international business negotiation essay

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Top 10 International Business Negotiation Case Studies

International business negotiation case studies offer insights to business negotiators who face challenges in the realm of cross-cultural business negotiation..

By PON Staff — on March 26th, 2024 / International Negotiation

If you engage in international negotiation , you can improve your odds of success by learning from these 10 well-known international business negotiation case studies:

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• Apple’s Apology in China

When Apple CEO Timothy D. Cook apologized to Apple customers in China for problems arising from Apple’s warranty policy, he promised to rectify the issue. In a negotiation research study, Professor William W. Maddux of INSEAD and his colleagues compared reactions to apologies in the United States and in Japan. They discovered that in “collectivist cultures” such as China and Japan, apologies can be particularly effective in repairing broken trust, regardless of whether the person apologizing is to blame. This may be especially true in a cross-cultural business negotiation such as this one.

• Bangladesh Factory-Safety Agreements

In this negotiation case study, an eight-story factory collapsed in Bangladesh, killing an estimated 1,129 people, most of whom were low-wage garment workers manufacturing goods for foreign retailers. Following the tragedy, companies that outsourced their garment production faced public pressure to improve conditions for foreign workers. Labor unions focused their efforts on persuading Swedish “cheap chic” giant H&M to take the lead on safety improvements. This negotiation case study highlights the pros and cons of all-inclusive, diffuse agreements versus targeted, specific agreements.

• The Microsoft-Nokia Deal

Microsoft made the surprising announcement that it was purchasing Finnish mobile handset maker Nokia for $7.2 billion, a merger aimed at building Microsoft’s mobile and smartphone offerings. The merger faced even more complexity after the ink dried on the contract—namely, the challenges of integrating employees from different cultures. International business negotiation case studies such as this one underscore the difficulties that companies face when attempting to negotiate two different identities.

• The Cyprus Crisis

With the economy of the tiny Mediterranean island nation Cyprus near collapse, the International Monetary Fund (IMF), European Central Bank (ECB), and the European Commission teamed up to offer a 10-billion-euro bailout package contingent on Cyprus provisioning a substantial amount of the money through a one-time tax on ordinary Cypriot bank depositors. The move proved extremely unpopular in Cyprus and protests resulted. The nation’s president was left scrambling for a backup plan. The lesson from international business negotiation case studies such as this? Sometimes the best deal you can get may be better than no deal at all.

• Dissent in the European Union

The European Union (EU) held a summit to address the coordination of economic activities and policies among EU member states. German resistance to such a global deal was strong, and pessimism about a unified EU banking system ran high as a result of the EU financial crisis. The conflict reflects the difficulty of forging  multiparty agreements  during times of stress and crisis.

• North and South Korea Talks Collapse

Negotiations between North Korea and South Korea were supposed to begin in Seoul aimed at lessening tensions between the divided nations. It would have been the highest government dialogue between the two nations in years. Just before negotiations were due to start, however, North Korea complained that it was insulted that the lead negotiator from the South wasn’t higher in status. The conflict escalated, and North Korea ultimately withdrew from the talks. The case highlights the importance of pride and power perceptions in international negotiations.

• Canceled Talks for the U.S. and Russia

Then-U.S. president Barack Obama canceled a scheduled summit with Russian President Vladimir Putin, citing a lack of progress on a variety of negotiations. The announcement came on the heels of Russia’s decision to grant temporary asylum to former National Security Agency contractor Edward Snowden, who made confidential data on American surveillance programs public. From international business negotiation case studies such as this, we can learn strategic reasons for  breaking off ties , if only temporarily, with a counterpart.

• The East China Sea Dispute

In recent years, several nations, including China and Japan, have laid claim to a chain of islands in the East China Sea. China’s creation of an “air defense” zone over the islands led to an international dispute with Japan. International negotiators seeking to resolve complex disputes may gain valuable advice from this negotiation case study, which involves issues of international law as well as perceptions of relative strength or weakness in negotiations.

• An International Deal with Syria

When then-U.S. Secretary of State John Kerry and his Russian counterpart, Sergey Lavrov, announced a deal to prevent the United States from entering the Syrian War, it was contingent on Syrian President Bashar al-Assad’s promise to dismantle his nation’s chemical weapons. Like other real-life negotiation case studies, this one highlights the value of expanding our focus in negotiation.

• A Nuclear Deal with Iran

When the United States and five other world powers announced an interim agreement to temporarily freeze Iran’s nuclear program, the six-month accord, which eventually led to a full-scale agreement in 2015, was designed to give international negotiators time to negotiate a more comprehensive pact that would remove the threat of Iran producing nuclear weapons. As Iranian President Hassan Rouhani insisted that Iran had a sovereign right to enrich uranium, the United States rejected Iran’s claim to having a “right to enrich” but agreed to allow Iran to continue to enrich at a low level, a concession that allowed a deal to emerge.

What international business negotiation case studies in the news have you learned from in recent years?

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Understanding how to arrange the meeting space is a key aspect of preparing for negotiation. In this video, Professor Guhan Subramanian discusses a real world example of how seating arrangements can influence a negotiator’s success. This discussion was held at the 3 day executive education workshop for senior executives at the Program on Negotiation at Harvard Law School.

Guhan Subramanian is the Professor of Law and Business at the Harvard Law School and Professor of Business Law at the Harvard Business School.

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International Marketing Review

ISSN : 0265-1335

Article publication date: 1 June 2003

Global companies increasingly rely on the effectiveness of business negotiations for their survival and growth. As an important business function for creating and maintaining successful relationships, international business negotiations during the last decade (1990‐2000) have attracted considerable attention among researchers. Although these research efforts have shed light on several aspects of international business negotiations, there has been neither a comprehensive assessment of the knowledge gained, nor a systematic analysis of the issues that this research appears to have left unexplored. It is the purpose of this study to provide a thorough review of the publications on international business negotiations generated in the last decade, identify trends, assess where the discipline currently is and where it might be going.

• International business
• Negotiating
• National cultures

Reynolds, N. , Simintiras, A. and Vlachou, E. (2003), "International business negotiations: Present knowledge and direction for future research", International Marketing Review , Vol. 20 No. 3, pp. 236-261. https://doi.org/10.1108/02651330310477585

Copyright © 2003, MCB UP Limited

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International Business Negotiations

Acquiring skills and knowledge through negotiation, flexibility, summary of initial post key points.

The success of negotiations depends on the specific skills and knowledge of a negotiator. Not only awareness of cultural peculiarities plays a crucial part, but also practical experience. Reasonable and goal-oriented use of negotiation strategies also requires particular personal characteristics, such as flexibility. Although this trait can help achieve favorable results in negotiations, it is vital for a negotiator to know when this behavior is appropriate.

