Thursday, February 7, 2013

Negotiating Abroad: To Toast or to Abstain?

Negotiating Abroad: To Toast or to Abstain?

In many cultures, alcohol consumption plans a central role in the negotiation process. Members of other cultures, particularly Islamic ones, adhere to strict abstinence; the presence of alcohol may offend these negotiators.

Understanding such cultural norms and expectations ? and knowing when a foreigner can deviate from them with impunity ? can be critical for building a relationship and reaching agreement.

In the West, alcohol is most often consumed to celebrate a deal. Elsewhere, drinking sometimes initiates a negotiation. It?s not uncommon, for instance, for Russian managers to begin morning talks with a series of vodka toasts. Similarly, in China, negotiations are often opened with banquets that include elaborate toasts to the new partnership.

In these settings, a refusal to drink may be misinterpreted as a sign of low interest or lack of trust. (Though, in some parts of China, it is acceptable to stop drinking after the first two rounds of toasts.)

When you do decline alcohol, be sure to offer your host a reason (?My doctor told me not to drink?). And when assembling your negotiation team, consider bringing along someone who drinks so that your team can derive the relationship-building benefits of communal and ritual drinking.

Click here to download your?copy of?International Negotiations: Cross-Cultural Communication Skills for International Business Executives?from the Program on Negotiation at Harvard Law School.?

Source: http://www.pon.harvard.edu/daily/international-negotiation-daily/negotiating-abroad-to-toast-or-to-abstain/

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