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CROSS CULTURALNEGOTIATIONS

with a focus on Negotiations withthe Japanese & Chinese

Professor John Barkai

William S. Richardson School of LawUniversity of Hawaii at Manoa

2! "ole Street# Honol$l$# Hawaii %&'22Phone (')'* %&+&,&

-+mail /arkai0hawaii.ed$htt1www2.hawaii.ed$3/arkai

Prof. John Barkai 4ross+4$lt$ral 5e6otiations 1.

http://www2.hawaii.edu/~barkaihttp://www2.hawaii.edu/~barkai

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What Is Culture?

+ is a technical term $sed /y anthro1olo6ists to refer to a systemfor creatin6# sendin6# storin6# and 1rocessin6 information

develo1ed /y h$man /ein6s# which differentiates them from otherlife forms (Hall !%%)*.

+ is 7to h$man collectivity what 1ersonality is to the individ$al7(Hofstede !%',# 1.2!*.

+ it consists of ideals# val$es# and ass$m1tions a/o$t life that arewidely shared amon6 1eo1le and that 6$ide s1ecific /ehaviors.

(Brislin !%%8*

_____________________________________

Some of the majo i!eas a"out coss#cu$tua$ negotiationsha%e "een conti"ute! " E!wa! T' (a$$ an! Geet (ofste!e'

Thee ae man !iffeent appoaches to coss#cu$tua$negotiations' This pac)et wi$$ pesent a num"e of i!eas foou consi!eation'

Prof. John Barkai 4ross+4$lt$ral 5e6otiations 1. 1

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MYTHS & REALITIESIN CROSS-CULTURAL

DEAL-MAKING & DISPUTING

WESTERN ASIAN

Direct, low-cote!tco""#ic$tio

I%irect, i'-cote!tco""#ic$tio

E(ciet i)or"$tioe!c$'e

Re*etiti+e #etio

Ti"e *re#re Uli"ite% ti"e

I%i+i%#$l Collecti+eI%i+i%#$l %eciio "$.er Te$" wit $#torit/

Gro#* %eciio "$.er Te$" wito#t $#torit/

E$rl/ t$. )oc# Get %ow to 0#ie

E$rl/ o-t$. )oc# 1$#et & ite eei'

Cotr$ct Rel$tioi*

A cotr$ct i $ cotr$ct Ree'oti$tio $lw$/

*oi0le

Lo', %et$ile% cotr$ct Sort, 'eer$l cotr$ct

Coti'ecie *re-%eter"ie% i te cotr$ct

Coti'ecie ettle% 0/2)rie%l/ e'oti$tio2

Sort ter" )oc# Lo' ter" )oc#

I#e 0/ i#e e'oti$tio

$'e%$

All i#e $lw$/ o*e to

e'oti$tioPro3t )oc# M$r.et $re, )#t#re )oc#

Li"ite% 'o+er"eti+ol+e"et i te %e$l-"$.i'

Si'i3c$t 'o+er"eti+ol+e"et i %e$l-"$.i'

1#ie 4rie%i*

Prof. John Barkai 4ross+4$lt$ral 5e6otiations 1. 2

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Prof. John Barkai 4ross+4$lt$ral 5e6otiations 1. 3

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4ross 4$lt$ral 5e6otiations

S9:;-S

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4UL9UR:L ">==-R-54-S >5 5-;:9>

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Cal$e of 9ime

+7time is money7 v. 7time is 1lentif$l7

"ecision+Makin6 System

+one 1erson v. consens$s

=orm of :6reement

+detailed v. 6eneral

+s1ecific 1oints v. /asic 1rinci1les+oral v. written

B$yer + Seller "ifferences1arties are eE$al v. 7/$yer is kin67

JB note

Several writers have created# $sef$l# yet overla11in6 79o1 9en7 lists that can /e $sef$llya11lied to cross+c$lt$ral ne6otiations.

See# J$lie Barker# >nternational Mediation+: Better :lternative for the Resol$tion of4ommercial "is1$tes ;$idelines for a U.S. 5e6otiator >nvolved in an >nternational4ommercial Mediation with MeAicans# !% Loy. L.:. >ntGl @ 4om1. L.J. !# 2 (!%%&*.

Raymond 4ohen# 5e6otiatin6 :cross 4$lt$res >nternational 4omm$nication in an>nterde1endent World 22+22& (rev. ed. !%%F*.

Jeswald Salac$seGs to1 ten ways that c$lt$re can affect yo$r ne6otiation# >vey B$sinessJo$rnal (Se1.+

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-"W:R" 9. H:LL4UL9UR:L ">==-R-54-S

9>M- + Monochronic v. Polychronic

Monochronic time is characteried as linear# tan6i/le# anddivisi/le. >n monochronic time# events are sched$led one item ata time and this sched$le takes 1recedence over inter1ersonalrelationshi1s. Polychronic time# on the contrary# is characteried/y 7the sim$ltaneo$s occ$rrence of many thin6s and /y a 6reatinvolvement with 1eo1le7

4onteAt + Hi6h v. low conteAt

Hi6h and low conteAt refers to the amo$nt of information that a1erson can comforta/ly mana6e. 9his can vary from a hi6hconteAt c$lt$re where /ack6ro$nd information is im1licit to lowconteAt c$lt$re where m$ch of the /ack6ro$nd information m$st/e made eA1licit in an interaction.

Peo1le from a hi6h conteAt c$lt$res often send more informationim1licitly# have a wider 7network#7 and th$s tend to stay wellinformed on many s$/Iects.

Peo1le from low conteAt c$lt$res $s$ally ver/alie m$ch more/ack6ro$nd information# and tend not to /e well informed ons$/Iects o$tside of their own interests.

SP:4-

S1ace refers to the invisi/le /o$ndary aro$nd an individ$al that isconsidered 71ersonal.

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GEERT (O*STE+E,S

+I-ENSIONS O* CULTURAL .ARIA/ILIT0

http122www'geet#hofste!e'com2

The Hofstede dimensions are the following:

Individualism-CollectivismPower Distance

Uncertaint !voidance"asculinit-#emininitConfucian Dnamism

3owe +istance In!e4 53+I6 that is the e4tent to which the $ess powefu$ mem"esof ogani7ations an! institutions 5$i)e the fami$6 accept an! e4pect that powe is!isti"ute! une8ua$$' This epesents ine8ua$it 5moe %esus $ess69 "ut !efine!fom "e$ow9 not fom a"o%e' It suggests that a societ:s $e%e$ of ine8ua$it isen!ose! " the fo$$owes as much as " the $ea!es' 3owe an! ine8ua$it9 ofcouse9 ae e4teme$ fun!amenta$ facts of an societ an! an"o! with someintenationa$ e4peience wi$$ "e awae that :a$$ societies ae une8ua$9 "ut some

ae moe une8ua$ than othes:'In!i%i!ua$ism 5I+.6 on the one si!e %esus its opposite9 co$$ecti%ism9 that is the!egee to which in!i%i!ua$s ae integate! into goups' On the in!i%i!ua$ist si!ewe fin! societies in which the ties "etween in!i%i!ua$s ae $oose1 e%eone ise4pecte! to $oo) afte him2hese$f an! his2he imme!iate fami$' On theco$$ecti%ist si!e9 we fin! societies in which peop$e fom "ith onwa!s aeintegate! into stong9 cohesi%e in#goups9 often e4ten!e! fami$ies 5with unc$es9aunts an! gan!paents6 which continue potecting them in e4change foun8uestioning $oa$t' The wo! :co$$ecti%ism: in this sense has no po$itica$meaning1 it efes to the goup9 not to the state' Again9 the issue a!!esse! "

this !imension is an e4teme$ fun!amenta$ one9 ega!ing a$$ societies in thewo$!'

-ascu$init 5-AS6 %esus its opposite9 femininit9 efes to the !isti"ution ofo$es "etween the gen!es which is anothe fun!amenta$ issue fo an societ towhich a ange of so$utions ae foun!' The I/- stu!ies e%ea$e! that 5a6 women:s%a$ues !iffe $ess among societies than men:s %a$ues; 5"6 men:s %a$ues fom onecount to anothe contain a !imension fom %e asseti%e an! competiti%e an!

http://www.geert-hofstede.com/http://www.geert-hofstede.com/

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ma4ima$$ !iffeent fom women:s %a$ues on the one si!e9 to mo!est an! caingan! simi$a to women:s %a$ues on the othe' The asseti%e po$e has "een ca$$e!:mascu$ine: an! the mo!est9 caing po$e :feminine:' The women in femininecounties ha%e the same mo!est9 caing %a$ues as the men; in the mascu$inecounties the ae somewhat asseti%e an! competiti%e9 "ut not as much as the

men9 so that these counties show a gap "etween men:s %a$ues an! women:s%a$ues'

Uncetaint A%oi!ance In!e4 5UAI6 !ea$s with a societ:s to$eance fo uncetaintan! am"iguit; it u$timate$ efes to man:s seach fo Tuth' It in!icates to whate4tent a cu$tue pogams its mem"es to fee$ eithe uncomfota"$e ocomfota"$e in unstuctue! situations' Unstuctue! situations ae no%e$9un)nown9 supising9 !iffeent fom usua$' Uncetaint a%oi!ing cu$tues t tominimi7e the possi"i$it of such situations " stict $aws an! u$es9 safet an!secuit measues9 an! on the phi$osophica$ an! e$igious $e%e$ " a "e$ief ina"so$ute Tuth; :thee can on$ "e one Tuth an! we ha%e it:' 3eop$e in uncetainta%oi!ing counties ae a$so moe emotiona$9 an! moti%ate! " inne ne%ous

eneg' The opposite tpe9 uncetaint accepting cu$tues9 ae moe to$eant ofopinions !iffeent fom what the ae use! to; the t to ha%e as few u$es aspossi"$e9 an! on the phi$osophica$ an! e$igious $e%e$ the ae e$ati%ist an! a$$owman cuents to f$ow si!e " si!e' 3eop$e within these cu$tues ae moeph$egmatic an! contemp$ati%e9 an! not e4pecte! " thei en%ionment to e4pessemotions'

Long#Tem Oientation 5LTO6 %esus shot#tem oientation1 this fifth !imensionwas foun! in a stu! among stu!ents in ?? /'C'; howe%e9 the !imension a$so app$ies to counties without aConfucian heitage'

(ee is the c$assic $ist of (ofste!e !imensions an! counties'

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@hat:s a Coss#Cu$tua$ -e!iato to !o

A Low#Conte4t So$ution fo a (igh#Conte4t 3o"$em

Professor John Barkai

=orthcomin6 in the 4ardoo Jo$rnal of 4onflict Resol$tion

Into!uction

:s the $se of mediation increases# mediators are more and more likely to /e involved in a cross+

c$lt$ral mediation. -ven the most skilled and eA1erienced mediator will face new challen6es in a cross+

c$lt$ral mediation. :ltho$6h only a handf$l of mediators have the o11ort$nity to mediate cross+/order

/$siness dis1$tes or international 1olitical conflicts# domestic mediators are increasin6ly likely to /e

involved in dis1$tes /etween 1eo1le who re1resent distinctly different ethnic# racial# or national ori6in

c$lt$res.

9his article will eA1lore iss$es facin6 mediators in cross+c$lt$ral conflicts and offer s$66estions for

cond$ctin6 a s$ccessf$l cross+c$lt$ral mediation. :ltho$6h my foc$s is cross+c$lt$ral mediation in

6eneral# the em1hasis of this article# is on mediatin6 with :sian 1arties.