International negotiation facilitates better communication skills and knowledge regarding the contemporary business environment. Ghauri et al. (2020) claim that negotiation skills are not genetically inherent in people but can be learned through constant practice. Moreover, being a good negotiator requires having background knowledge of the social, economic, and political systems of various countries where the negotiation counterparts come from (Ghauri et al., 2020). Nevertheless, having only a theoretical foundation may be ineffective, especially when not used in practice. Negotiators gain valuable practical communication skills with people having different cultural backgrounds. It relates to particular behaviors, word and negotiation strategy choices, gestures, emphasizing some crucial points, and so further. These skills are vital in the modern business environment because following specific rules of conduct ensures that a negotiator is competent and trustworthy.

Mastering and successfully using negotiation art involves special psychological traits. One of the most critical characteristics of an effective negotiator is flexibility, which should be used highly cautiously. This concept is similar to psychological flexibility, which means the ability to react to situations that correspond to and help achieve desired and valued goals (Doorley et al., 2020; Cherry et al., 2021). In terms of negotiation, being flexible is associated with the skill that allows a negotiator to insist on own views and interests or make concessions with a discussion partner depending on a situation.

A negotiator can be flexible in various ways and use different negotiation strategies. Thus, he or she can opt for making advances to a counterpart if the latter is undeterred. However, it is a delicate moment when a negotiator should rapidly decide whether such tactics could help. For instance, Ramirez Marin et al. (2019) describe that some negotiators may use threats or offer the best alternatives to a negotiated agreement (BATNA). These and similar behaviors require responding according to the context of negotiations. Flexibility can be a powerful tool if a discussion partner is also open to changes and alternatives. On the other hand, being exceedingly flexible may suggest to others that a negotiator cannot assert his or her interests and is ineffective. Moreover, he or she can be viewed as weak and inclined to follow dictated conditions. Meanwhile, inflexibility is useful when the other negotiation party uses evident manipulations and dishonest techniques. However, an inflexible negotiator can earn a reputation of being implacable, which decreases trust between discussion partners.

The initial post touched on the cultural factors that influence negotiations. The discussion process usually follows commonly accepted stages, such as information exchange, clarification, problem-solving, and implementation. However, being aware of cultural factors that may influence the negotiation course is essential. Although business practices vary from country to country, negotiators with different cultural backgrounds appreciate respect, trustworthiness, and shared values in their interactions with counterparts. Nevertheless, disagreements between foreign parties may still arise, which requires specific addressing through conflict resolution, management, or transformation.

Finally, flexibility should be exercised with considerable caution, depending on the negotiation context and counterparts. Theoretical knowledge of the cultural peculiarities of negotiation partners is useful only when practiced. Flexibility can serve as a helpful tool when other parties are also ready to make advances, though it may encourage dishonest communication techniques. Being inflexible can guard against the mentioned practices but may worsen trust between negotiation partners.

Cherry, K. M., Hoeven, E. V., Patterson, T. S., & Lumley, M. N. (2021). Defining and measuring “psychological flexibility”: A narrative scoping review of diverse flexibility and rigidity constructs and perspectives . Clinical Psychology Review , 84 , 1-16. Web.

Doorley, J. D., Goodman, F. R., Kelso, K. C., & Kashdan, T. B. (2020). Psychological flexibility: What we know, what we do not know, and what we think we know . Social and Personality Psychology Compass , 14 (12), 1-11. Web.

Ghauri, P.N., Ott, U.F., & Rammal, H.G. (2020). International business negotiations: Theory and practice . Edward Elgar Publishing.

Ramirez Marin, J., Olekalns, M., & Adair, W. (2019). Normatively speaking: Do cultural norms influence negotiation, conflict management, and communication? Negotiation and Conflict Management Research , 12 (2), 146-160. Web.

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International Negotiation: Cases and Lessons

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A guide to international negotiation

By: Andres Lares

One of the most important skills to learn in business is negotiating . It’s an art that you must master to gain partnerships and clients, and conduct business well. However, when it comes to doing business with companies in other countries , or international negotiation, you’ll have to take your negotiation skills to a whole new level.

International negotiation can feel daunting and uncomfortable at times. One small, innocent mistake or misunderstanding due to cultural differences can jeopardize an entire deal. Fortunately, there are specific ways you can avoid these mistakes and prepare for international negotiations, so you can successfully close your business deal.

Educate yourself on the culture

Before you step into the meeting room to start negotiating with an international client or company, educate yourself on their culture. This world is beautifully diverse with different people and customs , and it’s important to be aware and considerate of them. Not only does this broaden your mindset, but it also shows that you respect others when you acknowledge their culture.

The first things you should learn are their traditions, etiquette, mealtime rituals and customs, greetings, and overall mannerisms. This is especially important when enjoying a business meal or hopping on a Zoom call with an international client, as some things that may be traditional in your culture are seen as offensive in others. Knowing this essential information will put you far ahead of other businesses dealing with international relations .

Body language does most of the talking

Have you ever noticed that you can tell when two people are arguing or upset with each other even if they do not understand what they’re saying? This is because we can read their body language and understand the emotions they’re feeling.

You may be surprised to learn that most of our communication is done through body language. How we hold our hands, the expressions on our faces, and even how far we stand apart from someone can hint at how we are feeling.

According to Dr. Albert Mehrabian at UCLA, 7% of our communication is done through spoken word, 38% is through tone of voice, and 55% is through body language. Studies have also shown that people who are more animated when they speak, such as those who use their hands or put up their fingers when talking about numbers, retain people’s attention longer.

Since body language is our main form of communication, it’s essential to learn about certain gestures and mannerisms of the culture you’re going into international negotiations with. A simple gesture in your culture may mean something completely different to other cultures.

Mastering microexpressions

Microexpressions are a universal way of communicating through body language. Darwin first noticed these involuntarily facial expressions and across different cultures. It was Dr. Paul Ekman who then proved Darwin’s theory and found the display of emotions such as anger, fear, disgust, happiness, sadness, surprise, and contempt were the same for most people.

Understanding and identifying these microexpressions can make international negotiating much easier because of their universality. Pay attention to your counterpart’s face and keep an eye out for these microexpressions while negotiating for insight as to how they’re feeling.

Handshakes 

In most cultures, handshakes are used when first meeting someone or at the start of a business meeting. However, the type of handshake and the rules around them differ.

A firm handshake is preferred in the US, Canada, and Brazil, while in Europe and Asia, a looser handshake is often used. In Turkey, firm handshakes are actually considered rude.

It’s also important to note that women in Australia generally do not shake hands with other women, and women and men generally do not shake hands in Islamic cultures [1].

Personal space

The distance between two people is also different depending on the culture.

