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Abstract：Today，the world is fast developing in the age of economic globalization.Business contacts among nations get increasingly close，which has brought more and more opportunities for business field.Economic interdependence is much productive to the cooperation between companies.And the successful business，to a great extent，depends on the mutually beneficial negotiation.Negotiators from different countries come together and discuss their common and conflicting interests; meanwhile，they bring different cultures to the negotiating table，which have important impacts on negotiation.Culture forges values and religious belief that define one’s thinking and behavior.Therefore，negotiators with different cultural backgrounds employ different negotiating strategies.Cultural differences will certainly result in cultural conflicts，especially for enormous differences between the Eastern culture and Western culture.Thus，to negotiate effectively，negotiators should have a good understanding of culture and cultural differences.More importantly，they should know how negotiation is affected by culture.In doing so，negotiators can predict the process and adjust strategies in order to reach a satisfactory agreement.
Key words：cultural differences business negotiation impacts
Ⅰ.Introduction
Modern society with its advanced technology has brought businessmen considerably closer and more opportunities for doing business with each other.The enhanced globalization of economy necessitates an increase in transactions across borders.As a consequence，opportunities for international business negotiation are on the dramatic increase.International negotiation involves people from different countries who discuss common and conflicting interests for arriving at an agreement of mutual benefit.Negotiators from different countries conduct business in different ways，which are influenced by their given cultures.Culture forges people’s values，beliefs，and guides people’ behaviors.Thus，international negotiators tend to act according to their own values shaped by culture.In an international commercial negotiation，the negotiator should know the existence of the cultural differences and manage to leap over these differences in order to reach a satisfactory agreement.
Ⅱ.Culture and its Characteristics
Scholars have never been able to agree on a simple definition of culture.Culture can be viewed as consisting of everything that is human made (Herskovits，1955); collective programming of the mind which distinguishes members of one human group from another (Hofstede，1980); a set of shared and enduring meanings，values，and beliefs that characterize national，ethnic，or other groups and orient their behavior (Faure & Rubin ,2001).Thus，we can say that culture can include language，arts，morals，beliefs，customs and even everything in our life.We can define culture as “a set of learned and enduring values，beliefs，knowledge，standards，laws and behaviors shared by a group of members and determines how the member acts，feels and views oneself and others”.Culture directs people’s judgment and opinion，and the standards for what is right or wrong.And very often，the people of a certain culture tend to act according to values，beliefs，customs and standards provided by their culture，So，to have a good understanding of your business partner’s culture can help predict your business partner’s behavior and develop sound strategies for deal-makings and negotiations.
Regardless of the differences in the definitions of culture mentioned above，there are some common characteristics of culture：culture is learned，shared，transgenerational，symbolic，and adaptive.Examining these characteristics will help us better understand the concept of culture and enable us to find out how these characteristics influence cross cultural communication.
Ⅲ.The Impacts of Cultural Differences on International Business Negotiations
1.Cross-culture Business Negotiation
Cross-cultural negotiations are negotiations where the negotiating parties belong to different cultures and do not share the same ways of thinking，feeling and behaving(Casse，1981).The cross-cultural negotiation process is generally more complex because it encompasses unconscious forces of the different cultural norms that may operate to undermine effective communication.Simintiras and Thomas (1998) concluded that behavior in negotiation is consistent within cultures and each culture has its own distinctive negotiation style.Thus，in a cross-cultural negotiation，in addition to the basic negotiation skills，it is important to understand the cultural differences，and to modify the negotiation style accordingly.
2.Factors of culture that influence International Business Negotiations
Negotiators with different cultural backgrounds vary in their preference for negotiating strategies.Cultural factors are one of the most important parts responsible for the success or failure of the negotiations in which people with different cultures meet together.The followings are some concrete cultural factors that are in play and are generally believed to have an enormous impact on the West-Eastern business negotiations.
（1）Customs and Etiquette
Customs define social convention in which people are expected to behave and etiquette is the code and practices prescribed by social convention that govern correct behavior.If the violation of one culture custom and etiquette occurs，it will evoke uncomfortable feeling，and seriously may cause the breakdown of business.For example，shaking hands is very important in Europe.In some countries，women still do not shake hands，however，so wait for them to extend a hand to you if you are not sure.In many countries，women are not as much a part of the business world as we are accustomed to.When they attend business negotiation，they tend to practice social manners instead of business manners; some customs and etiquette will place international businessmen at a disadvantage.So，understanding the general etiquette in both formal and informal settings is an important skill that can enhance the confidence of handling business internationally.
