Question

describe the challenge that may arise from a cross cultural negotiations?.

Answer 1

If you are negotiating with a Japanese company, knowing these cultural patterns is important before you sit down at the table. You will then be extra sensitive to the indirect and implicit signs and messages that are being sent, signals that you may otherwise ignore.

Often, it is more or less appropriate for different cultures to overtly stress your power, which could include a frank discussion of what you and/or the other party would do if you do not do the contract.

Cross-cultural interactions, even in the best of circumstances, can be frustrating and difficult. After all, doing it effectively requires a thorough understanding of the inherent complexities with respect to the interactions between the parties. And this is in addition to the almost infinite number of variables which have already been included in many negotiations.
The final key, then, to negotiate effectively in a cross-cultural context is to exercise patience, and trust that the end result will make it worth the additional effort.

We also often carry a certain amount of baggage to the table in cross-cultural discussions based on our personal and community experience, with all of the assumptions and theories that might go along with that history. That makes it especially difficult is that a two-way street is a cultural difference, potentially making all sides of the table feel awkward. That awkwardness could easily develop into distrust and fear in a potentially adversarial negotiation.

The essence of culture itself is one of the obstacles in overcoming cultural difference. While the idea of culture refers to a human body and its past, we are dealing with people, not a "culture" We are all, in a way, the product of a variety of micro-cultures; based on our ethnicity, gender, race, religion, age, employment, geographic background, peer groups, occupation etc. It's not only difficult but also risky to generalize based on one's background.