North America, Northern Europe, and Asia tend to keep a further distance and have less contact with people. Those in Southern Europe, the Middle East, and South American prefer standing closer together and having more contact.

Eye contact

If you’re a seasoned negotiator, you know just how important eye contact is when speaking with someone and know you must balance just enough eye contact. In fact, some cultures in the Caribbean view too much eye contact as aggressive.

A good rule of thumb is to maintain eye contact 50% of the time when you’re speaking and 70% when someone else is speaking.

Politely probe for more information

While body language greatly contributes to communication, speaking is just as important. Even just the tone of our voice is important to consider when negotiating with international clients. Some cultures tend to speak softly and maintain calmer conversations, while others, such as Italians, tend to talk at a higher volume and interrupt each other.

While how you probe depends on where you are and to whom you are speaking, asking questions is an essential phase of negotiating as it is the most impactful way to gain insightful information from your counterpart. It will help you discern their needs and thoughts. Not to mention, doing so gives the other side a platform to speak, which is a great way to build relationships.

Prepare your questions ahead of time and be sure your questions are appropriate to ask in their culture. A quick rule of thumb is to start broad, flush out all the key aspects of importance to the other side before you dig into a specific issue, and try to use open-ended questions whenever possible.

Concluding your negotiation

The end goal of any negotiation, international or domestic, is to reach an agreement that benefits both parties. Before entering the negotiation, have an idea of what your end goal is; what will be the outcome if your negotiation is successful or not?

Be strategic when you propose your offer. A quick tip is to be specific with your numbers as that indicates to the other side that your offer is well thought through. And, avoid ranges, as the other side always hears the side of the range that is most advantageous to them.

Become successful at international negotiation

International negotiations aren’t easy, but you will be more successful if you prepare for them. Ultimately, in any situation, the best negotiators are those who are well-prepared; they ask insightful questions and propose solutions that maximize their share but still satisfy the other side. In international negotiations, you just need to add an additional step of preparation to demonstrate respect for the other party. Do this, and you will find negotiation success.

[1] Lares, Cochran, and Digan (2021). Persuade: The 4-Step Process to Influence People and Decisions , Wiley, 161.

About the author

Author: Andres Lares

As Managing Partner of the Shapiro Negotiations Institute, a global leader in sales, negotiation, and influence training, Andres Lares is responsible for its day-to-day operations. Andres also continues to serve as a negotiation coach to leading organizations across various industries, with an emphasis on sports, and develop new initiatives such as SNI’s Virtual Reality and Artificial Intelligence-based negotiation simulations. Andres has been featured in publications including Harvard Business Review, Forbes, Entrepreneur, Fast Company, Money, Selling Power, and TrainingIndustry.com. He has also been a guest speaker at conferences and universities across the country on multiple topics and currently teaches a highly regarded course on Negotiation at Johns Hopkins University. View all posts by Andres Lares

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What is International Negotiation?

An international negotiation refers to the process of reaching agreements or resolving disputes between parties from different countries or cultural backgrounds. International negotiation skills are one of the most important aspects of successful international business relations and are a necessary foundation to be culturally competent and sensitive towards other cultures. The capacity to deal with the complicated nature of international negotiation has grown vital as businesses expand their activities across borders, enter international alliances, and pursue transactions between countries. The complexities of international negotiation go beyond conventional commercial operations, demanding a thorough comprehension of cultural distinctions, varying legal systems, and economic factors across many nations and sectors.

International negotiations are significantly impacted by cultural differences. Every culture has different beliefs, decision-making procedures, and communication patterns. Establishing trust and rapport with international colleagues requires being aware of and following these cultural conventions. The success of an international negotiation may be significantly increased by adjusting communication strategies to accommodate cultural differences, picking up on nonverbal indications, and comprehending cultural sensitivities.

International negotiations are also heavily impacted by legal frameworks and laws. Each country has a unique legal system, contract laws, and rules that control economic dealings. Understanding the target nation’s legal system is crucial for guaranteeing compliance, reducing risks, and crafting strong agreements. Working with legal professionals that focus on international business law might offer valuable guidance during the negotiating process. Additionally, economic factors play a huge role in making educated judgments and creating powerful negotiating strategies require analyzing economic trends, evaluating market potential, and comprehending the competitive environment.

We will dig into the complexities of international negotiation in this article, as well as offer insightful tips and techniques to help you navigate the global marketplace and succeed in your international negotiation. Follow along as we explore the essential strategies, methods, and best practices for succeeding in international negotiations.

An international negotiation is a process where two or more parties with different needs and goals discuss an issue to find a mutually acceptable solution. The goal of international negotiation is to obtain agreements between businesses with different cultural origins. It is a dynamic and complex process that calls for an extensive understanding of cultural quirks, strong communication abilities, and flexibility regarding various business procedures. Even though international negotiation includes resolving disputes between states, the focus of this article is about negotiating contracts and alliances across international boundaries in the corporate world. 

International negotiation is essential in many situations in business. It entails establishing strategic alliances to take advantage of complementary capabilities, entering new markets to capture growth opportunities, and engaging in global commerce and exchange via executing commercial transactions. International negotiation abilities are crucial for ensuring mutually beneficial results and developing long-lasting commercial connections, whether it is when negotiating joint ventures, licensing agreements, distribution contracts, or mergers and acquisitions.

A thorough awareness of the cultural, legal, and economic elements that influence business practices in other nations is necessary for successful international negotiation. Cultural variations in decision-making, communication, and time perception can have a big influence on how negotiations work. Market circumstances, currency rates, and trade regulations are additional economic elements that affect negotiating strategies and results.

Professionals can successfully negotiate across international borders by refining their talents in this area. This entails modifying communication techniques to cultural barriers, using successful negotiating strategies to reach consensus, and exhibiting adaptability to account for the various goals and interests of overseas counterparts. Professionals can open doors, develop beneficial partnerships, and succeed in the global economy with a thorough awareness of international negotiating concepts and a willingness to accept cultural difference.

