How to negotiate anything with anyone anywhere around the world

How to Negotiate

Anything with

Anyone Anywhere

Around the World

Third Edition

.................16747$ $$FM 02-12-08 14:29:16 PS PAGE i

Also by Frank Acuff

Shake Hands with the Devil: How to Master Life’s Negotiations from Hell

.................16747$ $$FM 02-12-08 14:29:17 PS PAGE ii

American Management Association

New York • Atlanta • Brussels • Chicago • Mexico City • San Francisco

Shanghai • Tokyo • Toronto • Washington, D.C.

Third Edition

Frank L. Acuff

How to Negotiate

Anything with

Anyone Anywhere

Around the World

.................16747$ $$FM 02-12-08 14:29:17 PS PAGE iii

Special discounts on bulk quantities of AMACOM books are

available to corporations, professional associations, and other

organizations. For details, contact Special Sales Department,

AMACOM, a division of American Management Association, 1601

Broadway, New York, NY 10019.

Tel: 212-903-8316. Fax: 212-903-8083.

E-mail: [email protected]

Web site: www.amacombooks.org/go/specialsales

To view all AMACOM titles go to: www.amacombooks.org

This publication is designed to provide accurate and authoritative information in

regard to the subject matter covered. It is sold with the understanding that the

publisher is not engaged in rendering legal, accounting, or other professional

service. If legal advice or other expert assistance is required, the services of a

competent professional person should be sought.

Library of Congress Cataloging-in-Publication Data

Acuff, Frank L.

How to negotiate anything with anyone anywhere around the world / Frank L.

Acuff.—3rd ed.

p. cm.

Includes bibliographical references and index.

ISBN 978–0-8144–8066–3 (pbk.)

1. Negotiation in business. 2. International business enterprises—Management.

I. Title. II. Title: Negotiate anything with anyone anywhere around the world.

HD58.6.A27 2008

302.3—dc22 2007052599

2008 Frank L. Acuff

All rights reserved.

Printed in the United States of America.

This publication may not be reproduced, stored in a retrieval system, or transmitted

in whole or in part, in any form or by any means, electronic, mechanical,

photocopying, recording, or otherwise, without the prior written permission of

AMACOM, a division of American Management Association, 1601 Broadway, New

York, NY 10019.

Printing number

10 9 8 7 6 5 4 3 2 1

.................16747$ $$FM 02-12-08 14:29:17 PS PAGE iv

To my children,

Kristin and Ryan,

both tough negotiators

.................16747$ $$FM 02-12-08 14:29:17 PS PAGE v

PAGE vi

This page intentionally left blank

Contents

Preface ix

Acknowledgments xi

ONE: GLOBAL NEGOTIATING 1

1 Negotiating in Any Language: How Negotiations Work 5

TWO: HOW GLOBAL NEGOTIATIONS WORK 17

2 What Makes Global Negotiations Different? 21

3 Ten Powerful Strategies for Negotiating Around the World 39

4 The Four Most Difficult Challenges Faced by Global

Negotiators (and How to Deal with Them) 61

THREE: NEGOTIATING AROUND THE WORLD 71

5 Negotiating in Western Europe 77

Negotiating Primers for Austria (80); Belgium (83);

Denmark (85); Finland (88); France (91); Germany (94);

Greece (97); Ireland (100); Italy (102); the Netherlands

(105); Norway (108); Portugal (111); Spain (114); Sweden

(117); Switzerland (120); and the United Kingdom (123)

PAGE vii

vii

.................16747$ CNTS 02-12-08 14:29:26 PS

viii Contents

6 Negotiating in Eastern Europe 127

Negotiating Primers for the Czech Republic (130);

Hungary (132); Kazakhstan (135); Poland (138); Romania

(140); Russia (143); Turkey (146); and Ukraine (149)

7 Negotiating in Latin America 153

Negotiating Primers for Argentina (157); Brazil (159);

Chile (163); Colombia (165); Costa Rica (168); Cuba (171);

Ecuador (174); Guatemala (177); Mexico (180); Peru (183);

and Venezuela (186)

