International Business Negotiations, Second Edition (International Business and Management) (International Business and Management Series)

545 Pages·2003·2 MB·English

by  Pervez N. Ghauri

INTERNATIONAL BUSINESS
NEGOTIATIONS
(2nd Edition)
INTERNATIONAL BUSINESS AND MANAGEMENT SERIES
Series Editor:Pervez N. Ghauri
Published
CONTRACTOR & LORANGE
Alliances and Co-operative Strategies
GEMÜNDEN, RITTER & WALTER
Relationships and Networks in International Markets
HAVILA, FORSGREN & HÅKANSSON
Critical Perspectives on Internationalisation
MOROSINI
Managing Cultural Differences
NAUDE & TURNBULL
Network Dynamics in International Marketing
BUCKLEY & GHAURI
The Global Challenge for Multinational Enterprises
HÅKANSSON & JOHANSON
Business Network Learning
LI
Managing International Business Ventures in China
HYDER & ABRAHA
Strategic Alliances in Eastern and Central Europe
YANG
Intellectual Property and Doing Business in China
Forthcoming titles
OXELHEIM & GHAURI
European Union and the Race for Foreign Direct Investment in Europe
Other titles of interest
FATEMI
International Trade in the 21st Century

DUNNING
Globalization, Trade and Foreign Direct Investment
MONCARZ
International Trade and the New Economic Order
KREININ
Contemporary Issues in Commercial Policy
Related journals sample copies available on request
European Management Journal
International Business Review
International Journal of Research in Marketing
Long Range Planning
Scandinavian Journal of Management
INTERNATIONAL
BUSINESS NEGOTIATIONS
(2nd Edition)
EDITED BY
PERVEZ N. GHAURI
UMIST, Manchester, UK
JEAN-CLAUDE USUNIER
University of Lausanne, Lausanne, Switzerland
SERIES EDITOR
PERVEZ N. GHAURI

2003
Pergamon
An Imprint of Elsevier
Amsterdam – Boston – Heidelberg – London – New York – Oxford
Paris – San Diego – San Francisco – Singapore – Sydney – Tokyo
ELSEVIER Ltd
The Boulevard, Langford Lane
Kidlington, Oxford OX5 1GB, UK
© 2003 Elsevier Ltd. All rights reserved.
This work is protected under copyright by Elsevier, and the following terms and conditions apply to its use:
Photocopying
Single photocopies of single chapters may be made for personal use as allowed by national copyright laws.
Permission of the Publisher and payment of a fee is required for all other photocopying, including multiple or
systematic copying, copying for advertising or promotional purposes, resale, and all forms of document delivery.
Special rates are available for educational institutions that wish to make photocopies for non-profit educational
classroom use.
Permissions may be sought directly from Elsevier’s Science & Technology Rights Department in Oxford, UK:
phone: [phone], fax: [phone], e-mail: [email protected]. You may also
complete your request on-line via the Elsevier homepage (http://www.elsevier.com), by selecting ‘Customer
Support’ and then ‘Obtaining Permissions’.
In the USA, users may clear permissions and make payments through the Copyright Clearance Center, Inc., 222
Rosewood Drive, Danvers, MA 01923, USA; phone: (+1) (978) 7508400, fax: (+1) (978) 7504744, and in the
UK through the Copyright Licensing Agency Rapid Clearance Service (CLARCS), 90 Tottenham Court Road,
London W1P 0LP, UK; phone: [phone]; fax: [phone]. Other countries may have a local
reprographic rights agency for payments.
Derivative Works
Tables of contents may be reproduced for internal circulation, but permission of Elsevier is required for external
resale or distribution of such material.
Permission of the Publisher is required for all other derivative works, including compilations and translations.
Electronic Storage or Usage
Permission of the Publisher is required to store or use electronically any material contained in this work,
including any chapter or part of a chapter.
Except as outlined above, no part of this work may be reproduced, stored in a retrieval system or transmitted
in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior
written permission of the Publisher.
Address permissions requests to: Elsevier’s Science & Technology Rights Department, at the phone, fax and e-
mail addresses noted above.
Notice
No responsibility is assumed by the Publisher for any injury and/or damage to persons or property as a matter
of products liability, negligence or otherwise, or from any use or operation of any methods, products,
instructions or ideas contained in the material herein. Because of rapid advances in the medical sciences, in
particular, independent verification of diagnoses and drug dosages should be made.