（2） Body Language
Body language can be telling as it can help one determine the exact meaning of what the other side is saying and also can help you get you own message across.Whenever a party negotiates，the negotiator must watch and observe the other party.Insights into nonverbal behavior will add to your negotiating strength.You learn to interpret what the other side is saying in addition to their words.At the same time you can become more aware of what your body language is saying to your opponent.International body language can befuddle international business relation.For example，an American manager may，after successful completion of negotiations，impulsively give a finger-and-thumb “OK” sign.In southern France，this would signify that the deal was worthless.
（3）Individualism and Collectivism
In individualistic cultures the focus of one’s behavior can be unashamedly self-centered.The individual can make objections state his feelings and be openly judgmental.Success or failure is left to the individual and does not cause the same degree of shame among the group.In individualistic cultures，people tend to put tasks before relationships and to value independence highly.People in these cultures are expected to take care of themselves and to value the needs of the individual over those of the groups，community，or society.Members from individualistic societies (e.g.United States，Germany，and Australia) expect the other side’s negotiators to have the ability to make decisions unilaterally.
In many cultures the interests of the group，whether the family or the community，are given priority over those of the individual.Such cultures，called “collectivist”，rely on group consensus and the avoidance of conflict.By contrast，cultures that value collectivism emphasize solidarity，loyalty，and strong interdependence among individuals.Relationships are based on mutual self—interest and are dependent on the success of the group.Collectivist cultures define themselves in terms of their membership within groups.Maintaining the integrity of group is stressed so that cooperation，conflict avoidance，and conformity dominate the culture.Collectivist societies tend to stress abstract，general agreements over concrete，specific issues.
（4）Time orientation
Two different orientations to time exist across the world：Monochromic and Polychromic.Monochromic approaches to time are linear，sequential and involve focusing on one thing at a time.These approaches are most common in the European-influenced cultures of the United States，Germany，Switzerland，and the Scandinavia.Japanese people also tend toward this end of the time continuum.Polychromic orientations to time involve working on several activities simultaneously.The time it takes to complete an interaction is elastic，and more important than any schedule.This orientation is most common in Mediterranean and Latin cultures including France，Italy，Greece，and Mexico，as well as some Eastern and African cultures.
（5）Personal Styles
The research and observations by most scholars indicate fairly clearly that negotiation practices differ from culture to culture and that culture can influence “negotiating style” -the way persons from different culture conduct themselves in negotiating sessions.For example，U.S.negotiators tend to rely on individualist values，imagining self and other as autonomous，independent，and self-reliant，this does not mean that they don’t consult，but the tendency to see self as separate rather than as a member of a web or network means that more independent initiatives may be taken.American negotiators tend to：be competitive in their approach to negotiations including coming to the table with a fallback position but beginning with an unrealistic offer.
3.How International Business Negotiation is affected
From the previous discussions about cultural factors that play an important role in international business negotiations，we can see that culture does influence negotiation in a number of ways.Some of the critical effects of culture are felt even before the two parties sit down to talk.First，culture is brought into the negotiation by negotiators，who come to the negotiating table with given values，beliefs and norms.What is the likely outcome when Japanese，who place relationships before results，meet with Americans，who try to close deal as quickly as possible? The potential misunderstandings and conflicts are understated.Fish，a pioneering researcher working on the approach to culture and negotiation argues，“the more pronounced the cultural contrasts between the negotiating parties，the greater the potential for misunderstanding.” (Cohen，1997:17)
（1） Different understanding of International Business Negotiation
