Deck 19: Negotiating With International Customers, Partners, and Regulators

Question 1

The cultural stereotypes of an American cowboy and a Japanese samurai represent the qualities of organizational loyalty and competitiveness, respectively.

Answer 1

False
Explanation: The images of John Wayne, the cowboy, and the samurai, the fierce warrior, often are used as cultural stereotypes in discussions of international business negotiations. Such representations almost always convey a grain of truth-an American cowboy kind of competitiveness versus a samurai kind of organizational (company) loyalty.

Question 2

Age and experience are known to affect the negotiation behaviors of individuals.

Answer 2

True
Explanation: Age and experience can make important differences in terms of negotiation behaviors. For example, an older Chinese executive with no experience dealing with foreigners is likely to behave quite differently from her young assistant with undergraduate and MBA degrees from American universities.

Question 3

According to the text, the verbal bargaining behaviors used by the negotiators has proved to be disparate across cultures.

Answer 3

False
Explanation: In a study, the verbal behaviors of negotiators in 15 of the 21 cultures (six negotiators in each of the 15 groups) were videotaped. The verbal bargaining behaviors used by the negotiators during the simulations proved to be surprisingly similar across cultures. Negotiations in all 15 cultures studied were composed primarily of information-exchange tactics-questions and self- disclosures.

Question 4

The Western holistic approach and the Eastern sequential approach to problem-solving and decision-making do not mix well.

Question 5

Looking broadly across the several cultures, it can be observed that regional observations are very often not correct.

Question 6

Cultural differences in nonverbal behaviors are almost always hidden below our awareness.

Question 7

The concepts of objectivity and meritoriousness form the basis of commercial interactions in countries such as China, Mexico, Spain, and the Philippines.

Question 8

Consistent with most descriptions of Japanese negotiation behavior, studies have found that their style of interaction is among the most aggressive.

Question 9

In most places in the world, particularly in collectivistic, high-context cultures, personalities and substance are not separate issues and cannot be made so.

Question 10

The most common complaint heard from American managers regards foreign clients and partners breaking into side conversations in their native languages.

Question 11

Speaking only English is more of a disadvantage in international business than it is an advantage to be bilingual.

Question 12

Increased talk among foreign negotiators in their own language can be a signal of progress in a negotiation.

Question 13

The egalitarian values of American society dictate that American sellers give complete deference to the needs and wishes of the buyers.

Question 14

The negotiator's primary job is orating effectively to convince opposing negotiators of the benefits of doing business with his/her organization.

Question 15

On almost every dimension of negotiation style considered, Americans tend to be on or near the end of the scale.

Question 16

The British, German, and American groups are found to fall in the middle of most scale for dimensions of negotiating behaviors.

Question 17

The Japanese tend to emphasize on hierarchical relationships which results in hampered internal communications.

Question 18

The variation across cultures is greater when comparing linguistic aspects of language and nonverbal behaviors than when the verbal content of negotiations is considered.

Question 19

The cultural differences in the perception of business roles of women imply that gender should be used as a selection criterion for international negotiation teams.

Question 20

Disagreements among foreign team members, in the form of side conversations, are often followed by concessions to the other negotiating party.

Question 21

In most countries, other than the U.S. and particularly the relationship-oriented ones, legal systems are not depended upon to settle disputes.

Question 22

The data from Exhibit 19.1 shows that Spaniards used the highest percentage of commands of any of the groups. Which of the following behaviors of the Spaniards reinforces the view of the Spanish approach to negotiations?

A) Extensive use of silent periods
B) Highest incidence of touching another negotiator
C) Greeting callers with "diga" (speak)
D) Shunning eye contact with others
E) Wishing others with a "hola" or "bueno"

Question 23

Which of the following alternatives represents a possible purpose or cause of side conversations among foreign negotiators in their native languages?

A) Stalling the negotiations
B) Internal disagreement
C) Diversionary tactics
D) Telling secrets
E) Gesture of disapproval

Question 24

Which of the following is the most common complaint heard from American managers in terms of business negotiation behaviors?

A) The insistence on exchanging business cards to establish the rank of the negotiators
B) The overt emphasis laid on punctuality and tendency to waste time
C) The lack of feedback, positive as well as negative, regarding the negotiations
D) Foreign clients and partners breaking into side conversations in their native languages
E) Frequent instances of facial gazing and touching that distract their counterparts

Question 25

At which of the following levels do cultural differences cause problems in international business negotiations?

A) Economy
B) Values
C) Leadership
D) Motivation
E) Resources

Question 26

Which of the following would be the most accurate description of the Japanese negotiation style in international commerce?

A) Very informative, yet aggressive
B) Highly bottom-line oriented and verbose
C) Friendly and information-oriented
D) Poker-faced and aggressive
E) Polite and committed

Question 27

Which of the following groups of negotiators was found to have the most aggressive style of all groups, according to Exhibits 19.1 and 19.2?

