Cross-Border Negotiations and Mergers

Paper Summary:

This paper discusses how, as the world has evolved into a global marketplace, companies are increasingly looking outside of their borders for business opportunities and how more and more companies are conducting business abroad to achieve their financial aspirations and growth. This paper examines how culture plays a major part in cross-border negotiations and mergers and acquisitions. Several ways that culture can affect negotiations are discussed and several types of training and awareness of different cultures are presented. Geert Hofstede's dimensions of culture are also explained. Finally, the paper examines four countries whose negotiating styles are vastly different from the negotiating styles of United States business persons.

From the Paper:

"Although negotiations between the same or very similar cultures may be difficult, negotiations with a different culture are more difficult. Business environments differ, including differences in local laws, regulations, foreign exchange rates and government controls. International deals also cross cultures. Cross-border deals include both opportunity and risk. Factoring cultural differences into the negotiation process to increase the likelihood of success has long been a critical issue with international deals. Globalization has led to cultural differences to be more important (Cellich & Jain, 2004, p. 11). It is imperative that negotiators conducting business abroad be familiar with the culture of the country they are doing business with. "

Sample of Sources Used:

• Anonymous. (2002). Dealing differences [Electronic version]. Business Mexico, 12(7), 54-55.
• Anonymous. (2005). Cultural advice [Electronic version]. Going Global Career Guides. Italy, 99-102
• Archer, Dave. (2006, October 30). Doing business in China [Electronic version]. Journal of Commerce, 1
• Bryan, Robert M., & Buck, Peter C. (1989). The cultural pitfalls in cross-border negotiations [Electronic version]. Mergers and Acquisitions, 24(2), 61-63.
• Chase, Brett. (1993, March 15). Cultural correctness key to foreign business [Electronic version]. Des Moines Business Record, 89(12), 22.

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