Yet transnational trade inherently transcends cultural boundaries and raises the question of whether the national assumptions underlying traditional legal reasoning travel effectively. The answer is that in most cases, such assumptions cannot be well implemented, and the result is that sound advice in one culture is far from beneficial in another culture. To be effective, legal counsel must be able to develop legal support for negotiations, transactions and operational management that is accepted by the counterparty and enforceable in the relevant locations. The lack of such counselling skills can be catastrophic. Initially, erroneous risk assessments may result and strategic decisions may be based on erroneous assumptions. Cultural misunderstandings can alienate or confuse employees, partners, suppliers, customers and key local stakeholders. Unnecessary misunderstandings or minor disagreements can arise or existing crises can escalate into major crises, resulting in significant costs and sometimes more lasting damage to future prospects. In this case, it is a filter issue. When we see perceptions filtered through layers of personal, family, and cultural characteristics, everything we communicate is influenced by each of these layers. The same thing happens on the recipient`s side. Stereotypes are like biased filters.
They tend to allow more of some « colors » than others. Yet, it is because of the « color » that each individual exudes, and it can be very different from what we believe it should be emitted. This image probably best describes the above: e-negotiations.org/chapters/4-perception cultural differences have a strong impact on the concept of an acceptable contractual document. For example, the american prototypical conception of the contract is an all-encompassing document that is the exclusive registration of the respective rights of the parties, which is expressed in a detailed letter. A single word can change the interpretation of the entire contract and make accuracy essential. Therefore, the wording is necessarily specific and direct in relation to the obligations. The result is a detailed sequential document that aims to address all possible contingencies that may arise during the term of a contract in explicit language. In contrast, contracts in European civil law systems are traditionally « relatively simple and short », as important contractual principles are implicit as they are listed in the applicable Civil Code. In other parts of the world, the divergence in the design of contracts is often greater. In these circumstances, practical considerations are of paramount importance. The appropriate duration, scope and purpose for a contract should both facilitate the intended commercial activity and provide certainty in the event of a dispute.
In many cultures, a detailed American-style presentation alone may be enough to prevent the ratification of an agreement that is otherwise acceptable to the other party. Alternatively, the signature may actually be worthless, as contracts in this form are either unenforceable under local law or, at best, offer the potential for a Pyrrhic victory. Therefore, it is worth considering very carefully whether dispute settlement clauses should be included, how they should be designed and how they can be advantageously asserted in an intercultural environment. Cultural conflicts in negotiations tend to occur for two main reasons. First of all, it is quite common for people to rely on stereotypes when faced with cultural differences. Stereotypes are often pejorative (for example, Italians always arrive too late), and they can lead to distorted expectations of your counterpart`s behavior, as well as potentially costly misinterpretations. You should never adopt cultural stereotypes when entering into negotiation. Why are cultural differences so important? Our culture shapes the way we see the world. The way we see the world shapes what we think is right or important, and therefore how we organize our society and assess the relevance of action, in everyday life, in business and in law. When cultural values differ, the same commentary, concept, text or act can be understood in a completely different way. For this reason, the ability to value cultural differences is essential to the success of international trade and the provision of legal services that support it. We must first understand the cultural dynamics of the protesters.
The local population should be the one to be included in the Council, as they are the guardian of the society of 5. (45) See `The Development Model of Intercultural Sensitivity`, Milton Bennett and Mitchell Hammer (1998), available from www.intercultural.org/pdf/dmis.pdf. Instead of relying on stereotypes, try to focus on prototypes – cultural averages on behavioral or value dimensions. There is a big difference between stereotypes and prototypes. Culture is « the set of distinctive spiritual, material, intellectual and emotional characteristics of society or a social group and . includes, in addition to art and literature, lifestyles, lifestyles, value systems, traditions and beliefs. Unfortunately, visible manifestations of cultural differences – such as visual arts, literature, theatre, music, hobbies, cooking and clothing – are inconceivable in predicting how cultural differences will affect notions of good business conduct and the enforcement mechanisms that underpin corporate security. The visible manifestations of cultural difference have been compared to the tip of an iceberg, as they represent only a tiny fraction of the whole and are felt only due to the existence of a much larger body of invisible influences, as shown in the following diagram. This provides a starting point for further research on language skills, political issues and, most importantly, individual background and experience. Detailed knowledge of the laws of a particular nation is not a requirement.
Rather, it is about finding evidence of a lawyer`s awareness and knowledge of the nature and extent of the problem of cultural differences, combined with ideas on how to identify and address differences to ensure an effective business and legal advantage. Companies with cross-cultural understanding and experience of business should expect this from their consultant. For companies with less experience in international trade, advice from colleagues in the business world on the realities and pitfalls of transnational trade can help create a basis for evaluating potential advisors. The stakes are high: intercultural competence can mean the difference between success and failure in areas that are critical to a client`s long-term business prospects as well as short-term benefits. After losing an important deal in India, a negotiator learned that her counterpart felt she had rushed into talks. The negotiator thought she was using her time effectively. Their cultures have different views on how to conduct negotiations and, in this case, the obstacle prevented a positive outcome. In this useful example of negotiations on intercultural conflicts, we look at what this negotiator could have done differently to improve her negotiation skills.
A big problem that most Americans have is the assumption that their path is the way to go, leading to unsuccessful negotiations and cooperation. We also live and die after the clock compared to other cultures. I have participated in several Key Leadership Engagements (KLE) where military and civilian personnel rejected cultural norms during meetings, and when an impasse occurred, with the expiration of the time allotted for the KLE, an opportunity was missed. I see similar problems in the United States when it comes to gender, culture, race, etc. As individuals and groups, we need to do our homework on the environment, and people should get involved, make assessments on arrival and be open to other points of view and accept solutions that are beneficial to the other person. A notable trait, the Americans are excellent at sprinting, but not so good at marathons in the game of international relations. A second common reason for cross-cultural misunderstandings is that we tend to interpret the behavior, values, and beliefs of others through the prism of our own culture. To overcome this trend, it is important to learn as much as possible about the other party`s culture. This means not only exploring the customs and behaviors of different cultures, but also understanding why people follow those customs and exhibit those behaviors in the first place. Companies of all sizes sell more to foreign buyers, source from foreign suppliers, enter into partnerships with foreign partners, and invest directly in foreign companies or infrastructure.
As companies rely on legal advice, documentation and advocacy throughout a company`s lifecycle, lawyers are increasingly being asked to provide advice on cross-border business transactions and litigation. Such advice is often crucial to the success of a client`s initiative. Legal inputs shape risk assessments and strategic decisions, influence the direction of negotiations and the form of joint ventures, and provide management with the basis for further development. However, the conceptual gap between established European civil law systems and common law systems is much narrower than that between the traditional systems of many major trading nations. Both legal paradigms are primarily the product of the Christian peoples of Western Europe. Despite all the differences between them, they have much more in common than the regulatory mechanisms developed in other parts of the world. Other different legal traditions include Sharia, Hindu law, and various forms of cultural « law, » such as the Guanxi system of relations in China or Giri in Japan.