According to Moran (1991:94)，there are two basic concepts of negotiation：strategic and synergistic.Americans tend to be strategic while Japanese is a reflection of the latter.The Americans culture values individual interests，independence，freedom of expression and risk-taking.It is a society full of competition.Open conflict is functional in problem solving.To Americans，the word “negotiation” is not uncommon in daily life.“Let’s negotiate this” or “This is negotiable” implies a willingness to solve problems.Negotiation is the least troublesome method of setting disputes.The strategic concept stresses dialogue，mediation and compromise as a means to working out practical outcome.The American negotiation is argumentative.They perceive it as an arena where they will forge agreements out of debate and confrontation.(Samovar & Porter，1996:308) Under the strategic mode，on the other hand，Americans view negotiation as a give-and-take game，in which one gives up something，makes a concession regardless of the value of concession，in order to reach an agreement.“Concession” or “compromise” is of positive meanings.To make a concession is fully justified and acceptable，and it reflects the qualities of open-mindedness and generosity.In contrast，Japanese view on negotiation is quite different from that of America.The word “negotiate” and its usual translation “kosho” have different meanings.“kosho” has nuances in Japanese of fighting，conflict，strategy，and verbal debate，whereas western-style negotiations lacks these overtones and usually suggests discussion，concession and conference.(Hendon & Herrbig，1996:103) In the culture based on harmony，Japanese generally view conflict as unwelcome and a threat to communal harmony.Negotiation has a connotation of confrontation which must be avoided whenever possible.In fact，few of them even can understand the negotiation as Americans do.In Japanese daily life，there are little arguments in a debate for winning points.This is considered as superficial，insincere and in a bad taste.Under the synergistic mode，negotiation is the process based on the importance of maintaining long-term harmonious relationships.The goal of negotiation is to develop a business relationship with a long-term mutual benefit.Once the relationship is established，the issues under negotiation will be settled quickly.Japanese see negotiation as a cooperative purpose but for minimizing social conflicts.The human side of negotiation is more important than the issue aspect.Besides，“concession” does not have the same connotation as Americans.“Concession” tends to be negative meaning for Japanese negotiators because it implies retreat，giving up a right，or even a shame of losing face.Thus，Japanese seldom concede until the last minute of negotiation.Culture forces people to view and value differently when meeting in negotiation.Aggressive implication of negotiation still remains in Japanese perception; while in the United States，it is quite agreeable method of solving conflicts.Americans see negotiation as a competitive process while a collaborative exercise for Japanese.Americans negotiate a contract; Japanese negotiate a personal relationship.By understanding your counterpart’s viewpoints of negotiations，negotiators can make appropriate strategies to arrive at an early agreement.
（2）Phases of International Business Negotiation
Phases of business negotiation address how negotiation behavior changes over time as parties interact.In the international business negotiation studies，we know that many scholars have defined the negotiation process model.The negotiation process presented in this thesis is divided into four stages：the preparation phase，the opening phase，the bargaining phase and the closing phase.In the four phases，the negotiating parties declare values，create values and finally overcome barriers to agreement in which the two sides try to maximize their own interests by resolving their conflicts.
The pre-negotiation stage starts from the first contact between the two sides whose interest in doing business with each other is shown.From this stage on，both sides begin to understand each other’s needs，declare values and evaluate the benefits of entering the process of this negotiation.To be fully prepared before negotiations，negotiators will have to take into consideration the following aspects：the negotiation team，gathering of information，and the negotiation brief.In short，this stage in some way determines the success or failure of the negotiation.So we should make sure to be well prepared before really starting negotiation.
The opening phase.At this stage，negotiators are getting to know each other and identifying the issues involved through various channels.A negotiation is usually initiated by one party submitting a proposal to the other，suggesting joint action.If the idea appears to have merit，then both parties will likely further develop it.As the matter progresses，each party will present its own proposition to the other so that a basis for discussion can be established.
The bargaining phase.This stage covers a broad period of bargaining in which concessions are made and advantages are gained，so that the gap between the two sides is narrowed to a point.Sometimes we call this stage “the step of overcoming barriers to agreement”.This process involves adjustment and compromise.
The closing phase.(Moran and Stripp，1991:104)All the efforts devoted to the negotiation are to reach an agreement in the end.The symbol of a successful cooperation and negotiation is agreement.At this stage，two parties should agree all the items and sign a contact.The parties also should make sure the wording in the contract which is clearly understood for both sides，for meanings and values may differ from culture to culture.So the items in the contract should be read to each other in order to check whether there is anything unsatisfied.Something unexpected may arise because of the different perceptions.Rediscussion and exchange of ideas will possibly happen at this moment.
