Business Negotiation Japan VS USA Introduction: Undertaking any business requires a set of skills. These would normally involve negotiation which is defined as a voluntary process through which the parties involved could reach agreement on common business issues (Cellich and Jain 2004). One of the main purposes of this process is to improve elements of the activity in question; get a better deal than simply accepting or rejecting what the other party has already offered. However, according to Alder (1991), regardless of cultural differences, the negotiation process involves business communications, information exchange and decision-making. However, the area of business negotiation is the focus of this paper, as issues relating to the effect of culture on the business negotiation process will be critically assessed and discussed; focusing on the case of Japan and the United States, where the negotiation styles in these countries are briefly examined. Cultural Aspects of Business Negotiation: American Culture VS Japanese Culture: Greet Hofestede (1994), after extensive research found five dimensions of culture that are relevant to international business. These are power distance, uncertainty avoidance, individualism versus collectivism, and masculinity. Most authors who have written about business negotiation have attempted to analyze and test these dimensions to understand the relationship between them and business negotiation. Power Distance: Japan has a greater power distance than the United States according to Hofetede's cultural dimension. Equality, a horizontal relationship, is highly valued in the United States but is less important in Japan (Graham and Sano 1985). It therefore seems that when conducting a business negotiation with a Japanese person, the first thing to do is to inquire about his position. In order to identify who has the highest social status and where they might fit among the people involved in the negotiation. In high power distance societies like Japan, people in high-level positions are more likely to use the power of their position in negotiation. Individualism versus collectivism: Individualism represents the extent to which a country emphasizes the role of individuals rather than the collective contribution of the group. In individualistic societies people feel little need for dependence on each other, such as the United States as they show a high score in individualism unlike Japan which has a very low individualism score and are considered more dependent on contribution of the group rather than that of the individual (Cellich and Jain 2004). However Americans can be more self-centered and individual goals are mostly emphasized.
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