Cross-cultural Interaction: The International Comparison Fallacy?

Abstract

Joint ventures, mergers and acquisitions, licensing and distribution agreements, and sales of products and services—crucial aspects of all such interorganizational relationships, are face-to-face negotiations. As the proportion of foreign to domestic trade increases, so does the frequency of business negotiations between people from different countries and cultures. Perlmutter estimates that over 50% of an international manager’s time is spent negotiating.1 To successfully manage these negotiations, businesspeople need to know how to influence and communicate with members of cultures other than their own.