small . . . Procter & Gamble . . . generates only 3% of itsThailand -$2076 -$14692 608 the business of American owned multinationals is relatively 1. Minimizing cross-cultural conflicts. Many writers comment on the special characteristics of Asian societies which make it difficult for Americans and other foreign companies to do business there. Generally, they include their different negotiating styles, which Paik and Tung pointed out, vary even among Chinese, Japanese and South Korean negotiators. They said the principal shortcoming of foreign negotiators is their "failure to prepare for and properly manage negotiations" with Asians. The primary differences in Oriental and Occidental negotiating teams has to do with the methods of decision-making, the importance of relationships and direct v. indirect styles of communication. Asians tend to view negotiations in relational contexts. According to Yongun et al., "Americans meet to make a deal while East Asians . . . primarily to establish and develop a relationship." Much more could be said but these problems are present, regardless of the Asian crisis. Negotiations should be entrusted by American companies to experienced persons well-versed in, and sensitive to, the customs, needs and habits of mind of their local Asian counterparts. Thurow, Lester. Head to Head The Coming Economic Battles Among Japan, Europe, and America. New York: Warner Books, 1992. In China, joint ventures approved by the government enjoy special privileges and are somewhat insulated from competition. However, government policies can change overnight and be implemented arbitrarily. Although it is made progress in this respect, China lacks the legal infrastructure needed to provide stability for foreign contracts and investments. The uncertain hold of the regime on power over the long term casts a pall over all foreign business in China. And in foreign policy, the ever present possibility of an ar |
