In this era of international globalization and free trade markets, the world is one big marketplace with open boundaries creating unlimited competition. To succeed well in such competition, every country must cultivate its negotiation power.
Former s...
In this era of international globalization and free trade markets, the world is one big marketplace with open boundaries creating unlimited competition. To succeed well in such competition, every country must cultivate its negotiation power.
Former studies on international trade negotiation executed in Korea have focused on the culture, legal and political systems, religion, etc. of each individual country in , fragments without developing associations. With only fragmented and partial research conducted on negotiation skills and strategies, the studies have lacked completeness and the results have been inconclusive. In order to make a more practical study of international negotiation, various factors, with variables affecting negotiation outcomes should be considered relatively, and the conduct and process of negotiation should be researched materially.
China is one of the Korea's major partners in international trade and is expected to be well into the future. This comparative study on the negotiation behaviours between Chinese and Korean traders is more significant than past studies because this study presents research design and methodology pertaining to how a negotiator's attractiveness and situational constraint can affect the negotiation process. And it produces outcomes not following the usual stereotyped methodology which uses negotiation simulation, but develops new methodology which uses surveys for businessmen experienced in trade negotiation.
To produce this empirical study, questionnaire were collected from Chinese and Korean businessmen who have actually conducted business in China.. The analysis was then performed using reliability analysis, factor analysis, frequency analysis, correlation analysis, ANOVA and t-test by SPSS program methods.
In this study, for the Chinese businessmen, any facts different from those of preceding studies are found together with. the same results as have appeared in the former studies. It seems to some people that Chinese businessmen can be obstinate and take a long time to make decisions. And many find it difficult to surmise their real thoughts or intentions by just looking at their face. But this empirical research proves that the Chinese are not stubborn and can often yield or compromise in business negotiations.
Chinese businessmen have recently recognized that negotiation is very important in international trade, and they have pursued the successful businesses by making the total negotiation processes as an integral part of successful business transactions.
In fact, Chinese people have their own secret negotiation methods and many of these more advanced methods have been used recently in the international trade negotiations.
On the other hand, Korean businessmen may yield and compromise quite a bit in some cases. Often, they take a low-key and modest attitude in the negotiating process because they are greatly influenced by realistic feelings rather than reasonable assertions.
If one is to learn from the results of this study, they should ensure their negotiating teams comprise both professional technicians and practitioners during any negotiating processes.
In order to negotiate successfully with Chinese businessmen, it is very important for Korean businessmen to search and determine who is the top decision maker of the Chinese party involved in the negotiation. This may influence the success or failure of their negotiation. And they should make more effort towards managing human relations.
In order to produce successful results, both parties in negotiating should employ the Win-Win negotiation system. Upon completion of this type of negotiation, it is then easier to solve disputes if claims should arise. Furthermore, such results may influence in a much more positive manner any future business. Another positive aspect is that all parties involved in the negotiation feel they have contributed equally to the final outcome.