INDEPENDENT UNIVERSITY, BANGLADESH

DEPARTMENT OF INTERNATIONAL BUSINESS

INB403
Negotiation and Diplomacy
Section: 02
Submitted To: Dr. Safayet Rahman
School of Business
Date of Submission: 24th August 2021
Submitted by:
Name ID Country
Nafees Hasan Chowdhury 1830143 China
Mobassir Ahmed Sazid 1830278 Italy
Shirshendu Dey 1710850 Sri Lanka
Nahiduzzaman 1720244 India
Ayon Saha 1730994 Japan

We have worked with Mode of Export for all the countries.

Table of Contents
CHINA..........................................................................................................................................................3
Introduction.............................................................................................................................................3
The Chinese view of negotiation.............................................................................................................3
Know the context of the deal..................................................................................................................4
Know your partner..................................................................................................................................4
Know yourself..........................................................................................................................................5
Put relative strengths and weaknesses in context...................................................................................5
Strive for operational readiness..............................................................................................................6
Comparing negotiations patterns of export modes of China with USA...................................................6
ITALY............................................................................................................................................................7
Introduction:............................................................................................................................................7
Culture:....................................................................................................................................................8
Business Meeting Planning:.....................................................................................................................8
Negotiation process in Italy:....................................................................................................................9
Comparing negotiations patterns of export modes of Italy with Japan...................................................9
SRILANKA...................................................................................................................................................11
INTRODUCTION:....................................................................................................................................11
SRILANKAN CULTURE:............................................................................................................................11
Negotiations stages of Sri Lanka............................................................................................................13
Comparing negotiations patterns of export modes of Sri Lanka with USA............................................14
INDIA.........................................................................................................................................................15
Introduction...........................................................................................................................................15
Relationships and Respect.....................................................................................................................15
Communication.....................................................................................................................................16
Initial Contacts and Meetings................................................................................................................16
Comparing negotiations patterns of export modes of India with USA...................................................19
Japan.........................................................................................................................................................19
Cultural value of Japanese.....................................................................................................................19
JAPANESE NEGOTIATION STYLE.............................................................................................................20
Comparing negotiations patterns of export modes of Japan with the USA...........................................22
References.................................................................................................................................................22
 CHINA

Introduction
Business negotiations are growing increasingly complicated and can take on a variety of forms.
The evolution of many negotiating models across time was examined in order to identify the
most recent successful ones. Case studies of high-level commercial discussions in China were
examined to uncover important megatrends and takeaways. According to the findings, there
are many parallels between Chinese and foreign business negotiations, but there are also
significant Chinese differences. Prior to the commencement of talks, both parties usually do
thorough preparations and competition analysis. To establish excellent guanxi and easy
negotiations in China, certain negotiation practices and norms must be followed. It is critical to
follow the fundamental principles of equality and mutual benefit in order to accomplish win-
win agreements at the end of the day.

China's trade reforms began in 1978, and the country has worked to enhance export volumes
by introducing export-oriented, foreign-invested companies. Meanwhile, China has improved
the competitiveness of its manufacturing industry exports by reforming its national economic
structure. As a result, China's international trade volume has increased dramatically.

The Chinese view of negotiation

Tan pan is a Chinese term that combines the characters for "to talk" and "to judge."
Negotiation, from a Chinese perspective, serves largely as a means of establishing confidence
between two parties so that they can collaborate for mutual gain. Trust is developed via
discussion in which one side judges or evaluates the other's skills and assesses their relative
standing. The negotiating process also allows parties to come to an agreement on a specific
problem, condition, or transaction in a way that makes each party feel like they received a
"good deal”. But rather than crafting a one-time agreement, the notion of negotiation is based
on establishing a framework for long-term cooperation and problem-solving.

As a result, in China, negotiation is seen as a continuous, dynamic process that considers

practical considerations and environment. Many Chinese prefer this method over establishing
contract-based absolutes, which they believe is the fundamental goal of Western-style
negotiations. Significant disparities in negotiation technique and culture might lead to mutually
negative views. Americans may regard Chinese negotiators as inefficient, imprecise, and
perhaps dishonest, whereas Chinese negotiators see Americans as impersonal, impetuous, and
excessively focused on short-term benefits.
Task-based, time-conscious Western partners must balance the need for rapid resolution on
particular issues and contract conditions with the slower-paced and seemingly abstract
construction of interpersonal connections while adjusting to Chinese-style negotiations.
Understanding and adapting the Chinese-style approach in order to develop a strategy plan that
works on a local level is essential to competing effectively inside a Chinese negotiating
environment.

The goal of strategic negotiation preparation is to acquire insight into the negotiating partner's
circumstances, intent, and skills, as well as to suggest topics of conversation that should be
prioritized. This takes time and effort, but careful planning will aid a firm in determining the
appropriate approach to the table, improving the chances of a successful negotiation and long-
term commercial relationship. The following are the five most important success variables to
consider:

Know the context of the deal

It's crucial to understand the circumstances and context in which business is conducted.
Because the corporate environment in China differs from what Western executives are used to
or expect, investing resources in comprehensive due diligence is frequently a good investment.