A) The Spaniards
B) The Israelis
C) The Americans
D) The Koreans
E) The French

Question 28

Businesspeople in Hong Kong tend to negotiate more competitively when using e-mail than in face-to-face settings.

Question 29

Labeling Americans "cowboys" and associating the Japanese with the image of a samurai warrior are examples of:

A) national symbols.
B) linguistic identifiers.
C) social hierarchy.
D) racial discrimination.
E) cultural stereotypes.

Question 30

A thorough preliminary research eliminates the need for negotiators to make a list of key facts to reconfirm at the negotiation table.

Question 31

On a tour to Australia in 1992, George Bush Sr. flashed the victory sign at the Australian public, with the palm facing inwards, which was considered a rude gesture. This is an example of cultural differences causing problems at the level of:

A) thinking processes.
B) values.
C) language.
D) nonverbal behaviors.
E) decision-making processes.

Question 32

Which of the following groups of negotiators are considered the most reticent about giving information about themselves?

A) Israelis
B) Japanese
C) Germans
D) Americans
E) Chinese

Question 33

Looking broadly across several cultures, two important lessons with respect to negotiation standout. One of those lessons is that:

A) regional generalizations very often are not correct.
B) the Japanese tend to be on the middle of the scale on almost every dimension of negotiation style.
C) national stereotypes tend to closely reflect the reality, more often than not.
D) On almost every dimension of negotiation style considered, the Japanese are on or near the end of the scale.
E) Asian negotiation styles tend to be collectively similar across all dimensions.

Question 34

Using multiple communication channels during presentations-writing, exhibits, speaking, repetition-works to increase the errors and fosters miscommunication.

Question 35

The negotiation style of the Russians is found to be the most similar to that of:

A) the Germans.
B) the Japanese.
C) the British.
D) the Koreans.
E) the Israelis.

Question 36

The first stage of the business negotiation process involves the parties' attempts to modify one another's needs and preferences through the use of various persuasive tactics.

Question 37

Which of the following images is a cultural stereotype attributed to American negotiators by foreign business negotiators?

A) The cowboy
B) The suave, smooth-talker
C) The pretentious connoisseur
D) The "stiff upper lip"
E) The unpunctual, bungling fool

Question 38

In international business, global marketing strategies are almost always implemented through _____ with business partners.

A) video-conferencing
B) face-to-face negotiations
C) online collaborations
D) international treaties
E) memoranda of cooperation

Question 39

What nonverbal behavior of the Israeli negotiators is most likely to be blamed for American negotiators using the "pushy" stereotype to describe their Israeli counterparts?

A) They interrupt one another more frequently than any other group
B) They used the lowest percentage of self-disclosures
C) They used the highest percentages of promises and recommendations
D) They used the second-highest percentages of threats and warnings
E) They used a higher percentage of commands than any other group

Question 40

Which of the following statements regarding national stereotypes is true?

A) The best negotiators are the Japanese because they will spend days trying to get to know their opponents.
B) The John Wayne, the cowboy-stereotype reflects the organizational loyalty of the Americans.
C) Negotiations are conducted between people, rather than stereotypes.
D) The worst negotiators are Americans because they think everything works in foreign countries as it does in the USA.
E) The fierce, samurai-warrior image of the Japanese embodies their brand of competitiveness.

Question 41

Which of the following factors often gets in the way of American team negotiations?

A) A cultural heritage of interdependence and collectivism
B) Emphasis on careful note taking and training via observation
C) Compensation schemes overly emphasizing individual performance
D) Preference for split commissions for negotiation teams
E) Strictly hierarchical structure of American organizations

Question 42

In studies conducted at Ford Motor Company and AT&T, three additional traits were found to be important predictors of negotiator success with international clients and partners. One of these was:

A) ability to function without team assistance.
B) influence at headquarters.
C) appreciation of external factors in negotiations.
D) ability to command attention from an audience.
E) willingness to take copious and meticulous notes on the process.

Question 43

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

A) A business negotiation is a time 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) The business issues are akin to the journey, and resolving them is to reach the destination, with the journey being more important than the destination.
E) Interpersonal and inter-organizational bonds take precedence over the bottom-line in business negotiations.

Question 44

Which of the following is the first step towards 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) Appropriate follow-up procedures and practices

Question 45

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

A) American sellers tend to treat American buyers more 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.

Question 46

According to the text, 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) competitiveness
C) individualism
D) fairness
E) morality

Question 47

The single most important activity of negotiations is ____.

A) oration
B) listening
C) presentation
D) etiquette
E) self-disclosure

Question 48

Which of the following can be considered as a signal of progress in a business negotiation with foreigners?

