1. At the end of your negotiations with a Chinese firm, the negotiation team suddenly demands you drop your prices or they may have to pull out of any agreement. What should you do?

Stand firm. They are merely trying to test your resolve and gain some last minute concessions.

Ask for time to speak to your superiors.

Agree. The Chinese would not do so unless there is a good reason due to the need to save 'face'.

2. During negotiations in Japan you try to confirm a point by asking, "Do you not want this added to the agreement?"

You are answered with a 'yes', so you keep it within the agreement. At a later date you find the Japanese are upset that this was added to the agreement. Why?

The Japanese can answer positively to negative questions so they actually meant 'no'.

'Yes' can sometimes mean 'maybe'. In this case the Japanese team wanted to think about it so answered 'yes' meaning 'let us think about it and check with us at the next meeting'.

The Japanese assumed you knew they did not want it to form part of the agreement and answered 'yes'.

3. During negotiations in Italy, two of the Italian negotiation team keep taking phone calls. Why?

This is a sure sign they have little interest in your proposal.

This is a well know tactic to make foreigners feel uncomfortable and expose weaknesses

They are probably taking calls from superiors; to not answer would be rude.

4. Upon being met at the office of a potential Indonesian client you are met with very personal questions about your job, education and salary. Why?

These questions are just part of the getting to know you process.

These questions are meant to establish your rank.

These questions are thought to be of importance in your own country so are being asked out of politeness.

5. At the end of a successful negotiation meeting with a Pakistani firm, the owner suggests you all end the day with an alcoholic drink. What should you do?

Under no circumstances take up the offer. All Muslims do not drink alcohol and this is a test of your character

Accept the offer and let the good times roll!

6. When negotiating with the French, which of these is best to avoid?

Personal questions

Eye contact

A formal demeanour

7. In Hong Kong, you and your counterpart share a cup of tea. During the negotiations you notice that he keeps moving his cup either closer to you or further away. Why?

This is a method used in feng shui to gage positive energy.

This represents how far away/close you are to agreement.

This indicates nervousness and should be capitalized upon.

8. Which of these statements is true?

German decision making can be very slow.

Germans take a casual approach to punctuality.

Germans expect humour in a business context.

9. During intense negotiations the Russian negotiation team keep pressing you on a particular point you absolutely cannot budge on. You have politely indicated your position to no avail. They are insistent.

Which of these options would be most advisable?

Keep politely insisting you are unable to offer any concessions. The Russians will eventually understand.

Concede slightly. The Russians will then feel they have gained some sort of concession and move on.

Drag your negotiation team out of the room dramatically. The Russians will then appreciate concessions on this point are unlikely.

10. Your company has been negotiating with a company in Argentina for 3 months. The next round of negotiations is set to be the final meeting, with all sides aiming for an agreement.

The negotiator that had been dealing with Argentina is taken ill and cannot travel. A replacement is briefed and sent to clinch the deal. He returns empty handed.

Why?

The Argentine company were simply offended because they assumed your company was not taking the corporate relationship seriously by sending in a new negotiator.

In Argentina personal relationships are valued more than corporate ones. The negotiations failed because the new negotiator was unknown.

In Argentina the belief is that if illness gets in the way of business it is a bad omen.