Question 1

The negotiation style of the Russians is found to be quite similar in many respects to that of the:
A) Germans.
B) Japanese.
C) British.
D) Koreans.
E) Israelis.

Accepted Answer

The Russians' style is quite different from that of any other European group, and indeed, is quite similar in many respects to the style of the Japanese. They use no and you infrequently and use the most silent periods of any group. Only the Japanese do less facial gazing, and only the Chinese ask a greater percentage of questions.

Question 2

Even though American sellers make lower profits than the Japanese, many American managers apparently prefer lower profits if those profits are yielded from a more equal split of the joint profits. This demonstrates that Americans and Japanese have different views about _____.
A) favoritism
B) collectivism
C) individualism
D) fairness
E) nepotism

Accepted Answer

Not only do Japanese buyers achieve better results than American buyers, but compared with American sellers, Japanese sellers also get more of the commercial pie as well. Interestingly, when shown these results, Americans in executive seminars still often prefer the American seller's role, thus confirming that Americans and Japanese have differing views of fairness.

Question 3

Which of the following behaviors of the Spaniards reinforces the view that Spanish negotiators use a high percentage of commands?
A) Extensive use of silent periods
B) Highest incidence of touching another negotiator
C) Greeting callers on the phone with "diga" (speak)
D) Shunning eye contact with others
E) Wishing others with a "hola" or "bueno"

Accepted Answer

Diga is perhaps a good metaphor for the Spanish approach to negotiations. When you make a phone call in Madrid, the usual greeting on the other end is not hola ("hello") but instead diga ("speak"). The Spaniards use the highest percentage of commands of any of the groups and give comparatively little information.

Question 4

Which of the following statements reflects the decision-making style of the Americans in business negotiations?
A) A business negotiation is an opportunity to develop a business relationship with the goal of long-term mutual benefit.
B) The economic issues are the context, not the content, of the business negotiation talks.
C) A business negotiation is a problem-solving activity, the best deal for both parties being the solution.
D) Business issues are discussed at once, in no apparent order, and concessions are made on all issues at the end of the discussion.
E) Interpersonal and interorganizational bonds take precedence over the bottom line in business negotiations.

Accepted Answer

To Americans, a business negotiation is a problem-solving activity, the best deal for both parties being the solution. To a Japanese businessperson, a business negotiation is a time to develop a business relationship with the goal of long-term mutual benefit. The economic issues are the context, not the content, of the talks.

Question 5

Which of the following statements is true regarding the decision-making processes in international business negotiations?
A) Asian negotiators prefer to break up a complex, large task into a series of smaller tasks.
B) The American approach to a complex negotiation task is to discuss all issues at once, in no apparent order.
C) American negotiators tend to make larger concessions after agreements are announced.
D) Americans tackle issues such as prices, delivery, and warranty one at a time, with the final agreement being the sum of smaller agreements.
E) The Western sequential approach and the Eastern holistic approach to decision-making are found to complement each other.

Accepted Answer

When faced with a complex negotiation task, most Westerners divide the large task up into a series of smaller tasks. Issues such as prices, delivery, warranty, and service contracts may be settled one issue at a time, with the final agreement being the sum or the sequence of smaller agreements.

Question 6

Which of the following is the first step toward initiating efficient and effective international business negotiations?
A) Management of preliminaries such as training and location of talks
B) Preparation and manipulation of negotiation settings
C) Selecting an appropriate negotiation team
D) Managing the process of negotiations
E) Following upon procedures and practices

Accepted Answer

Four steps lead to more efficient and effective international business negotiations. They are: (1) selection of the appropriate negotiation team; (2) management of preliminaries, including training, preparations, and manipulation of negotiation settings; (3) management of the process of negotiations, that is, what happens at the negotiation table; and (4) appropriate follow-up procedures and practices.

Question 7

Which of the following countries is considered to be the least aggressive with respect to negotiation behavior?
A) France
B) Germany
C) China
D) Taiwan
E) Japan

Accepted Answer

Consistent with most descriptions of Japanese negotiation behavior, their style of interaction is among the least aggressive (or most polite). Threats, commands, and warnings appear to be deemphasized in favor of more positive promises, recommendations, and commitments.

Question 8

Which of the following approaches is adopted by Westerners when faced with a complex negotiation task?
A) Dividing the large task into a series of smaller tasks
B) Analyzing the task in a holistic manner with foreign and domestic experts
C) Discussing all issues at once, in no apparent order
D) Making larger than normal concessions in a bid to push the deal through
E) Buying time by tackling peripheral issues first, and then tackling the main task

Accepted Answer

When faced with a complex negotiation task, most Westerners divide the large task up into a series of smaller tasks. Issues such as prices, delivery, warranty, and service contracts may be settled one issue at a time, with the final agreement being the sum or the sequence of smaller agreements.

