Frontiers in Business, Economics and Management ISSN: 2766-824X | Vol. 10, No. 3, 2023 136 On Cultural Differences in Business Negotiation Haixia Huang Graduate School of Business, Graduate University of Mongolia, Ulaanbaatar, 11000, Mongolia Abstract: With the rapid development of global economic integration, business exchanges between domestic and foreign enterprises are becoming more and more frequent. Due to cultural differences, the way of business negotiation has also changed a lot. As a form of interpersonal communication, business negotiation inevitably involves the communication methods of different countries, different nationalities, different social and cultural backgrounds and etiquette cultures, thus producing very rich business negotiation methods. How to better achieve the expected effect of business negotiations with different cultural backgrounds, then correctly deal with the conflict points of different cultural differences will become one of the key factors in business negotiations, which deserves the attention of all business people. Keywords: Business Negotiation, Cultural Differences, Customs and Habits, Cultural Etiquette. 1. Various Forms of Cultural Differences in Business Negotiations at Home and Abroad 1.1. The influence of cultural factors on business negotiations Since China's accession to the WTO, the pace of economic globalization has been further accelerated, and the fields in which China participates in international competition and cooperation have also expanded accordingly. China's trade exchanges and cooperation with the rest of the world are increasingly frequent and close. At the same time, the improvement of the quantity and level of international business negotiations plays a very important role in promoting the smooth development of international business activities. At present, there are many forms of international business negotiations, and the forms of expression are also extremely rich, such as video telephone communication, e- commerce communication, etc., but usually international business negotiations are still face-to-face and direct negotiations, and the talks are more accepted by the majority of business people. Business people from different cultural backgrounds, countries and regions have different understandings of culture. Cultural factors are playing an increasingly important role in international business negotiations. Behavior habits are the most prominent manifestation of cultural factors in international negotiations. In the process of communicating with people, especially in international business negotiations, Westerners have a strong spatial distance and should always keep a certain safe distance. For example, some offices in the West must pay special attention to whether the door is open when conducting business negotiations. Westerners believe that personal space is sacred. Opening a door means inviting and knocking to show respect. Unless it's an urgent business situation, don't call after 9 p.m. In the process of international business negotiations, we should pay attention to the communication distance and show the social identity of both sides. In the time arrangement of international business negotiations, people with different cultural backgrounds have different time concepts. For most Westerners, the concept of time is very strong. They not only strictly adhered to the agreement, but also got right to the point in the negotiation process without delay. Some countries advocate business negotiation to establish a good relationship between individuals, and the time of international business negotiation has been extended accordingly. These behaviors under the influence of different cultural factors deserve great attention in the process of international business negotiations. At the same time, values are considered to be the biggest cultural factor in international business negotiations. Values directly determine the behavior and value orientation of business people. Westerners prefer to negotiate on an equal footing and are used to achieving "win- win" and maximizing business interests together. In the process of international business negotiations, Westerners are more inclined to use rational thinking, and prefer to prove with examples and talk with data to achieve the purpose of persuading the other side. For China, the establishment and improvement of the market economy system has gradually developed in the direction of internationalization in the process of business negotiations. Although the development of international business negotiations to today, customs and habits have gradually begun to be replaced by international practices, customs and habits are still an important part of the process of international business negotiations. China is faced with the problem of continuously improving its international adaptability. At the same time, due to the rapid economic development of China and the continuous consolidation of its position in the world economic system, more cultural factors with Chinese elements are also affecting the forms of international business negotiations. The traditional thinking mode and cultural habits are still retained, and the traditional Chinese wine and table culture also needs to be improved in the actual process of international business negotiations. 