（3）Decision-Making system
When negotiating internationally，people of different cultures may use different approach to make decisions.Knowing these differences will be productive to predict the reactions of the other side and develop appropriate strategies.Internal decision-making systems of negotiation teams are broadly classified as authoritative or consensus.(Hendon&Herbig,1996:97) The United States decision-making tends to be authoritative while the Japanese or Chinese one is characterized by consensus.For example，some people used to complain that it is a headache to negotiate with the Chinese people.This is related to the Chinese custom.As a society of collectivism，China is greatly influenced by Confucianism，which stresses the consensus of opinions，and encourages coordination.As a result，it usually takes a lot of time for the Chinese to negotiate.When the two parties argue heatedly over a problem，you must not agree to their conditions hurriedly out of impatience，or give up the negotiation.During the talks，the Chinese usually form the unanimity of opinions through group discussion，and then make the final decision.It is the Chinese business convention that the people of high positions have more say in the whole process，but the collective should make the final decision and take the final responsibility.(Yang Dongsheng，2004:177)
4.Suggestions for effective International Business Negotiation under Different cultures
（1） Trying to Gain knowledge
The key to effective cross-cultural communication is knowledge.First，it is essential that people understand the potential problems of cross-cultural communication and make a conscious effect to overcome these problems.Second，it is important to assume that one’ effects will not always be successful，and adjust one’s behavior appropriately.For example，one should always assume that there is a real possibility that cultural differences are causing communication problems，and be willing to be patient and forgiving，rather than hostile and aggressive，if problems arise.
（2） Trying to Gain Advantage of Language
Language is a big barrier to communication in cross-cultural business negotiations.It will be a great advantage for us to have a good command of the other party’s language even when there is a third party or an interpreter involved to help with the business negotiation.Grasping the language of the other side means that we have won extra time to think and respond to the other side’s questions and proposals.In addition，totally relying on the interpreter to convey the meaning is not safe enough，and sometimes it may cause unnecessary misunderstandings in case the interpreter is not well-advised or well informed about the cultural nuances during the negotiation，for some words，special phases and concepts have specific cultural meaning.A better grasp of the other party’s language can help to avoid pragmatic failure out of poor command of the language.
（3） Developing Pragmatic Competence
Communicative competence is composed of both linguistic and pragmatic competence.Linguistic competence refers to the ability to produce grammatically correct sentences with the help of linguistic knowledge and the ability to infer the meaning of words or sentences with the help of linguistic context.Pragmatic competence is the ability to tactfully use language to communicate，including the ability to appropriately produce and interpret utterances (He Ziran，1997：201).These two kinds of competence influence the effectiveness of communication in different aspects.Pragmatic competence is more important so as to communicate effectively.He Ziran (1997:199) points out that to develop the pragmatic competence is to develop the ability to use that language appropriately in communication.In improving business negotiators’ negotiating ability，only linguistic competence is often emphasized，but the pragmatic competence is ignored.They can produce grammatically correct utterances but they cannot use the utterances appropriately in the negotiation context.As illustrated in this thesis，pragmatic failure is the result of inappropriate production and interpretation of utterances.Thus it is of great necessity to cultivate negotiators’ pragmatic competence.In a word，negotiators must develop a broad perspective that includes the larger context within which they negotiate.
（4） Respect the local customs and understand cultural differences
If you joke on the local traditions or scorn on others’ cultural customs or traditions，you will surely irritate the people.Studying your opponent’s culture.Recognize that cultural differences do exist and then learn to accept that.Different cultures employ different ways of doing business.From gift giving to lawyer used in negotiation，each culture has its unique measure that guides the negotiating process.Respect and accept the culture of the other side will greatly contribute to a smooth negotiation process.
Ⅳ.Conclusion
Culture forges values and beliefs.Different culture shapes different way to perceive the world，to define what is right or wrong，and to conduct business.So，Culture is a very important factor that has impacts on international negotiation.The understanding of negotiation in the western culture is alien to that of the eastern culture.A lack of understanding of the cultural factors playing in negotiation process can easily break down negotiations.Negotiators must take the time to sufficiently understand the culture of the other side in order to succeed in cross-cultural negotiation.Paying respect to the other’s culture will pave the road to reach a satisfactory agreement.A good negotiator can adapt his own culture to the one he is going to negotiate with.