8 Negotiating in North America 190

Negotiating Primers for Canada (196) and the United

States (199)

9 Negotiating in the Middle East and North Africa 203

Negotiating Primers for Algeria (207); Egypt (210); Israel

(213); Kuwait (215); Morocco (219); Saudi Arabia (222);

and the United Arab Emirates (226)

10 Negotiating in Asia and the Pacific Rim 231

Negotiating Primers for Australia (236); China (239); Hong

Kong, China (243); India (246); Indonesia (250); Japan

(252); Malaysia (256); New Zealand (259); Pakistan (261);

Philippines (264); Singapore (266); South Korea (269); Sri

Lanka (272); Taiwan (275); Thailand (279); and Vietnam

(281)

11 Negotiating in Sub-Saharan Africa 285

Negotiating Primers for Nigeria (287); South Africa (290);

and Zimbabwe (293)

References 297

Index 299

About the Author 307

.................16747$ CNTS 02-12-08 14:29:26 PS PAGE viii

Preface

This book is for the person in the trenches, who needs practical guidelines to

get the very best deal possible with people and organizations that have very

different backgrounds and experiences. This book is for the practitioner—for

the person who faces an international negotiating challenge and who perhaps

should have done his or her homework earlier, but didn’t. I wrote this book

largely from a ‘‘lessons-learned’’ perspective: These are the kinds of things I wish

someone had told me before I entered into global negotiations.

If you will be interacting with people from different cultures in either busi￾ness or travel, this book is for you. If you find that you are uncomfortable in

dealing with people from different cultures and want to understand why, this

book is for you. Or, if you are an experienced negotiator who is getting less￾than-excellent results from your international negotiations, this book is for you.

This book is for anyone who works or travels abroad, and for those who must

deal with people in their own country who have recently come from other coun￾tries. It is for managers, sales representatives, marketers, traders, diplomats,

military personnel, attorneys, entrepreneurs, and other professionals whose suc￾cess will depend on their ability to influence others.

Objectives

This book has four main objectives:

1. To help you to avoid the typical mistakes and pitfalls of international

negotiating

PAGE ix

ix

.................16747$ PREF 02-12-08 14:29:30 PS

x Preface

2. To enable you to build on your current negotiating strengths

3. To help you to understand the process of international negotiations

4. To lead you to strengthen your cultural awareness and skills

This book will help protect you from making an agreement you should re￾ject, and it will help you make the most of your assets.

In years past, it was typical to court our negotiating counterparts in one’s

own country. We now must ask, ‘‘Your place or mine?’’ Regardless of our per￾sonal knowledge of international business, many negotiating parties have, in

fact, moved overseas. We can sit outside and wonder what’s going on inside the

dance hall, or we can join the party. This book will help you not only to show

up, but also to dance every dance.

Overall Approach

We will briefly review negotiations in any language, an overview of the negotia￾tions process as a whole, regardless of culture. Global negotiations will then be

examined: what to look for in other cultures; how these cultural factors affect

negotiations; challenges faced by global negotiators; how to deal with your boss;

and how to be prepared for the phases of international adjustment. The term

TOS refers to ‘‘The Other Side’’ in the negotiation.

This book is divided into three parts. Part One explores key aspects of the

negotiating process. Part Two addresses the unique aspects of global negotia￾tions and explores practical strategies to help you on your global journey. Part

Two also examines the most difficult negotiating problems that you are likely to

experience internationally and offers solutions that you can use on the job.

Part Three takes you on an intercultural journey to sixty-three countries.

Specific guidelines, called ‘‘Negotiating Primers,’’ are given for virtually any￾where in the world you are likely to do business. A profile of typical negotiators

and specific negotiating strategies will be presented for seven regions of the

world: Western Europe, Eastern Europe, Latin America, North America, the Mid￾dle East and North Africa, Asia and Pacific Rim, and Sub-Saharan Africa. For

each of these regions, you will learn such critical factors as pace of the negotia￾tion, negotiating style, emphasis on personal relationships, decision making,

and contractual and administrative issues. You will strengthen your negotiating

skills for these regions, learning the dos and don’ts of global negotiating that

will most affect you on a day-to-day basis.