Foreign partners in China usually expect foreign parties to understand and work within the local
context, so having easy access to local data and insights is critical before sitting down at the
negotiating table. By understanding what questions to ask before and during the negotiation,
local personnel, local connections, and external consultants may give pre-negotiating
assistance. In the context of the local business environment, they may also analyze and assess
the responses obtained. In the perspective of the Chinese partner, a foreign partner who is
informed about the local situation and conditions is more credible and will develop confidence.

Western businesses sometimes misjudge the degree to which government and business are
intertwined in China, as an illustration of the significance of context. Due to a lack of
understanding about Chinese industrial strategy, government laws, and important government
and corporate players at the national, provincial, and local levels, the wrong strategic approach
to talks might be taken. If, for example, international business goals clash with local
instructions, efforts to reach an agreement with the Chinese partner may delay or stop without
the foreign company realizing it. Companies can position themselves to obtain the greatest
potential outcome if they have appropriate understanding about the business context.

Know your partner

Foreign firms must get to know potential Chinese partners on a human and organizational level,
confirming trustworthiness by looking at past performance and understanding the Chinese
partners' goals for engaging into a commercial relationship. Too often, rather than a systematic
screening procedure, partners are picked only on the basis of English-language competence or
during a chance meeting. Two criteria for effective negotiations and a long-term commercial
collaboration are having a reputable local partner and being closely aligned on shared aims.

Due to a lack of organizational transparency in China, it is important for firms to invest time
upfront learning about their competitors, particularly in areas like ownership structure, income
sources, and capital asset and operations finance. Before engaging in talks, companies should
ensure that there is a solid foundation for long-term success.

In one instance, partners reached an agreement to buy a product that needed export
permissions. The foreign partner engaged into a purchase agreement only to learn later that
the Chinese firm lacked the requisite export permits and was not permitted to get them. A
more thorough examination of a partner's skills can decrease the danger of signing a contract
that subsequently needs to be fully renegotiated and reformed.

Know yourself
Understanding one's spouse goes hand in hand with knowing oneself. Self-awareness helps one
to know how to effectively prepare for negotiating in China on a personal level. On a company
level, internal pre-negotiation posture is driven by clarity regarding high-level objectives,
resource commitment, and managerial support for business in China. This, in turn, aids the firm
in preparing opening remarks to Chinese partners about its past, dedication, track record, and
value—the “big picture” tale that is customary in the early stages of Chinese-style talks.
Knowing how to place the foreign company's pitch in the local Chinese business environment is
critical to the efficacy of this strategy.

A Western executive new to negotiating in China was discussing a commercial endeavor with
his company's long-term China partners as an example of what not to do. When questioned
about the impact of a recent US court judgment on corporate ties with a domestic regulatory
body, the foreign executive dismissed it as immaterial to the business at hand. The new boss,
on the other hand, lost credibility by looking either unaware of “big picture” issues that
affected his own business or hesitant to share expertise with trusted partners. As a result, the
Chinese side was less open and trusting, and business volume was far lower than the Western
corporation had anticipated.

Put relative strengths and weaknesses in context

To create a negotiating strategy, a company must first get to know itself and its Chinese
counterpart. Then it must analyze the relative strengths and weaknesses of each side within the
commercial environment. In terms of both pricing and non-monetary value, the firm must also
evaluate its strengths and limitations in comparison to prospective rivals.
For example, the Chinese partner is likely to rank possible partners against one another during
talks and is frequently fairly upfront about it. It is very unusual for a Chinese partner to claim
that the foreign company's direct competitor offers significantly better price. Prepare to
emphasize product values and business comparisons in areas like as brand awareness, quality,
service, and general perception in China to reduce the focus and debate on pricing.

Strive for operational readiness

Operational preparedness entails aligning internal organizational resources in order to
negotiate in a Chinese-style manner. The establishment of a highly disciplined, coherent
negotiation team that follows a unified communication plan is the most crucial step.

A cultural interpreter is different from a verbal interpreter in that he or she gives insight into
nonverbal developments, cultural variables, and outside influences that the foreign party may
not be aware of. Because of the “big picture” and highly contextual character of Chinese-style
talks, Western negotiators are typically at a disadvantage during operational preparedness
planning if they lack this capacity.

Finally, organizations should not overlook the function of the team's mediator. Because of the
Chinese tendency to avoid direct confrontation and personal humiliation, having someone who
can communicate informally with the Chinese team is essential.

Negotiation in the Chinese manner is the process of establishing and maintaining connections in
order to benefit both parties. It's a never-ending process that doesn't finish until the connection
is broken. This method of negotiating is based on Chinese cultural, historical, and practical
factors, and it is used in modern China.

Comparing negotiations patterns of export modes of China with USA

Export and import for China as USA being the largest importer from China with an amount of
more than 572 billion dollar and China importing over 172 billion dollars’ worth of products.

The Chinese Negotiator.

