5 cultural aspects to consider in international communication

When negotiating with a foreign company or client, it is worth considering all the differences between the parties, from the legal framework or legislation to business culture. It should be noted that these stereotypes are not universal. However, knowing them will allow you to adapt the strategy and get closer to the desired result, especially if you are not too familiar with the interlocutor.

Communication basics

High and low context

In high-context cultures, interlocutors get most of their information from what can be observed in the environment. They rely heavily on body language and are quite comfortable with not having enough explicit information.

This is typical for representatives of the Middle East, Africa and Latin America, to a lesser extent — for Mediterranean culture.

In low-context cultures, most information is communicated clearly and in words. Their representatives focus mainly on verbal communication and rarely attach importance to the data that they receive from the physical environment. This is typical for North America and Western Europe, such as England and Germany.

Priority of verbal or written commitments

In some countries verbal agreements are inappropriate, while in others agreements are primarily verbal and involve a personal commitment.

For Japanese negotiators, a verbal agreement is very important and carries the same weight as a signed one. In Anglo-Saxon cultures, written commitments are essential. In China, memorandums are traditionally concluded, which reflect the agreements reached during the meeting.

In Arab countries, contracts are considered more of a guide or guide to action, rather than plans that must be strictly observed.

Relationship to time

Negotiations are heavily influenced by the concept of time and how it is used. Depending on the culture, the time required to conclude an agreement, as well as the time frame for achieving results, may vary.

For example, negotiations with partners from Japan and China take a lot of time, but once a decision is made, it is quickly implemented. On the contrary, Western companies make decisions faster, but they take longer to implement.

Monochrome crops

In monochrome cultures, tasks are performed separately. People believe that one task must be completed before moving on to the next. They are characterized by methodical and measured work. Arguments are based on data and it is very important to have a lot of information. Priority — dates and meeting deadlines. Such cultures are always punctual and follow the task at hand. This is typical for Germany.

Polychrome cultures

In polychrome cultures, different tasks are performed at the same time, and it is acceptable to move from one to another without completing the previous one. You can work hard, but not at a constant pace. Argumentation is based on reasoning, and there is less interest in obtaining information. Dates and deadlines are subject to change. There is flexibility regarding appointments and punctuality.

Representatives of such cultures remain loyal to the people who entrusted them with this task. Example — France and Spain.

Cooperative and competitive cultures

All participants in cooperation negotiations are aimed at a win-win result: they want both sides to win. It is important for them to maintain a good relationship with a partner, as they are focused on a long-term vision. They believe that one agreement can lead to another and they want to maintain stable relationships with their customers and suppliers.

Tension is unpleasant for them, and they tend to give in. They do not like to bargain or receive sudden concessions, as this will cause distrust.

Moreover, participants in competitive negotiations adhere to the principle of "win-lose": when a partner loses, they win. For them, the most important thing is — result.

They have a short-term vision and every negotiation starts from scratch. They feel comfortable during times of stress and often increase the pressure. They find it necessary to resort to bargaining and think that if the other side has given in once, they can do it again.

Finally, members of such cultures do not value loyalty: they are calmly ready to conclude a contract with several companies at once and are constantly looking for new customers or suppliers.

Cooperative countries in form and content

This group brings together the most developed countries in the world, where negotiators are highly trained and tend to work in a team. They strive to establish long-term relationships and crave mutual benefits. Canada, Japan and the Nordic countries fall into this category.

Countries that are competitive in form and cooperative in essence

These are countries where negotiators can appear aggressive and arrogant at the beginning of the negotiation process, when in fact their approach is based on cooperation. As soon as the partner shows willingness to cooperate, they will also cooperate. For them, economic indicators are above all. This group includes countries such as the USA, the Netherlands and South Korea.

Countries that are competitive in form and cooperative in essence

During negotiations, the representatives of this culture seem kind and accommodating, although in reality they only care about victory or defeat. This is typical for Latin America, Africa and Arab countries.

We can also include Mediterranean European countries in this category, but to a lesser extent.

Competitive countries in form and content

Negotiators from this group appear to be very competitive and aggressive. Their main goal — weaken your partner. It is believed that this is typical for representatives of countries such as China, Russia or Israel.

Relationship Approach

Professional or personal relationship

In some countries, such as Asia, Latin America, and the Arab countries, establishing personal relationships is essential when making deals. However, in other countries, such as the United States and Western Europe, a strictly professional relationship prevails, where the people responsible for negotiations are focused on the companies they represent.

It's worth knowing that during negotiations, cooperative cultures prefer to keep their relationship strictly professional. This occurs in individualistic cultures where personal and professional life do not mix. It is important to maintain confidentiality.

Competitive negotiators, on the other hand, will look for a personal and emotional connection that will give them enough confidence. These are clan cultures. For them, agreements are concluded not only with the company, but also with the person with whom negotiations are being conducted.

Power distance

In countries with a large power distance, decisions are made by leaders, and their subordinates carry them out without questioning. The structure of organizations is vertical and there is little individual responsibility. This is the case in Asia, Latin America and Africa.

In countries with moderate or low power distance, leaders consult subordinates about their decisions. The organization is flatter: each boss controls a certain number of employees, and there is a certain degree of independence and responsibility among subordinates. This is more common in the US, Canada and the European Union.

Negotiation

Before trading, each side determines the room for maneuver. Its boundaries are two positions. First — the most advantageous, the one that would ideally be chosen by each party. The second — this is the point at which it is preferable to withdraw from negotiations rather than agree to a deal.

Let's consider how representatives of each group of countries behave during negotiations, including whether they tend to make concessions and deviate from the initial conditions.

Group 1. Germany, Nordic countries, Canada and Japan

These countries are not ready to deviate from the originally quoted price. Even the second and third proposal remains the same or changes within 5%. As a rule, representatives of this group do not bargain and clearly express what they want from the agreement.

Group 2. France, UK, Netherlands, United States and Australia

These countries are willing to make concessions at the start of negotiations. Their first offer can fluctuate by 5-10%. Further, they will not be inclined to change the conditions or will take steps within 5%.

Group 3. Spain, Italy, Czech Republic, Poland and Russia

The countries of this group make concessions throughout the negotiations. As a rule, when discussing the first proposal, they will be ready for a step of 5-10%, then — up to 10%, and at the third stage — 5-10%.

Group 4. Argentina, Brazil and Mexico

We can expect from this group that in the first stage they will be ready to give up to 10% of the originally offered price, in the second — 10-15%, and on the third — 10-20%.

Group 5. China, India, Indonesia, Turkey and Arab countries

When negotiating with representatives of these cultures, you can find a big difference between the price offered at the beginning of the negotiations and the one that they are really ready to accept. If initially they are ready for a step up to 20%, at the second stage — within 10-15%, and on the third — up to 20-30%.

To prepare for negotiations, it is not enough just to know stereotypes. However, this information allows you to manage expectations and have a more realistic idea of ​​the interlocutor (especially unfamiliar), the estimated time frame and the corresponding risks.