Key Considerations in International Negotiations

• Cultural Differences : In international negotiations, cultural differences have a considerable impact. Every culture has its own set of beliefs, social conventions, and ways of communication that influence how people see and conduct negotiations. It’s essential to comprehend and appreciate these cultural variations to develop rapport, trust, and successfully communicate ideas during negotiations. For instance, it’s crucial to pay attention to tiny hints and read between the lines in high-context countries like Japan and China, where nonverbal cues and implicit communication are valued. Being simple and honest can, however, be more successful in low-context societies, such as Germany and the United States, where direct and explicit communication is vital for good communication. Negotiators can promote a cooperative and peaceful negotiating atmosphere by adjusting to and accepting cultural disparities.
• Legal and Political Considerations : The legal and political systems of the countries involved have an impact on international negotiations. To ensure compliance and reduce legal issues, negotiators must be aware of any legal restrictions, such as import/export rules, intellectual property rights, and contract laws. Additionally, political issues can influence talks, forcing negotiators to keep informed and modify their techniques. These elements include geopolitical conflicts or government policies. Negotiators may increase the security and duration of their international commercial partnerships by skillfully navigating the legal and political context.
• Economic Considerations: Negotiation dynamics are directly influenced by each nation’s economic environment, which includes elements like market circumstances, currency exchange rates, and trade agreements. Negotiators can find solutions that advance both sides’ economic priorities and interests by having a clear understanding of these interests and priorities. To successfully take advantage of opportunities and handle problems, it is crucial to evaluate market trends, marketplace dynamics, and potential trade barriers. Negotiators may maximize the value and viability of the agreements negotiated and hence ensure the long-term success of their international commercial ventures by incorporating economic insights into their negotiating techniques.

How to Have Successful International Negotiations

Being able to deal with the complex nature of international negotiations has become crucial in today’s globalized corporate environment as businesses grow their activities across borders, get involved in international alliances, and seek cross-border transactions.

Cultural distinctions, varying legal systems, and economic concerns across different countries and regions are just a few of the many variables that come into play in international negotiations. Successful outcomes and mutually beneficial agreements can result from understanding and skillfully handling these issues.

Professionals may overcome obstacles, establish trust, and create fruitful partnerships with foreign counterparts by gaining an in-depth comprehension of multiple cultural norms, adjusting ways to communicate, and employing economic insights.

• Preparation : Successful international negotiations start with careful planning. Do some research on the people you'll be haggling with, their objectives, and possible negotiation strategies. Learn about their company, their industry, and the cultural setting in which they operate. You can adapt your negotiating strategy, foresee problems, and make wise choices thanks to this information.
• Build Trust : In international negotiations, creating trust is essential. Create a welcoming, respectful, and open environment. Actively listen to the other person and show empathy to learn about their interests and worries. Collaboration, improved communication, and a greater chance of mutually beneficial agreements all result from trust.
• Practice Good Faith Negotiation : Engage in good faith negotiation by adopting a collaborative attitude. Avoid excluding the opinions and viewpoints of the opposing party. actively look for ways to comprehend their fundamental motives and interests. Investigate possibilities for addressing their needs or locating agreements that benefit both parties.
• Don’t Get Caught up in “Fairness” : International negotiations frequently call for compromise and a fair-minded viewpoint. Avoid getting caught up in obtaining perfect justice or all desirable results. Concentrate on the contract’s total worth and the long-term advantages it provides. Instead of aiming for a precise balance of compromises, embrace flexibility and place an emphasis on finding solutions that will benefit both parties.
• Take Steps to Avoid Stress : Negotiations on a global scale can be tough and stressful. Consider taking pauses when necessary to keep the atmosphere of the negotiations fruitful. Make room for refueling options like food and drink. Delay deadlines as necessary. Clear thinking, improved communication, and better decision-making are all improved by stress management.

You must master the art of international negotiation if you want to succeed in today’s globalized corporate environment. You'll be able to confidently negotiate internationally if you are aware of how cultural differences, legal and political issues, and economic variables affect the discussions. Values, traditions, and communication styles that vary among cultures have a big impact on how well negotiations proceed. International negotiations can only be effective if participants can adjust to these differences and use tactics to build trust, engage in good faith negotiation, and stay out of the “fairness” trap.

Furthermore, implementing measures to control tension during discussions creates a constructive environment for coming to amicable accords. Embrace the challenges and possibilities of international negotiation and unlock your potential to excel in the dynamic world of global business. Gain valuable insights into cultural differences, legal and political considerations, and economic factors to negotiate with confidence. Discover how our negotiation training can empower you to achieve remarkable results in international negotiations.

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Negotiations With International Organizations or Corporations Essay

In the current world people, organization, states and regions view various aspects differently. This is mainly based of their interests, religion or even culture. This usually results to diverse opinions. In case different groups are doing something that need the attention of all parties, then the presence of differing opinions usually slows down the implementation. For the smooth running of the operations of the process, negotiations are very essential. There are many issues that are of common interest to different organizations all over the world.

These issues may include subjects like pollution and global warming. Such issues usually affect the whole world and combined efforts are necessary to reduce their effect. This is usually not the case as division usually arises due to contrasting opinions. This paper addresses negotiations with respect to international organizations or corporation, international acquisition and government to government lending. The paper also analyses the implication of globalization and technology on negotiations.

Negotiation is mainly based enhancing understanding among parties with varying opinions about a certain subject. Because disagreements are bound to happen, then the parties should have good negotiation skills. A good negotiator usually takes time to understand and analyze the other party’s point of view before drawing a conclusion. In case of disagreements, a mediator may be needed.

In undertaking negotiations, the parties’ goals as well as the goal of the subject matter should be considered. The negotiations should not be based on emotions. To ensure effective implementation of the negotiation process, there must be a strategy. The strategy usually provides guidelines on how to handle the situation. Adequate preparation for a negotiation is necessary and all the ideas and views should be collected. The best negotiation should provide a long term solution to the problem rather than a short term solution.

The reconciling body should identify the objectives. These should include both short term and long term objectives. These objectives should be derived from all aspects such as political, economic and social among others. To come to a good conclusion there is need to strike a balance between all the objectives.

The most pressing ones should be prioritized and a consideration of the available resources taken into account to ensure smooth running of the process. The different needs should be considered whether they are realistic or not. The parties should be dynamic and not static to their point of view. This usually hastens the process and thus allows the consensus to be reached easily.

Throughout the negotiation process, there should be a consideration on the probable consequences of failing to come to a consensus. This thus brings the need for alternatives. From the many lists of alternatives available, then the most suitable alternative should be given priority. The alternatives should be set aside even before the negotiations starts to be conducted. Because the outcome of any negotiation is not usually certain but based on a mater of probability, the parties should have an open mind on whatever the outcome may be.

This means that the predicted outcome may vary from the actual outcome. Setbacks can occur at any point of the negotiation. When they occur, it is usually good for the concerned parties to have prior information of such probability so that they are able to maintain their focus on the problem at hand.

Communication in negotiation is very crucial. It is thus very important to ensure that the information is presented in a way that it is understandable to all the participants. Incase a point is not clear to any of the members; it is good to rephrase it in a manner that everybody understands fully. In case of a large number of organizations or groups, each group can choose its spokesperson(s) that will air their views.

Some information is usually best revealed at specific points of negotiation. This usually helps to avoid unnecessary disagreements and arguments which may even paralyze the whole process. The presence of comments from outsiders is inevitable. These may include news agencies and their probable impacts should be taken into consideration. Thus it is important to be prepared in advance for anything that may happen during the negotiation process to ensure its smooth completion (BNET, 20101).