As previously said, the three cultural elements that are evident in Chinese culture lead the
Chinese negotiator. In their negotiations, the PRC situation, Confucian philosophy, and Sun Tzu
stratagems all play a role. These are fundamental principles that are significantly different from
what western negotiators are used with.

During discussions, the Chinese tend to ask a lot of questions and interrupt frequently. The
Chinese will frequently pay all of the deal's suspended items in a single transaction. They like to
make compromises only at the conclusion of the talks. Concessions for concessions are
expected in China. The Chinese will demand corresponding concessions over time, even if they
do not come immediately. Different forms of negotiations are used by the Chinese with
different types of businesses. These negotiating strategies are influenced by the sort of goods
being sold and the product's supply chain. Chinese people want to make their problems appear
to be more significant than those of Westerners. Almost often, the agreement or contract is
signed in front of a government official.

Cooperation, aggressiveness, defensiveness, flattery, recognizing the opponent's issues, deceit,

shaming, and putting foreign firms against one other are all tactics used by the Chinese to
control the American side. Long discussions on the side of the Chinese are a frequent technique
used by the Chinese to get concessions. They almost never provide any signals when the talks
are concluding. The Chinese have a proclivity for using delaying tactics. Before the government
official arrives, the Chinese will try to persuade you to make concessions and sign the deal.

The American Negotiator

The western negotiator prefers collaboration but also believes in competitiveness. Their
objective is to maximize shareholder value by generating economic riches. Although conflict
may briefly benefit the Americans, it will harm the essential human connections that bind more
tightly than any contract. These connections are required for the continuation of long-term
contracts as well as the formation of new ones.

Symbolic visits by senior executives from western companies, as well as dinners and informal
interactions, can help to establish confidence. Having Chinese delegates visit a western
company's home country can go a long way toward establishing confidence. Because the
intermediary is generally the one who initiates the contact and establishes all of the
connections, they must attend all of these occasions.

ITALY

Introduction:
Italy is a country located in southern Europe, consisting of a boot-shaped Italian peninsula and
several islands, including Sicily and Sardinia. Neighboring countries include Austria, France, the
Holy See, San Marino, Slovenia, and Switzerland. Italy has a strategic position occupying the
middle of the Mediterranean and is close to Western Europe through the Adriatic Sea. The
government is a republic, the head of state is the president, and the head of government is the
prime minister. Italy has a diversified industrial economy, which is divided into a developed
industrial north dominated by private enterprises and an underdeveloped and welfare-
dependent agricultural south. Italy is a member of the European Union (EU).
Italy has a diversified industrial economy the northern region is the industrial "engine" of the
Italian economy. The main industries are food, textiles, machinery, steel, clothing, footwear,
and ceramics. On the contrary, the prosperity of the southern region is much lower. There is a
clear economic gap between the north and the south. The economy is dominated by small
businesses dominated by agriculture and industry and tourism. The unemployment rate is very
high, especially among women and young people. The main products exported from the South
include engineering products, food, especially olive oil, wine, beverages, textiles and clothing,
production machinery, motor vehicles, transportation equipment, chemicals, minerals, and
non-ferrous metals.

Culture:
Italian business culture is highly relationship-centric - Italians are known for their family
conscience, and this approach has found its way into the business world. The ability to
communicate using the correct language and correct gestures is very important. 4,444 Italian
companies usually have a pyramid structure. The decision-making process is usually centralized
and the people at the top of the pyramid make the final decision. Smaller companies and
startups can also choose a flat hierarchy. In family businesses, even the largest family business,
decision-making power is concentrated in the hands of family members. Power and age are
respected.

Generally speaking, developing personal relationships is important for establishing lasting and
successful business relationships. Although he is always primarily interested in your products,
services or projects, personal relationships can play an important role in Italy. Therefore, always
abide by your verbal agreement: failure to comply with the promise may destroy the business
relationship.

Business Meeting Planning:

To overcome possible language barriers, the first method prefers written communication. In
this case, the fax or letter is adequate to express your thoughts and pave the way for
subsequent calls or visits. Wherever possible, introductions from people already in contact with
the company will be helpful. If you only have as a general reference of the company, you wish
to contact, your phone number must be that of the secretary. You can explain who you are and
why you contacted the company, check your previous fax, or email and provide the name of the
person you want to meet. The meeting is generally held at the company office after 10 am or
early afternoon (that is, 3 pm).

Negotiation process in Italy:

Negotiations are often slow, not only because Italians tend to carefully weigh the benefits and
risks, but also because the decision-making process of Italian companies is hierarchical. During
the negotiation process, you can contact and / or provide information to different people with
specific roles (technical, financial, market orientation), who have limited powers to make
decisions about the matters being negotiated. In most cases, they will report to their boss to
make specific decisions, which slows down the process. Due to the strict hierarchical
management structure, the final decision is made by the top management.