:sian ne6otiation styles in 6eneral# and Ja1anese and 4hinese ne6otiation styles in 1artic$lar#re1resent some of the most 1olar o11osite a11roaches to :merican ne6otiation and mediation styles.

9hese differences are more likely to lead to an im1asse d$rin6 mediation with :sian 1arties $nless the

mediator ada1ts to the cross+c$lt$ral differences of the 1arties and $se some a11roaches that differ from

those $sed in a domestic mediation. :fter eAaminin6 vario$s c$lt$ral factors and characteristics related

to cross c$lt$ral ne6otiation# in this article > will 1ro1ose a tem1late of factors that mediators sho$ld

consider when assistin6 1arties in cross+c$lt$ral meditations. 9he factors in the tem1late will come from

three so$rces !* research /y social scientists anthro1olo6ists# 1artic$larly -dward 9. Hall and ;eert

Hofstede# 2* widely held /eliefs a/o$t different a11roaches to international ne6otiations# and 8* more

than ! years of o/servations from and eA1eriences with international MB: st$dents and international

trainin6 1ro6rams for :sian /$siness 1eo1le# lawyers# and doctors.

A' Cu$tue +iffeences

When workin6 with c$lt$ral differences# a nat$ral startin6 1oint is to find a worka/le definition of

7c$lt$re.7 Selectin6 a sin6le definition of c$lt$re is diffic$lt.

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Hi6h and low conteAt refers to how 1eo1le interact and comm$nicate with other mem/ers of their

c$lt$re. >n low+conteAt c$lt$res# 1eo1le comm$nicate directly and eA1licitly and rely on ver/al

comm$nication (words* as o11osed to non+ver/al comm$nication to eA1ress themselves. >n low+conteAt

c$lt$res# the disc$ssion is strai6htforward like an arrow. >n hi6h+conteAt c$lt$res the information lies in the

conteAt# is not always ver/alied# and the talk 6oes aro$nd the 1oints like a circle. Most o/servers wo$ld

say that :merican# Scandinavian# ;erman# and Swiss 1eo1le $se direct# eA1licit# low+conteAt

comm$nication and that :sian# >ndian# MeAican# and most middle eastern (with the eAce1tion of >srael*#=rench# S1anish# and ;reek 1eo1le $se indirect# im1licit# hi6h+conteAt comm$nication. -ven those of $s

who live in low+conteAt national c$lt$res like the U.S. have some eA1erience in hi6h+conteAt s$/c$lt$res.

=or eAam1le# o$r homes# o$r families# family 6atherin6s# and 6ro$1s of close friends re1resent hi6h+

conteAt s$/c$lt$res. >n these sit$ations# 1eo1le sometimes $se hi6h+conteAt comm$nication within the

6ro$1. :n 7insidersG Ioke7 wo$ld /e an eAam1le of s$ch comm$nication. -very national c$lt$re has its

hi6h and low conteAt as1ects. >n hi6h+conteAt s$/c$lt$res there are clear 7insiders7 com1ared to

7o$tsiders.7 >ndivid$alism is $s$ally a characteristic associated with low+conteAt c$lt$res. Hi6h+conteAt

c$lt$res are more 1ast oriented and val$e traditions over chan6eK low+conteAt c$lt$res are more 1resent

and f$t$re oriented and val$e chan6e over tradition.

>sraeli Professor Raymond 4ohen descri/ed cross+c$lt$ral conflicts in ne6otiation styles /etween

low+conteAt comm$nicatin6 :mericans and hi6h+conteAt comm$nicators from other c$lt$res in the

followin6 way.7:merican ne6otiators tend to /e s$r1rised /y their interloc$torsG 1reocc$1ation with history and

hierarchy# 1reference for 1rinci1le over nitty+6ritty detail# 1ersonalied and re1etitive style of

ar6$ment# lack of enth$siasm for eA1licit and formal a6reement# and willin6ness to sacrifice

s$/stance to form. 9hey are fr$strated /y their 1artnersG rel$ctance to 1$t their cards on the ta/le#

intransi6ent /ar6ainin6# evasiveness# dilatoriness# and readiness to walk away from the ta/le witho$t

a6reement. 5on+Western ne6otiators tend to /e s$r1rised /y their interloc$torsG i6norance of history#

1reocc$1ation with individ$al ri6hts# o/session with the immediate 1ro/lem while ne6lectin6 the

overall relationshi1# eAcessive /l$ntness# im1atience# disinterest in esta/lishin6 a 1hiloso1hical /asis

for a6reement# eAtraordinary willin6ness to make soft concessions# constant 6eneration of new

1ro1osals# and ina/ility to leave a 1ro/lem 1endin6. 9hey are fr$strated /y their :merican 1artners

occasional o/t$seness and insensitivityK tendency to see thin6s and 1resent alternatives in /lack+or+

white# either+or+termsK a11etite for crisisK ha/it of s1rin6in6 $n1leasant s$r1risesK intimidatin6

readiness for confrontationK tendency to /y1ass esta/lished channels of a$thorityK ina/ility to take no

for an answerK and o/session with tidyin6 $1 loose ends and 1$ttin6 everythin6 down on 1a1er.

n a n$tshell# it is inf$sed with the can+do# 1ro/lem+solvin6 s1irit# ass$mes a 1rocess of 6ive+and+

take# and is stron6ly infl$enced /y :n6lo+SaAon le6al ha/its. When theorists 1osit a $niversal

1aradi6m of ne6otiation ($s$ally involvin6 s$ch feat$res as the 7Ioint search for a sol$tion#7 7isolatin6

the 1eo1le from the 1ro/lem#7 and the 7maAimiation of Ioint 6ains7*# they are in effect 1ro1osin6 an

idealied version of the low+conteAt# 1ro/lem+solvin6 model. 5otice the instr$mental ass$m1tions ofrationality that $nderlie the 1aradi6m 1eo1le are 1art of the 1ro/lem# not the sol$tionK each 1ro/lem

can /e solved discretelyK 6oals are defined in terms of material# not 1sychic# satisfactions.7

4ohen descri/es the hi6h+conteAt comm$nication a11roach# which is ty1ical of the maIority of :sian

co$ntries# in the followin6 manner.

:n 7alternative model# associated with a nonver/al# im1licit# hi6h+conteAt style of comm$nication#

1redominates in interde1endent societies that dis1lay a collectivist# rather than individ$alist# ethos.

9his 1aradi6m was fo$nd to mark the ne6otiatin6 /ehavior of the non+Western states eAamined

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4hina# >ndia# Ja1an# MeAico# and -6y1tN. >n contrast to the res$lt+oriented :merican model# it

declines to view the immediate iss$e in isolationK lays 1artic$lar stress on lon6+term and affective

as1ects of the relationshi1 /etween the 1artiesK is 1reocc$1ied with considerations of sym/olism#

stat$s# and faceK and draws on hi6hly develo1ed comm$nication strate6ies for evadin6

confrontation.7

Many of the most im1ortant differences /etween hi6h and low conteAt comm$nication can /e fo$nd

in the chart /elow.

+iffeences /etween Low#Conte4t an! (igh Conte4t Cu$tues

5acco!ing to E!wa! T' (a$$6

L* refers to the eAtent to which less 1owerf$l mem/ers of a c$lt$re

eA1ect and acce1t that 1ower is distri/$ted $neE$ally in a c$lt$re. >t is a meas$re of hierarchy in a

c$lt$re. Power distance is defined from the view1oint of the less 1owerf$l mem/ers of a c$lt$re. >tscentral val$e is 7Res1ect for the leader or the elder.7 Stat$s is an im1ortant iss$e in a hi6h 1ower+

distance c$lt$re. >n these c$lt$res# ineE$alities are eA1ected and desired. :/sence of hierarchy is a

fr$stratin6 sit$ation for a 1erson from a hi6h 1ower distance c$lt$re.

>n low 1ower distance co$ntries eE$ality and o11ort$nity for everyone is stressed. 9here is a /elief

that 7all men are created eE$al#7 and sho$ld /e treated that way. "ecentraliation is 1o1$lar. 9hese

c$lt$res are characteried /y m$t$ality and shared initiatives. >n low 1ower distance work sit$ations# the

/oss and em1loyee are more eE$als. S$/ordinates will readily a11roach and contradict their /oss. 9here

is less de1endence on a s$1erior and more interde1endence. Parents and children# and teachers and

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st$dents# may view themselves more as eE$als.

Low Power "istance co$ntries# tend to have hi6her 6ross domestic 1rod$cts (;"P* and smaller

1o1$lations. Power "istance is correlated with the wealth of a nation. Wealthier co$ntries tend to have

low 1ower distance scores and to come from more northern latit$des. >n Hi6h Power "istance c$lt$res

decision makin6 str$ct$re is likely to /e hi6hly centralied# and the a$thority of the ne6otiatin6 team to

make commitments may /e limited. >n low 1ower distance c$lt$re the ne6otiator may have considera/le

discretion in decision+makin6

Positive words for Hi6h Power "istance c$lt$re are 7res1ect# father# master# servant# older# /rother#yo$n6er /rother# wisdom# favor# 1rotect# o/ey# orders# and 1leasin6.7 9hese same words have a ne6ative

connotation for a low 1ower distance indeA c$lt$re. 9he words with a 1ositive connotation for a low 1ower

indeA c$lt$re (and ne6ative for hi6h 1ower distance indeA c$lt$re* are 7ri6hts# com1lain# ne6otiate

fairness# necessity# codetermination# o/Iectives# E$estion# and criticie.7

Hi6h 1ower distance co$ntries incl$de Malaysia# ;$atemala# Panama# Phili11ines# MeAico#

Cene$ela# :ra/ co$ntries# -c$ador# >ndonesia# >ndia# 4hina# and West :frica. Low 1ower distance

co$ntries incl$de the U.S.# :$stria# >srael# "enmark# 5ew ealand# Sweden# 5orway# =inland#

Switerland# ;reat Britain# ;ermany# 4osta Rica# :$stralia# 5etherlands# 4anada# and Scandinavia. Low

1ower distance c$lt$res are lar6ely :n6lo c$lt$res.

3owe +istance In!e4 3+I

B(ieachB

Hi6hHofstede Score

:vera6eWorld :vera6e Q

LowHofstede Score

Malaysia

MeAico

4hina

>ndonesia

>ndia

!),

'!

')

F'

FF

orea# S.

9aiwan

S1ain

Ja1an

>taly

&)

'

F

,

)

U.S.

:$stralia

;ermany

U.

>srael

,)

8&

8

8

!!

/' In!i%i!ua$ism 5I+.6 %' Co$$ecti%ism

: second Hofstede "imension# >ndivid$alism foc$ses on the how m$ch a c$lt$re reinforces

individ$al achievement and inter1ersonal relationshi1s. >t is a meas$re of identity of a c$lt$re. >ts central

val$e is 7Res1ect my freedom.7 >ndivid$alism is defined /y the eAtent to which individ$alsG /ehaviors areinfl$enced and defined /y others. >ndivid$als look after themselves and their immediate family# and have

m$ch less re6ard for anyone else. 9he interests of the individ$al 1revail over those of the 6ro$1.

>ndivid$alistic c$lt$res val$e self+s$fficiency# 1ersonal time# freedom# challen6e# eAtrinsic motivators

s$ch as material rewards# honesty# talkin6 thin6s o$t# 1rivacy# and individ$al ri6hts.