First edition 1996
Second impression 1999
Third impression 2002
Second edition 2003
Library of Congress Cataloging in Publication Data
A catalog record from the Library of Congress has been applied for.
British Library Cataloguing in Publication Data
A catalogue record from the British Library has been applied for.
ISBN: 0-08-044292-7 (Hardbound)
ISBN: 0-08-044293-5 (Paperback)
(cid:2)∞
The paper used in this publication meets the requirements of ANSI/NISO Z39.48-1992 (Permanence of
Paper).
Printed in The Netherlands.
Contents
Series Editor’s Preface ix
Editor’s Preface xi
List of Tables and Figures xvii
The Contributors xix
Part I: Introduction
1. A Framework for International Business Negotiations 3
Pervez N. Ghauri
2. Vis-à-vis: International Business Negotiations 23
John L. Graham
3. Strategies and Tactics in International Business Negotiations 51
Ramond Saner
4. How National Culture, Organizational Culture and Personality
Impact Buyer-Seller Interactions 75
Sudhir H. Kalé

Part II: The Impact of Culture on International Business
Negotiations
5. Cultural Aspects of International Business Negotiations 97
Jean-Claude Usunier
6. Hofstede’s Dimensions of Culture and their Influence on
International Business Negotiations 137
Geert Hofstede and Jean-Claude Usunier
7. International Multilateral Negotiations and Social Networks 155
R. Bruce Money
vi Contents
8. The Role of Time in International Business Negotiations 171
Jean-Claude Usunier
9. The Role of Atmosphere in Negotiations 205
Pervez N. Ghauri
Part III: Negotiating Different Type of Projects
10. Negotiating Sales, Export Transactions and Agency Agreements 223
J. B. McCall
11. Negotiating Licensing Agreements 243
Vernon Parker
12. Bolter Turbines, Inc. Negotiation Simulation 275
John L. Graham
13. Negotiating Mergers and Acquisitions in the European Union 291
Viviane de Beaufort and Alain P. Lempereur
Part IV: Negotiating in Different Parts of the World
14. The IBM-Mexico Microcomputer Investment Negotiations 327
Stephen E. Weiss
15. Negotiating with Eastern and Central Europe 363
Pervez N. Ghauri
16. Business Negotiations between Japanese and Americans 393
John L. Graham and Yoshihiro Sano

17. Negotiating with the Chinese: A Process View 411
Pervez N. Ghauri and Tony Fang
Part V: General Guidelines
18. Ethical Aspects of International Business Negotiations 437
Jean-Claude Usunier
19. Some General Guidelines for Negotiating International Business 461
Pervez N. Ghauri and Jean-Claude Usunier
Contents vii
References 481
Author Index 509
Subject Index 515

Series Editor’s Preface
The first edition of this book, published in 1996, was one of the most successful
books in this series. It was printed twice and was sold out very quickly. For a
couple of years we have been receiving messages from colleagues to publish a
second edition of the book. A decision was made an year ago and we asked for
some reviews from some colleagues in the field. They were all very enthusiastic
and recommended a second edition. These comments were forwarded to the
editors. We also received suggestions that the second edition should be
published as a paperback to make it more accessible for students.
Through these reviews we also realized that the book has been used in a
number of MBA and Master Courses and Modules in Europe, United States
and Canada. The editors have also received direct comments from colleagues
as how to improve the second edition. We thus believe that the second edition
has been compiled with these comments in mind. A number of new chapters
have been added while some dated chapters have been taken away. The
sequence of chapters is now more logical and deals with the topics more
thoroughly.
We understand that there are very few books dealing with this important
topic, while it is considered a most important field in international business
research and practice. We trust that this second volume will be at least equally
successful and will fill the gap in the market.
Pervez N. Ghauri
Series Editor