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Negotiation Process in the International Arena

Negotiation Process in the International Arena
Negotiation is a common practice for leaders of international businesses. International negotiation includes consideration of cultural similarities and differences, conflict resolution perspectives, power or status views, and decision-making styles. Using the United States and two other countries, research negotiation practices of all three countries.

Assess the cultural similarities and differences between the countries, including how negotiations might be affected.
Explain how negotiators would be selected for each country and any issues differences in selection criteria might cause for negotiations.
Propose strategies for conducting a negotiation between the countries.

The new subsidiary will consist of expatriates from the parent company, local managers, and employees. The workforce, therefore, consists of individuals with different cultural beliefs and values. The expatriate may want the activities of the organizations to follow the cultural values of the parent company; on the other hand, the local employees will want the management to operate by their cultural norms. Conflicts are inevitable in a cross-cultural environment. Tung (2016) reported that supervisors are likely to find it hard dealing with the employees in such an environment. Also, the decision-making process is likely to be affected by the difference in the cultural values of the staff. There is a need for the new subsidiary to adopt an intercultural approach in the management of the human resources to avoid any form of conflict.

As much as H&M should consider bringing in expatriates to manage the activities in the Tunisia subsidiary, their evaluation should be done to only select on those capable of dealing with the possible cultural differences. The selection criteria should be based on the professional ability, adaptability, and experience of the expatriate. Only those capable of adapting to the new culture and have experience in learning a new language and interacting with new people should be brought in as expatriates.

To work smoothly with a staff consisting of individuals from different cultural background, a cultural training process should be implemented by the organization. The training should be conducted inform of local culture training and coming culture training. The two forms of training will provide an opportunity for the expatriates to learn and understand the local culture, as well as give an opportunity to the local employees to learn the home country culture, especially the language of the expatriates. Cultural training will lead the resulting workforce to the attainment of the organizational goals. Possible conflicts as a result of cultural differences and change resistance are likely to be avoided with the understanding of the home and host country cultures. Also, a high level of loyalty to the company and implementation of a decision-making process acceptable to all the workers is likely to be evident when the possible conflicts are resolved (Bamberger, Biron & Meshoulam, 2014). As such, the new subsidiary is likely to have a strong workforce capable of achieving H&M goals, when the local employees and expatriates have an understanding of the two cultures (Swedish and Tunis) and incorporate the differing values and beliefs in the management process.