A) Questions beginning to focus on general areas of the deal
B) A hardening of attitudes and positions on some of the issues
C) Lower incidences of talk among themselves in their own language
D) Higher-level foreigners being included in the discussions
E) Use of the higher-level and formal channels of communication

Question 49

Which negotiation tactic, according to foreign negotiators, is the most useful 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) Making them wait

Question 50

Phil, a buyer for a chain of departmental stores in the U.S., and his team are engaged in negotiations with a Brazilian supplier. Which of the following signals would indicate that Phil's team has been making progress in the negotiations with the Brazilians?

A) Lowered bargaining by the Brazilians
B) Including executives of lower rank than those present, to continue the discussions
C) A noticeable decrease in instances of private conversations among the Brazilians
D) Questions that focus on the more general areas of the deal
E) Taking more time to discuss particular issues

Question 51

In Japanese business organizations, subordinates are often hesitant to pass along bad news to their superiors. This lack of internal communications can be attributed to:

A) the inherently shy nature of Japanese people.
B) the Japanese emphasis on hierarchical relationships.
C) the practice of omerta or solemn oath-taking.
D) the insistence on solving problems at the point of origin and not escalating them.
E) Quanxi, the Japanese practice of personal connections.

Question 52

Which of the following factors is responsible for global business successes?

A) Standardization of negotiation procedures
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) Increased use of technology in all areas related to business negotiations

Question 53

In relationship-oriented cultures, ____ speaks quite loudly in both persuasion and the demonstration of interest in the business relationship.

A) bottom line
B) profit
C) team strength
D) secrecy
E) rank

Question 54

Which of the following is one of the offshoots of the sequential approach of Westerners to complex negotiation tasks?

A) The Western sequential approach and the Eastern holistic approach are found to dovetail each other perfectly, reflecting the success in global trade.
B) Americans often make unnecessary concessions right before agreements are announced by the Japanese.
C) All the issues are discussed at once, in no apparent order, and concessions are made on all issues at the end of the discussion.
D) American managers find it easier 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.

Question 55

Which of the following statements is true regarding 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 give up larger concessions during complex negotiation tasks at the end of discussion.
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 are found to dovetail each other perfectly, reflecting the success in global trade.

Question 56

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

A) American business is the hotbed of nepotism.
B) Americans do not play favorites.
C) People count for more than economics and performance in business.
D) Americans have little regard for decisions based upon the bottom line.
E) American business is heavily skewed against meritocracy.

Question 57

Which of the following forms the basis of commercial interactions in countries such as China, Spain, Mexico, and the Philippines?

A) Objectivity
B) Focus on bottom line
C) International cooperation
D) Corporate social responsibility
E) Long-term reciprocity

Question 58

Americans often make the mistake of going it alone against a greater number of foreigners in business negotiations. What cultural heritage of Americans can this behavior be attributed to?

A) Collectivism
B) Chivalry
C) Information-orientation
D) Pragmatism
E) Independence

Question 59

What approach is adopted by Westerners when faced with a complex negotiation task?

A) Dividing the large task into a series of smaller tasks
B) Consulting external experts for their assessment of the task and implementing a composite solution
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, having gained a ringside view of the problem at hand

Question 60

Which of the following traits is important for marketing executives involved in international negotiations?

A) Optimism
B) Altruism
C) Nihilism
D) Dogmatism
E) Nepotism

Question 61

According to the text, which of the following areas is found to be lacking in the curriculum of most schools of diplomacy?

A) Language skills
B) Diplomatic history and international relations
C) Foreign policies
D) Social and diplomatic skills
E) Cultural differences in negotiation styles

Question 62

Even small companies can possess great power in negotiations if they have:

A) influence at headquarters.
B) a larger negotiating team.
C) less to lose and more to gain from the deal.
D) more good alternatives than their larger counterparts.
E) the advantage of location, time limits, and communications channels.

Question 63

According to the text, which of the following methods is the most efficient way to communicate with clients and partners in places like Mexico, Malaysia, and China?

A) Conversations over long dinners
B) Negotiations carried out through video-conferencing
C) Conversations over the telephone
D) Negotiations through electronic mail
E) Negotiations between lower- to mid-ranking executives

Question 64

The negotiator's primary job is collecting information with the goal of enhancing creativity. In a business negotiation, this may mean:

A) appointing different members of the team to provide self-disclosures and appropriate replies to queries.
B) bringing along junior executives for the purpose of training through observation and participation.
C) providing additional information to the other party when a silent period occurs.
D) delegating the responsibility of taking notes to a team member.
E) including higher-rank executives and using informal channels of communication.