In the successful accomplishment of any negotiation, proper preparation is very necessary. This is because improper preparation could make the parties concerned to disagree completely which would lead to the termination of the negotiation and may cut short the probability of future negotiations.

Planning is usually facilitated by the use of negotiation plan. In designing the plan, various matters must be considered. These matters usually take into account the goals and various aspects to be encountered. In planning, the strategy to be followed should be well formulated and outlined to minimize the chances of any failure that may occur. The plan should be flexible and should take into account the factor of time.

It is usually good to understand the other parties in a negotiation. This should be on various aspects such as its objectives, goals and priorities among others. It is usually very wrong to make assumptions. In the case of using a mediator then he/she should not be inclined to any side.

It is also good to make the parties feel comfortable with the location of the negotiations. No party should feel disadvantaged about the location. The location should provide security and confidentiality to all. Every member involved should clearly identify their roles. The negotiation style adopted should be credible. Trust in the process is very important.

Globalization and technology play important role in negotiation. Globalization has resulted in various interactions between various organizations. This usually leads to conflicts of cultures or economic aspect but on the other hand provide a chance for mutual interaction.

Technology has improved communication and the means of tackling things. This has increased mutual interaction as well as helping overcome some minor wrangles that may have occurred. Technology and globalization have brought together different people who usually get to know about each other through social sites.

When conducting negotiation, in the presence of differences in language, an interpreter may be used. Some of the persuasion methods include communicating persuasively, self expression and storytelling. The negotiations are usually concluded with the summary of the agreements achieved which are written. After this the parties should complement each other for the various roles they have played (Baker & McKenzie, 2007).

The art of negotiation is very significant especially when people from different regions are in question. Negotiation makes it possible for crisis to be solved amicably. The art of negotiation demands that a lot of sensitivity should be observed especially when the process is on.

Baker K & McKenzie, M. (2007). The International Negotiations Handbook: Success through preparation, strategy and planning. Baker Mckenzia . Web.

BNET. (2011). Russia, China Get Tough with Social Media Companies to Avoid Unrest . Technology and Business . Web.

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• The Preparation Process for International Negotiations
• Importance of Negotiating Workplace Disagreements
• Business Negotiation Session
• The Implications of Globalization and Technology on Negotiation
• Communication and Personality Role in Negotiation
• Power in the Negotiation Process
• Business Negotiation Strategies
• Contract Negotiation: The Critical Aspects
• International Negotiations and Bargaining Skills
• A Win-Win Negotiation Process
• Rules of Negotiation in Construction Contract Management
• Face-Saving Strategies. Examples of Conflict Negotiation
• Cross-Cultural Implications or Interactions
• Effective Ways of Ensuring the Incorporation of Change
• Organizational Behavior Forces

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International business negotiations : Present knowledge and direction for future research

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International Business Negotiation

International business negotiation 1 Introduction Sensitivity to cultural differences is very important in today’s international business arena. Culture profoundly influences how people thinking, communication and behave. Nowadays, business executives are finding themselves in precarious situations due to culturally rooted differences in business protocol, language and value system. Therefore, being aware of the influence of culture on international business negotiations and the proper ways to deal with problems encountered in international dealings is badly needed for persons involved in cross-cultural transactions.

The remainder of this paper is divided into seven parts.

First, the concept and principles of business negotiations are presented. Second, the concept of culture is explained in details. Next, the relationship between culture and international business negotiations is discussed. Fourth, the influence of culture on international business negotiations, especially the negotiating styles, which involve ten factors each consisted of two extremities is described. Fifth, points worth noting for cross-cultural negotiations are listed.

To make the whole argumentation more rigorous, a section for discussion is added.

The last part is the conclusion. 2 Concept and Principles of Business Negotiation 1. 2. 1 Concept of Business Negotiation Negotiation is a basic human activity and it is also a process through which people exchange information and experience everyday to manage their relationship. Because of mutual contact, conflict and divergence in viewpoints, needs, interests, both sides try to persuade the other party to understand and accept their viewpoints and to satisfy their own needs.

Business negotiation refers to the negotiating activities over the issues of transaction conditions for both parties to accomplish the exchange of commodities or services.

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As a useful means for the enterprises to achieve their economic goals, as an important channel to acquire market information, and as a strong power to explore the sales markets, business negotiation is some kind of complicated and comprehensive business activity, which often involves the knowledge in the fields of politics, economics, laws, literature, psychology and so on.

Though it is one part of the operation and management of an enterprise, business negotiation distinguishes itself from the common production, operation and management. And these differences are as follows: (1) The objects for exchange in business negotiations have the property of uncertainty and variability. (2) Business negotiation is the unity of magnetism and persuasion. (3) It is also the unity of concession and aggression. (4) It requires the consistency between your verbal expression and your true ideas 1. . 2 Characteristics of Business Negotiation Having a correct understanding of what it is, we conclude some of the characteristics of business negotiation. Negotiation is a cooperate enterprise; common interests must be sought. Negotiation is a behavioral process In a good negotiation, everybody wins something. (4) The size of the play field may vary from venture to venture. One must bear in mind that success isn’t winning everything but winning enough. 1. 2. 3 The Basic Principles of Negotiation

According to the characteristics of negotiation and the correct understanding of what it is, we can figure out the following basic principles of a successful negotiation. (1) Equality principle—-Both parties are equal in law status. They have equal rights and obligations. They do business for their own needs and they enjoy mutual benefits. (2) Sincere cooperation—-Both parties are making concessions. The purpose of this is to seek a win-win situation. It is through sincere cooperation that this win-win result can be made. 3. 3)Keep it flexible and fluid—-Any negotiation is a process of constant thinking, exchanging of information and concession of both parties. Besides sticking to principles one should also master in a flexible way. 3 The Concept of Culture 1. 3. 1 Definition of Culture Definitions of culture, which differ from one group to another, are as vague as that of negotiation itself. The following is the list of these varied definitions. Culture is a set of shared and enduring meanings, values, and beliefs that characterize national, ethnic, and other groups and orient their behavior.

Herskovits considers it as the “human-made” part of the environment, where man left its print on nature. Triandis distinguishes between “subject culture” made of categories, norms, roles and values and “objective culture”, regrouping human products such as tools, chairs, jet planes. For the purpose of this paper, culture is defined as the socially transmitted behavior, norms, beliefs and values of a community, which is in accordance with the theory given by Salacuse. Persons from that community use the element of their culture to explain their surroundings and guide their interactions. As Jeswald W.