9he foc$s on the individ$al vers$s the collective is 1ro/a/ly the 76reat divide7. 9y1ically# :mericans

think and act individ$ally and res1ond to individ$al interests. :sians on the other hand# ty1ically think and

act collectively and res1ond to collective interests. 9hese different foc$ses can /e /oth a so$rce of

friction and also an o11ort$nity to make a6reements /eca$se the 1arties may have different interests.

4ollectivists act 1redominantly as a mem/er of their 6ro$1 or or6aniation# and em1hasie

o/li6ations to the 6ro$1. 9hey take res1onsi/ility for fellow mem/ers of their 6ro$1. 4ollectivists

re1resent the maIority of the world 1o1$lation. 9hey val$e harmony more than honesty# and they work to

maintain face. 9hey 1lace collective interests over the ri6hts of individ$als# and their 6overnments may

invade 1rivate life and re6$late o1inions. :sian ty1ically think and act collectively and res1ond tocollective interests.

9here are other interestin6 com1arisons /etween these different a11roaches. 9here is a tendency for

individ$alists to /e more eAtroverted and for collectivists to /e more introverted. >ndivid$alistic co$ntries

are 6enerally wealthierK collectivists are located closer to the eE$ator. More im1ortantly for resolvin6

conflicts# there is a relationshi1 /etween comm$nication conteAt and individ$alism >ndivid$alistic c$lt$res

are 6enerally low+conteAt comm$nicators who 1refer /ein6 direct# s1ecific# strai6htforward# confrontive#

and self+disclosin6. 4ollectivist c$lt$res are 6enerally hi6h+conteAt comm$nicators who 1refer /ein6

indirect# am/i6$o$s# ca$tio$s# nonconfrontational# and s$/tle in workin6 thro$6h conflict.

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Peo1le from collective c$lt$res will /e 1artic$larly diffic$lt in ne6otiations and mediations for 1eo1le

from low+conteAt c$lt$res s$ch as the U.S. 4ollective c$lt$res thrive on sta/le relationshi1s /etween

o11osin6 ne6otiators and 1arties in mediation. >f d$rin6 the co$rse of a ne6otiation or mediation one of

the 1arties can no lon6er /e 1art of the 1rocess# re1lacin6 the 1arty to the ne6otiation or mediation

means that a new relationshi1 will have to /e /$ilt# which will take more time.

Stat$s of the 1arties and soverei6nty of the nation are likely to /e very im1ortant iss$es for

collectivist 1arties. 4ollectivist c$lt$res 1$t a 1remi$m on the maintenance of harmony and the a/sence

of discord. 9herefore# they wo$ld not want to disc$ss 1erce1tions that may /rin6 conflict o$t in the o1en.9hey also show low inter1ersonal tr$st in interactin6 with anyone not 1art of the in+6ro$1. >n

individ$alistic c$lt$res# the ne6otiation task 1revails over relationshi1sK in collectivist c$lt$res the

relationshi1 1revails over task

Positive words for an >ndivid$alistic c$lt$re are 71ositive connotation self# friendshi1# 7do yo$r own

thin6#7 contract# liti6ation# self+interest# self+res1ect# self+act$aliin6# individ$al# di6nity# ># me# 1leas$re#

advent$re# 6$ilt# and 1rivacy.7 9hese same words have a ne6ative connotation in a 4ollectivist c$lt$re.

9he words with a 1ositive connotation for a 4ollectivist c$lt$re (and ne6ative for an >ndivid$alistic

c$lt$re* are 7harmony# face# o/li6ation# sacrifice# family# tradition# decency# honor# d$ty# loyalty# and

shame.7

Hi6h individ$alism co$ntries incl$de the U.S.# :$stralia# ;reat Britain# 4anada# 5etherlands# 5ew

ealand# >taly# Bel6i$m# "enmark# Sweden# and =rance. 4ollectivist co$ntries incl$de many So$th and

Latin :merican and :sian co$ntries s$ch as ;$atemala# -c$ador# Panama# Cene$ela# 4ol$m/ia#

>ndonesia# Pakistan# 4osta Rica# Per$# 9aiwan# So$th orea# and MeAico.

In!i%i!ua$ism # I+.

BI!entitB

Hi6h

Hofstede Score

:vera6e

World :vera6e Q ,8

Low

Hofstede Score

U.S.

:$stralia

U..

5etherlands

5ew ealand

%!

%)

'%

')

F%

S1ain

>ndia

Ja1an

Brail

!

,'

,&

8'

4hina

Sin6a1ore

9hailand

S. orea

9aiwan

>ndonesia

2)

2)

2)

!'

!F

!,

C' -ascu$init 5-AS6 %' *emininit

HofstedeGs Masc$linity dimension foc$ses on the de6ree to which a c$lt$re reinforces traditional

male val$es and 6ender# s$ch as achievement# control# 1ower# money# reco6nition# challen6es#

assertiveness# a66ressiveness# dominance# com1etitiveness# am/ition# the acc$m$lation of money and

wealth# inde1endence# and 1hysical stren6th. 9he masc$line orientation is to achievement o$tside the

home. Masc$linity is a meas$re of the com1etitiveness. >ts central val$e is 7Win at any costs.7 >n

masc$line c$lt$res# males dominate a si6nificant 1ortion of the co$ntryGs society and 1ower str$ct$re.

9raditional feminine 6oals are coo1eration# sec$rity# 1leasant relationshi1s# modesty and carin6. >n

feminine c$lt$res# women are s$/ordinated to male leadershi1. Usin6 the terminolo6y 7assertiveness v.

coo1erativeness7 instead of masc$linity v. femininity wo$ld 1ro/a/ly make this dimension easier to

$nderstand in contem1orary society and less emotionally char6ed.

>n contem1orary ne6otiation theory# masc$line c$lt$res are com1etitive ne6otiators and will $se and

res1ect com1etitive ne6otiation strate6ies and tactics that mi6ht /e la/eled 7hard/all#7 7hard /ar6ainin6#7or 7win+lose.7

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some of the masc$line attri/$tes. 9o o$tsiders# the Ja1anese are certainly diffic$lt to ne6otiate with# /$t

they do not seem to $se hard/all ne6otiation tactics at all. 9heir 1olite nat$re is dece1tive. 9he Ja1anese

may well /e a 7wolf in shee1Gs clothin6.7

Some o/servers s$66est that Ja1anGs hi6h masc$linity dimension wo$ld im1act the com1osition of

any ne6otiation team sent to Ja1an# im1lyin6 that Ja1anese ne6otiators wo$ld feel more comforta/le

with males than females. However# other antidotal evidence s$66ests females can also /e s$ccessf$l in

Ja1an.

taly#

Switerland# MeAico# >reland# Jamaica# ;reat Britain# ;ermany# and the :ra/ World. 9he U.S.# 4hina#

;ermany# and :$stralia are all a/ove avera6e on this scale. 9he Scandinavian co$ntries are amon6 the

most feminine# and 9hailand and So$th orea are also at the low end.

-ascu$init 5-AS6

BGen!eB

Hi6h

Hofstede Score

:vera6e

World :vera6e Q )

Low

Hofstede Score

Slovakia

Ja1an

H$n6ary

:$stria

!!)

%

''

F%

4hina

;ermany

U.S.

:$stralia

&&

&&

&2

&!

=inland

"enmark

5orway

Sweden

2&

!&

'

+' Uncetaint A%oi!ance In!e4 5UAI6

HofstedeGs Uncertainty :voidance >ndeA foc$ses on the level of tolerance for $ncertainty and

am/i6$ity within a c$lt$re# and it meas$res the eAtent to 1eo1le feel threatened /y $nstr$ct$red or$nknown sit$ations com1ared to the more $niversal feelin6 of fear ca$sed /y known or $nderstood

threats. >n some ways# $ncertainty avoidance re1resents the im1ortance of tr$th in a c$lt$re as com1ared

to other val$es. >ts central val$e is 7Res1ect the law.7 : hi6h $ncertainty avoidance c$lt$re creates a

r$le+oriented society that instit$tes laws# r$les# re6$lations# and controls in order to red$ce the amo$nt of

$ncertainty in the environment. 4$lt$res hi6h in $ncertainty avoidance will distr$st ne6otiatin6 1artners

who dis1lay $nfamiliar /ehaviors# and they will have a need for str$ct$re and rit$al in the ne6otiation

1rocess.

Hi6h $ncertainty avoidance c$lt$res 1refer r$les and str$ct$red circ$mstances# and are wary of

novel sit$ations. R$les are needed to maintain 1redicta/ility.

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Uncertainty avoidin6 1eo1le can /ecome fr$strated /y the lack of str$ct$re. >ntentions of hi6h $ncertainty

avoidin6 c$lt$re are 6$ided /y the fear of fail$re whereas low $ncertainty avoidin6 c$lt$re are motivated

/y the ho1e of s$ccess. Uncertainty avoidin6 c$lt$res 1$t a 1remi$m on the maintenance of harmony

and the a/sence of discord. 9hey wo$ld /e averse to disc$ssin6 1erce1tions that may /rin6 conflict o$t in

the o1en.

Low $ncertainty avoidin6 c$lt$res show more tolerance for a variety of o1inions and are less r$le+

oriented. 9hey more readily acce1t chan6e# and take more and 6reater risks. B$sinesses may /e more

informal. 9eachers admit that they may not know all the answers. 9he c$lt$re tends to /e less eA1ressiveand less o1enly anAio$s.

Positive words for hi6h $ncertainty avoidin6 c$lt$re are 7str$ct$re# d$ty# tr$th# law# order# certain#

1$re# clear# sec$re# safe# 1redicta/le# and ti6ht.7 9hese same words have a ne6ative connotation for a

low $ncertainty avoidin6 c$lt$re. 9he words with a 1ositive connotation for a low $ncertainty avoidin6

c$lt$re (and ne6ative for a hi6h $ncertainty avoidin6 c$lt$re* are 7may/e# creative# conflict# tolerant#

eA1eriment# s1ontaneo$s# relativity# insi6ht# $nstr$ct$red# loose# and fleAi/le.7

4o$ntries that rank hi6h on $ncertainty avoidance are ;reece# Port$6al# ;$atemala# Ur$6$ay#

Bel6i$m# Salvador# Ja1an# D$6oslavia# Per$# =rance# 4hile# S1ain# 4osta Rica# Panama# :r6entina#

S1ain# and So$th orea. 9he U.S.# 4hina# and >ndia# are a little /elow avera6e on $ncertainty avoidance.

4o$ntries low in $ncertainty avoidance are 4hina# Jamaica# "enmark# Sin6a1ore# Sweden# Hon6 on6#

>reland# and ;reat Britain.

Uncetaint A%oi!ance In!e4 UAI

BTuthBHi6h

Hofstede Score

:vera6e

World :vera6e Q &,

Low

Hofstede Score

;reece

Port$6al

Ja1an

S. orea

MeAico

!!2

!),

%2

'

'2

;ermany

9hailand

>ndonesia

U.S.

4hina

>ndia

&

&,

,'

,&

,)

,)

U..

Hon6 on6

Sweden

"enmark

Sin6a1ore

8

2%

2%

28

'

E' Long#Tem 5LTO6 %' Shot#Tem Oientation

Lon6+term orientation foc$ses on the eAtent that a c$lt$re em/races traditional# forward thinkin6

val$es and eAhi/its a 1ra6matic f$t$re oriented 1ers1ective rather than a conventional historic or short+term 1oint of view. >t is a meas$re of virt$e for a c$lt$re. >ts central val$e is 7Sacrifice for the f$t$re.7

4$lt$res with a lon6+term orientation make lon6+term commitments and have 6reat res1ect for tradition.