Question 65

An American buyer is negotiating with a British supplier for the purchase of raw materials for production of heavy machinery in the U.S. Before exchanging any information pertaining to the business of the meeting, he spends a few minutes talking to the British negotiator on topics such as World Cup soccer, the recently concluded general elections, and the fickle English weather. The American buyer is engaging in:

A) persuasion.
B) nontask sounding.
C) setting an agenda.
D) assessment of business terms.
E) appraisal of current affairs.

Question 66

Which of the following statements on roles of men and women in international business negotiations is true?

A) In general, women are more comfortable speaking up in a meeting to maintain intimacy with their foreign counterparts.
B) Men are more comfortable talking one-on-one than women, owing to the social stigma associated with such practices.
C) American women's negotiation style is a lot closer to the Japanese style than to American men's.
D) In countries where women do not participate in management, American female negotiators are treated as incompetent first.
E) It is not particularly important for female executives to establish personal rapport at restaurants and other informal settings.

Question 67

Which of the following is one of the items on the checklist recommended by the text to ensure proper preparation and planning for international negotiations?

A) Facts to confirm prior to the negotiation
B) Concession strategies
C) Nontask sounding
D) Facts to confirm after the negotiation
E) Task-related exchange of information

Question 68

According to the text, at least seven aspects of the negotiation setting should be manipulated ahead time if possible. Which of the following is NOT one of them?

A) Location
B) Compensation schemes
C) Number of parties
D) Communications channels
E) Number of participants

Question 69

In which of the following aspects do the approaches of Americans and Japanese differ in terms of nontask sounding?

A) Topic of discussion
B) Determining the trustworthiness of the client
C) Learning about the culture of the client
D) Duration of the process
E) Goals and objectives

Question 70

Which of the following statements regarding the participants in a negotiation is true?

A) Russians prefer to talk to everyone separately, then, once everyone agrees, to schedule inclusive meetings.
B) Japanese tend toward a cumulative approach, meeting with one party and reaching an agreement, then both parties calling on a third party.
C) The social reality is that a superlative argument can exercise greater influence than even a larger number of nodding heads.
D) Americans tend to want to get everyone together to "hammer out an agreement" even if opinions and positions are divergent.
E) Japanese tend to eschew the practice of higher level executives being included in negotiation to indicate interest in the deal.

Question 71

According to the text, what skills are at the top of almost everyone's list of negotiator traits?

A) Preparation and planning
B) Observational and oratory
C) Linguistic and social
D) Persuasion and intellectual
E) Informational and interpretation

Question 72

Which of the following is one of the possible objectives of engaging in nontask sounding?

A) Determining if a client's attention is focused on business
B) Obtaining negative feedback on information supplied
C) "Draining" information from one's negotiation counterparts
D) Gathering personal data about the other side to leverage in discussions
E) Providing clients with more information

Question 73

What is the importance of bringing along a senior executive to a business negotiation?

A) Influence at headquarters is crucial to success
B) Indicating the flexible position of the organization
C) Focusing on the specific and technical details of the deal
D) Collecting information with the goal of enhancing creativity
E) A larger number of nodding heads can exercise greater influence than even the best arguments

Question 74

Which of the following aspects is an important consideration in setting negotiations as it may eventually determine legal jurisdiction if disputes arise?

A) Time limits
B) Communications channels
C) Number of participants
D) Physical arrangements
E) Location

Question 75

_____ includes all those activities that might be described as establishing rapport or getting to know one another, but it does not include information related to the "business" of the meeting.

A) Persuasion
B) Concession
C) Negotiation setting
D) Dataflow
E) Nontask sounding

Question 76

Which of the following aspects of international business negotiations is considered to be the most difficult, according to the text?

A) Agreeing on the number of participants in the negotiation
B) Finding the best alternative to a negotiated agreement
C) Conduct of the face-to-face meeting
D) Deciding on the location and physical arrangements
E) Selection of the appropriate negotiation team

Question 77

"Draining" information from one's negotiation counterparts is considered an excellent negotiation tactic. But the oft-reported behaviors of Chinese, Japanese, and Russians may not necessarily represent a sophisticated negotiation ploy. What nonverbal behavior specific to the negotiation styles of these cultures might explain the above statements?

A) High incidences of conversational overlaps
B) Longer durations of facial glazing
C) Frequent silent periods
D) High rates of self-disclosures
E) Greater use of normative appeals and commands

Question 78

According to the text, _____ should not be used as a selection criterion for international negotiation teams.

A) stamina
B) listening skills
C) education
D) rank
E) gender

Question 79

The _____ notion relates to how power in negotiations is best measured.

A) what you see is what you get
B) ombudsman for international business negotiation
C) best alternative to a negotiated agreement
D) failure to build from source
E) general purpose standard for business hierarchy

Question 80

In countries where women do not participate in management, American female negotiators are first treated as ____.

A) distractions
B) ignorant
C) incompetent
D) foreigners
E) inexperienced