1.2. Forms of domestic business negotiations Negotiation is a process in which the goals and needs of both parties involve and affect the satisfaction of each other's needs under certain time and space conditions. The process and act of reconciling and compromising on issues of concern or dispute in order to meet certain needs. The two sides are inconsistent and contradictory in their negotiations. The unity lies in the fact that if both parties want to achieve their respective goals, they must establish a cooperative relationship to achieve them. Some business negotiations are an agency or delegation activity. The agent acts as the spokesperson of the buyer and seller, which is equivalent to 137 acting as the intermediary of the third party. In this case, the agent also becomes a party to the business negotiation. The parties are the main body of business negotiation. As far as the specific issues discussed in the negotiation process are concerned, the negotiation topic is the reason, content and purpose of the negotiation, which determines the composition of the negotiators and their business strategy, and is the center of the negotiation activities. At the same time, we should pay attention to the negotiation environment factors, any negotiation can not be carried out in isolation, so the negotiation from the objective conditions to the negotiation background of the occurrence, development and outcome of the negotiation, the above details have an important impact on the smooth progress of the negotiation. The result of business negotiation can not be ignored in the process of negotiation, but also a necessary condition of business negotiation. Business negotiations inevitably involve business interests, but on the basis of business interests exchanges should also pay attention to business etiquette. The particularity and complexity of business negotiation will lead to the uncertainty and complexity of the object, time and environment of business negotiation, so the forms of business negotiation also present various forms with different cultural characteristics. Business negotiation can be divided into short-term business negotiation, mid-term business negotiation and long-term business negotiation. Short-term business negotiation refers to the negotiation within 3 months. Mid-term business negotiation refers to the business negotiation within 3 months to 1 year; Long-term business negotiations are those that last more than one year. There is a big cultural difference in the negotiation cultural background at home and abroad, and the domestic business negotiation pays more attention to etiquette and details. As the saying goes, "Only when you know yourself and your enemy can you win every battle." Business negotiation should not only show its own enterprise advantages and economic strength, but also business etiquette is an indispensable detail in the process of business negotiation. Our country is a state of etiquette, attaches great importance to etiquette, pay attention to "treat people with courtesy, persuade people with virtue." The main purpose of the negotiations between the two sides is not only to pursue the economic needs of one side, but to seek a mutually beneficial solution through exchange of views. For example, developing countries can negotiate with industrialized countries to form joint ventures, in which developing countries provide production bases and developed countries provide advanced technologies. The purpose and need of such joint ventures in developed countries may be to use their technological advantages to bypass the obstacles of direct trade, open up the vast market of developing countries, or expand the original market share through joint ventures, so as to obtain long-term profits. 1.3. Forms of international business negotiations No matter the deepening of economic globalization, no matter how different the cultural backgrounds of the two sides are, mutual respect should always be in the first place in international business negotiations. At the same time, with the deepening of cultural integration and frequent business exchanges, both sides show a more rational attitude towards cultural differences and cultural factors. In the process of international business negotiations, we should firmly establish the cultural awareness of seeking common ground while reserving differences, objectively understand the cultural differences of the other side, and fully respect the customs and religious beliefs of the other side. The role of cultural factors in international business negotiations has been paid more and more attention by business people. Practice has proved that effectively mastering and applying cultural factors in international business negotiations can get twice the result with half the effort. In the actual process of international negotiation, it is necessary to have a deep understanding of the cultural background, political structure, thinking habits, values and other cultural factors of the other country, and be able to timely study and determine their own negotiation strategies. For international business negotiation, first of all, negotiators must fully understand the national cultural background of the other side, as well as the relevant political, legal, cultural, and customs background information collection and sorting. At the same time, it is necessary to study the company background and corporate culture of the negotiating party in the other country or region, and to understand the personal experience and negotiation style of the negotiators accordingly, and make full preparations in advance. There should also be corresponding requirements on the foreign language level, negotiation etiquette, foreign trade knowledge and negotiation characteristics of the negotiators. Studying the economic strength of the other side is also decisive in business negotiations. Understanding the strengths and weaknesses of the other party and oneself is a necessary means to grasp the advantages and disadvantages of business negotiations. These details will affect the process and results of business negotiations. The development trend of economic globalization and world integration is getting deeper and deeper. In international business negotiations, only by flexibly and effectively grasping the cultural differences of the other side and actively taking the transformation of cultural differences as the advantage of international business negotiations can the final success be achieved. International business negotiations enable international enterprises to develop rapidly and healthily in the fierce market competition. 