Question 9

Which of the following is true of the differences in values that affect international negotiations?
A) Negotiators from countries such as Mexico or Spain remain personally unaffected by negotiation outcomes.
B) The concept of objectivity predominantly takes a front seat in Hispanic or Chinese cultures.
C) In most places in the world, particularly in collectivistic and high-context cultures, personalities and substance are separate issues.
D) The concept of family control does not apply to businesses in Spain, Mexico, and the Philippines.
E) Long-term reciprocity is usually the basis of commercial interactions in China.

Accepted Answer

Guanxi, the Chinese word for personal connections, is key for negotiators working in China. Long-term reciprocity is the basis of commercial interactions there, and Western concepts like objectivity almost always take a back seat. What happens to them at the negotiation table will affect the business relationship, regardless of the economics involved.

Question 10

Which of the following can be considered by American negotiators as a signal of progress in a business relationship with foreigners?
A) Absence of questions on specific areas of a deal
B) A hardening of attitudes and positions on some issues
C) A lesser frequency of talk among themselves in their own language
D) Higher-level foreigners being included in the discussions
E) Decreased bargaining and use of the higher-level and formal channels of communication

Accepted Answer

Important signals of progress in business negotiations can be (1) higher-level foreigners being included in the discussions; (2) questions beginning to focus on specific areas of a deal; (3) a softening of attitudes and positions on some of the issues; (4) at the negotiation table, increased talk among themselves in their own language, which may often mean they are trying to decide something; and (5) increased bargaining and use of the lower-level, informal, and other channels of communication.

Question 11

Which of the following statements reflects the American notions of the importance of objectivity?
A) American business is the hotbed of nepotism.
B) Americans place emphasis on economics and performance rather than people.
C) In business, favoritism matters and it is key to a successful negotiation.
D) Americans have little regard for decisions based upon the bottom line.
E) American business is heavily skewed against meritocracy.

Accepted Answer

"Americans make decisions based upon the bottom line and on cold, hard facts." "Americans don't play favorites." "Economics and performance count, not people." "Business is business." Such statements well reflect American notions of the importance of objectivity.

Question 12

Which of the following is a factor responsible for global business successes?
A) Standardization rather than customization of negotiation procedures across all cultures
B) Emergence of the English language as the chief medium of negotiations
C) Increased homogenization of cultures across the world
D) Large numbers of skillful international negotiators
E) Avoidance of the use of technology in all areas related to business negotiations

Accepted Answer

One reason for global business successes is the large numbers of skillful international negotiators. These are the managers who have lived in foreign countries and speak foreign languages. In many cases, they are immigrants to the United States or those who have been immersed in foreign cultures in other capacities (Peace Corps volunteers and Mormon missionaries are common examples).

Question 13

In Japanese business organizations, subordinates do not pass along bad news to their superiors. This lack of internal communications can be attributed to:
A) the Japanese emphasis on individualism.
B) the Japanese emphasis on hierarchical relationships.
C) the Japanese emphasis on competition and individualism.
D) the insistence on solving problems at the point of origin and not escalating them.
E) Guanxi, the Japanese practice of personal connections.

Accepted Answer

The Japanese emphasis on hierarchical relationships seems to hamper internal communications; subordinates don't pass along bad news, for example. This reticence seems to have been a major problem during the Toyota product quality issues, when the secretive corporate culture in Japan clashed with the U.S. requirements that automakers disclose safety threats.

Question 14

Which of the following statements is true about the negotiation behavior of Korean negotiators?
A) They use more silent periods than any other group.
B) They ask the greatest number of questions.
C) They are the most reticent about disclosing information.
D) They use the word no and interrupt more frequently than the Japanese.
E) They use the lowest percentage of aggressive persuasive tactics.

Accepted Answer

Korean negotiators used considerably more punishments and commands than did the Japanese. Koreans used the word no and interrupted more than three times as frequently as the Japanese. Moreover, no silent periods occurred between Korean negotiators.

Question 15

Which negotiation tactic, according to foreign negotiators, is the most useful when dealing with Americans?
A) Offering cutbacks on deals
B) Including higher-level executives in talks
C) Providing lots of self-disclosures
D) High first-offers, followed immediately with deeply discounted second-offers
E) Taking time over the negotiations

Accepted Answer

"Just make them wait." Everyone else in the world knows that no negotiation tactic is more useful with Americans, because no one places more value on time, no one has less patience when things slow down, and no one looks at their wristwatches more than Americans do.

Question 16

Which of the following groups of negotiators was found to have the most aggressive negotiation style?
A) The Spaniards
B) The Israelis
C) The Americans
D) The Koreans
E) The French

Accepted Answer

The style of the French negotiators was perhaps the most aggressive of all the groups. In particular, they used the highest percentage of threats and warnings. They also used interruptions, facial gazing, and no and you very frequently compared with the other groups.

