The Effect of Cultural Difference on Trade Negotiations

The Effect of Cultural Difference on Trade Negotiations

This paper examined differences of the styles of business negotiations between Korean negotiators and other foreign negotiators from America and some European countries. Consistent with theories of individualism and collectivism, it was found that Koreans who are collectivistic prefer styles of negotiation that express more concern for the negotiation process and outcomes than their counterparts who are individualistic. Individual cultures such as America and European countries emphasize the interests of the self over an interest in harmonious relationships while Koreans representing collectivistic culture emphasize group harmony over self interests. The findings suggest that Korean businessmen should be aware that it is essential to understand the cultural difference of their counterparts and to employ right negotiation strategies to have a good negotiation results.