2. Manifestations of Cultural Barriers in Business Negotiations 2.1. Communication barriers due to language and cultural differences In the process of business negotiation, the parties to the negotiation need to carry out adequate and effective communication, and even carry out some games between cultural differences, and try their best to fight for the economic rights and interests of their own side. Negotiators should be clear about their responsibilities. It is necessary to clarify its own economic advantages and the advantages of related products, so as to carry out all-round armed, and then be in a dominant position when negotiating. Therefore, in the process of business negotiation, language communication is essential, and the language skills of negotiation are the most important part throughout the whole process of negotiation. However, due to the different cultural backgrounds of business activities, negotiation language is easy to generate ambiguity under the dilemma of different cultures and values. Because the same word has different meanings in different cultures. For example, in Western countries, 13 is a taboo word, but in China the number has no other special meaning. But in China, the numbers 4 and 18 are taboo. And due to cultural differences, different countries have great differences 138 in language characteristics. For example, German strictly emphasizes strictness, and its words are often direct and clear in business negotiations. In contrast, Chinese compatriots, influenced by the Confucian doctrine of the mean, tend to be introverted and restrained in language expression, and the language characteristics naturally appear to be polite and circuitous. In international business negotiations, the conflict of language and cultural barriers can be seen. In addition, in the process of negotiation, non-verbal communication is also a key factor that affects the outcome of negotiation and causes cultural barriers. In international business negotiations, important information is conveyed through the gestures, facial expressions and body postures of both parties. However, due to the difference of international culture, the non- linguistic forms of different countries also have certain differences. 2.2. Cultural conflicts of customs and habits In the process of business negotiation, some formal or informal consultation and communication activities are often involved, such as banquets and symposiums. In all kinds of social activities, customs and habits will play a great role. Take Chinese and Western dining table culture as an example. Whether it is cutlery habits, eating habits or table manners, there are big differences. Therefore, when there is a difference in cultural customs, it will have a very serious impact on international business negotiations. Cultural differences in customs and habits will lead to poor negotiations and communication, and big mistakes may lead to the failure of negotiations. Therefore, in the process of negotiation, if the two sides do not understand the customs of the other side, it will first give people a sense of disrespect. Secondly, some customs and national beliefs are inviolable. If one party in a business negotiation offends the other party's customs, it will leave a very bad impression on the other party. For example, devout Muslims do not eat pork. If the other party violates this taboo in international business negotiations, it is easy to lead to the breakdown of the negotiation relationship, and ultimately lead to irreparable economic losses. 2.3. Differences and conflicts in ways of thinking In different cultural backgrounds, people have different ways of thinking. Cultural background and living habits are important factors that affect people's way of thinking. For example, the way of thinking of northern nomads and southern peoples is very different. For a long time, the southern peoples have been living a stable life. There are great differences in the way of thinking among different ethnic groups in China, and the way of thinking of foreign ethnic groups with great cultural differences is bound to be very different. According to relevant studies, Westerners have a more rational way of thinking, pay more attention to logical reasoning, and are good at analyzing concepts. The Chinese, however, prefer compromise and dialectical unity. It can be seen that the way of thinking in international business negotiations is also a factor that can not be ignored. Therefore, in international business negotiations, only by deeply understanding each other's way of thinking and understanding at the same time can business negotiations be successfully completed in a harmonious atmosphere. In the international business negotiation, the thinking activity of both sides is the basis to promote the negotiation. Different countries have different development processes, which also affect people's understanding of events and ways of thinking to deal with problems. This is because cultural differences also determine the inevitable conflict of differences. In order to ensure the smooth progress of international business negotiations, both sides of the negotiation should fully examine their own thinking characteristics. This is a necessary measure to avoid conflict in negotiations and an effective way to reach consensus. In addition, it is important to respect each other's thinking differences. This not only reflects the sincerity of the negotiation, but also fully understands the behavior and requirements of the other side. Only to understand the way of thinking of the negotiating opponents and understand their thinking differences is the key factor to ensure the final success of business negotiations. 