Let’s get busy on putting you on the international map!

.................16747$ PREF 02-12-08 14:29:30 PS PAGE x

Acknowledgments

Distilling the many extraordinary aspects of global negotiating into an under￾standable and practical form is indeed challenging and, thankfully, stimulating

and fun. This undertaking could not have happened, however, without the help

of many people. It is impossible to acknowledge appropriately all the many indi￾viduals whose experiences, insights, and support influenced the development

and writing of this book. But there are specific people to whom I especially owe

a great deal of thanks. Although these individuals share in the quality of the

book, any errors or limitations are mine alone.

My thanks to: Kristin Acuff and Ryan Acuff, who were very helpful in sourc￾ing information and reviewers; Salvador Avila of Exxon Company, U.S.A.; Desi

Bakalis of the American Management Association; Adelaide Bannon; Miriam

Ben-Yoseph; Catherine Boudes of Axcan Pharma; Susan Cherion of the Billy

Graham Evangelistic Association; Edward Cline; Robert Coshland of Tribol;

Moira E. Crean of MasterCard International, Inc.; Ken Ellis and Alex Neyin of

Chevron U.S.A.; Viktor Gorbach of FactSet Research; Ron Hansek of McDonald’s

Corporation; Robert Hentzen of Baxter Healthcare Corporation; Hein Huyghe;

Rajika Jayatilake of the Embassy of Sri Lanka, Washington, D.C.; Zhang Jian;

Douglas Kincade of P & H Mining Co.; Mohammad Shoaib Khan; Muge Kilinc;

Rochelle Kopp of Japan Intercultural Consulting; Susan Koscis; Isa Laurinsilta

of Genencor; Wilbert Law; Ursula E. Lentz of TAP Pharmaceutical Products;

Foster Lin of the Far East Trade Service; Fiona Lorenz; Mamdough Mahfouz of

Agiba Petroleum; Mike McMahon; Derek Mills of the U.S. Navy Defense Institute

PAGE xi

xi

.................16747$ $ACK 02-12-08 14:29:34 PS

xii Acknowledgments

of International Legal Studies; Aigul Moldadekova of the Embassy of Kazakh￾stan, Washington, D.C.; Ali Mounadi; Andrea S. Mounadi; Lee Meader; Louis

Mitra of TAP Pharmaceutical Products; Isobel Morgan; Maggie Neale of Stanford

University; Ken Nelson of Yokohama Academy USA; Bruce Peer of the Canadian

Management Centre; Elaine Re; Lois Toolan; Bill Usner of Pennzoil; Paul Uzu￾reau; Tom Wilson; Beryl York; and Jian Zhang of the School of Economics and

Management, Beijing.

The contributions of Ellen Kadin, executive editor, and Andrea Pedolsky,

acquisitions editor, at AMACOM Books, were enormous. Their many perceptive

questions and comments always moved the book toward relevance and clarity.

The research and writing of others was helpful in preparation of the country-by￾country Negotiating Primers and other aspects of the book. The following re￾sources were particularly helpful: Nancy J. Adler, International Dimensions of

Organizational Behavior (Cincinnati, OH: South-Western, 2002); Borgna Brun￾ner, ed., Time Almanac 2008 (Pearson Education Company: Boston, MA, 2007);

Lennie Copeland and Lewis Griggs, Going International (New York: Random

House, 1985); CultureGrams 2007 World Edition (Provo, UT: ProQuest Infor￾mation and Learning Company, 2006); Harvard Business Review on Doing Busi￾ness in China (Boston, MA: Harvard Business School Publishing, 2004); Marlene

L. Rossman, International Business of the ’90s: A Guide to Success in the Global

Market (New York: Praeger, 1990); John W. Wright, ed., The New York Times

2008 Almanac (New York: Penguin Group, 2008).

.................16747$ $ACK 02-12-08 14:29:35 PS PAGE xii

PART ONE

Global Negotiating

.................16747$ PRT1 02-12-08 14:30:03 PS PAGE 1

PAGE 2

This page intentionally left blank