Management usually adopts short-term/medium-term plans and strategies that can be revised
or improved/adjusted repeatedly according to the current situation. This can also introduce
sudden changes in the negotiation process. In the negotiation process, the Italians value verbal
promises, and the final contract must be based on the previous informal agreement. Be patient,
even if work time is short, be sure to reserve time for your Italian partner. The sense of urgency
is often seen as an attempt to weaken the bargaining position. On the other hand, once an
agreement is reached, your Italian partner will firmly believe that he made the best decision.

During the Negotiation make sure to avoid conflict at all cost and you should focus on long term
commitments. The degree of information exchange depends on the strength of the
relationship. In the initial negotiations, the Italian can play cards close to the chest. Most
believe that sharing information is a way to build trust.

Comparing negotiations patterns of export modes of Italy with Japan

Exports are goods and services that are produced in one country and sold to buyers in another.
Exports, along with imports, make up international trade. In 2019, Italy exported $8.93B to
Japan. Therefore, the trading between Italy and Japan is at high volume. Hence as Italy try to
export to Japan, they need to learn the Japanese culture and their style of negotiation.

Italy’s main imports include minerals, non-ferrous metal minerals, transportation and energy
products, chemicals, as well as textiles, clothing, food, and beverages. Italy imports from Japan
were US$4.16 Billion during 2019. Hence, we can see a high volume of import is being by Italy
from Japan. Therefore, the Italians build a trusted relationship with them before negotiations
and adapt to their culture as well.

Italy will also have to follow traditional etiquettes such as exchanging gifts and business cards.
Conflicts could occur while negotiating the contract, thus they need to adapt to their norms and
values. Unlike in most countries in Europe Japanese tend to make decisions in groups.
Moreover, in terms of import as Italy is the buyer, they have more upper hand in the trade but
however as they share a positive relationship with Japan hence, they follow similar styles and
patterns which the Japanese do when negotiates with them.

Comparing negotiation patterns with Italy and Japan:

The Japanese negotiating style is often impersonal and emotional, but at the same time they
want to know, like and trust the people they do business with, they will have to try to negotiate
with facts and statistics, as well as personality and enthusiasm. So, if Italy wants to export to
Japan, they need to take these into consideration.

In their own society, Japanese executives know exactly how to address someone, depending on
their status or equality. Unless they are introduced correctly, the Japanese cannot define the
rank of strangers. The Japanese work in groups so they cannot provide any decision singularly
rather they have to consult with each other before that and the Japanese maintain politeness
at all times. Some of the Japanese negotiation patterns are:

 The person who contacted them first have to be present at all the meetings
 They negotiate in teams and do not make decisions alone, rather they consult with
everyone before making any decision. The team can be very strong, but no decision will
be made before going through the higher ups.
 During the negotiation a senior staff member will be present with them but will rarely
interact, the team members will also ask question based on their field of expertise.
 During the negotiation Japanese may go over the same information several time to
clarify their misunderstandings. Once the decision is made, they expect their partners to
take immediate actions.

Thus, because of the negotiation pattern between Italy and Japan are quite similar. They do not
make decisions hastily and has to go through a hierarchy to make decisions. They are quite
thorough with the negotiation. Hence as both the parties are friendlier and have the ability to
concession therefore it is more flexible in the negotiation table.
 SRILANKA

INTRODUCTION:
Sri Lanka is an island nation in the south Asia located in the Indian Ocean to the southwest of
the Bay of Bengal. As Sri Lanka is a developing country it is difficult for its negotiators to
negotiate with their counter parts that are representing the superpower countries (e.g., USA,
India, China etc.). As we know Sri Lanka is small nation with less global power so negotiating
with superpowers they will use different strategies, plans, etc. and while negotiating with third
world countries like Bangladesh, Nepal etc. they will use different plans accordingly.

SRILANKAN CULTURE:
Sri Lanka is consisting of mix culture. They have three main races: Sinhalese, Tamil & Muslims
who have their own culture. But however, there is some of the basic common culture in Sri
Lanka, which is dance, Tea etc.

On the other hand, the guests are also welcome by serving tea which is one of the actual
identities of Sri Lanka.

 Ceylon Tea: It is one of the recognized teas all over the world.

The negotiators of Sri Lanka take some culture as a part of the negotiation process. They are
given below:

1. Greeting: Greeting is a part of Sri Lankan Culture. So, during negotiation the
Sri Lankan diplomats greet their counter parts which give a positive response.
The oldest person in the negotiation table is expected to be greeted fast.
Different types of greeting by the Sri Lankan according to their race:

 Ayubowan: Sinhalese greeting

 Wanakkan: Tamil Greetings
 AssalamuWalaikum: Muslim Greeting

2. Time view: Time is viewed in a relaxed sense by most people in Sri Lanka.
During meetings or appointments, they are on time but however the Sri
Lankans have a habit of misusing time.

3. Communication Style: Even though there are two main languages in Sri
Lanka one good thing is majority of their population have the ability to speak
 English. So, during negotiation both parties don’t face any language problem.
The communication style of Sri Lankan tends to be very polite and flexible.
When speaking with about any topics they do not know well, they may tell
their counter parts what they want to hear to avoid conflict. In Sri Lankan’s
point of view, a saving face and being polite can lead them to answer yes
whether they mean this or not.

