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Japanese and Korean Culture in a Negotiation

Japanese and Korean Culture in a Negotiation. By Peter Buckley. Culture in General. An underlying framework A definition of acceptable behavior A barrier to cross-cultural understanding A subtle, yet pervasive force Transmitted from generation to generation

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Japanese and Korean Culture in a Negotiation

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  1. Japanese and Korean Culture in a Negotiation By Peter Buckley

  2. Culture in General • An underlying framework • A definition of acceptable behavior • A barrier to cross-cultural understanding • A subtle, yet pervasive force • Transmitted from generation to generation • Shaping attitudes, behavior and perception

  3. Japanese Culture • It’s All About RESPECT! • Importance of active and attentive listening • Importance of meeting protocols • Ceremonial nature of business dealings • Business card etiquette • Important to have copies of any documents on hand

  4. Japanese Culture, cont. • Little cultural overlap with USA • Importance of Japanese media • largest free market publications in the world • press club rilvaries • Language barrier • Write documents from scratch in Japanese • Avoid cultural losses in translation

  5. Japanese Business Style • Characterized by Groupthink • Japanese travel in groups and make decisions in them as well • Low on individualism • High power distance between main decision makers and their subordinates • Slow decision makers

  6. Japanese tendencies • Reluctance to invest in small companies • Jaded and cynical view of Western businessmen • originates from years of being ignored • important to show RESPECT

  7. Korean Business Culture • RELATIONSHIPS are the key! • Built in Korea through blood, school ties and geography • Family businesses remains • Reluctance to allow Western control or involvement • Similar to Japanese jaded and cynical view • Patriarchal, one-man rule • Centralized decision making

  8. Korean Business Style • American perception: Koreans are illogical • Profit is not always the motive for decisions • Importance of market share, growth and technology • Influence of amenities and bribery on the negotiator • Koreans will pay 10 - 15% higher price to deal with an established relationship

  9. Contracts • Japan and Korean business contracts • viewed as living documents • evolve and develop as conditions change • usually done with a handshake over written agreement

  10. Japanese Negotiations develop mutual RESPECT pay attention to ceremony know the Japanese culture and language know the Japanese psyche Korean negotiations establish a strong relationship pay attention to the family nature of business know the Korean culture and language know the Korean psyche General Roundup

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