Bus Com Assignment
Similarities and differences in the negotiation process between The Netherlands and Chile
The Netherlands
General
They speak neither loudly nor quietly
Silence does not mean they are conveying a negative message
‘Saving face’ is not an important part of this culture, they would rather be honest and are rather blunt.
Rather than giving a round about answer instead of no it is better to give no answer.
Eye contact is used intensely and convey’s sincerety and build trust
Personal life is not discussed in business
They are not particularly fond of haggling but can be good at it.
Prices rarely move more than 20-30% between initial and final offers
Arguments should be based on hard facts
Lying is used only occasinally
The good cop, bad cop method may work in negotiation
Corruption and bribery are rare
When in other countries they make decisions faster and usually have the authority to ‘seal the deal’
They use universal techniques when making decisions and don’t like making exceptions
Oral agreements are usually dependable but written contracts are better
Women have similar rights as men although they struggle a little to attain the same postions as men
Chile
General
People usually speak softly
‘Saving face’ is important in this culture, honor and pride play a big part in business
Constant eye contact conveys sincerety and builds trust
It is better to negotiate in teams rather than with just one person
Meetings may start with small talk which may include personal questions about family and background
Don’t like like bargaining and hate haggling
More likely to find power and status more appealing than money
Lying is used only occasionally
‘Good cop, bad cop’ approach may work
May use emotional techniques such as making you feel guilty or using your personal relationships as leverage
Corruption and bribery are rare
More likely the consider the indivdual situation rather than using universal principals
Oral agreements are not usually dependable
Woman may still be considered inferior in the work place
Negotiation styles
The dutch use a monocronic work style and may show little tolerence toward a polycronic style
Chilians prefer a polycronic work style
Monocronic is when items to be discussed are worked out in an order, polycronic is when items are discussed in a random order and points are jumped between.
Taxes
Netherlands
The 30% rule
This is where 30% of your pay is not taxed for up to 120 months if you are working abroad in the country and the company you are working for is based in the Netherlands.
(check out the other bits on this website)
Chile
Such items as reimbursement of travel expenses, housing provided for the sole interest of the employer, moving expenses, and reasonable relocation allowances are considered non taxable income and are excluded from the tax calculation. Such items as cost of living allowance, area allowance, car allowance, vacation travel, and utilities are taxable.
!!Quote!!
http://www.taxrates.cc/html/chile-tax-rates.html
Chile
Income tax rate – 40%
Corporate tax rate – 17%
sales tax rate – 19%
Netherlands
Income tax rate – 52%
Corporate tax rate – 25.5%
sales tax rate – 19%
Currency
1 euro is worth about 1.4 US
1 peso is worth about 0.002 US
1 peso is worth 0.001 Euro
1 euro is 680.32 peso
Negotiating International Business – The Netherlands
www.globalnegotiationresources.com/cou/Netherlands.pdf
Negotiating international business – Chile
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