4. Sri Lanka Negotiators: Negotiators are the people who bargain against their
counter parts in favor of the decision. They are the main people during
negotiation no matters who control them. So basically, there are two types of
negotiators. Hard style negotiators are firm, intimidating, forbidding body
language and tend to say No to everything. Sri Lanka has an ability to use
these types of negotiators to negotiate when they the relative power. In
2016 there was an Indian Sri Lankan fishing dispute. The Sri Lankan blamed
the Indian fishing trawlers for taking two lakh kg of fish from the Sri Lankan
side of their boundary. As in this dispute Sri Lanka had the power in their
hand, they mostly use hard style negotiators. Soft style negotiators are
Polite, agreeable, bubbly and try to work with you. Sri Lanka used these
types of negotiators to negotiate when they have low relative power because
they want to have a positive relationship for better development, peace, and
economy in the future. For example: during Hambantota Port Agreement
with China, they used these types of negotiators.

5. Environment - Environment is most important aspect for Sri Lanka

negotiations. As they believe they always have an upper hand when the
negotiations takes place in Sri Lanka as they are friendly oriented therefore,
they promotes their culture but there are some common styles for meetings
and negotiation for Sri Lankans such as

 Sri Lankans enters the negotiations room according to the ranking. Therefore,
the highest ranking will be entering first
 Decisions are always made by top officials
 Communication takes place in local languages between themselves when they
see something different or difficult
 Negotiators are consistent of different ethnicity group such as Tamils and
Sinhalese.
Negotiations stages of Sri Lanka

 Pre-Negotiations Stages - Pre negotiations stages mainly emphasis on the first contact
between parties as parities began to understand each other with informal talk’s as a
result social informal relationship is built between negotiators. As Sri Lanka have a habit
of misusing the time, therefore they utilize these stages by developing informal talks
and aim to develop strong relationships between their counterparts to avoid further
problems as they believe in relationship orientation and always respect their
counterparts. Whenever the negotiations are taking place in Sri Lanka, they promote
their national identity which is Ceylon Tea by offering tea to their counterparts at the
beginning. Moreover, in these stages Sri Lankans try to identify the country’s ability and
resources and try to identify the pros and cons of their counterparts and started
developing strategies. Sri Lankans focus more on this stage as through informal meeting
they starts to begin their offers through long descriptions, clarification and indirect
makes their counterparts understand what they want.

 Face to Face negotiations - In this stage Sri Lankans tries to identify the common
interest between them and their counterparts. As they spend much time is in pre
negotiations level therefore little left in arguments as at initial level they clearly
describes what they wants and avoid step by step as while providing their proposal they
also try to persuade opponents at same time. Moreover, in this stage Sri Lanka always
tries to look who is the power holder for persuasive. If they believe they are having an
upper hand therefore no matters who are their counterparts, they always tries to stick
with what they want and try to bring out maximum benefits for themselves but
however if they believe if they have a low power therefore, they tries to charm with
lavish praise or flattering and emphasis on bringing out minimum benefits to satisfy but
this completely depends on the negotiations and it's issue and topic.

 Post Negotiations - Post Negotiations Stages mainly involves the agreement and
concessions. As it simply the contracts and language and believes both parties have
thoroughly understood what they have agreed. Like many Asian countries, Sri Lanka
focus on solving issues in one goes as they want the outcome in combined. For example,
the delivery time, delivery type, price etc. are agreed in one go rather than step by step.
As Sri Lankans believe avoiding. Conflicts therefore they always go for an overview and
summarize the whole negations and always looks for opportunities to increase their
 benefits. As Sri Lankans give priority of their languages therefore the agreement papers
must have their flag and logo of Buddha and if is not written they might look for back
out from the deal.

Comparing negotiations patterns of export modes of Sri Lanka with USA

The largest export partner of Sri Lanka is the USA. According to data of 2020, the total
export of Sri Lanka was around $13 billion out of which 26% of goods, commodities and
services were exported to USA. Thus, we can say USA plays an important role in Sri
Lankan economy. USA which is one of the largest and powerful economies in the world
is very much different and difficult to negotiate thus in order to attract USA buyers
planning, coordination, and strategy is very much important for Sri Lanka. The USA
negotiations style, culture and patterns are completely different from Sri Lanka.

