Theme 2: Global integration Processes
How to negotiate?
● Separate the people from the problem
● Define your BATNA (best alternative to a negotiated
agreement) up front
● Focus on interests, not positions
“I find that when managers from different parts of the world
negotiate they often misread signals, reach erroneous
conclusions and act in ways that thwart their ultimate goals”
Cultures can be distinguished between emotional
expressiveness and confrontational
Discussion case: Meyer (2015) - Getting to si, ja, oui, hai, and da
Main idea: There are five rules of thumb for negotiating with someone whose culture style or
communication differs from yours
HBR Business case
1. Adapt the way you express disagreement
● Upgraders vs downgraders
2. Know when to bottle it up or let it all pour out
● Silence translated differently
3. Learn how the other culture builds trust
● Affective trust → Emotions
4. Avoid Yes-or-No questions
● What means yes in one context means no in another
5. Be careful about putting it in writing
● May be offensive, commitment more important than legally binding
Hofstede's cultural dimensions
Limitations:
- Generalizes stereotypes
How do cultural expectations affect the
negotiation?
1. Respect for hierarchy?
2. Gender issues in MAS societies
3. Rely on contracts or trust in
relations-based countries?
● What about multinational teams?
● Things to avoid?
, Globalization
→ Increasing integration of economies around the world, particularly through the movement
of goods, services and capital across borders. The term sometimes also refers to the
movement of people (labor) and knowledge (technology) across international borders. There
are also broader cultural, political and environmental dimensions of globalization
4 aspects:
1. Trade and Transactions
2. Capital and investments movements
3. Migration and movements of people
4. Dissemination of Knowledge
First age of globalization
● The 1870s to the beginning of the first world war is commonly referred to as the first
golden age of globalization → Post industrialization age and technology encouraged
the movement of people, capital and goods.
Garrett (2000) - The Causes of Globalization
Main Idea: The world is becoming increasingly globalized due to several trends in society,
economics and politics
3 trends that drive globalization:
1. Technological innovation → lowering costs of moving goods and more notably
information around the world
2. Growing international economic activity
3. Liberalization of foreign economic policies → Reducing trade tariffs and
barriers
Economic Dimension of Globalization
How to negotiate?
● Separate the people from the problem
● Define your BATNA (best alternative to a negotiated
agreement) up front
● Focus on interests, not positions
“I find that when managers from different parts of the world
negotiate they often misread signals, reach erroneous
conclusions and act in ways that thwart their ultimate goals”
Cultures can be distinguished between emotional
expressiveness and confrontational
Discussion case: Meyer (2015) - Getting to si, ja, oui, hai, and da
Main idea: There are five rules of thumb for negotiating with someone whose culture style or
communication differs from yours
HBR Business case
1. Adapt the way you express disagreement
● Upgraders vs downgraders
2. Know when to bottle it up or let it all pour out
● Silence translated differently
3. Learn how the other culture builds trust
● Affective trust → Emotions
4. Avoid Yes-or-No questions
● What means yes in one context means no in another
5. Be careful about putting it in writing
● May be offensive, commitment more important than legally binding
Hofstede's cultural dimensions
Limitations:
- Generalizes stereotypes
How do cultural expectations affect the
negotiation?
1. Respect for hierarchy?
2. Gender issues in MAS societies
3. Rely on contracts or trust in
relations-based countries?
● What about multinational teams?
● Things to avoid?
, Globalization
→ Increasing integration of economies around the world, particularly through the movement
of goods, services and capital across borders. The term sometimes also refers to the
movement of people (labor) and knowledge (technology) across international borders. There
are also broader cultural, political and environmental dimensions of globalization
4 aspects:
1. Trade and Transactions
2. Capital and investments movements
3. Migration and movements of people
4. Dissemination of Knowledge
First age of globalization
● The 1870s to the beginning of the first world war is commonly referred to as the first
golden age of globalization → Post industrialization age and technology encouraged
the movement of people, capital and goods.
Garrett (2000) - The Causes of Globalization
Main Idea: The world is becoming increasingly globalized due to several trends in society,
economics and politics
3 trends that drive globalization:
1. Technological innovation → lowering costs of moving goods and more notably
information around the world
2. Growing international economic activity
3. Liberalization of foreign economic policies → Reducing trade tariffs and
barriers
Economic Dimension of Globalization