Question 17

Which of the following is true of the decision-making process with respect to the American and Japanese negotiators?
A) The Western sequential approach and the Eastern holistic approach are found to mix well.
B) Americans often make unnecessary concessions right before agreements are announced by the Japanese.
C) All issues are discussed at once by the Americans, in no apparent order, and concessions are made on all issues at the end of the discussion.
D) American managers find it easy to measure the progress of negotiations with their Japanese counterparts.
E) When negotiating with the Japanese, Americans find that the progress of negotiations is closely linked to the number of issues resolved.

Accepted Answer

The Western sequential approach and the Eastern holistic approach do not mix well. That is, American managers often report great difficulties in measuring progress in Japan. In America, you are half done when half the issues are settled. But in Japan, nothing seems to get settled. Then, surprise, you are done. Often Americans make unnecessary concessions right before agreements are announced by the Japanese.

Question 18

Which of the following statements about American and Japanese buyer-seller relationships is true?
A) American sellers tend to treat American buyers as equals.
B) Japanese ideals dictate that buyers give complete deference to the wishes and needs of sellers.
C) American buyers will generally "take care of" American sellers or Japanese sellers more than any others do.
D) Most Americans will, by nature, treat Japanese buyers less frequently as equals.
E) Americans score the lowest among all the cultural groups on the individualism scale.

Accepted Answer

By nature, Americans have little understanding of the Japanese practice of giving complete deference to the needs and wishes of buyers. That is not the way things work in America. American sellers tend to treat American buyers more as equals, and the egalitarian values of American society support this behavior.

Question 19

Which nonverbal behavior of Israeli negotiators is most likely to be blamed for the "pushy" stereotype often used by Americans to describe their Israeli counterparts?
A) They interrupt one another more frequently than any other group.
B) They use the lowest percentage of self-disclosures.
C) They use the highest percentage of promises and recommendations.
D) They use the highest percentage of punishments than any other group.
E) They use a higher percentage of commands than any other group.

Accepted Answer

The Israeli negotiators interrupt one another much more frequently than negotiators from any other group. This important nonverbal behavior is most likely to blame for the "pushy" stereotype often used by Americans to describe their Israeli negotiation partners.

Question 20

Phil, a purchasing manager at a departmental store in the United States, is engaged in negotiations with a Brazilian supplier. Which of the following signals would indicate that Phil has been making progress in the negotiations with the Brazilians?
A) Lowered bargaining by the Brazilians
B) Involving Brazilian executives of lower ranks to continue the discussions
C) A noticeable decrease in instances of private conversations among the Brazilians
D) Questions by Brazilians that focus primarily on the more general areas of the deal
E) A softening of attitudes and positions of the Brazilians on some of the issues

Accepted Answer

A softening of attitudes and positions of the Brazilians on some of the issues would indicate that Phil has been making progress in the negotiations. Important signals of progress in business negotiations can be (1) higher-level foreigners being included in the discussions; (2) questions beginning to focus on specific areas of the deal; (3) a softening of attitudes and positions on some of the issues; (4) at the negotiation table, increased talk among themselves in their own language, which may often mean they are trying to decide something; and (5) increased bargaining and use of the lower-level, informal, and other channels of communication.

Quiz 19: Inventive Negotiations With International Customers, Partners, and Regulators

The negotiation style of the Russians is found to be quite similar in many respects to that of the:

Even though American sellers make lower profits than the Japanese, many American managers apparently prefer lower profits if those profits are yielded from a more equal split of the joint profits. This demonstrates that Americans and Japanese have different views about _____.

Which of the following behaviors of the Spaniards reinforces the view that Spanish negotiators use a high percentage of commands?

Which of the following statements reflects the decision-making style of the Americans in business negotiations?

Which of the following statements is true regarding the decision-making processes in international business negotiations?

Which of the following is the first step toward initiating efficient and effective international business negotiations?

Which of the following countries is considered to be the least aggressive with respect to negotiation behavior?

Which of the following approaches is adopted by Westerners when faced with a complex negotiation task?

Which of the following is true of the differences in values that affect international negotiations?

Which of the following can be considered by American negotiators as a signal of progress in a business relationship with foreigners?

Which of the following statements reflects the American notions of the importance of objectivity?

Which of the following is a factor responsible for global business successes?

In Japanese business organizations, subordinates do not pass along bad news to their superiors. This lack of internal communications can be attributed to:

Which of the following statements is true about the negotiation behavior of Korean negotiators?

Which negotiation tactic, according to foreign negotiators, is the most useful when dealing with Americans?

Which of the following groups of negotiators was found to have the most aggressive negotiation style?

Which of the following is true of the decision-making process with respect to the American and Japanese negotiators?

Which of the following statements about American and Japanese buyer-seller relationships is true?

Which nonverbal behavior of Israeli negotiators is most likely to be blamed for the "pushy" stereotype often used by Americans to describe their Israeli counterparts?

Phil, a purchasing manager at a departmental store in the United States, is engaged in negotiations with a Brazilian supplier. Which of the following signals would indicate that Phil has been making progress in the negotiations with the Brazilians?