Salacuse mentioned in his paper “Intercultural Negotiation in International Business”, one may find the four cultural elements forming a series of special circles, like the layers of an onion. The outer-most layer is behavior, the words and actions of one’s counterpart, which is first perceived in an intercultural negotiation. The second layer is the attitudes of persons from that culture towards specific events and phenomena, like the attitudes about beginning meetings punctually or the appropriate format of presentations. Only after protracted discussions may the attitudes become obvious to a counterpart.

Next are norms, the rules to be followed in specific situations. For example, a negotiator may come to realize that his or her counterpart’s seemly rigid insistence on punctuality is more than a firm rule rooted in his or her culture. The inner-most layer consists of values—-most difficult for negotiators to detect. The parties to an international negotiation may realize their value differences only after they have signed the contract and begun to work together. Either from the onion picture or from the explanations to each element, one can easily figure out that value is the core of each culture.

Without it the organism of a specific culture cannot be normally operated. All the different performances and interactions affected by the other three elements are determined by the values, or we can say the values have their supreme authority to influence negotiations. 1. 3. 2 The Nature of Culture Culture is transmitted through socialization and education from one generation to the next. In the short-term perspective, culture can be conceived as a structural component of any society that conditions human thinking and behavior, operating in a deterministic way.

In the long-term perspective, it is a dynamic social dimension that induces changes over time through modification of value scale. Then should the nature of culture be seen as a process or as a product? It is a process in the sense that culture elicits actions and orients them. It brings about specific actions in specific situations and, thus, could be understood as something equal to instinct. On the other hand, it is a product, an outcome of the process which is expressed in visible ways. 4 Culture and International Business Negotiations

Culture and international business negotiations can never be separated from each other. Culture, as a conscious or unconscious value, is controlling and guiding our behavior every minute. Negotiation, as a verbal behavior, takes the task of bridging two kinds of cultures. To some extent, nowadays the apparent trends of globalization makes us to realize that the process of negotiation equals to the process of getting access to the counterpart’s culture, since culture has infiltrated into every step of negotiations.

And the research of culture involves most vital variables which worth noting in the development of negotiations. In turn, negotiation provides a platform for the communication of two different cultures. People meet together, then discuss, conflict, negotiate and finally reach an agreement. In the whole process, varied cultures walk out of their boundaries, meet or challenge each other. The result is that while still maintaining their own essence, different cultures have melted with or infiltrated into others, which makes them get improved and enriched. Impact of Culture on Negotiating Styles 5. 1 Negotiating Goal People who are contract-oriented are concerned entirely with achieving a business goal. They are not concerned about the effect their determination may have on the people whom they contact with. Traditionally, American business culture is very task-oriented. People don’t want to waste time with the social niceties; they want to get down to business. People from this kind of culture would rather focus on specific issues—this means time is saved and all the work goes on effectively.

But dangers also exist in this approach—large pictures and personal issues, which may make or break the deal, may be missed. People who are relationship-oriented are highly concerned about people who work for them, alongside them or above them. The vast majority of the world’s market is relationship-oriented: the Arab world, the Asia region, and most of Africa. People there prefer to deal with friends and persons who are well known to them. And it is said that these people often consider the goal of a negotiation is not a signed contract but the creation of relationship of the two sides. 5. 2 Negotiating Attitudes

Win/win negotiators see deal making as a collaborative and problem-solving process, while win/lose negotiators see it as confrontation. In this aspect, the values of national superiority and national inferiority can be in tension. For instance, due to the long-term colonial history, the sense of being enslaved and exploited by big powers has deeply rooted in the cultures of developing countries, which makes people from those countries often regard negotiations with multi-national corporations as win/lose competition, in which profits are earned by the investors while the host country owns losses.

The result is that they may make their efforts in negotiations to limit investors’ profits, create conflicts instead of seeking methods which will benefit both parties. 5. 3 Personal Styles Personal styles mean the way a negotiator talks to others, uses titles, speaks and interacts with others. Culture strongly influences the personal styles. Formal business culture is about status, hierarchies, power and respect, whereas informal cultures are about status equality. Ignorance of this distinction can cause serious problems. For an American or an Australian, calling someone by his or her first name is an act of friendship nd therefore a good thing. For a Japanese or an Egyptian, the use of the first name at a first meeting is an act of disrespect and therefore a bad thing, which may impede a negotiation. 5. 4 Communication In terms of communication, the differences can be reflected on the negotiators’ choice of words. Some place emphasis on direct and simple methods of communication; others focus on indirect and complex methods. It is observed that the American style, as well as the German, is very direct and they try to demand the same from their counterparts.

Generally speaking, Americans openly disagree and use aggressive persuasive tactics. And the Germans usually apply a just-the-facts approach to conduct their business. While the Chinese and the Japanese tend to have business negotiation in a rather indirect manner, as opposed to the direct manner of American and German businessmen. Chinese would like to take time to see their prospective business contacts are really reliable by inviting them to a party and socializing with them. And the Japanese are famous for their ambiguous behavior. They regard vagueness as a method of protection from “lose of face.

To maintain surface harmony and avoid losing face, they often use circumlocutions, vague allusions, figurative forms of speech, or facial expressions to express themselves. In a direct culture, one can receive a clear and definite response to proposals and questions; in an indirect culture, one must first interpret the indefinite comments, gestures and other signs before they figure out the deep level meaning of their counterparts. 5. 5 Sensitivity to Time People look at time and arrange their affairs differently in different parts of the world. Punctuality is dependent on specific cultural variables.

So negotiators should clearly understand how people in each culture view time and value punctuality. In fluid-time cultures, like Latin American one, people don’t view time as a constraint. Delays of thirty minutes or more are not surprising. With such knowledge born in mind, the negotiator should arrange appropriate time for a negotiation. For example, most businessmen in the west try to be punctual. But when negotiating with middle-east businessmen, one should plan longer and less formal sessions. Conflict is produced because some rigid-time negotiators regard their fluid-time ounterparts as lazy, undisciplined and rude. 5. 6 Emotionalism Cultural factors also influence negotiators’ emotion expression. According to the stereotype, people from the Mediterranean region, Latin Europe and Latin America, belong to the expressive group. They communicate in radically different ways from their reserved counterparts. They would be uncomfortable with more than a second or two of silence during a conversation. On the contrary, people from reserved cultures, like East and Southeast Asia, Nordic and Germanic Europe, feel at ease with much longer silence. . 7 Form of Agreement Nobody can ignore the influence of culture on the form of agreement. Due to the linear logical thinking pattern, the Americans are accustomed to attaching more attention to the details rather than the general things. So they prefer very detailed contracts which include specific items concerning with all possible circumstances and eventualities, no matter how unlikely. Other cultures, such as the Chinese one, prefer a contract in the form of general principles rather than detailed rules.

