Trade knowledge / Dealing with Conflict in International Trade
Date: 2013-08-05
Dealing with Conflict in International Trade
The order came late... or never arrived... or your partner wants to constantly renegotiate... or the client is never satisfied. Conflict occasionally arises in business. But when cultures differ:
How do you know when you're dealing with a cultural issue rather than a business issue?
How do you bridge the cultural divide in order to focus on solving the issues?
Not on the Same Cultural Page
Business cultures vary widely around the world. What is acceptable in one location could be scorned in another. A Japanese businessperson who is uncomfortable may break out in giggle, while their American counterpart may clear his throat, cough, perspire or talk faster. It is important to separate cultural issues from business issues. Cultural issues normally challenge your assumptions and expectations about your counterpart's responses and other actions. Often it comes in the form of a perceived overreaction or "under" reaction to what you said or did. Taking Care of Business
Here are some common conflict styles and how you can approach your counterpart for better results: Emotional Outbursts—This style is particularly common in the Middle East, but you can sometimes find it in Africa, Latin America and Mediterranean countries. Let's assume that you didn't do anything to actually deserve the outburst. By throwing an emotional tantrum, the person is trying to get you to give concessions. It is built on the assumption that they need to be on top of a win-lose relationship with you. The trick to rendering this technique ineffective is to remain extremely calm and wait for the person's tantrum to cease. Then pick up the conversation from where it left off before the outburst and ignoring the outburst altogether. Silence—Silence is a well-used tool in Eastern Asia. When someone is upset, they literally stop speaking. Sometimes this silence is over the phone, but it can also include unresponsiveness to emails and other communication channels. The assumption here is that the other side will break the silence first by offering concessions to make up for the negative feelings. Again, assuming that the silence is undeserved, do not be the one to break the silence if you were the last one to communicate. By waiting in silence, you are communicating that this technique does not work on you. Frequent Renegotiations—Many Western cultures rely on a written legal contract to define a business relationship. In the rest of the world, relationships are the foundation of business dealings. In these relationship-based business cultures, you can expect your clients, suppliers and partners to ask to renegotiate your arrangement. These renegotiations are a reflection of a changing business environment in-country and also a desire to keep the business relationship current and functional. You can expect this in places like China, India, Russia, Africa, and Indonesia.
( linda )17 Jan,2012
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