The Impact of Cultural Differences and Countermeasures in Business Negotiations

Abstract

With the frequent economic cooperation between China and United States, culture profoundly affects the way communicate in negotiation. Therefore, it is very important to understand the cultural differences between China and the United States and the impact of these differences on the negotiation. This paper compares the differences in different aspects by studying the literature in the relevant fields and conducting case studies, collectivism versus individualism, communication styles, high power and low power cultures, and high context and low context cultures, while also addressing some ways of expressing emotions and comparing Chinese and American attitudes toward interpersonal relationships. Through the comparative analysis it found that if it reduces the impact of cultural differences in Sino-US business negotiations, the Chinese should understand each other's information in advance, unify internal opinions in advance, and pay attention to improve the content of the contract. The U.S. needs to understand Chinese humanities in advance to show sincerity and at the same time can better promote the establishment of cooperative relations, and at the same time can also better express respect for the other side. In addition, both sides should pay attention to mutual benefit and a win-win situation and should not be too concerned about their interests. This will make the whole negotiation process more smooth and more harmonious. The significance of this research is to help negotiators between the Chinese and American understand each other's culture so that they can reach a satisfactory result in the negotiation.