This is because the Chinese thinking pattern is curvilinear and the special thinking patterns dominate their behavioral manner, from big to small or from general to specific. 5. 8 Team Organization This describes the extent to which a society emphasizes the individual or the group. Individualistic societies encourage their members to be independent and look out for themselves. Collectivistic societies emphasize the group’s responsibility for each individual. The United States is considered to be an individualistic society. While Japan, for example, is collectivistic.

Negotiators from a collectivistic society are likely to spend more time on long-term goals, to make realistic offers and to be cooperative. On the other hand, negotiators from individualistic societies are more likely to focus on the short term, make extreme offers. Furthermore, they are likely to be more competitive. So when two such parties sit down for negotiation, both of them will be frustrated. The critical factor in such negotiation is that each party should know the other’s main interests rather than just focusing merely on their own. 5. 9 Decision-making

In any international business negotiation, it is important to know how the other side makes their decision, who has the authority to make commitment. Culture is one important factor that affects these issues. Some culture emphasizes the individual while others stress the group. In the first type, the characteristic is the whole team owns a supreme leader who has complete authority to decide all matters, while the Japanese culture can well illustrate the latter. In the first type, the negotiating team is usually small; in the second it is often large.

For example, it would not be uncommon for the Americans to arrive at the table with three persons and for the Chinese to show up with ten. 1. 5. 10 Risk Taking In deal making, the culture of the negotiators can affect the willingness of one side to take “risk” in the negotiation—-to try new approaches, be prepared for all the uncertainties and so on. The Japanese, with their emphasis on requiring large information and their intricate group decision-making process, tend to be risk averse. The Americans, by comparison, considered themselves to be risk takers. 6 Points Worth Noting for Cross-cultural Business Negotiations . 1 To Establish the Awareness of Cross-cultural Negotiations Nowadays, the rapid development of globalization and internet technique have led to international businessmen’s ever-increasing sensitivity to the negotiations between different cultures and their tolerance and understanding of varied cultural values. However, there are still some people paying little attention to the cultural issues due to their limited knowledge about the importance of culture. In international business negotiations, one should at any time enhance his awareness of these cultural differences.

To have a knowledge about the other side’s culture enables the negotiator to get a whole range of benefits: to understand better the way the other thinks and acts; to grasp for instance his way to conceive problems; to perceive situations; to become more familiar with his value system, his preference and what he dislikes; to realize the issues that may rise from cultural encounters. With the correct guidance of negotiating awareness, negotiators should be flexible enough to make their negotiating styles and strategies adapted in different cultural environment.

People are advised to observe some key rules of etiquette when they negotiate with French, Japanese and English businessmen. Germans feel more comfortable doing business with men whose shoes are brightly polished. Also please watch out for cultural-specific taboos. Avoid presenting sharp gifts such as knives; in some cultures they symbolize the ending of a relationship. 6. 2 To be Neutral in Terms of Cultural Conflicts In international business negotiations, some business cultures would be distinctively different. Certain principles and customs that the counterpart insists would be totally impossible for us to accept.

But what we should do is not to blindly make any comments on their cultural values and codes and at the same time we should also defend our own culture from any degrading comments. Or that would bring about thorny confrontations. So at negotiating table, we should learn to respect the other side’s values, codes, and custom, no matter how tiny the aspect is. That is to say, negotiations need some flexibility to keep it fluid in the process as to how to seek the consistency of both parties to achieve the holistic objectives as long as you don’t give up some important principles. 6. 3 To Find Ways to Bridge the Cultural Gaps

How will you view the cultural differences, as an obstacle or a weapon or even something else? The conventional view is that cultural differences are an obstacle to agreement and effective action. But in a different culture they can be weapons, especially when a dominant party tries to impose its will on the other side. For example, their foreign counterparts may regard American lawyers’ insistence on structuring a transaction “the way we do it in America” as the use of American culture as a weapon. In such situations, differences of cultures tend to impede the process of the negotiations.

In short, cultural differences create a gap between persons and organizations. Therefore, effective international business negotiators should seek to find ways to bridge the gap caused by cultural differences and try to turn all the adverse factors into contributors of a successful negotiation. a. Bridge the gap with the other side’s culture. In international business, negotiators often try to use the other side’s culture in order to build a relationship, which can be illustrated by an old saying “when you are in Roman, do as the Romans”. b. Bridge the gap with your own culture.

A second way to bridge the gap is to persuade or induce the other side to adopt your culture, which may require time and education. For example, in order to give a common culture to a joint venture, an American partner sent executives of its foreign partner to schools and executive training programs in the United States and then assigned them for short periods to the U. S. partner’s own operations. c. Bridge the gap with the combination of both sides’ cultures . In fact, cultural bridging takes place on both sides of the gap and results in the construction of an integrated structure.

The challenge of this approach is to identify the most important elements of each culture and to find ways to bind them together that allow business goes smoothly. d. Bridge the gap with the help of a third culture. The fourth method of dealing with the cultural gap is to build a bridge based on a third bridge that belongs to neither of the parties. For example, in a difficult negotiation between an American executive and a Chinese manager, both discovered they appreciated the French culture. So they began to talk in French.

And the result is they built a strong relationship which stimulated the success of that difficult negotiation. 7 Discussion The examination of the influence of culture on international business negotiations reveals that differences in culture can create barriers that impede the negotiating process. But to make this paper rigorous, it should be pointed out that there are many other obstacles which can also stymie negotiations. Culture is not the only determiner, which can be easily proved by the following example. Accuracy of translation sometimes can be vital in the process of negotiations.

In one Sino-American business negotiation, the Chinese party took a proud tone to introduce their company like this “Our company is the national top-second company”, while the translator translated the status of the incorporation into “a second-class enterprise”. As a result, the US company quickly cooled down because they were not interested in such kind of company. Therefore, in international communication, careful consideration should be taken before choosing a translator. What’s more, professional knowledge can also help to make the process of negotiation go smoothly.

Your quality knowledge in the business field will leave a good impression on your counterpart, who will be willing to trust you and cooperate with you. Conclusion In short, culture influences international business negotiations in many ways. As for the negotiating styles, culture affects the ten specific negotiating traits a lot. With that knowledge, an international business negotiator may be able to anticipate possible misunderstandings and seek a successful negotiation. However, it is necessary to point out that culture is only one of the factors that can affect negotiating styles.

In practical negotiations, the situation would be much more complicated. One should never simply conclude that perception of both parties’ cultural background can solve all the problems encountered in the process of negotiations. When dealing with international business negotiations, many subjective or objective factors mentioned above should be taken into consideration so that both you and your counterpart can win enough in transactions.

