Instances of the success of deal making across diverse culture are worse as compared to the negotiations within the same culture. It is mainly due to the difference in communication styles and behaviours. As a result, while negotiating, we use to bring various perspectives to the bargaining table, which causes misunderstandings.
Second reason for the problem in the cross-cultural understanding is due to interpretation of other’s belief, thoughts, and culture by own culture. To avoid this misunderstanding, evaluation and understanding of various cultures are needed. It does not mean that only performing research on the customs and cultural differences, but also going in detail to know the reasons behinds the causes of the diversity. Cultural differences do not exist only between the countries, but some organizations also possess differences in culture among its employees.
Before the initiations of any negotiations, sufficient time should be devoted to understanding the person’s behaviour and belief on another side of the table. It may be the culture of a country or any particular field or his company’s corporate culture. For example, Indian prefers to build the relationship in the starting phase of the initiations of the negotiations. It can lead to the wrong message to his counterpart due to the lack of understanding of the Indian’s culture and belief, causing complications in the communications. Cultural differences often create barriers to reaching an agreement, but at the same, it also provides many opportunities for the creation of the valuable agreements. Cross-cultural negotiations provide many chances to capitalize on several priorities, preferences, and beliefs. Due to limited resources in any particular location and culture, intercultural trade is bound to happen. It raises the needs of proper understanding of cultural differences and better communications and negotiations.