Impact of Cultural Factors on International Business Negotiation

Abstract

This thesis explores how cultural differences influence international business negotiations, focusing on communication styles, trust-building, and decision-making structures. It draws on key theoretical models such as Hofstede’s cultural dimensions and Trompenaars’ framework to analyze the cultural gaps between Eastern and Western negotiators. Using multiple real-world case studies—including Huawei and British Telecom, Alibaba and Yahoo, and Toyota and GM—the research demonstrates how cultural adaptation can determine negotiation success or failure. The study also examines the role of digitalization in cross-cultural communication and its impact on building trust. Findings highlight the importance of cultural intelligence, flexibility, and hybrid negotiation strategies. The thesis concludes that understanding and respecting cultural diversity is essential for successful international cooperation.