As Sri Lanka always tries to develop friendly environment and build strong relationships
with its counterparts on the other hand USA tends to be very professional as they don't
believe in friendly environment as a result in the pre negotiations stages they relatively
takes shorter periods. Moreover, as Sri Lankans describe and give long descriptions on
the other hand USA gives information to the point and most important information
must have physical evidence. In face-to-face negotiations USA always tends to be very
aggressive as they always aims to a win in win situation as always looks for systematic
approach therefore in the post negotiations USA tends to do the concession and
agreement step by step which is completely different from Sri Lanka, and they believe in
a Concessions and agreement in on go. Hence after comparing these two countries
when can say the negotiations patterns in both countries is completely different but
despite the pattern and styles are different, Sri Lanka has successfully negotiated with
USA as in this negotiations Sri Lanka is a buyer and USA is a seller and moreover Sri
Lanka is a small island and 3rd world country. The Negotiations of Sri Lanka is successful
because they have the ability to adapt the environment as soon as possible and always
gives priority to USA (their seller). Sri Lankans, believe they have been successful in
negotiations with USA because of

 Outcome stakes - Sri Lankans always identify why this negotiation is important
for them and what will be the possibilities to have an upper hand. Therefore, if
they analysis they have a high chance of failing therefore they develop
contingency strategies by making the USA believe about their products and its
benefits to the USA citizens.
  Relative Power - Sri Lankans always knows, USA have the high relative power
hence they always use soft style negotiators to avoid conflict and uses emotional
intelligence to express the impact of Sri Lankan people and describe the
negative impact of Sri Lanka if the negotiations failed.

 Common interest - Sri Lankans always looks for common interest in the
negotiations table as USA is a buyer their main aims is ‘why will they buy these
products’ and ‘at what prices.’ Therefore, Sri Lanka focuses on products and
pricing and describes the positive outcomes of using their products, quality, and
efficiency.

Overall, we can say from these common techniques they have develop a strong positive
relationship with the USA as a result year by year USA is becoming a strong exporting
partner and looking for more interest in Sri Lankans culture and adapting their nature
and styles.

INDIA

Introduction
India's multi-ethnic population is made up of roughly 80% Hindus, 14% Muslims, and 6%
members of other ethnic groups. The oft-quoted caste system plays just a little influence in
Hindu commerce. Business culture may be extremely diverse, with major regional variances in
style. While Southern Indian businesses, particularly those in and around Bangalore and
Hyderabad, are innovative in certain respects, Southern Indians are generally more reserved
and traditional than there. Business practices may differ from those described in this section on
occasion. When doing business in this country, keep in mind that people want things to be done
‘their way.' The vast majority of Indians feel proud of their country's development,
accomplishments, and dynamism. Your partners like it when you recognize and respect this.

Relationships and Respect

India's culture is characterized by a strong sense of belonging to a community. Individual
preferences may be overlooked in favor of a sense of belonging to a group, adhering to its
standards, and preserving peace among its members. Building long-term, trustworthy personal
connections is thus crucial, but to a lesser extent than in some other Asian nations. While the
process of developing relationships continues, some Indians may participate in business.
Many Indian businesses are still run by families. Mutual trust and respect are the foundations of
relationships, which can take a long time to build. In this country, business ties occur at both
the individual and corporate levels. Indians like to do business with people they know and trust.
However, if your employer replaces you with someone else during the course of a negotiation,
your successor may find it quite easy to pick up where you left off. Similarly, if you introduce
someone from your firm into an established business connection, that person may be rapidly
regarded as a legitimate business partner if he or she invests time and attention in developing
those ties.

Communication
Despite the fact that Hindi is the official language of India, several of its states have their own
indigenous languages, some of which have more than one. Almost every businessperson is
fluent in English. Indians, particularly those in the southern and western areas of the nation,
typically talk in calm, mild tones unless they hold senior positions. They may even look bashful
at times. Do not misinterpret this as a lack of self-assurance. Their modesty and reserved
demeanor only serve to emphasize their civility and regard for others. Loud, boisterous conduct
is sometimes mistaken for a lack of self-control. Dishonesty is sometimes associated with
loudness. Positive feelings, on the other hand, can be expressed openly.

In India, gestures and body language are often far more comprehensive than in most other
Asian nations. Except for handshakes, avoid physical touch with other people. The left hand is
considered filthy by Hindus and Muslims, therefore only use it if absolutely necessary.

Initial Contacts and Meetings

It is very important to identify and employ a local intermediary before beginning business talks
in India, especially if you represent a small firm. This individual will assist in bridging the cultural
and communication divide, as well as navigating India's complex bureaucracy and obtaining the
requisite signatures and stamps. Individuals or teams of negotiators can undertake negotiations
in India. Teams should be well-coordinated, with duties clearly defined for each individual.
Schedule meetings at least four weeks in advance, if feasible.

Even if it isn't precisely followed, agreeing on an agenda ahead of time is beneficial. Despite the
fact that meetings may start late, Indians usually expect foreign guests to be on time. If you're
going to be late, don't be more than 10 to 15 minutes late. Being on time is preferable since
Indians are typically impressed by punctuality. Many Southern Indians do not use their
surnames as a surname.

Academic and professional titles are extremely significant to Indians, and they place a great
value on them. When addressing someone who carries one, always use them. Older folks
should be the first to be introduced and greeted. The initial meeting's major goal is to get to
know each other. Business can be discussed, but don't attempt to rush through your schedule.
It is typically not necessary to have your English-language handout materials translated into
Hindi or another Indian language.