References
1.Melville Jean Herskovits.Cultural Anthropology.New York：Knopf，1955
2.Hofstede，G.H.Culture’s consequences：International differences in work related values .London：Sage Publications，1980
3.Guy Olivier Faure & Jeffrey Z.Rubin.Culture and Negotiation：The Resolution of Water Disputes .Berkeley：University of California Press，2001
4.Casse,P.Training for the cross cultural mind.2nd ed，Washington，DC：Society for International Education，Training，and Research，Intercultural Press，1981
5.Antonis C.Simintiras & Andrew H.Thomas.Cross-cultural sales negotiations：A literature review and research propositions.West Yorkshire：MCB UP Ltd，1998
6.Raymond Cohen.Negotiating Across Cultures .Washington，DC：U.S.Institute of Peace Press，1997
7.Robert T.Moran & William G.Stripp.Successful International Business Negotiations .Houston：Gulf Publishing Company，1991
8.Larry A.Samovar & Richard E.Porter.Intercultural Communication：A Reader (8th Ed).California：Wadsworth Publishing Company，1996
9.Donald W.Hendon，Rebecca Angeles Hendon & Paul Herbig.Cross-cultural Business Negotiation .London：Quorum Books，1996
10.杨东升，顾文同.中国商务文化.北京：北京语言大学出版社，2004
11.何自然.语用学与英语学习.上海：上海外语教育出版社，1997
Key words：cultural differences business negotiation impacts
Ⅰ.Introduction
Modern society with its advanced technology has brought businessmen considerably closer and more opportunities for doing business with each other.The enhanced globalization of economy necessitates an increase in transactions across borders.As a consequence，opportunities for international business negotiation are on the dramatic increase.International negotiation involves people from different countries who discuss common and conflicting interests for arriving at an agreement of mutual benefit.Negotiators from different countries conduct business in different ways，which are influenced by their given cultures.Culture forges people’s values，beliefs，and guides people’ behaviors.Thus，international negotiators tend to act according to their own values shaped by culture.In an international commercial negotiation，the negotiator should know the existence of the cultural differences and manage to leap over these differences in order to reach a satisfactory agreement.
Ⅱ.Culture and its Characteristics
Scholars have never been able to agree on a simple definition of culture.Culture can be viewed as consisting of everything that is human made (Herskovits，1955); collective programming of the mind which distinguishes members of one human group from another (Hofstede，1980); a set of shared and enduring meanings，values，and beliefs that characterize national，ethnic，or other groups and orient their behavior (Faure & Rubin ,2001).Thus，we can say that culture can include language，arts，morals，beliefs，customs and even everything in our life.We can define culture as “a set of learned and enduring values，beliefs，knowledge，standards，laws and behaviors shared by a group of members and determines how the member acts，feels and views oneself and others”.Culture directs people’s judgment and opinion，and the standards for what is right or wrong.And very often，the people of a certain culture tend to act according to values，beliefs，customs and standards provided by their culture，So，to have a good understanding of your business partner’s culture can help predict your business partner’s behavior and develop sound strategies for deal-makings and negotiations.
Regardless of the differences in the definitions of culture mentioned above，there are some common characteristics of culture：culture is learned，shared，transgenerational，symbolic，and adaptive.Examining these characteristics will help us better understand the concept of culture and enable us to find out how these characteristics influence cross cultural communication.
Ⅲ.The Impacts of Cultural Differences on International Business Negotiations
1.Cross-culture Business Negotiation
Cross-cultural negotiations are negotiations where the negotiating parties belong to different cultures and do not share the same ways of thinking，feeling and behaving(Casse，1981).The cross-cultural negotiation process is generally more complex because it encompasses unconscious forces of the different cultural norms that may operate to undermine effective communication.Simintiras and Thomas (1998) concluded that behavior in negotiation is consistent within cultures and each culture has its own distinctive negotiation style.Thus，in a cross-cultural negotiation，in addition to the basic negotiation skills，it is important to understand the cultural differences，and to modify the negotiation style accordingly.
2.Factors of culture that influence International Business Negotiations
Negotiators with different cultural backgrounds vary in their preference for negotiating strategies.Cultural factors are one of the most important parts responsible for the success or failure of the negotiations in which people with different cultures meet together.The followings are some concrete cultural factors that are in play and are generally believed to have an enormous impact on the West-Eastern business negotiations.
