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6/29/2012

Considerations In Negotiations

International business requires that the negotiator be in tuned with the client's personality, which includes cultural norms.   In many places, including the USA, the client may request a 'taste' of the deal that is being negotiated.  The USA, and most of the EU, client knows that this is not acceptable and in many cases illegal, but it happens every day, and many businesses hungry for the sale turn a blind eye.  Other countries the culture is more accommodating and accepting of this practice.

The use of bribes to expedite a contract signing, or getting the necessary permits is considered by many in the international community as the way to get things done.  When dealing with governments this is a very dangerous road that can put the participants in jail and the business on a black list. There are many schemes that are drafted up to make the bitter taste of the bride palatable for the giver, and giving the receiver a sense of legitimacy.   The lesser known localities typically have less sophisticated practitioners of the pinch and will openly have their hands out.  The more advanced countries use key words, and have places to funnel the money that sound legitimate to all involved.

A USA firm going to Africa to set up shop will have to deal with the hands in the pocket at every turn, especially if the first hand is filled.  Once you start down the path it will quickly turn into a highway of traffic heading one way out.  Once the term "Brother" is used be prepared for the hand coming out. Also the use of the "you don't understand this country" is another sign that the game is at hand.

How to avoid this trap?  Do not start down the dark path in the first place.  Show how your good/service can benefit the user (financially) without the complications of the taste.  This takes a tactful negotiator that understands the culture, who has done his/her homework, and has the patience to deal with the 'stall' tactic that will be used.

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