your ancestors back from the grave
• Thai – Come alive out of the grave with Pepsi!
Slogan "Turn it loose!" of Coors is translated in
Spanish: "You will suffer from diarrhea“!
= “Eat your fingers off” in China!
o Braniff Airlines: 'Fly in leather” = "Fly naked”
(slang term in Spanish)
2. Communication Barriers
2.3. Nonverbal communication
• The transfer of meaning through body language and use
of physical space.

a) Kinesics
c) Chronemics
(Thời gian)

b) Proxemics
d) Chromatics
(Khoảng
(Màu sắc)
cách)
2.3. Nonverbal communication
a) Kinesics
• Communication through body movement and facial
expression (Eye contact, Posture, Gestures)
 : in the U.S, putting
the thumb and index finger
together to form an “O” is the
sign for “okay.”
Japan: “money”

Southern France: “zero” or

“worthless”

Brazil: a vulgar sign.

 Greetings

Japanese bow Middle Easterners Tibetan people

of the same sex stick out their
kiss on the cheek tongues.
Pointing at others: In Blinking means 'I have
North America and a secret to share with Nodding means 'I
Europe: Common. you!' in US, Europe. disagree' in Greece,
In Japan and China: Bulgaria, and Turkey!
rude and highly It is a sign of flirting in
impolite some other countries!
2.3. Nonverbal communication
b) Proxemics: Using physical space to convey messages.

§ Intimate: very confidential.

§ Personal: family/close friends
§ Social: most business transaction
§ Public: giving talk to group
 In US, the more
important the
manager, the larger
the office

In Japan and Euro,

everyone works in the
same large room
2.3. Nonverbal communication
c) Chronemics
• The way time is used in a culture.
• Two types
1. Monochronic time schedule: things
done in linear fashion
2. Polychronic time schedule: do
several things at same time
2.3. Nonverbal communication
c) Chronemics
2.3. Nonverbal communication
d) Chromactics
Ø The use of color to communicate messages.
Every society uses chromatics, but in different
ways
US: people wear black in mourning, while in India
people wear white
• In Chile a gift of
yellow roses conveys
the message “I don’t
like you”!
• But in the US, it says
quite the opposite!
 “An American manager in Peru
who, upon finishing a one week
visit to the Lima subsidiary, decided
to thank the assistant who was
assigned to him. He sent her a
dozen red roses.
Then, he was somewhat
embarrassed when his Peruvian
counterpart smilingly told him, “It
was really nice of you to buy her a
present. However, red roses
indicate a romantic interest!”
Review: 2. Communication barriers

2.1. Language barriers

2.2. Perceptual barriers
2.3. Nonverbal communication
a) Kinesics c) Chronemics
b) Proxemics d) Chromatics
 3. Achieving Communication Effectiveness

• Improve feedback systems: between parent

companies and their affiliates.

Ø Two basic types: personal, impersonal

• Flexibility and cooperation.

• Provide language & cultural training

An American businessman gave 4 antique clocks
wrapped in white paper to a prospective client in
China.
However, the words in Mandarin for clock and the
number 4 are similar to the word for death, and white
is a funeral color in many Asian countries. The
symbolism was so powerful that the man lost the
deal!
What is the lesson to enhance communication
effectiveness?
4. Managing Cross Cultural Negotiations

• Negotiation
• The process of bargaining with one more parties at arrive
at solution acceptable to all.
• Two types of negotiation
1. Distributive negotiation when two parties with opposing
goals compete over set value.
2. Integrative negotiation when two groups integrate
interests, create value, invest in the agreement (win-win
scenario).
The Negotiation Process

1. Planning
2. Interpersonal relationship building
3. Exchanging task related information
4. Persuasion
5. Agreement
“Effective negotiators view luncheon, dinner, reception, ceremony,
and tour invitations as times for interpersonal relationship building.

When American negotiators, often frustrated, ask how long they

must wait before beginning to “do business,”…

…the answer is simple: wait!.

In fact, a successful negotiation has already begun, even if

business has yet to be mentioned”!
 Cultural Differences Affecting Negotiations
• When negotiating
1. Don’t identify the counterpart’s home culture too quickly; common cues
such as accent may be unreliable.
2. Beware of Western bias toward “doing”. Ways of being, feeling, thinking,
and talking can shape relationships more powerfully than doing.
3. Counteract the tendency to formulate simple, consistent, stable images.
4. Don’t assume all aspects of culture are equally significant.
5. Recognize that norms for interactions involving outsiders may differ
from those for interactions between compatriots.
6. Don’t overestimate familiarity with counterpart’s culture.
Negotiation Tactics

• Location
• Time limits
• Buyer-seller relationship
• Bargaining behaviors
• Use of extreme behaviors
• Promises, threats and other behaviors
• Nonverbal behaviors
U.S. negotiators who go to London to discuss a joint venture with
a British firm often will have a scheduled return flight. Once their
hosts find out how long these individuals intend to stay, the British
can plan their strategy accordingly. The “real” negotiations are
unlikely to begin until close to the time that the Americans must
leave. The British know that their guests will be anxious to strike
some type of deal before returning home, so the Americans are at
a disadvantage.
Time limits can be used tactically even if the negotiators meet at a
neutral site. For example, most Americans like to be home with
their families for Thanksgiving, Christmas, and the New Year
holiday. Negotiations held right before these dates put Americans
at a disadvantage because the other party knows when the
Americans would like to leave.
What tactic was applied in this case?
 Chapter 5
1. The overall communication process
2. Communication barriers
3. Achieving communication effectiveness
4. Managing cross cultural negotiations