6.3: Regional and Country-Specific Case Studies on International Negotiations
This article describes a negotiation between a Chinese energy company (Sinopec) and a Brazilian energy company (Petrobras). The stage is set for a difficult experience by both parties because of several factors. The leaders on both sides had only limited experience with international negotiation, and both teams were hesitant to get the conversation started. Without an understanding of each other's backgrounds, it was hard to know where to begin. The facilitators had their work cut out for them.
Read to learn their progress on such issues as relationships, speaking a common language, research on each country's customs, history, and politics. In striving to make the negotiation a win-win, each side needed to learn what the other side hopes to accomplish. What are their goals? Through homework assignments and simulation exercises, the participants gained knowledge and skills to proceed with multiple negotiations.
In this video, Brendstrup cites the challenges of working with employees from multiple countries. He stresses that management must understand how different employees wish to be managed and what style they use to manage others. He points out that this becomes more complex when adding Asian management styles to the mix.
This chapter describes the difficulty of doing business globally without a sound knowledge of another country's local business practices and culture. Dunkin' Brands had first-hand experience with these challenges when returning to Russia in 2010 after pulling out of that country 11 years earlier. The company planned to open 20 new stores. A "challenging balance for Dunkin' Brands is to enable local operators in global markets to customize flavors and food product offerings without diminishing the overall brand of their companies".
For example, in Russia, people were largely unfamiliar with donuts, so Dunkin' has created several items that specifically appeal to Russian flavor preferences. You will also read about Dunkin's experiences dealing with cultural differences in China, Latin America, etc. Consider the questions in the opening case exercises at the bottom of the introduction. How would you respond?
This five-member panel debated the topic "Women, Civil Society and Leadership in a New Arab World". Follow along by reading the subtitles in English, and note the difference in opinion expressed by the men and women on the panel. One man, for example, explains that there are many women in business in various sectors. However, a woman panelist posits that if we look at the world of business as a world of profit and loss, there are exceptional and competent women who possess capital and leadership characteristics. Since they are capable of attracting capital, why are they being left out? She refers to families or traditions that may stand in the way of women's progress in business. Another obstacle for many women is that some Arab countries prohibit women from signing contracts or traveling to another country to conclude a deal. A vote is taken at the end of the debate to decide: Is the role of women in business less than it is supposed to be, or is it adequate? What do you think the vote will be?
What can the United States do currently to improve our relationship with the Arab World? Rather than thinking of the Arab world as a "region", we should recognize it comprises different countries, often with divergent cultural and political values. We need to have strong country teams to interact successfully with specific countries. Using television and radio to deal with an entire region is ineffective. A country-by-country approach based on the values of the people there is absolutely critical.
Mexico is an immense country, with enormous economic and social contrasts, thousands of cultural and regional differences, and a complex history that probably can never be understood completely by the foreign business person. This article holds a view similar to the last video. You must treat each region separately to respond to that area's economics and cultures effectively. This article addresses such topics as relationships, language, mealtimes, acceptable and unacceptable topics of conversation, politics and political parties, and the taxation system.
This brief video traces the commercial, cultural, and political interests that created a national Hispanic identity in the 1970s and boosted the political clout of Mexicans, Puerto Ricans, Cubans, Salvadorans, Guatemalans, and other Latin Americans in the United States. Interestingly, it explains how these disparate cultures in America gained strength by developing a common identity. Global business leaders are realizing a need to identify and relate to specific cultures, even within the same country.
Watch this video to learn some of the challenges people face in China due to cross-cultural differences.
Today, the physical territories that constitute the countries of India and Indonesia are far different from a hundred years ago. The previous British rulers in India tended to hire locals for administrative positions, which established a strong and well-educated Indian bureaucracy. Although many business people complain about India's slow bureaucracy focused on rules and regulations, the government infrastructure and English-language education system helped position India as a strong high-tech economy.
This representation of India is through the eyes of several expatriates who describe their journeys and experiences and explain why they chose India as their home. More than just a tourist destination, many foreigners are learning that India has a booming economy that allows them to earn and live in India by taking up permanent residence.