Bibliography [1] Cateroa, Philip R. International Marketing[M]. Homewood,1L: Richard D. Irwin,1990. [2] Faure, G. O. and J. Rubin. Culture and Negotiation[M]. Newbury Park: California, Sage, 1993. [3] Guy Oliver Faure. The Cultural Dimensions of Negotiation The Chinese Case[M]. New York: Group Decision and Negotiation,1999. [4] Herskovitz, M. J. Cultural Anthropology[M]. New York: Knopf, 1995. [5] Jeswald W. Salacuse. Marketing Global, Dea -Negotiating in the International Market Place[M]. Boston: Houghton Mittlin,1991. [6] Jeswald W. Salacuse. Intercultural Negotiation in International Business[M]. Boston:Group Decision and Negotiation,1999. [7] Michael. Mc Ginnis. Lessons in Cross-Cultural Negotiations[J]. Supply Chain Management Review, 2005. 8] Milton Mayfield, Jacqueline Mayfield, Drew Martin and Paul Herbig. Time Perspectives of the Cross-Cultural Negotiation Process[J]. American Business Review. Jan,1997. [9] Reardon, Kathleen and Robert Spekman. Starting Out Right: Negotiation Lessons for Domestic and Cross-Cultural Business Alliances[M]. Newbury Park: Business Horizons,1994. [10] ???. ?????? [M]. ?? :????????? , 1997. [11] ???. ??????? [J]. ????????? , 2001. [12] ???. ?????? [M]. ?? :????????? , 2000. [13] ???. WTO?????? [M]. ?? :??????? , 2002. [14] ??. ???????????? [J]. ?????? , 2001. [15] ???. ?????? [M]. ?? :??????? , 2003. [16] ???. ?????????????????? [J]. ???? , 2003.

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Ohtani’s Former Interpreter Is Said to Be Negotiating a Guilty Plea

Ippei Mizuhara stands accused of covering his gambling debts by stealing millions of dollars from Shohei Ohtani’s bank account.

By Tim Arango and Michael S. Schmidt

Ippei Mizuhara, the former translator for Shohei Ohtani who was fired late last month amid allegations he stole millions of dollars from the baseball star’s bank account to cover debts that Mizuhara owed to an illegal bookmaker, is in negotiations to plead guilty to federal crimes in connection with the purported theft, according to three people briefed on the matter.

The investigation, which began about three weeks ago after news of the alleged theft broke while Ohtani’s team, the Los Angeles Dodgers, was opening its season with two games in South Korea, is rapidly nearing a conclusion, according to the people, who spoke on the condition of anonymity because the inquiry is continuing.

A guilty plea from Mizuhara before a federal judge — likely to include an admission of a range of facts related to any illegal conduct — could confirm the account that Ohtani gave to reporters two weeks ago, in which he said he had no knowledge of what happened to the money.

Those briefed on the matter claim that prosecutors have uncovered evidence that Mizuhara may have stolen more money from Ohtani than the $4.5 million he was initially accused of pilfering, the people said. In particular, the authorities think they have evidence that Mizuhara was able to change the settings on Ohtani’s bank account so Ohtani would not receive alerts and confirmations about transactions, the three people said.

Ohtani’s lawyers initially alerted the federal authorities about the alleged theft, and Ohtani pledged publicly to cooperate with the federal investigation and one being conducted by Major League Baseball. According to one of the people briefed on the investigation, the federal authorities interviewed Ohtani in recent weeks to learn more about his relationship with Mizuhara.

By quickly pleading guilty, Mizuhara would increase his chances of receiving a more lenient sentence, as federal prosecutors and judges often look more favorably upon defendants who make the government’s job easier by expeditiously admitting their guilt.

Little is known about where Mizuhara has been since the Dodgers fired him. Upon returning to California from South Korea, Mizuhara was stopped by law enforcement officials after getting off the plane, the three people said. It’s unclear what Mizuhara told the authorities in their interaction, but he was not arrested.

Mizuhara has hired Michael Freedman, a former federal prosecutor in Los Angeles who specializes in white-collar criminal defense. Freedman declined to comment.

The investigation has been jointly led by the Los Angeles offices of the Internal Revenue Service’s criminal division and the Department of Homeland Security, along with the U.S. attorney’s office for the Central District of California.

A spokesman for the U.S. attorney’s office declined to comment. Matthew Hiltzik, a spokesman for Ohtani, referred to the player’s detailed explanation he gave to the media two weeks ago, when Ohtani said Mizuhara had stolen from him and he promised to cooperate fully with the federal and Major League Baseball investigations.

“I never bet on baseball or any other sports or never have asked somebody to do that on my behalf,” Ohtani said. “And I have never went through a bookmaker to bet on sports. Up until a couple days ago, I didn’t know this was happening.”

The allegations about the theft surfaced when the Dodgers were in Seoul to open the season with games against the San Diego Padres. Interest in the team has been intense since it signed Ohtani to a 10-year, $700 million contract in December. But as he and his new teammates were preparing for their opening games, reporters began asking about suspicious wire transfers from Ohtani’s account that had surfaced in a federal investigation of an alleged bookmaker. Mizuhara never informed Ohtani what was happening, Ohtani later told reporters.

Mizuhara, though, told Ohtani’s agent, Nez Balelo, that had discussed the matter with the player, according to Ohtani. But Mizuhara offered different versions to Balelo of what had occurred. First, Mizuhara said Ohtani had paid the debts of an unnamed teammate; then he said that he himself had racked up debts with the bookie and that Ohtani had bailed him out. The shifting stories alarmed executives in Major League Baseball, who worried that Ohtani might be tarnished by a connection to gambling.

Once executives with the Dodgers and Major League Baseball learned of the wire transfers — but with Ohtani still in the dark — the Dodgers asked Mizuhara to address the team in the clubhouse after the first game in Seoul. He told the team that he had a gambling addiction and was deep in debt, and that Ohtani, his close friend for years, had paid the debts.

At that point, Ohtani, who is not fluent in English but can understand the gist of some conversations, became suspicious. After Mizuhara’s clubhouse address, Ohtani told reporters, he confronted Mizuhara back at the team hotel. It was then, Ohtani said, that Mizuhara told him that he had stolen the money from his account. The Dodgers promptly fired him.

An earlier version of this article misstated what happened after reporters began asking about the wire transfers from Shohei Ohtani’s bank account. His interpreter, Ippei Mizuhara, told Ohtani’s agent, Nez Balelo, that he had discussed the matter with Ohtani, though Ohtani later said he had not. It is not the case that Balelo tried to manage the situation with Mizuhara without informing Ohtani.

How we handle corrections

Tim Arango is a correspondent covering national news. He is based in Los Angeles. More about Tim Arango

Michael S. Schmidt is an investigative reporter for The Times covering Washington. His work focuses on tracking and explaining high-profile federal investigations. More about Michael S. Schmidt

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