The impact of cultural distinctions on international business negotiations : a case study of Loop Brackets

Abstract

Multinational enterprises (MNEs) and local firms expanding into overseas markets depend on international business discussions. Multiple parties with different cultural backgrounds, communication styles, and expectations make these talks complicated. Globalisation has aided international companies, but it has also proven how culture impacts negotiations. Culture impacts how different cultures see commercial relationships, decide, and negotiate. Companies must understand how culture affects international business negotiations to succeed. This thesis analysed how cultural variations affect Pakistani commercial negotiations with overseas counterparts, particularly Western corporate cultures. Pakistani negotiators prioritise indirect communication, tacit understanding, and long-term relationships. In economic negotiations, Western negotiators use simple, low-context communication to enhance efficiency and clarity. Cultural differences can cause miscommunication and inefficiencies during negotiations if not addressed correctly.

Using Hofstede's cultural dimensions theory, this paper contrasted Western values in individualism against collectivism, power distance, uncertainty avoidance, and long-term versus short-term orientation. The thesis adopted this theoretical framework to evaluate how cultural factors affect Pakistani negotiators' methods and obstacles while bargaining with Western colleagues. Comparative research illustrates how cultural variances may negatively affect communication and expectations. The research also analyzed how Pakistani and Western negotiators could strengthen corporate agreements despite cultural boundaries. Methods include cultural knowledge, adaptation, and sensitivity to cultural norms that impact negotiations.

This research implies that business negotiators must understand their own and the other party's cultures to communicate effectively. Negotiators can improve results by using this information to navigate cultural differences. The thesis recommends corporations strengthen global collaborations and agreements using cultural sensitivity training and culturally adapted negotiation strategies. This thesis adds to the literature on cross-cultural communication in international corporate negotiations by showing how corporations might strengthen their global negotiating strategies. It emphasises the relevance of cultural competency in international business success and has theoretical and practical consequences for companies expanding globally.