9here is a stron6 work ethic. Lon6+term rewards are eA1ected as a res$lt of todayGs hard work.

Lon6+term orientation c$lt$res tend to res1ect thrift# 1erseverance# stat$s# order# sense of shame#

and have a hi6h savin6s rate. 9heir mem/ers tend to make an investment in lifelon6 1ersonal networks#

what the 4hinese call 76$anAi.7 9here is a willin6ness to make sacrifices now in order to /e rewarded in

the f$t$re. :sian co$ntries score hi6h on this dimension# and most Western co$ntries score fairly low.

>n a c$lt$re with a Short+term

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the :mericans came to Paris and rented hotel rooms for a monthK the Cietnamese rented rooms for a

year.

9he hi6h lon6+term orientation co$ntries are 4hina# Ja1an# and other :sian 79i6ers#7 s$ch as Hon6

on6 and 9aiwan. Short+term orientation co$ntries are the U.S.# 4anada# :$stralia# United in6dom#

Phili11ines# 5i6eria# and Pakistan.

Long#Tem Oientation # LTO

B.itueB

Hi6hHofstede Score

:vera6eWorld :vera6e Q ,

LowHofstede Score

4hina

Hon6 on6

9aiwan

Ja1an

S. orea

!!'

%&

'F

')

F

9hailand

Sin6a1ore

5etherlands

&

,'

,,

:$stralia

U.S.

U..

Phili11ines

;hana

8!

2%

2

!%

!&

The (ofste!e +imension Scoes

9he followin6 ta/le shows the Hofstede dimensions scores that have /een determined for F, co$ntries

and re6ions of the world. 9he rankin6 are availa/le on the we/.

(ofste!e +imensions

4o$ntry P"> >"C M:S U:> L9nterests (4">Gs* to their mediation. 9he direct a11lication of these ideas com1rise a

fo$r sta6ed a11roach for cross+c$lt$ral mediation.

!* learn the c$lt$ral stereoty1es a/o$t the c$lt$ral different 1arties who will come to the mediation#

2* investi6ate the act$al 1eo1le involved# as well as the 1ro/lem#

8* /e fleAi/le and $nderstand that the 1arties may well act differently than the stereoty1es# and that the

stereoty1es are $sef$l in 1lannin6 for the mediation# and

,* $se the tem1late to a11ly a variety of a11roaches in mediation /ased $1on the 4$lt$ral "imension

>nterests (4">Gs*# other interests# descri1tions# comm$nication styles# and ne6otiation strate6ies and

tactics to assist in resolvin6 the dis1$te.

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NEGOTIATING @IT( T(E JA3ANESE"

The Japan E4tena$ Ta!e Ogani7ation # JETRO

/USINESS RELATIONS(I3S IN JA3ANB$siness relationshi1s in Ja1an are characteried /y a well+str$ct$red hierarchy and astron6 em1hasis on n$rt$rin6 1ersonal contacts. ;enerally# they are /$ilt $1 over lon61eriods of time or are /ased on common roots# s$ch as /irth1lace# school or colle6e.

:lso# an $n$s$ally stron6 em1hasis is 1laced on social activities to stren6then ties. >t isnot s$r1risin6# therefore# that those lookin6 in from the o$tside may see the Ja1anese/$siness world as com1aratively hard to /reak into. >n fact# there are many differentkinds of /$siness relationshi1s# /$t most share two feat$res + they have /een /$ilt $1slowly and caref$lly# and m$ch time is s1ent in kee1in6 them $1 to date.

Na%igating Copoate (ieachies

9he str$ct$re of Ja1anese com1anies tends to /e very hierarchical# with a 6reat deal ofdeference to s$1eriors. >n the West# a/ility 6enerally is the main factor on whichcareers are /ased re6ardless of a 1ersonGs a6e. Ja1anGs system# however# often has/een com1ared to an 7escalator7 on which em1loyees rise 6rad$ally# /$t slowly# alon6with their 1eers. :ltho$6h there are cases of $n$s$ally ra1id 1romotion# the 7escalator7system has /een a11lied widely for several decades. >ts im1lementation has a /roadim1act on /$siness relationshi1s within a com1any# since 1eo1le know that they arelikely to /e st$ck with their 1eer 6ro$1 (6enerally those who entered the com1any at thesame time as they did*# and it is in their /est interest to 6et on with them. >t is also

essential to /e well+considered /y s$1eriors who are mentors and can hel1 in makin6the escalator co$rse more 1leasant.

9he ty1ical Ja1anese com1any em1loyee will# therefore# divide fellow+workers intoseveral cate6ories and lavish different de6rees of attention on them. 9he closest 6ro$1is the dooki# which com1rises individ$als who entered the com1any to6ether. 9heseare the 1eo1le with whom to commiserate and 6o o$t drinkin6# and they are the so$rceof m$ch information and 6ossi1 as to what is 6oin6 on in the com1any as a whole.

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9he str$ct$red nat$re of relationshi1s and the way in which decisions freE$ently are/ased on consens$s means that a 6reat deal of time is s1ent on 7oilin6 wheels#7 evenwithin a com1any. >n the lar6e o1en+1lan offices# which are characteristic of Ja1anesecor1orations# there is a 6reat deal of movement as 1eo1le disc$ss matters comin6 $1for decision and try to 6et everyone on their side.

Senio Staff Come *ist>n ne6otiatin6 with Ja1anese cor1orations# it is im1ortant to kee1 this str$ct$re in mind.=or eAam1le# senior 1ersons are deferred to d$rin6 o$tside meetin6s and they are theones to whom any E$estions sho$ld /e addressed. 9his a11lies even when day+to+dayne6otiations are cond$cted with more I$nior staff. >n some co$ntries# a I$nior staffmem/er mi6ht /e deli6hted to move into the limeli6ht and so will 6ladly ste1 forward toshow his or her mettle in front of s$1eriors. 9his 6enerally is not the case in Ja1an#where a I$nior 1erson is $nlikely to ste1 forward $nless s1ecifically instr$cted to do so.

9he dividin6 line /etween /$siness and 1ersonal relationshi1s in Ja1an differssomewhat from that in many other co$ntries. =or eAam1le# forei6n /$sinessmen aresometimes s$r1rised when a Ja1anese co$nter1art# with whom they have had contactfor some time# virt$ally disa11ears from their life followin6 a transfer to anotherde1artment. 9he fact is that while every effort is made in Ja1an to kee1 /$sinessrelationshi1s 1leasant /y addin6 a 1ersonal to$ch# they do remain very m$ch7/$siness7 relationshi1s and may end when the /$siness ends. 9his ha11ens evenwithin com1anies when collea6$es are transferred from one division or de1artment toanother.

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Latea$ Re$ationships

=ierce com1etition /etween Ja1anese com1anies 1revails# /$t comm$nicationschannels remain o1en thro$6h the n$mero$s ind$stry or /$siness associations# as wellas 6overnment or6aniations# that offer s$11ort and 1romote sector develo1ment.

:ltho$6h mem/ershi1 of these 6ro$1s often is o1en to forei6n com1anies# inevita/ly it

takes time for the o$tsider to esta/lish a 1resence and 6row into a 1osition to rea1 allthe /enefits offered.

More than anythin6# these /odies serve to cement relationshi1s /etween all the 1layersin an ind$stry in order to enco$ra6e a de6ree of coo1eration in new develo1ments. 9hisis /ecomin6 increasin6ly tr$e in an a6e where hi6h levels of com1$teriation#standardiation and networkin6 are vital. 9hro$6h n$m/ers of s$/committees# these6ro$1s work to esta/lish within an ind$stry a de6ree of consens$s that will ens$reminimal conf$sion in the market1lace.

Othe Copoate Re$ationships

B$siness relationshi1s in Ja1an are 1art of an ever+/roadenin6 circle that starts withinthe com1any (uchi+ inside# or7$s7*# and moves towards the o$tside (soto* to incl$derelated com1anies# ind$stry or /$siness or6aniations# and the like.

Most Ja1anese com1anies have a series of very close relationshi1s with a n$m/er ofother com1anies that 1rovide them with s$11ort and a m$ltit$de of services. >t has /eentraditional 1ractice for a com1any to hold shares in these 7related7 com1anies# a1ractice which has 6iven rise to a hi6h 1ro1ortion of cor1orate cross+share holdin6s inJa1an. 9his has /een a show of faith on the 1art of one com1any towards another# andalso has /een $sef$l in 1rovidin6 com1anies with a core of sta/le and friendlyshareholders.

When dealin6 with a Ja1anese com1any# it is im1ortant to /e aware of the eAistenceand nat$re of some of these close relationshi1s# in 1artic$lar those with /anks andtradin6 com1anies. Understandin6 these can hel1 to define the nat$re of the com1anyand the way it does /$siness# as well as its 1ositionin6 in the Ja1anese /$siness world.>t sho$ld also /e $nderstood that there is a constant flow of information /etweenJa1anese enter1rises and their /anks and tradin6 com1anies. Unless the need forconfidentiality is made very clear# these may soon /e aware of any ne6otiations inwhich the com1any is involved.

Lar6er cor1orate 6ro$1in6s are /ecomin6 more familiar to non+Ja1anese /$siness

circles. 9hese 6ro$1in6s are known as keiretsu# and some have their roots in the lar6e1re+World War >> con6lomerates. :cc$sations of keiretsufavoritism overridin6 moreattractive o$tside offers sometimes are leveled at Ja1anese com1anies. When askeda/o$t this 1ractice /y a forei6n /$sinessman# the 1resident of a lar6e Ja1aneseelectronics com1any re1lied 7>tGs like 6oin6 to the tailor yo$r father went to. He may /emore eA1ensive than the com1etition and 1erha1s even not the /est# /$t he has servedyo$r family well for many years and yo$ feel d$ty /o$nd to remain a faithf$l c$stomer.79here is a tendency in Ja1anese /$siness to /e 6$ided /y the familiar and h$man

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considerations# and th$s it is im1ortant for anyone wishin6 to do /$siness in Ja1an to6o a maIor 1art of the way in esta/lishin6 a comm$nications network and a real1resence.

/UIL+ING TRUST

Learnin6 to tr$st oneGs 1artner is im1ortant in /$ildin6 $1 and maintainin6 any kind ofrelationshi1. >t is a 1artic$larly diffic$lt task# however# in a relationshi1 which involvesdifferent c$lt$res and therefore is o1en to n$mero$s and dee1 mis$nderstandin6s.Where there are differences in lan6$a6e# for eAam1le# one makes $se of inter1retersand translators# often /elievin6 that their /asic skill is eno$6h to /rid6e the 6a1. >n fact#the risks of miscomm$nication are still 1resent# and sometimes are com1o$nded /y theaddition of an interloc$tor in disc$ssions. Moreover# c$lt$ral differences make fordifferent a11roaches in achievin6 the same 6oal.

Same @o!s9 +iffeent -eanings

Many 1eo1le ass$me that# as lon6 as an inter1reter or translator is lin6$isticallyacc$rate# there will /e little or no loss of information transmitted d$rin6 ne6otiations ordisc$ssions. 9his ass$m1tion# however# disre6ards the c$lt$ral wei6ht of many wordsand the 1ossi/le differences in the way these words are 1erceived inside and o$tsideJa1an. : classic eAam1le is the eA1ression 7We will consider the matter in aforward+lookin6 way7 (7Mae-muki ni kentoo shimasu7*. While the eA1ression so$nds1ositive to most listeners in -n6lish# often it means 71ro/a/ly not7 in Ja1anese.

