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Question 2
Read the case below and answer the questions thereafter.
Tips for Negotiating in China
[17 Marks]
Westerners visiting China are often deadline-driven and frustrated by the apparent slow pace at which
business seems to be discussed. This is often due to the fact that the Chinese side is seeking to
establish a relationship first and because decisions in many Chinese organisations, particularly state-
owned ones, are group consensus-driven. However, if they have the mandate or are at a high level of
seniority, Chinese negotiators are often able to make lightning fast decisions when it benefits them.
They are not bothered by negotiations dragging on for hours as they the Chinese are always willing to
scarify family and leisure priorities to win negotiations. They are also adept at using time to their
advantage, for example, pushing for agreement after a boozy banquet or just before the foreign party
is about to head back to the airport.
Having "face"- high status in the eyes of one's peers - is very important in China and is a mark of
dignity. Ensure that you don't insult people, criticise them in from of others, make fun of them (even
in a good-natured way), or treat them as less senior in their organisation than they are. On your side,
you can earn face with Chinese counterparts through, for instance, the way in which you conduct
yourself and present your company, or praising members of your own team while in their presence.
It is best to avoid showing anger, even if you are frustrated, but be aware that Chinese negotiators
sometimes use this tactic in an attempt to apply pressure.
Source: Absctac from Schmittzehe e al. (2005) as cited by Badenhorst-Weiss {2013)
2.1 Briefly outline the 5 key dimensions of national culture from Geert Hofstede's research. (5)
2.2 Discussthe culture of the Chinese based on any four Hofstede's dimensions manifesting in the
given case.
(12)
END OF QUESTION PAPER
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