Communication is one of the most important aspects of business negotiations and relationships. Even more so in the international arena, where each party has different cultures, values, laws, and ideologies.
We define culture as the collective mental programming of the human mind distinguishing one group of people from another. This programming influences patterns of thinking which are reflected in the meaning people attach to various aspects of life and which become crystallized in the institutions of a society.
Hofstede Insights
Even if something is translated into one’s first language, the meaning and nuances are not fully present. That can cause communication problems and misunderstandings. Hence, being respectful and considerate helps with cultural barriers, even if you don’t understand everything.
As cultural considerations influence the form and substance of the deal, consider leveraging local partners’ and vendors’ best practices to adapt to the market efficiently and effectively.
One example is, when should you involve lawyers if you’re doing business in China?
Lawyers are seen as trusted advisors in the West and are involved in every stage of the commercial discussion. They sometimes act as mediators too. In China, lawyers are not as involved. They usually only play the role of legal and documentation experts. Business relationships in China are of high-context culture and China’s legal system follows civil law instead of common law. Contracts are seen to be mostly symbolic, have fewer details, and are more flexible.
It is best to have negotiations in black and white. Communicating via email allows you to consult your legal team to review terms discreetly before you respond.
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