Conclusion

Negotiation is an important managerial skill as it determines the ability of the managers to create value in a transaction. We cannot not negotiate; however, we do have the choice of negotiating effectively or ineffectively. In this volume we have highlighted some of the key aspects of negotiating in India and China. Many multinationals, and smaller and medium-sized enterprises are already present in these countries, are seeking to enhance their commitment, or are seeking to enter the market for the first time. These firms must learn to navigate effectively the local bureaucracy, the cultural norms, and/or the widely held assumptions and beliefs about foreign investors and foreign investment. We have therefore highlighted the salient aspects of these dimensions in India and China, demonstrating how each of these dimensions impact on the negotiating process. Thus, for example, Indians’ idealistic mode of thinking may lead them to have exaggerated expectations about the negotiation, thus either slowing the negotiation process down, or throwing it entirely in jeopardy. In a similar vein we note that contending is often the negotiating strategy used in India, as opposed to compromise in China.