CIPS L4M5 Commercial Negotiations STUDY GUIDE QUESTIONS AND ANSWERS .

CIPS L4M5 (Commercial Negotiations) STUDY GUIDE QUESTIONS AND ANSWERS .
The number of situations where international cultural differences may
affect negotiations are many and varied. A selection may include
✔✔- When you are buying complex purchase or requiring a long term or
close relationship with the supplier
- When creating partnerships/joint ventures
- When buying services involving teams from other countries
- When minor misunderstandings can lead to major problems
- When goodwill trust is essential for a good working relationship
- When there are different expectations and norms around the giving and
receiving of corporate hospitality and gifts
Managing cultural differences
✔✔In large multi-national organizations it may be possible to employ or
deploy staff with the same cultural background as part of the negotiation
team, or use a local agent or overseas purchasing office
Hofstede's Six Cultural Dimensions
✔✔- Power distance index
- Individualism versus collectivism
- Masculinity versus femininity
- Uncertainty avoidance index
- Long-term orientation versus short-term normative orientation
- Indulgence versus restraint