9he different ways in which similar words are 1erceived has /een st$died in somedetail /y Professor ooIi :kiawa of Waseda University in 9okyo and the University of4hica6o. His /ook (Eigo no Hassoo-Hoo, Nihongo no Hassoo-Hoo# ;oma Press#

!%%2* covers 88 key words and eA1ressions in -n6lish and Ja1anese. 9he /ookeAamines the 1erce1tion 6a1s that occ$r when certain Ja1anese and -n6lish words are$sed# concentratin6 on :merican 1erce1tions# in 1artic$lar. >t 6ives an indication of the1otential for mis$nderstandin6# so we 1resent some eAam1les /elow.

Shou$! 0ou (a%e an Opinion

>n the maIority of Western co$ntries# 1eo1le tend to have o1inions on most thin6s andvoice them 6ladly. Someone witho$t o1inions may /e considered shallow or even$nintelli6ent. >n Ja1an# however# 1eo1le who constantly voice their o1inions tend to /eseen as annoyin6 and may /e sh$t o$t. n Ja1an# an ikenis formed as res$lt of len6thy consideration#whereas many Westerners may hold o1inions and voice them witho$t caref$leAamination of the iss$es.

Is 3owe Respecta"$e

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7Power#7 with its a$ra of forcef$lness# is somethin6 that most :mericans res1ect. 9heJa1anese# on the other hand# tend to scorn the 1erson who resorts to force. :ltho$6hthe words 71ower7 and 71owerf$l7 are $sed in the daily lives of the Ja1anese# 6enerallythey refer either to machinery or to somethin6 conce1t$al# and the sim1le translation of71ower7 6ives chikara# which in fact means 7stren6th.7

9he word kenryoku# meanin6 a$thority and infl$ence# did not eAist $ntil after the MeiIiRestoration of !'&'# writes Professor :kiawa. 9he reason may lie in the traditionalrelationshi1 /etween the conce1ts of di6nity and 1ower in Ja1an. Whereas yo$ co$ldhave di6nity witho$t real 1ower (the -m1eror# for eAam1le# had no real 1ower for6enerations while the Sho6$ns r$led*# yo$ co$ld never have 1ower witho$t di6nity. >nthe U.S.# however# the relationshi1 /etween 1ower and di6nity is so total that a 1ersonwho has lost 1ower is also 1erceived to have lost di6nity.

@hat Is the Law

Le6al affairs is an area in which the Ja1anese and their forei6n /$siness associatesoften diver6e in their thinkin6. 9he fact that there are as many lawyers in the city of4hica6o as there are in the whole of Ja1an is often mentioned. Westerners eA1ress/oth fr$stration at the lack of liti6ation and res1ect at the avoidance of the le6al tan6lesthat have /ecome s$ch a maIor as1ect of their own /$siness life.

9he roots of this difference lie in very different 1erce1tions of what the law is. >n Ja1an#it is seen as somethin6 to /e o/eyed# an almost immova/le force. >t is not# therefore#somethin6 that sho$ld /e $sed indiscriminately to settle all manners of dis1$tes andar6$ments. >n the U.S.# on the other hand# it is 1erceived as a tool to 1rotect each1ersonGs ri6hts and an inte6ral and movin6 1art of daily life.

The Duestion of Rights

9he Ja1anese 1erce1tion of 7ri6hts7 is somewhat similar to the 1erce1tion of 7law.7 >nJa1an# a ri6ht is somethin6 that is 6iven to each individ$al from a/ove and is not to /einterfered with. >n :merica# however# a ri6ht is seen as somethin6 infinitely mo/ile#somethin6 that each 1erson can fi6ht for and esta/lish. 9he fact that in -n6lish# theword 7ri6ht7 can also mean 7correct7 when $sed as an adIective 1oints to theass$m1tion that many 1eo1le think that whatever feels or looks 7ri6ht7 to them sho$lda$tomatically /ecome 7a ri6ht.7 So there is a 6reater tendency to defy a$thority andlook to esta/lish new 1atterns of ri6hts.

:n -m1hasis on "ifference

>n many co$ntries a 6ood ar6$ment is considered to /e a s1ice of life# and 1eo1le areeA1ected to have different view1oints. 9he eA1ression and conce1t 7a6ree to disa6ree7is widely acce1ted. >n Ja1an# however# a differin6 view1oint indicates a 1oorrelationshi1# or a 1ro/lem. 9his 1erha1s is 1artly /eca$se the word chigai# meanin6difference# has stron6 connotations of 7mistake7 (machigai* or 7cross+1$r1ose7(kuichigai*. >n contrast# 7difference7 in -n6lish has a m$ch more ne$tral $ndertone.

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Westerners take a first ste1 towards $nderstandin6 /y acce1tin6 7differences#7 whereasthe Ja1anese 6enerally insist on a harmony with minimal difference.

9he eAtent to which the Ja1anese wish to avoid differences is ill$strated /y theeA1erience of a forei6n woman who worked in a Ja1anese com1any for several years.She cites a harrowin6 meetin6 d$rin6 which several view1oints were disc$ssed. :fter a

n$m/er of ho$rs# she realied that her co$rse of action# which she /elieved to /e theri6ht one# wo$ld not /e ado1ted. She therefore decided to /ow to her Ja1anesecollea6$es while maintainin6 her disa6reement. 9hey# on the other hand# were $nwillin6to halt the disc$ssion $ntil she a6reed with their co$rse of action# and were o/vio$sly$ncomforta/le with the conce1t of 7a6reein6 to disa6ree.7

7>nsiders7 and 7t is almost considered r$de to state

thin6s too 1lainly# and ne6otiations /etween two Ja1anese 1arties often will consist ofho$rs of seemin6ly irrelevant chitchat. 9hese as1ects of a relationshi1 may seem hi6hlystylied to the forei6ner# who likely 1refers 1lain talkin6 and clear answers# /$t they can/e the key to s$ccess.

9o 7"o7 and to 7Become7

: Ja1anese eAec$tive with many yearsG eA1erience workin6 with forei6ners foc$sed onone 1artic$lar difference in /$siness methods that he saw as cr$cial. While theforei6ner is always 7doin67 (suru* thin6s to achieve his 1$r1ose# the Ja1anese wo$ldrather allow thin6s to 7/ecome7 (naru*. 9h$s it takes time for a relationshi1 to 7/ecome7

what it is meant to /e thro$6h a nat$ral 1ro6ression. 9he feelin6 is that it cannot /eforced + or 7done7+ from one moment to the neAt sim1ly /eca$se there is a 1$r1ose forit. Ja1anese com1anies in the same ind$stry kee1 informal contact# knowin6 that a/ase eAists if the need arises to dee1en a relationshi1.

Seekin6 =leAi/ility

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:ltho$6h many deny m$ch knowled6e of the -n6lish lan6$a6e# Ja1anese /$siness1eo1le $se a 6reat many -n6lish eA1ressions in their daily /$siness life. 9he nat$re ofthese eA1ressions can /e E$ite revealin6. 9wo of the most widely $sed are 7case /ycase7 and 79P

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9he 1remise that reE$ests /y either 1arty can /e made to alter the terms of a contractaccordin6 to chan6in6 circ$mstances seems 1re1ostero$s to most 1eo1le who are$sed to Western+style /$siness dealin6s. 9he Western ass$m1tion# 1erha1s f$elled /ythe dominance of the le6al 1rofession in /$siness ne6otiations# is that only a strictdoc$ment virt$ally carved in stone# will 1revent /oth 1arties from 1layin6 dirty tricks oneach other. :nother factor is that the terms of non+ne6otia/le contracts can /e $1held

in co$rts of law in co$ntries where the le6al system moves relatively E$ickly. >t is inthese two areas + the 1erceived honesty of oneGs 1artner and the de6ree to which it is1ossi/le to have reco$rse to a co$rt of law + that 1atterns of thinkin6 are sha1ed.

>n Ja1an# the /asic ass$m1tion is that /oth 1arties in any ne6otiations are honora/le.Since a contract is seen as /ein6 1art of an on6oin6 relationshi1# every effort is madeto maintain fleAi/ility in the face of chan6in6 circ$mstances. 9he /ack6ro$nd to this1attern of tho$6ht is em/edded in the B$ddhist conce1t of the Wheel of Life. 9here is akeen awareness that circ$mstances# incl$din6 the /alance of 1ower# in a relationshi1may chan6e and since one never knows whose hel1 one will need in the f$t$re# it is/etter not to /$m /rid6es.

t co$ld /e said that while the Ja1anese are more likely to maintain their honor andtr$stworthiness when dealin6 with /$siness 1artners they know# some com1anies may/ecome r$thless 7cow/oys7 when faced with $nknown 1arties. 9his# of co$rse# f$rtherstren6thens the ar6$ment for esta/lishin6 a real relationshi1 with a Ja1anese com1any/efore sittin6 down at the ne6otiatin6 ta/le.

Lawes in Japan # Ae the Usefu$

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9he iss$e of the discre1ancy /etween the le6al 1rofession in Ja1an and that in manyWestern co$ntries remains $nder heavy disc$ssion. 9here is little do$/t that Ja1an isnot a liti6io$s co$ntry when com1ared to many of its maIor tradin6 1artners. >n theUnited States# the city of 4hica6o alone has as many lawyers as the whole of Ja1an.Why is there s$ch a /i6 difference in le6al traditions# and what effect does this have on

ne6otiatin6 with Ja1anese com1aniesT

=irstly# Ja1anese and forei6n com1anies make different $se of their lawyers. 9y1ically#a forei6n com1any will incl$de lawyers in ne6otiations from an early sta6e# and they will/e directly involved in the ne6otiations and the drawin6 $1 of the contract. n Ja1an# however# the sheer eA1ense and

c$m/ersomeness of the le6al system makes it strictly a tool of last resort# andsomethin6 that most 1eo1le try to avoid if 1ossi/le.

9here are cases# however# when heavy $se of lawyers can /e a $sef$l 1art of thene6otiatin6 1rocess. 9hey can /e $sed as tools to eA1ress o1inions and reservationswhich wo$ld /e indelicate for ne6otiatin6 1artners to voice o$tri6ht.

Ae Japanese Attitu!es Changing

=or many of the reasons o$tlined a/ove# s$ch as the fact that /$siness relationshi1shave /roadened to encom1ass 1eo1le o$tside the tr$sted uchicircle# Ja1anese

attit$des towards contracts are /e6innin6 to chan6e. 9hese chan6es# however# are1artial and a stron6 wish remains to kee1 some of the traditional elements of Ja1anesecontracts intact.

:lso# a n$m/er of Ja1anese com1anies have s$ffered $n1leasant eA1eriences thro$6hfail$re on their 1art to conform to acce1ted international norms. 9his 6enerally hasha11ened when the com1anies were involved in ne6otiations o$tside Ja1an. :s ares$lt# Ja1anese com1anies now are more willin6 to 1lo$6h thro$6h lon6 andcom1licated doc$ments /efore the contract is si6ned# in order to avoid tro$/le downthe road.

-Ait cla$ses# which cover 1roced$res for a6reements that have 6one so$r# are one areamany Ja1anese remain rel$ctant to disc$ss. 9he reasons for this are# a6ain# mostlyc$lt$ral + the Ja1anese have a 1rofo$nd distaste for disc$ssin6 $n1leasantevent$alities /efore a relationshi1 has had a 1ro1er chance to /ecome esta/lished. >nthe words of the head of le6al affairs at one maIor Ja1anese com1any 7>tGs almost likeinvitin6 tro$/le# lookin6 aro$nd for $n1leasantness instead of concentratin6 on the1ositive# and tryin6 to esta/lish a 6ood relationshi1.7

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5e6ative :s1ects of 4ontracts

>t sho$ld /e ke1t in mind that in some instances too m$ch em1hasis can /e 1laced on adetailed contract and its $n/endin6 a11lication can /e a distinct disadvanta6e to theforei6n 1artner of a Ja1anese com1any. 9his is 1artic$larly tr$e when takin6 intoacco$nt Ja1anese eA1ectations of fleAi/ility.