（1）Customs and Etiquette
Customs define social convention in which people are expected to behave and etiquette is the code and practices prescribed by social convention that govern correct behavior.If the violation of one culture custom and etiquette occurs，it will evoke uncomfortable feeling，and seriously may cause the breakdown of business.For example，shaking hands is very important in Europe.In some countries，women still do not shake hands，however，so wait for them to extend a hand to you if you are not sure.In many countries，women are not as much a part of the business world as we are accustomed to.When they attend business negotiation，they tend to practice social manners instead of business manners; some customs and etiquette will place international businessmen at a disadvantage.So，understanding the general etiquette in both formal and informal settings is an important skill that can enhance the confidence of handling business internationally.
（2） Body Language
Body language can be telling as it can help one determine the exact meaning of what the other side is saying and also can help you get you own message across.Whenever a party negotiates，the negotiator must watch and observe the other party.Insights into nonverbal behavior will add to your negotiating strength.You learn to interpret what the other side is saying in addition to their words.At the same time you can become more aware of what your body language is saying to your opponent.International body language can befuddle international business relation.For example，an American manager may，after successful completion of negotiations，impulsively give a finger-and-thumb “OK” sign.In southern France，this would signify that the deal was worthless.
（3）Individualism and Collectivism
In individualistic cultures the focus of one’s behavior can be unashamedly self-centered.The individual can make objections state his feelings and be openly judgmental.Success or failure is left to the individual and does not cause the same degree of shame among the group.In individualistic cultures，people tend to put tasks before relationships and to value independence highly.People in these cultures are expected to take care of themselves and to value the needs of the individual over those of the groups，community，or society.Members from individualistic societies (e.g.United States，Germany，and Australia) expect the other side’s negotiators to have the ability to make decisions unilaterally.
In many cultures the interests of the group，whether the family or the community，are given priority over those of the individual.Such cultures，called “collectivist”，rely on group consensus and the avoidance of conflict.By contrast，cultures that value collectivism emphasize solidarity，loyalty，and strong interdependence among individuals.Relationships are based on mutual self—interest and are dependent on the success of the group.Collectivist cultures define themselves in terms of their membership within groups.Maintaining the integrity of group is stressed so that cooperation，conflict avoidance，and conformity dominate the culture.Collectivist societies tend to stress abstract，general agreements over concrete，specific issues.
（4）Time orientation
Two different orientations to time exist across the world：Monochromic and Polychromic.Monochromic approaches to time are linear，sequential and involve focusing on one thing at a time.These approaches are most common in the European-influenced cultures of the United States，Germany，Switzerland，and the Scandinavia.Japanese people also tend toward this end of the time continuum.Polychromic orientations to time involve working on several activities simultaneously.The time it takes to complete an interaction is elastic，and more important than any schedule.This orientation is most common in Mediterranean and Latin cultures including France，Italy，Greece，and Mexico，as well as some Eastern and African cultures.
（5）Personal Styles
The research and observations by most scholars indicate fairly clearly that negotiation practices differ from culture to culture and that culture can influence “negotiating style” -the way persons from different culture conduct themselves in negotiating sessions.For example，U.S.negotiators tend to rely on individualist values，imagining self and other as autonomous，independent，and self-reliant，this does not mean that they don’t consult，but the tendency to see self as separate rather than as a member of a web or network means that more independent initiatives may be taken.American negotiators tend to：be competitive in their approach to negotiations including coming to the table with a fallback position but beginning with an unrealistic offer.