Negotiation

 Attitudes and Styles - In India, distributive and contingency bargaining are the most
common approaches of negotiating. Despite the fact that the buyer is in a better
position, both parties in a business purchase are responsible for reaching an agreement.
They are looking for long-term commitments from their business partners and will
concentrate on the long-term advantages. Despite the fact that their primary
negotiating style is competitive, Indians cherish long-term relationships and seek win-
win outcomes. They may appear to be following a win-lose strategy on occasion, in
which case it is beneficial to assist them in focusing on mutual advantage.

 Sharing of Information - Before proceeding to the negotiating stage of a negotiation,

Indian negotiators would gather information and debate numerous aspects. In order to
develop confidence, people may be willing to disclose a lot of information. This isn't to
say that they'll tell you all you want to know throughout the discussion. However, if one
party appears to be withholding information from the other, discussions can become
very tough, leading to attempts to outwit each other.

 Pace of Negotiation- Expect a long and drawn-out bargaining process. Delays are almost
always unavoidable when dealing with government bureaucracy. Prepare to make many
visits if required to meet your goals. Be patient, manage your emotions, and understand
that delays will occur during the discussion. Indians consider impatience and pushiness
to be impolite

 Bargaining - Indian entrepreneurs are skilled negotiators who should not be overlooked.
Most of them like negotiating and haggling, albeit not to the extent that other Asians
do. A negotiation's negotiating stage might be lengthy. Between first bids and final
agreements, prices sometimes fluctuate by more than 40%. Technical help, training, and
other fees, on the other hand, may be major negotiating issues, and Indians remain
flexible throughout the negotiation process.

 Decision Making – The majority of businesses here are very hierarchical, and employees
expect to operate under well-defined lines of authority. Disagreeing with or criticizing
 superiors is frequently frowned upon. In India, making decisions is a lengthy and careful
process. Top executives are typically the ones who make decisions in the group's or
organization's best interests. Before deciding, they could confer with others. It's possible
that subordinates will be hesitant to take responsibility.

 Agreements and Contracts - Taking notes and sharing meeting summaries can help to
ensure that everyone is on the same page. Indians may express their approval by
making passionate remarks that use their own terminology. Interim agreements, even if
they are made orally, are regarded binding, and are typically followed. Nonetheless,
only a final contract signed by all parties should be considered a legally enforceable
agreement. Written contracts should be simple and straightforward, with few specific
terms and conditions. Signing the contract is crucial not just from a legal standpoint, but
also as a clear statement of intent from your Indian partners. In India, legal rights are
largely enforced, however the procedure might be lengthy and inconvenient. During the
negotiating process, or at the very least before signing a contract, you should consult a
local legal professional. It's better not to come out as excessively legalistic.

Comparing negotiations patterns of export modes of India with USA.

Negotiators in the United States have a particular approach: they are strong, clear, legalistic,
urgent, and results oriented. Despite the fact that these characteristics fluctuate depending on
people and situations, a distinctively pragmatic American style is always there, formed by
significant and long-lasting structural and cultural influences. The United States' status as the
world's leading power is one of the most significant structural effects. Because of the breadth
and depth of US global interests and influence, as well as the growing interconnections
between security, economic, environmental, and other problems, the US plays a dominant—
and often overwhelming—role in various negotiation venues. While American diplomats
portray themselves as strong but fair negotiators, most foreign practitioners perceive the US as
a hegemon that is more concerned in persuading, sermonizing, or browbeating negotiating
colleagues into accepting American stances. U.S. negotiators will use all available lines of
communication to encourage progress, including back channels and unofficial "track-two"
contacts, in order to accomplish outcomes. Nonetheless, the focus remains on protecting the
official, "track-one," channel's prerogatives.

U.S. goods and services trade with India totaled an estimated $146.1 billion. Exports were $58.6
billion; imports were $87.4 billion.
Tactics used by Indians while negotiating with the Americans.

• Emotional blackmail (outlined above under Attitudinal Bargaining).

• Use of silence to make you uncomfortable and to encourage you to break the silence by
talking.

• Stalling by revising areas or turning questions back on you.

• Placing potentially unreasonable time pressures on you.

• Placing no value on negotiation schedules.

• Being untransparent with certain areas in an attempt to draw out your weaknesses before
disclosing real issues.

• Revisiting issues that you had assumed were closed.

Japan

Introduction: The corporate culture is different from the public culture. When language
mother-tongues interact in real life, their labels and cooperative culture are developed. As
culture and language cannot be divided into business, it is not sufficient for foreigners to only
understand the wider culture of the destination language. In the building of languages, culture
has a significant influence. True, we also need to study the culture of the target language when
studying a language. While culture cannot explain all and the corporate world has a shared base
irrespective of culture, key features of Japanese cultural values lead to a negotiating discourse
that is different from the English one. The project's goal is to investigate how cultural and
linguistic differences influence the business conversations of American Japanese and how
foreign business classes can better educate them.