:n eAam1le was 1rovided /y a staff mem/er in the 1lannin6 de1artment of a Ja1anesecor1oration. 9he cor1oration si6ned a contract with a forei6n com1any to /$y certain1ieces of machinery for its 1lants. When demand slowed $neA1ectedly# the Ja1anesecom1any tried to rene6otiate in an effort to red$ce the n$m/er of 1ieces it was reE$iredto /$y. B$t the forei6n com1any remained adamant that the terms of the contract /efollowed. Rel$ctantly# the Ja1anese com1any a6reed and 1aid $1. 5eAt time it needssimilar eE$i1ment# it is likely to 6o to a Ja1anese s$11lier that will /e more$nderstandin6 of its 1osition.

9he advanta6e of remainin6 fleAi/le was $nderscored /y a forei6n lawyer workin6 inJa1an# who said 7Ja1anese com1anies tend to /e honora/le# and yo$ can often makethin6s easier for yo$rself /y /ein6 f$y.7 By leavin6 the terms of a6reements fl$id#forei6n com1anies have the o1tion of seein6 how the market develo1s /efore makin6maIor commitments.

4ontracts and the "ecision+Makin6 Process

M$ch has /een written a/o$t the Ja1anese decision+makin6 1rocess# with the toneran6in6 from admiration at its fairness to eAas1eration at its slowness. 9his 1rocess hasa direct /earin6 on contracts /eca$se it affects the way and s1eed at which informationis assimilated and $sed in the ne6otiations leadin6 $1 to a contract.

9he hierarchical as1ect of the Ja1anese decision+makin6 1rocess inevita/ly meansthat it takes time for new information to 1ermeate all levels in any ne6otiatin6 1rocess.Peo1le at all levels of a com1any need to /e cons$lted whenever new information is/ro$6ht to li6ht# and if new a11rovals are needed each time# the 1rocess can /ela/orio$s. 9his eA1lains some of the fr$strations arisin6 from the amo$nt of time oftenreE$ired to o/tain a reaction to a new an6le. 9he 1ro/lem is eAacer/ated /y thedifferent ways in which lawyers are $sed (as mentioned earlier# they are 6enerally/ro$6ht in for cons$ltation on 1artic$lar 1oints of tro$/le in Ja1an# rather than as aninte6ral 1art of the 1rocess*# and the fact that the final decision rests on consens$srather than the a11roval of one 1erson in char6e.

9akin6 a "is1$te to 4o$rt

9he main reason why com1anies o$tside Ja1an 1lace s$ch em1hasis on the contentsof a contract is that these can /e enforced thro$6h co$rts of law. Ja1an does# ofco$rse# offer that o1tion as well# /$t the 1rocess is considered so slow and eA1ensivethat even lawyers 6enerally advise their clients to avoid resortin6 to it whenever1ossi/le. : n$m/er of other 1oints also need to /e considered

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:s far as a Ja1anese com1any is concerned# takin6 a dis1$te to co$rt is a clearindication that the relationshi1 will end. t often comes as a s$r1rise to Ja1anese com1anies that forei6ncom1anies can ha11ily contin$e to do /$siness with each other even after /itter co$rt/attles. 9his is 1erha1s d$e to the fact that individ$als are more central to 1artic$lar

ne6otiations or dis1$tes o$tside Ja1an# and that relationshi1s often can /e contin$edo$tside the immediate circle of that individ$al.

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the str$ct$re of the Ja1anese com1any and an effort to comm$nicate with mana6ementat all levels are likely to yield /etter res$lts.

9he 6$lf /etween the lon6+term a11roach of Ja1anese com1anies and the short+termview of many overseas com1anies is a familiar one# and will not /e rehashed here.9here is one element of this 1ro/lem# however# that directly affects the esta/lishment of

effective comm$nications /etween /$siness 1artners. Many mana6ers in Westernco$ntries# in 1artic$lar the U.S.# are com1ensated accordin6 to fairly short+term timeframes for achievin6 o/Iectives. :s a res$lt# there is a tendency for some forei6ncom1anies to move their 1eo1le aro$nd if a /$siness relationshi1 is not 1rod$ctiveE$ickly (see /elow on hidden a6endas*# and the Ja1anese side is forced to deal withthe ever+chan6in6 face of its overseas 1artner.

>n order to maAimie 6ood comm$nications# makin6 a conscio$s effort to locate aJa1anese 1artner with a similar cor1orate c$lt$re can /e very effective. =or instance# afamily+owned /$siness with decades or cent$ries of tradition /ehind it is likely to find iteasier to comm$nicate with a similar com1any in Ja1an. :n eAam1le is a recent salesa6reement /etween a 4anadian family+owned /rewery and a Ja1anese food

wholesalerim1orter owned /y the same family for over 2) years. "es1ite the6eo6ra1hical and c$lt$ral distance /etween the two# /asic val$es were similar andne6otiations to set $1 the vent$re went remarka/ly smoothly. n t$rn# any comm$nication from theJa1anese side sho$ld receive an immediate res1onse to indicate that the matter is/ein6 1$rs$ed. Rather like the immediate 6reetin6 of welcome in a Ja1anese storeeven when clerks are /$sy servin6 other c$stomers# it is an indication of awarenessand im1endin6 action.

9he 1ro/lems arisin6 from the lan6$a6e /arrier have /een covered in an earliercha1ter# /$t the im1ortance of this as1ect of comm$nications cannot /e overstressed.Le6al Iar6on# in 1artic$lar# often is diffic$lt to $nderstand even for native s1eakers. >nthe words of one Ja1anese eAec$tive# who is fl$ent in -n6lish havin6 /een to /$sinessschool in the United States 7"onGt i6nore the lan6$a6e 1ro/lem. -ven when the otherside seems to $nderstand -n6lish# yo$ m$st /e very# very caref$l.7

An Ee fo +etai$

: 1leasant 1ersonality and manner are im1ortant in comm$nications. B$t another keyfactor in workin6 with Ja1anese com1anies is to $nderstand their likin6 forthoro$6hness. 9he initial 1rocess of 6ettin6 ne6otiations $nder way often is la/orio$s

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since Ja1anese com1anies like to have as m$ch information as 1ossi/le /efore comin6to a decision. B$t# in the words of one forei6ner with several yearsG eA1erience inhel1in6 Ja1anese com1anies in M@: ne6otiations 7"onGt /e6r$d6e the time s1ent inthe foothills. 9here is a mania for information and yo$ are eA1ected to have validanswers# in terms of acc$rate facts and fi6$res# for every E$estion. B$t once themoment$m has /$ilt $1# the 1ace s1eeds $1 considera/ly and hitches# whether small

or /i6# can /e dealt with E$ickly.7

: forei6n lawyer workin6 in Ja1an commented that a draft doc$ment sho$ld not /e1resented to a Ja1anese client# and that everythin6 sho$ld /e checked thoro$6hly#even for ty1in6 errors. 7Do$ have to /e 1re1ared to eA1lore 1atiently even $nlikely andseemin6ly irrelevant contin6encies in 6reat detail. :ltho$6h the contracts are va6$e#the disc$ssions themselves are very detailed.7

The +anges of (i!!en Agen!as

9o say that havin6 stron6 common 6oals is one of the most /asic reE$irements in a/$siness relationshi1 is statin6 the o/vio$s. However# a lack of stron6 common 6oalsa11ears to /e one of the /i66est 1ro/lems in Ioint vent$res. Bein6 candid a/o$t aims#immediate 6oals and lon6+term o/Iectives at the ne6otiatin6 sta6e ens$res that the two1artners know eAactly what they are lookin6 for.

"ifferent 1erce1tions of time are a 1artic$lar dan6er. :t the /e6innin6 of a relationshi1#for eAam1le# the Ja1anese 1artner may declare that achievin6 set 6oals will take acertain amo$nt of time. 9he Ja1anese com1any then 1roceeds# /elievin6 it haso/tained the $nderstandin6 and a11roval of the forei6n 1artner# only to have the forei6n1artner walk o$t after a short time /eca$se of the lack of E$ick financial res$lts. >t isvital to /e clear on commitments in terms of the time reE$ired to achieve 6oals.

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: f$ndamental 6a1 eAists /etween the way Ja1anese com1anies and many of theiroverseas 1artners# es1ecially in the West# view 1ro/lems and friction. M$ch of thestr$ct$re of Ja1anese society# and thro$6h it cor1orate life# is /$ilt aro$nd theass$m1tion that everythin6 1ossi/le will /e done to avoid $n1leasantness. However# acertain amo$nt of friction and ar6$ment are seen as healthy in many other co$ntries.

9he same a11lies to the $se of lawyers and le6al action. >n many co$ntries# resortin6 tole6al action almost is an everyday occ$rrence and# once the iss$e is settled# therelationshi1 can move on. However# it is seen as somethin6 of a death wish in Ja1an#where the fo$ndations for effective comm$nications and ne6otiations are tr$st andcredi/ility# rather than which side has the /est le6al eA1ertise.

When talkin6 with a wide ran6e of 1eo1le + Ja1anese and forei6n# /$siness 1eo1le andlawyers + on the /est ways to solve 1ro/lems# the word that arises time and a6ain is7comm$nications.7 B$ildin6 and maintainin6 effective comm$nications is the /est way/y far to ens$re that 1ro/lems arise infreE$ently and are dealt with easily when they do.

+efining a 3o"$em

;iven the differin6 1erce1tions of what is acce1ta/le in terms of a 1ro/lem#considera/le care sho$ld /e taken in 1resentin6 contentio$s iss$es. =or eAam1le# amis$nderstandin6 that is likely to lead to a loss of reven$e on /oth sides can /e dealtwith thro$6h esta/lished comm$nications channels. :s lon6 as /oth 1arties have /eenclear in the first instance as to their 6oals and methodolo6y# they are likely to /e a/le tosolve minor 1ro/lems.

Real 1ro/lems arise when hidden a6endas are im1lemented# or there is a maIorchan6e in the mana6ement of a 1artner com1any. >n cases s$ch as these# if /lame islaid freely on a 1artner# it is diffic$lt to 1atch thin6s $1# even if there is a le6al

framework which has antici1ated every 1ossi/le calamity. 9he o$tlook of mostJa1anese /$siness 1eo1le is that once the acrimony 6ets to the le6al sta6e# therelationshi1 can /e considered over.

The 3o"$em of Time

When lookin6 at the /est way to esta/lish 6ood comm$nications with Ja1anesecom1anies# one inevita/ly is drawn /ack to the word 7time.7 Since the Ja1anese6enerally look at /$siness vent$res and the relationshi1s that 6o with them aslon6+term enter1rises# inevita/ly they eA1ect to take their time in comin6 to an initialdecision on them. f it onlytakes five times as lon6 as it wo$ld in yo$r home co$ntry# then yo$Gre doin6 well.7

@o)ing within the Japanese (ieach

9he hi6hly str$ct$red nat$re of Ja1anese cor1orate hierarchies is an iss$e which arisesat all 1oints of ne6otiations and relationshi1s. 9he 1rocess of workin6 a way thro$6h

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this hierarchy is a very im1ortant one. B$t it can /e diffic$lt to 6ras1 in co$ntries wherethere is a desi6nated 1erson in char6e of action on a s1ecific iss$e# and that 1ersonass$mes all res1onsi/ility.