3.How International Business Negotiation is affected
From the previous discussions about cultural factors that play an important role in international business negotiations，we can see that culture does influence negotiation in a number of ways.Some of the critical effects of culture are felt even before the two parties sit down to talk.First，culture is brought into the negotiation by negotiators，who come to the negotiating table with given values，beliefs and norms.What is the likely outcome when Japanese，who place relationships before results，meet with Americans，who try to close deal as quickly as possible? The potential misunderstandings and conflicts are understated.Fish，a pioneering researcher working on the approach to culture and negotiation argues，“the more pronounced the cultural contrasts between the negotiating parties，the greater the potential for misunderstanding.” (Cohen，1997:17)
（1） Different understanding of International Business Negotiation
According to Moran (1991:94)，there are two basic concepts of negotiation：strategic and synergistic.Americans tend to be strategic while Japanese is a reflection of the latter.The Americans culture values individual interests，independence，freedom of expression and risk-taking.It is a society full of competition.Open conflict is functional in problem solving.To Americans，the word “negotiation” is not uncommon in daily life.“Let’s negotiate this” or “This is negotiable” implies a willingness to solve problems.Negotiation is the least troublesome method of setting disputes.The strategic concept stresses dialogue，mediation and compromise as a means to working out practical outcome.The American negotiation is argumentative.They perceive it as an arena where they will forge agreements out of debate and confrontation.(Samovar & Porter，1996:308) Under the strategic mode，on the other hand，Americans view negotiation as a give-and-take game，in which one gives up something，makes a concession regardless of the value of concession，in order to reach an agreement.“Concession” or “compromise” is of positive meanings.To make a concession is fully justified and acceptable，and it reflects the qualities of open-mindedness and generosity.In contrast，Japanese view on negotiation is quite different from that of America.The word “negotiate” and its usual translation “kosho” have different meanings.“kosho” has nuances in Japanese of fighting，conflict，strategy，and verbal debate，whereas western-style negotiations lacks these overtones and usually suggests discussion，concession and conference.(Hendon & Herrbig，1996:103) In the culture based on harmony，Japanese generally view conflict as unwelcome and a threat to communal harmony.Negotiation has a connotation of confrontation which must be avoided whenever possible.In fact，few of them even can understand the negotiation as Americans do.In Japanese daily life，there are little arguments in a debate for winning points.This is considered as superficial，insincere and in a bad taste.Under the synergistic mode，negotiation is the process based on the importance of maintaining long-term harmonious relationships.The goal of negotiation is to develop a business relationship with a long-term mutual benefit.Once the relationship is established，the issues under negotiation will be settled quickly.Japanese see negotiation as a cooperative purpose but for minimizing social conflicts.The human side of negotiation is more important than the issue aspect.Besides，“concession” does not have the same connotation as Americans.“Concession” tends to be negative meaning for Japanese negotiators because it implies retreat，giving up a right，or even a shame of losing face.Thus，Japanese seldom concede until the last minute of negotiation.Culture forces people to view and value differently when meeting in negotiation.Aggressive implication of negotiation still remains in Japanese perception; while in the United States，it is quite agreeable method of solving conflicts.Americans see negotiation as a competitive process while a collaborative exercise for Japanese.Americans negotiate a contract; Japanese negotiate a personal relationship.By understanding your counterpart’s viewpoints of negotiations，negotiators can make appropriate strategies to arrive at an early agreement.
（2）Phases of International Business Negotiation
Phases of business negotiation address how negotiation behavior changes over time as parties interact.In the international business negotiation studies，we know that many scholars have defined the negotiation process model.The negotiation process presented in this thesis is divided into four stages：the preparation phase，the opening phase，the bargaining phase and the closing phase.In the four phases，the negotiating parties declare values，create values and finally overcome barriers to agreement in which the two sides try to maximize their own interests by resolving their conflicts.
The pre-negotiation stage starts from the first contact between the two sides whose interest in doing business with each other is shown.From this stage on，both sides begin to understand each other’s needs，declare values and evaluate the benefits of entering the process of this negotiation.To be fully prepared before negotiations，negotiators will have to take into consideration the following aspects：the negotiation team，gathering of information，and the negotiation brief.In short，this stage in some way determines the success or failure of the negotiation.So we should make sure to be well prepared before really starting negotiation.
The opening phase.At this stage，negotiators are getting to know each other and identifying the issues involved through various channels.A negotiation is usually initiated by one party submitting a proposal to the other，suggesting joint action.If the idea appears to have merit，then both parties will likely further develop it.As the matter progresses，each party will present its own proposition to the other so that a basis for discussion can be established.
The bargaining phase.This stage covers a broad period of bargaining in which concessions are made and advantages are gained，so that the gap between the two sides is narrowed to a point.Sometimes we call this stage “the step of overcoming barriers to agreement”.This process involves adjustment and compromise.
The closing phase.(Moran and Stripp，1991:104)All the efforts devoted to the negotiation are to reach an agreement in the end.The symbol of a successful cooperation and negotiation is agreement.At this stage，two parties should agree all the items and sign a contact.The parties also should make sure the wording in the contract which is clearly understood for both sides，for meanings and values may differ from culture to culture.So the items in the contract should be read to each other in order to check whether there is anything unsatisfied.Something unexpected may arise because of the different perceptions.Rediscussion and exchange of ideas will possibly happen at this moment.