2.4. Cultural differences in negotiation skills In the process of business activities and international economic trade, in order to achieve the purpose of cross- cultural communication, we must first treat people sincerely and learn to respect others. Among them, respect for others is reflected in full respect for other cultural differences such as customs, values, personalities and beliefs. It also includes respect for interests and respect for the opinions of others. Often people from different cultural backgrounds will have different views of the world around them and will also have their own unique ways of behaving. Business negotiators should not measure the behavior in a foreign culture by the standards of their own culture, and should not forcibly impose their own behavior and ideas on others in order to achieve effective communication in business or economic cooperation. Different countries have different cultural backgrounds, and different cultural characteristics and behavior patterns will also be different, which will lead to differences in negotiation styles. Generally speaking, in East-West negotiations, different customs, cultural attitudes and cultural background differences are often ignored by negotiators, and it is precisely because of the influence of cultural factors that determines the success or failure of negotiations. In order to achieve the goal of international business negotiation, it is necessary to fully grasp the negotiating style of the opponent, so that the business negotiation of each country will gradually develop in the direction of benefit to both sides. 3. Strategies to Address Cultural Differences In international business negotiations, in order to strive for various rights and interests optimization schemes, so as to reach a contract that both parties agree and intend to abide by, a lot of technical support is needed. However, in the process of negotiation, in addition to using skills to obtain the comparative advantage of the game, solving the obstacles in cross-cultural negotiation is the first problem to be considered and solved in international business negotiations. Because only by solving these problems can we ensure the smooth progress of international business negotiations as planned. At the same time, it is also a necessary measure to avoid a breakdown of the negotiations. Therefore, in international business negotiations, both sides should take reasonable measures to dissolve cultural barriers in order to optimize the negotiation effect. International business negotiations should respect the linguistic forms of both parties. In order for the other person to respect their own language, you need to respect their 139 language first. First of all, to fully understand the language characteristics of the other side in the negotiation is to respect the basic requirements of the other side; Secondly, the flexible and accurate use of negotiation language in negotiations is to respect the specific form of the other side. Flexible and accurate use of negotiating language is essential. In order to realize the flexible and accurate use of negotiation language, first of all, on the premise of respecting the negotiation counterpart, we must understand the language characteristics of the other side as much as possible and master the special meaning of the other side. Secondly, in order to ensure the smooth progress of the negotiation and obtain reasonable rights and interests, appropriate language should be chosen according to the specific situation, so that the other side can feel the sincerity of the negotiation. In short, in international business negotiations, negotiators need to choose accurate language and express it flexibly according to the specific context. In international business negotiations, different negotiation strategies should be adopted according to different cultural characteristics. This requires negotiators to be highly sensitive to cultural differences, to be able to fully examine the differences and characteristics of different cultures during negotiations, and to master the strategies to promote negotiations. Because different negotiators, their words and deeds are affected by their own cultural factors. Therefore, before international business negotiations, relevant equipment should be prepared, in-depth analysis of the cultural characteristics of the other party's region, grasp the differences, and take this as a breakthrough. Cultural differences should also be taken into account when developing negotiation strategies. Only in this way can we create a harmonious negotiation atmosphere, make the negotiation proceed in a friendly way, and finally reach a relatively optimal strategy for each other's rights and interests. 4. Peroration Through careful study and investigation of international business negotiation cases, it is not difficult to find that cross- cultural barriers are the key factors that hinder international cooperation to reach a consensus. Cultural barriers in specific international business negotiations mainly include: language forms and characteristics, ways of thinking, customs and so on. In order to promote negotiation activities and ensure that both sides reach a consensus, it is necessary to first correct cultural barriers, fully understand and respect each other's language forms, ways of thinking, customs and other characteristics, so as to achieve mutually beneficial and win- win negotiation results. 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