When a 1ro/lem arises /etween a Ja1anese and a forei6n com1any# it is necessary to/e aware of the eAact 1ositionin6 of each 1erson# and to make s$re that information

filters $1 or down to all levels. : tendency eAists in Western co$ntries to 6o strai6ht tothe 1erson with the hi6hest 1osition# since that 1erson often can make a decision on aniss$e sin6le+handedly. : 1ro/lem arises when there is an eA1ectation that matters can/e settled E$ickly /y dealin6 with an eE$ally senior 1erson on the Ja1anese side.However senior the 1erson may /e# it is likely that considera/le cons$ltation will take1lace# even when the final decision is made /y that 1erson. 9his is why it is soim1ortant that comm$nications /e a m$lti+level endeavor.

A C$ea Emphasis on 3eop$e

Lar6e Ja1anese com1anies are known for swee1in6 1ersonnel chan6es that take1eo1le from division to division thro$6ho$t their career# eA1osin6 them to vario$sas1ects of the com1anyGs /$siness. 9he fact remains# tho$6h# that these chan6es6enerally occ$r within the same com1any. 9he 1ractice of freE$ent Io/ chan6es fromcom1any to com1any is m$ch more wides1read o$tside Ja1an# and it can have ane6ative effect on relationshi1s /etween Ja1anese and forei6n com1anies. Sincecomm$nications are esta/lished slowly and ard$o$sly# and they acE$ire a 1ersonalto$ch# constant chan6es in the line+$1 of the ne6otiatin6 team can have an $nsettlin6effect on the Ja1anese side. -ven when there are chan6es# kee1in6 the core 1eo1leinvolved over the lon6 term can facilitate ne6otiations considera/ly.

=$rthermore# Ja1anese com1anies# es1ecially the lar6er ones# traditionally have1layed a 1aternalistic role in the life of their em1loyees. ;enerally they feel d$ty+/o$nd

to look o$t for them# /oth in terms of kee1in6 them em1loyed and in 6ivin6 them a wideran6e of /enefits. :ny 1ro/lem involvin6 staff that arises /etween a Ja1anese andforei6n com1any is likely to need a close look at these iss$es.

The Impotance of *$e4i"i$it

:s disc$ssed in the cha1ter on contracts (see 1revio$s cha1terK ">==-R>5;:99>9U"-S 9< 4

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f$t$re 1otential of the relationshi1. =or eAam1le# an intransi6ent attit$de towards theterms of a contract mi6ht /e acce1ted# /$t it mi6ht im1ede any f$rther ne6otiations at alater date.

: willin6ness to /e fleAi/le when dealin6 with a Ja1anese com1any can /e inval$a/le ifthe 1ro/lem is a11roached in the ri6ht way. Whereas decision makin6 in Ja1an is a

time+cons$min6 1rocess involvin6 many 1eo1le# o$tside Ja1an it is more often in thehands of one 1erson# and so the 1rocess is s1eedier. When there is a need forcom1romise on a maIor iss$e# however# it is in the interest of the overseas 1artner totake time over the decision. 9hen# while a6reein6 to /e fleAi/le# the 1artner needs tomake it clear that /ein6 fleAi/le is indeed diffic$lt# that sacrifices will have to /e madeon their 1art# /$t that every effort will /e made to find a sol$tion acce1ta/le to /othsides. 4onsiderin6 the 1rinci1le of 6ive and take and the 7Wheel of Life#7 the lon6+term/enefits of s$ch an a11roach can /e 6reat.

The +anges of Lega$ Action

>n order to achieve 1ro1er comm$nications and to im1lement an effective1ro/lem+solvin6 a11roach# it is necessary to /e aware of the $s$al kind of relationshi1that a Ja1anese com1any has with its lawyers. Unlike the sit$ation in many Westernco$ntries# lawyers in Ja1an are not 1rivy to all cor1orate movements# and they arecalled $1on to deal with s1ecific iss$es. n the

words of one forei6n lawyer workin6 in Ja1an 79here are no instances of ha11yendin6s /etween Ja1anese and forei6n com1anies after liti6ation.7 9he desire to settlea 1ro/lem amica/ly is# in fact# so dee1ly in6rained in Ja1anese tradition that someforei6n lawyers eA1ress fr$stration at the $nwillin6ness of Ja1anese com1anies to fi6htin co$rt# even when they have a stron6 case.

Pro/lem solvin6 in Ja1an is an on6oin6 1rocess. By kee1in6 comm$nication channelso1en and f$nctionin6 at all levels# tr$st is /$ilt $1 and iss$es can /e dealt with whenthey are I$st iss$es and not f$ll+/lown 1ro/lems. 9raditional Ja1anese /$siness1ractices# s$ch as the 6rad$al /$ild$1 of a relationshi1 and fleAi/le contracts# need not/e o/stacles# so lon6 as forei6n com1anies are aware of their eAistence and are willin6

to take them into consideration.

CONCLUSION

>t is not 1ossi/le to 1rod$ce a man$al on ne6otiatin6 with the Ja1anese that offers a fail +safemethod for s$cceedin6 in the 1rocess. 9here are endless variations /ased on the traditionsand c$rrent state of a 1artic$lar ind$stry or service# the nat$re of the ne6otiations and the1eo1le involved. >n many ways# m$ch of what has /een said in the 1recedin6 cha1ters is

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common sense# and wo$ld also a11ly in many co$ntries other than Ja1an. Ultimately# however#it is im1ortant to remem/er the wei6ht carried /y information and comm$nications in Ja1an# aswell as some of the traditions that 6overn /$siness 1ractice.

9here is an almost endless interest in detail and the a/ility to res1ond adeE$ately to this ishi6hly re6arded. When reE$ests for information are met with va6$e and inacc$rate re1lies# theJa1anese side is likely to view 1ros1ects for f$rther 1ro6ress ne6atively. 9he most effective

a11roach is not only to 1rovide information that is reE$ested# /$t also to s$11lement this withother items of 1otential interest.

:nother im1ortant factor is the esta/lishment and n$rt$rin6 of effective m$lti+levelcomm$nications which can act /oth as a so$rce of information and a device to def$se1ro/lems /efore they /ecome inflated. : 6ood $nderstandin6 is needed of the cor1oratestr$ct$re of the Ja1anese side# and care m$st /e taken to work within the eAistin6 hierarchywhen cond$ctin6 meetin6s or eAchan6in6 information. >t sho$ld /e remem/ered that thede6ree of deference to s$1eriors within Ja1anese society remains far 6reater than is commonnow in most Western co$ntries.

9hose $sed to /$siness relationshi1s 6overned /y lawyers and contracts need to $nderstand

the fo$ndations of the Ja1anese system# and make allowances for it in drawin6 $1 andim1lementin6 a contract. Besides the costs of le6al action# resortin6 to this wo$ld alsocom1romise the lon6+term 1ros1ects of the relationshi1. Ja1anese com1anies tend to view anyrelationshi1 they em/ark on as lon6 term and 6enerally will try to make an effort to maintain iton an even keel.

"es1ite the hi6h costs and lan6$a6e diffic$lties associated with doin6 /$siness with Ja1an#maintainin6 a local 1resence in the co$ntry hel1s ens$re that there are no $n1leasants$r1rises down the road. >t also shows a hi6h level of commitment on the 1art of the forei6n1arty. Possi/le com1lications arisin6 from lin6$istic diffic$lties sho$ld not /e $nderestimated.4are sho$ld /e taken to /e clear in comm$nicatin6# to avoid le6al Iar6on as m$ch as 1ossi/le#and to 6ive the Ja1anese side the time needed to $nderstand -n6lish doc$ments.

Hidden a6endas can /e dan6ero$s in any ty1e of /$siness relationshi1# whatever the co$ntry.9his a11lies 1artic$larly in Ja1an# /eca$se of the lon6+term a11roach that is standard 1ractice.

: minor inconvenience in what is re6arded as a short+term deal co$ld /ecome a maIor 1ro/lemas time 1asses and different directions are so$6ht /y the two sides.

=inally# most im1ortant to remem/er is that the many myths s$rro$ndin6 Ja1anese /$sinessand ind$stry are myths# and that they can have an $nnecessarily ne6ative im1act.

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SITEEN @A0S T(E JA3ANESE A.OI+ SA0ING BNOB

So$rce eiko Ueda# 7SiAteen Ways to :void Sayin6 5o in Ja1an# >nJ.4.4ondon @ M. Saito# eds.# >nterc$lt$ral -nco$nters with Ja1an (!%F,*.

>n Ja1an# it is diffic$lt to say 7no7 sim1ly and directly. : hi6her val$e is 1laced onmaintainin6 the relationshi1 than on clearly eA1ressin6 oneGs own feelin6s. 9h$s# it is

often considered /est to acce1t a reE$est# tho$6h one does not want to or seems$na/le to acce1t. While this is different when 1eo1le are on intimate terms# o$tside thefamily directly declinin6 reE$ests is very diffic$lt. "irectly ref$sin6 a reE$est may h$rtthe other 1ersonGs feelin6s# and may 6ive the im1ression that one is selfish and$nfriendly for declinin6. =or this reason# the Ja1anese eE$ivalent of 7no7# 7iie7# so$ndsrather formal and too strai6htforward to Ja1anese# and they seem to $nconscio$slyavoid $sin6 it. =orei6ners wantin6 to comm$nicate a11ro1riately m$st develo1com1etence in sendin6 and receivin6 7no7 messa6es. Partic$larly im1ortant in ahierarchical society like Ja1an is knowin6 when and to whom a 1artic$lar form of 7no7 isa11ro1riate. 9he means of ref$sin6 reE$ests from em1loyers or s$1eriors will /edifferent than those from 1eers.

F' .ague BnoB

Ja1anese like to $se a va6$e res1onse. :ltho$6h the answer is ne6ative# it is feltthe listener wonGt /e em/arrassed if the s1eaker $ses this 7soft eA1ression.7

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or comment.

$% Ling 5e8ui%ocation o ma)ing an e4cuse sic)ness9 pe%ious o"$igation9etc'6

>f one wants to ref$se with no s1ecific conventional reasons# s$ch as illness#1revio$s o/li6ation# work# etc.# they may lie to make the ref$sal seem reasona/le.

Lyin6 sometimes is taken as tr$th which mi6ht# in some ways# /e effective.Sometimes# the lies are more trans1arent# /$t they are acce1ted since they are$sed to s1are the hearerGs feelin6s. St$dy s$66ests this is most freE$ently $sedform of ne6ation.

' Citici7ing the 8uestion itse$f

4riticiin6 the E$estion itself# sayin6 it is not worth answerin6# is only $sed whenone is of s$1erior stat$s to the E$estioner.

K' Refusing the 8uestion

>f one is in an awkward sit$ation# they may say they m$st ref$se to answer and

then 6o away.

F?' Con!itiona$ BnoB

>f one doesnGt want to acce1t# /$t is in a 7delicate 1osition#7 they may say they will/e a/le to do so conditionally.

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F>' Apo$og

:1olo6y is often $sed instead of ne6ative words. :1olo6y can /e a very h$m/leres1onse s$66estin6 s1eaker is in inferior 1osition since they canGt meet theotherGs eA1ectations. 9h$s# a sim1le a1olo6y can /e an effective ne6ative answer.