（3）Decision-Making system
When negotiating internationally，people of different cultures may use different approach to make decisions.Knowing these differences will be productive to predict the reactions of the other side and develop appropriate strategies.Internal decision-making systems of negotiation teams are broadly classified as authoritative or consensus.(Hendon&Herbig,1996:97) The United States decision-making tends to be authoritative while the Japanese or Chinese one is characterized by consensus.For example，some people used to complain that it is a headache to negotiate with the Chinese people.This is related to the Chinese custom.As a society of collectivism，China is greatly influenced by Confucianism，which stresses the consensus of opinions，and encourages coordination.As a result，it usually takes a lot of time for the Chinese to negotiate.When the two parties argue heatedly over a problem，you must not agree to their conditions hurriedly out of impatience，or give up the negotiation.During the talks，the Chinese usually form the unanimity of opinions through group discussion，and then make the final decision.It is the Chinese business convention that the people of high positions have more say in the whole process，but the collective should make the final decision and take the final responsibility.(Yang Dongsheng，2004:177)
4.Suggestions for effective International Business Negotiation under Different cultures
（1） Trying to Gain knowledge
The key to effective cross-cultural communication is knowledge.First，it is essential that people understand the potential problems of cross-cultural communication and make a conscious effect to overcome these problems.Second，it is important to assume that one’ effects will not always be successful，and adjust one’s behavior appropriately.For example，one should always assume that there is a real possibility that cultural differences are causing communication problems，and be willing to be patient and forgiving，rather than hostile and aggressive，if problems arise.
（2） Trying to Gain Advantage of Language
Language is a big barrier to communication in cross-cultural business negotiations.It will be a great advantage for us to have a good command of the other party’s language even when there is a third party or an interpreter involved to help with the business negotiation.Grasping the language of the other side means that we have won extra time to think and respond to the other side’s questions and proposals.In addition，totally relying on the interpreter to convey the meaning is not safe enough，and sometimes it may cause unnecessary misunderstandings in case the interpreter is not well-advised or well informed about the cultural nuances during the negotiation，for some words，special phases and concepts have specific cultural meaning.A better grasp of the other party’s language can help to avoid pragmatic failure out of poor command of the language.
（3） Developing Pragmatic Competence
Communicative competence is composed of both linguistic and pragmatic competence.Linguistic competence refers to the ability to produce grammatically correct sentences with the help of linguistic knowledge and the ability to infer the meaning of words or sentences with the help of linguistic context.Pragmatic competence is the ability to tactfully use language to communicate，including the ability to appropriately produce and interpret utterances (He Ziran，1997：201).These two kinds of competence influence the effectiveness of communication in different aspects.Pragmatic competence is more important so as to communicate effectively.He Ziran (1997:199) points out that to develop the pragmatic competence is to develop the ability to use that language appropriately in communication.In improving business negotiators’ negotiating ability，only linguistic competence is often emphasized，but the pragmatic competence is ignored.They can produce grammatically correct utterances but they cannot use the utterances appropriately in the negotiation context.As illustrated in this thesis，pragmatic failure is the result of inappropriate production and interpretation of utterances.Thus it is of great necessity to cultivate negotiators’ pragmatic competence.In a word，negotiators must develop a broad perspective that includes the larger context within which they negotiate.
（4） Respect the local customs and understand cultural differences
If you joke on the local traditions or scorn on others’ cultural customs or traditions，you will surely irritate the people.Studying your opponent’s culture.Recognize that cultural differences do exist and then learn to accept that.Different cultures employ different ways of doing business.From gift giving to lawyer used in negotiation，each culture has its unique measure that guides the negotiating process.Respect and accept the culture of the other side will greatly contribute to a smooth negotiation process.
Ⅳ.Conclusion
Culture forges values and beliefs.Different culture shapes different way to perceive the world，to define what is right or wrong，and to conduct business.So，Culture is a very important factor that has impacts on international negotiation.The understanding of negotiation in the western culture is alien to that of the eastern culture.A lack of understanding of the cultural factors playing in negotiation process can easily break down negotiations.Negotiators must take the time to sufficiently understand the culture of the other side in order to succeed in cross-cultural negotiation.Paying respect to the other’s culture will pave the road to reach a satisfactory agreement.A good negotiator can adapt his own culture to the one he is going to negotiate with.
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