What are the potential issues/major barriers to effective communications and negotiations between the US firm and the foreign supplier?
When East meets West the potential for misunderstandings, miscommunication and conflict is very real and almost unavoidable. Chinese culture, as is true in most eastern societies, values relationships, tradition and formality. American culture, on the other hand values individualism, innovation and the ability to improvise. The desire of businesses to expand operations in China makes great economic sense. However, it is a desire that can easily turn into regret if a good strategy is not thought through and implemented. Potential barriers to effective communication and negotiations must be identified and analyzed.
One obvious barrier is language. More than likely Mandarin Chinese will be the vernacular language. American businessmen might automatically assume that the Chinese businesses they desire to partner with will learn English. Not only is this assumption arrogant it can also cause massive problems in clear communication, clear understanding of basic values and beliefs the parent company and effective implementation of operations.