FH' BIieB1 the e8ui%a$ent of the Eng$ish Bno'B

9his word is 1rimarily $sed in fillin6 o$t forms# notin conversation. Ja1aneses1eakers avoid $sin6 it# as it mi6ht dist$r/ the other immediately $1on hearin67no7 /efore an eA1lanation can /e 6iven.

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A Japanese .iew of Ameican Negotiatos:nonymo$s

(!%'*

5e6otiators from the United States are diffic$lt to $nderstand /eca$se they come

from a /ack6ro$nd of different nationalities and eA1eriences. Unlike Ja1anese# the:mericans are not racially or c$lt$rally homo6eneo$s. -ven their way of s1eakin6-n6lish varies. ;ainin6 a 6ood $nderstandin6 of one U.S. re1resentative is only a littlehel1 in $nderstandin6 others. :mericans from lar6e cities are different from thosecomin6 from small towns. 9here are differences /etween -ast# West# 5orth and So$th#as well as in reli6ion and national ori6in.

9h$s# m$ch of what they do is tr$ly $n1redicta/le and erratic. :t the same time#there is no reason to s$s1ect that /eneath the rather disorderly a11earance of U.S.ne6otiatin6 teams# whose mem/ers often seem to not /e listenin6 to each other andwho may not even dress in the same style# there is a calc$lated set of tactics and

o/Iectives that 6$ides them. Sometimes U.S. re1resentatives seem to make mistakesor to /e i6norant of commonly known facts# /$t their lack of h$mility in s$ch cases maymean that they really know what they are doin6.

9he /ack6ro$nd of :merican history is an im1ortant infl$ence on their attit$des.9he :merican frontier was a maIor factor from the arrival of the first settlers from-$ro1e and for a/o$t 2) years. :merican /ooks descri/e how the West wasconE$ered or won. >n some stran6e way the em1ty s1aces of :merica had to /eca1t$red from nat$re# which was like an enemy. 9his is a com1lete contrast to o$r ideathat one m$st live with harmony and nat$re.

Adversaria Approach

:mericans also hi6hly val$e what they call adversary 1roceedin6s. 9his seemsto come from their co$rt system# where two sides ar6$e their cases in a directconfrontation with no effort made to find any harmony at all. 9hen the I$d6e iss$es ar$lin6 one way or the other witho$t 1rivate cons$ltation with the two sides and with noval$e 6iven to conciliatin6 the feelin6s of those in the case. :mericans /elieve this$ndemocratic system is the /est way to learn the tr$th and im1ose I$stice.

:mericans sometimes say tr$th is relative#V or that there is no s$ch thin6 as/lack and white# only shades of 6rey#V /$t often they act differently. 9hey are seekersof tr$th and morality# I$st as we are# /$t they think tr$th and morality eAist a1art from

the 1ractical world aro$nd them. So in a ne6otiation it is common for :mericanne6otiators to say what /asic 1rinci1les are im1ortant. Later they may reIect a so$nd1ractical idea /eca$se it violates 1rinci1le. 9herefore# it is necessary to /e ca$tio$sa/o$t a6reein6 to any statement of 1rinci1les and always 1oint o$t the need forworka/le $nderstandin6s. ndeed# once an

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a6reement is si6ned they may /e very ri6id a/o$t it /eca$se they think it is 1erfect....

9hey often talk a/o$t how hard we Ja1anese work# /$t many :mericans workhard and they can /e eAtremely clever sometimes. However# they seem to attri/$tetheir leadershi1 stat$s not to hard work /$t to the idea that they know the tr$th and aremoral. 9h$s# they are convinced that their ideas are ri6ht and others m$st follow or

reveal themselves as fools or knaves. 9his may seem a harsh I$d6ment# and it isoverstated# /$t :mericans are often ethnocentric witho$t knowin6 it....

!"S" Negotiating #reparations

Witho$t access to their secrets# > can only 6$ess# from their /ehavior and whatthey tell me# how the :mericans 1re1are for ne6otiations. . . .

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admit o/servers from interested a6encies and seldom have anyone 1resent for trainin61$r1oses or as an eAtra notetaker. 9h$s o$r dele6ation is $s$ally lar6er....

:mericans are E$ite conscio$s of 1rotocol# so it is necessary to consider seatin6and the matters of introd$ctions and entertainment. 9hey often say that rank meansnothin6 to them# /$t it really does. n short# they wantthe 1ro1er 6est$res made /$t are satisfied with that. 9hey also like to /e invited tosocial events where they say they dislike disc$ssin6 /$siness and then in fact theyeasily a6ree to do so. S$ch occasions are $sef$l for testin6 com1romises ando/tainin6 information on their fall/ack 1ositions.

%he #rogress o& %aks

:mericans are ener6etic and 1ersistent. 9hey are enth$siastic ne6otiators whoseldom take na1s d$rin6 talks even if the to1ic at hand is of no real concern. 9heyenIoy ar6$in6 the lo6ic of their 1osition# which they like to descri/e as 6ood for all andnot I$st for them. 9hey have a dist$r/in6 ha/it# however# of 1assin6 over very E$ickly

the areas of a6reement and 6ivin6 hi6h em1hasis to disa6reements. >n fact# they talka/o$t little else# as if that were the most im1ortant s$/Iect.

:mericans like to concentrate on one 1ro/lem at a time. 9hey seem not to$nderstand that the whole 1ict$re is more im1ortant# and they s1end little time ondevelo1in6 a 6eneral $nderstandin6 of the views and interests of /oth sides. Sincetheir ha/it of foc$sin6 on one iss$e often forces a direct disa6reement# they often1ro1ose settin6 the iss$e aside# /$t they come /ack to it later with the same attit$deand concentration. : ne6otiation with them may therefore /ecome a series of smallconflicts and we m$st always make a s1ecial effort to 6ive 1ro1er attention to the lar6eareas of a6reement and common interest.

9he a/ove article has /een re1rinted in a n$m/er of so$rces with vario$s attri/$tions.

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9H- 8& 4H>5-S- S9R:9-;>-S:PPL>-" 9< 5-;:9>

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since the market1lace is a /attlefield#!2these ideas sho$ld leave no do$/t a/o$t the 1rominence ofdece1tion in 4hinese ne6otiation and /$siness tactics.!8X

9he chart /elow lists vario$s versions of the 9hirty+siA Strate6ies and accom1anies each with acontem1orary maAim that makes the ori6inal strate6y a little more clear to 1resent+day ne6otiators.9he contem1orary maAims 1resented /elow come either from inter1retations /y my former st$dents#from vario$s we/ sites# or are my own inter1retation. 9he so$rce of the 1hrase $sed for the ori6inalstrate6y is 6iven /y the two+letter code that follows the strate6y in 1arentheses. 454 is 4hin+5in64h$K LB is La$rence BrahmK 9= is 9ony =an6K and RM is Ro/ert March. Unless otherwise indicated#the descri1tion of the

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!& Let the :dversary off in order toSnare Him. 9o 4a1t$re the -nemy#=irst Let >t ;o (RM*.

"o not aro$se their s1irit to fi6ht/ack.

!F 9oss o$t a Brick to :ttract a 1iece ofJade. 9oss o$t a Brick to :ttract Jade(RM*.

9rade somethin6 of minor val$e forsomethin6 of maIor val$e.

!' 9o 4atch Bandits# 5a/ 9heir

Rin6leader =irst. 9o 4atch theBandits# =irst 4atch 9heir Rin6leader(RM*.

4onvince the leader and the rest will

follow.

!% Remove the =ire from $nder the4a$ldron.

-liminate the so$rce of their stren6th.

2) M$ddle the water to catch the fish(9=*. ;atherin6 =ish from 9ro$/leWaters (LB*.

"o somethin6 s$r1risin6 or $neA1ected to $nnerve them# andthen take advanta6e of that sit$ation.

2! 9he 4icada Sheds >ts Shells. 9he;olden 4icada Sheds >ts Shell. 9he4icada Slo$6hs >ts Shell (RM*.

When yo$ are in tro$/le# secretlyesca1e.

22 =asten the "oor to 4atch a 9hief.Lock the "oor and 4atch the 9hief

(RM*.

4om1letely destroy them /y leavin6no way for esca1e.

28 Befriend a "istant State While:ttackin6 a 5ei6h/orin6 State.Befriend "istant States While

:ttackin6 5ear/y 6norance and Hidententions (RM*.

Play "$m/# then s$r1rise them. Letthem $nderestimate yo$.

2' Remove the Ladder after yo$r ascent(LB*. L$re the enemy onto the roof#then take away the ladder. 4ross theRiver and "estroy the Brid6e (454*.

Lead them into a tra1# then c$t offtheir esca1e.

2% "ecorate the 9ree with =akeBlossoms. =lowers Bloom in the 9ree

(RM*.

Reframe deceitf$lly. -A1and the 1iewith o/Iects of little val$e.

8) 9$rn Do$rself into a Host from Bein6a ;$est. Host and ;$est SwitchRoles (RM*.

9$rn yo$r defensive and 1assive1osition into an offensive and activeone.

8! Use a Bea$ty to -nsnare a Man. 9hehoney tra1. Bea$ty 9ra1 (RM*.

Provide all$rin6 distractions.

82

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88 Use :dversarys S1ies to Sow"iscord in Do$r :dversarys 4am1.9$rn the -nemys :6ents a6ainst Him(RM*.

Provide inacc$rate information tomislead them# es1ecially thro$6hinformal channels.

8, >nflict Pain on nfiltrate :dversarys 4am1 and Winthe 4onfidence of the -nemy. Self+

9ort$re (RM*.

:11ear to take some hits. =ei6nweakness while armin6 yo$rself.

8 Lead Do$r :dversary to 4hain9o6ether 9heir Warshi1s. Strata6emon Strata6ems (RM*.

"evise a set of interlockin6strata6ems to defeat them.

8& Retreat is the Best f :ll -lse=ails# R$n :way (RM*.

P$rse yo$r B:95:.

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W5; W>9H :M-R>4:5S

ey Skills for S$ccess

-sta/lishin6 4redi/ility

Presentin6 and Pers$adin6Motivatin6 -m1loyees"evelo1in6 -m1loyees

-S9:BL>SH>5; 4R-">B>L>9D+ Use a firm# cris1 handshake

(not too lon6*+ Make it a two+way conversation

(offer information# ask E$estions

+ Maintain eye contact+ 4larifyK check com1rehension+ ProIect self+confidence

(donGt hesitate to /e assertive*

PR-S-59>5; :5" P-RSU:">5;Present with confidence

+ (no need to a1olo6ie $nless there is somethin6 to a1olo6ie for*

Use a direct style of lo6ic

(1$t main 1oint first# followed /y rationale and s$11ortin6 data# and a

concl$sion that ret$rns to the main 1oint. 5ot too m$ch detail.*-m1hasie /$siness o11ort$nity

(link yo$r 1ro1osal to concrete /$siness res$lts*

Be 1re1ared for E$estions

(either ask the a$dience to hold their E$estions $ntil yo$ are finished or/ein6 ready to handle E$estions as they come $1*

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:S>:5 MC:9>-S W-S9-R5 MC:9>nvocation of d$ty for 6ro$1 /enefit

Slo6ans and sym/ols

:fter+ho$rs socialiin6 @ informal

comm$nication

Personal loyalty

4reate informal atmos1here + Ioke

;ive 1ositive feed/ack

(con6rat$lations @ thanks*

Share financial information

Present individ$al awards in front of al

ReE$est em1loyee in1$t