One of your vendors that work closely with your franchise wants to purchase $10 million in materials and services from suppliers in China, Japan, and South Korea. It was recommended that the company use an approach to business negotiations that provides a win-win for both parties. Management was also told they needed to know the background of the Asian negotiator and that they should use a middleman to help them with the negotiation. Because of your work in China, the vendor would like your advice in this business dealing.

The middleman stressed the importance of etiquette and social customs in addition to the win-win model.

• What else should the U.S. company (vendor) find out about each culture before it starts negotiating? What are the differences?
• How do these Asian countries view contracts?
• How should the U.S. company (vendor) begin  negotiations?
• What are the steps as they apply to these 3 countries?
• Discuss how the company would negotiate using the win-win model. What sort of strategies would it use?

What trade agreements apply, and how do they affect the negotiations?