Cultural value of Japanese

VARIABLES JAPANESE
Nature Nature Harmony
Time
Past and long-time
future\sort orientation
 Action Doing and being part of
An organization
Communication High context
Space Public space
Power Hierarchy emphasis
Individualism Low individualism
Competitiveness Cooperative
Structure High structure
Formality Formal

In Japan as a country surrounded by an ocean, the Japanese place the greatest societal value on
harmony because of its geographical characteristics. Japan has the highest population in every
country on the world, which inevitably means that people have the closest population per
square foot, with a uniform society. It must be done harmoniously, or in other words, not to
distort the harmony of society by choosing an incorrect position towards others. For Japanese
people, it is necessary to play a part.

In order to maintain harmony, the Japanese try to avoid conflict between the parties. The
Japanese don't feel comfortable until their relative power is clear. In their limited contract
period, American CEOs are seeking to improve and maximize profits for their companies.
Japanese CEOs view companies as eternal and historical structures.

JAPANESE NEGOTIATION STYLE

The decision-making process in Japan is more group-oriented, with each group member
preferring a more passive method of decision-making. Group decision-makers attempt to avoid
making snap decisions, whereas Americans try to get to the point as quickly as possible. In
general, a negotiating process has four stages.:

1) non-task sounding.

2) Task-related exchange of information

3) Persuasion

4) Concessions and agreement.

The Japanese devote a great deal of time to stages one and two, there are so many people
living in such a small location in Japan, knowing the other side's negotiators is crucial. The
Japanese endeavor to learn as much as they can about the other negotiators before starting the
talks. While Americans know that an agreement is a deal and regard it as a firm commitment,
the Japanese regard a deal as an intention within the context of a long-term relationship, with
the relationship taking precedence over the terms of the deal. The Japanese, The Japanese do
not necessarily have to achieve an agreement at the end of a discussion. They may shift the
subject or overlook the issue if they are unable to reach an agreement. They don't want a
problem to disrupt their inter-personal relationship. It is more necessary to establish one's
place inside a group, as well as one's relationship with the opposing side of negotiators.

• Pre-Negotiations Stages -The first contact point among the parties, as they begin to
understand one another by way of informal discussions, is given strong emphasis during
negotiation phases and as a result the social informal relationship between negotiators is
established. As Japan is accustomed to using time correctly. The pressures on deadlines are at
stake. They need to refer the superiors or the head office frequently. And quickly feel
threatened or subjected to aggressive tactics and stress.

• Face to Face negotiations - The Japanese don't like showing power and trying, where that
happens, to avoid situations. The Japanese have developed a remarkable appeasement skill,
who do not like naked displays of power in business. The face must not be lost, and courtesy
must always be preserved. The Japanese must be polite to unbelievable lengths. They are
unwilling to say no. If the Japanese do not wish to conclude a deal with an external partner, no
negative answer shall be given. However, you will not be able to contact the company
afterwards. He or she will be sick, on holiday or at a funeral. With little power to change the
Japanese negotiators, there is little flexibility in their position, bringing their company's position
to the table. If you believe the conditions for the meeting have changed, you will cancel the
meeting. Style of negotiations is non-individualistic, impersonal, and unemotional (it is just
under the surface). You should like yourself and trust yourself wholeheartedly.

•Post Negotiations - In the post-negotiation phases, the agreement and concessions are the
focus. Since it's just the contracts and language, which both parties believe they fully
understood. After lock a deal with other parties is celebrated by Japanese negotiators.
Eventually, your decisions will be taken by consensus, so nobody will stick as a person. The
Japanese are willing to pass on the same information several times to avoid further
misunderstandings. You are careful, knowledgeable and will not get rushed in stalling tactics.
Never say no, never refute an argument entirely, and never break negotiations if harmony
prevails Japanese negotiators.

Comparing negotiations patterns of export modes of Japan with the USA

The United States is expected to make $252.2 billion in goods and services with Japan by 2020.
There were $102.1 billion in exports and $150.1 billion in imports. The US trade deficits with
Japan for goods and services were $48.0 billion in 2020.

Since Japan is always trying to develop a friendly environment and establish strong relations
with its counterparts, the US, however, tends to be professional because they do not believe in
a friendly atmosphere and are very much straight forward hence it takes relatively shorter
periods in the pre-negotiation stage. Moreover, the USA wants more precise information. On
the other side, Japan describes and provides long descriptions. The United States is always
highly aggressive in face-to-face negotiations, as always aiming to win in winning conditions as
it seeks systematic approach, so the USA tends to make the concession and agreement, which
differs entirely from Japan, gradually in post-negotiation negotiations, and it believes in benefits
and arrangements. Americans always looks for short term orientation, but Japanese looks
extended run orientation. On the other hand, Americans looks for individual achievement, but
Japanese looks for more collective and more benefits for the community.

Therefore, despite all these Japan has successfully negotiated with the United States and as the
negotiated pattern in these two countries is completely different but The Japanese negotiations
are successful because, as soon as possible, these can adapt the environment and manipulate
the Americans by making them realize about the importance of Japanese impact to the people
of USA.

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