What are the types of anticipating cognitive and perceptual variances that might impact the negotiation between China
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What are the types of anticipating cognitive and perceptual variances that might impact the negotiation between China and Google??
(refers to the case study: "Google and the Government of China: A Case Study in Cross-Cultural Negotiations" by. Kellogg)
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The report provided to the Google negotiations team noted China's leaders' desire to improve their nation's economy while preserving political stability. This balancing act was conducted "bearing in mind the history and culture of China." In a September 2004 address to the Central Committee of the Communist Party, President Hu had warned that outsiders were attempting to westernize China. The government was striving to prevent this process, and an unambiguous mode of doing so was to censor political discussions. The Internet was "unwittingly ushering an age of startling social change" in China, and the government was willing to employ censorship, including more than 30,000 Internet policemen to patrol the Internet, to put the brakes on it. The summary also discussed China's leaders' bureaucratic efforts at self-preservation. Both the functionaries in the Internet Propaganda Management Department and the Ministry of Information Industry (which issued the Internet content provider [ICP] licenses) sought to please the party hierarchy to ensure their jobs and political longevity. The media had reported that despite initial hopes that President Hu would introduce democratic reforms, the president "has placed particular emphasis on tightening the party's control over public opinion, presiding over a crackdown to restore discipline to state media and intimidate dissident intellectuals." Thus, it was firmly in the interest of the Chinese bureaucracy to insist that, as a condition of getting a James V. DeLong, "Google Is Right on China," TCS Daily, January 31, 2006, http://www.tcsdaily.com. 10 Philip P. Pan, "Hu Tightens Party's Grip on Power," Washington Post, April 24, 2005. 11 Ibid. 4 KEL242 KELLOGG SCHOOL OF MANAGEMENT This document is authorized for use only by Marijana. Karanfiloska in 2014. For the exclusive use of M. Karanfiloska, 2014. GOOGLE AND CHINA license to establish a server within China, Google had to agree to censor its content and search results. Finally, in restricting westernizing elements of the Internet through censorship, China could affirm its status as an independent actor in the global marketplace. As head of a hierarchical culture that valued status, the Chinese government sought to promote China as a powerful and independent actor in world forums. The government had in the past been critical of other Internet businesses that refused to follow its objectives and directives. For example, the online encyclopedia Wikipedia was completely banned in China until 2006 (see Exhibit 10). An anonymous post on the Wikipedia site claimed that Wikipedia's users had been acting as "running dogs for American imperialism."¹2 "Running dog" is an expression in Mandarin that means servile follower or lackey.¹3 Many Chinese suspected the post had been made by a government agent. The government would likely seek to prevent any loss of face that might accompany a decision to cave in to any of Google's demands concerning Chinese law and the government's official policy on the availability of information deemed contrary to the state's best interests. China had another option as well. Instead of allowing Google access to a ".cn" domain name, China could deny Google the license and continue to rely on local search engine alternatives to provide Chinese consumers with Internet searching services. Baidu had been steadily gaining market share, and was already one of the most visited sites in the world. It was a known entity and the Chinese government was already monitoring its compliance with Chinese law. The site was very similar in substance and style to Google. Though failure to bring a technologically advanced company such as Google to China would damage the regime's international reputation, it would likely produce fewer domestic repercussions. Searching for a Resolution As the Google negotiators arrived in Beijing, several concerns lingered. Chief among them was how the team would be able to reconcile the company's principles with its profit motives. The Chinese government officials assigned to negotiate with the Google team had concerns as well. Given the distance between the two parties on a number of important issues, neither party was confident that a deal would be reached. It would take a keen understanding of each other's issues, positions, and interests to understand their motivations. Moreover, each party would have to understand how the culture of its counterpart might influence the outcome of the discussions. The Google team settled into its accommodations and prepared to meet with government officials later that day. The report provided to the Google negotiations team noted China's leaders' desire to improve their nation's economy while preserving political stability. This balancing act was conducted "bearing in mind the history and culture of China." In a September 2004 address to the Central Committee of the Communist Party, President Hu had warned that outsiders were attempting to westernize China. The government was striving to prevent this process, and an unambiguous mode of doing so was to censor political discussions. The Internet was "unwittingly ushering an age of startling social change" in China, and the government was willing to employ censorship, including more than 30,000 Internet policemen to patrol the Internet, to put the brakes on it. The summary also discussed China's leaders' bureaucratic efforts at self-preservation. Both the functionaries in the Internet Propaganda Management Department and the Ministry of Information Industry (which issued the Internet content provider [ICP] licenses) sought to please the party hierarchy to ensure their jobs and political longevity. The media had reported that despite initial hopes that President Hu would introduce democratic reforms, the president "has placed particular emphasis on tightening the party's control over public opinion, presiding over a crackdown to restore discipline to state media and intimidate dissident intellectuals." Thus, it was firmly in the interest of the Chinese bureaucracy to insist that, as a condition of getting a James V. DeLong, "Google Is Right on China," TCS Daily, January 31, 2006, http://www.tcsdaily.com. 10 Philip P. Pan, "Hu Tightens Party's Grip on Power," Washington Post, April 24, 2005. 11 Ibid. 4 KEL242 KELLOGG SCHOOL OF MANAGEMENT This document is authorized for use only by Marijana. Karanfiloska in 2014. For the exclusive use of M. Karanfiloska, 2014. GOOGLE AND CHINA license to establish a server within China, Google had to agree to censor its content and search results. Finally, in restricting westernizing elements of the Internet through censorship, China could affirm its status as an independent actor in the global marketplace. As head of a hierarchical culture that valued status, the Chinese government sought to promote China as a powerful and independent actor in world forums. The government had in the past been critical of other Internet businesses that refused to follow its objectives and directives. For example, the online encyclopedia Wikipedia was completely banned in China until 2006 (see Exhibit 10). An anonymous post on the Wikipedia site claimed that Wikipedia's users had been acting as "running dogs for American imperialism."¹2 "Running dog" is an expression in Mandarin that means servile follower or lackey.¹3 Many Chinese suspected the post had been made by a government agent. The government would likely seek to prevent any loss of face that might accompany a decision to cave in to any of Google's demands concerning Chinese law and the government's official policy on the availability of information deemed contrary to the state's best interests. China had another option as well. Instead of allowing Google access to a ".cn" domain name, China could deny Google the license and continue to rely on local search engine alternatives to provide Chinese consumers with Internet searching services. Baidu had been steadily gaining market share, and was already one of the most visited sites in the world. It was a known entity and the Chinese government was already monitoring its compliance with Chinese law. The site was very similar in substance and style to Google. Though failure to bring a technologically advanced company such as Google to China would damage the regime's international reputation, it would likely produce fewer domestic repercussions. Searching for a Resolution As the Google negotiators arrived in Beijing, several concerns lingered. Chief among them was how the team would be able to reconcile the company's principles with its profit motives. The Chinese government officials assigned to negotiate with the Google team had concerns as well. Given the distance between the two parties on a number of important issues, neither party was confident that a deal would be reached. It would take a keen understanding of each other's issues, positions, and interests to understand their motivations. Moreover, each party would have to understand how the culture of its counterpart might influence the outcome of the discussions. The Google team settled into its accommodations and prepared to meet with government officials later that day.
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Introduction Negotiations between multinational corporations and governments involve complex dynamics shaped by cultural cognitive and perceptual variances In the case study Google and the Government ... View the full answer
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