The American and Japan (1977 – 1988) Orange Negotiation

Comparison of the cultural difference in business between Japan and the USA

Comparison of the cultural difference in business between Japan and the USA

The American and Japan (1977 – 1988) Orange Negotiation


The situation (scenario) this week shows that Japan and the United States are involved in the Orange Talks, which lasted for ten years from 1977 to 1988. The two most influential and powerful economies in the world have the goal of winning from each other during the negotiations. . In addition, they have different cultural values ​​and thus each conducts a different business. US goals in the scenario; To export (distribute) American oranges to the Japanese market, to remove trade barriers in the Japanese market and to liberalize the Japanese market (Coyle, 1986). Also, on the other hand, Japan has a goal to achieve when they participate in negotiations. He had a purpose to do so; maintain and improve the nation’s positive image and reputation outside the country. This is another way to opt out of the General Agreement on Trade and Tariffs (GATT) and ultimately avoid foreign jurisdiction. However, the Japanese decided to accept the US demands only if the US threatened to take them to the GATT.

Therefore, it can be seen that the two countries are at economic war because each government wants (desires) to benefit from the other. Therefore, only Hofstede’s Culture-Dimension Model (Model) can be used to solve their problems. This model represents cultural change along six key and important dimensions: Uncertainty Avoidance, Collectivism vs. Individualism, Femininity vs. Masculinity, Power Distance Index, Limitation vs. Indulgence, and Long-Term Change. From this model, we can compare and contrast the cultural differences of these nations to understand what can lead to disagreements about the trade agreements they want to negotiate in the first place (Roudijk et al., 2019). In addition, the United States can tell the GATT Council where this problem should come from.


Comparison of the cultural difference in business between Japan and the USA


Professor Hofstede conducts research on the impact of culture on values ​​in organizations or workplaces. Culture, he said, is an integrated program of an individual’s mind to distinguish and reflect the characteristics of people different from the general group. Therefore, the result makes us understand and understand how we have to deal with other individuals involved, so it compares well with the trade practices between these countries (Japan and the United States) (orange). Therefore, the following are the differences in their business culture (Coyle, 1986). US companies make quick decisions about this business, while the Japanese have a detailed and lengthy decision-making process.

American-orange companies also take risks, and on the other hand, realizing that US companies may not be able to, they prefer to negotiate with Japanese-orange companies, which do not like to take risks. Certain points can produce more significant results compared to the American risk.

According to Hofstede’s Cultural Dimension Model, the Japanese use the Individualism dimension because they prefer not to do business with the US (Metcalf et al., 2006). In contrast, the US used collectivism through GATT to join. that Japan will negotiate a deal. In terms of masculinity, the Japanese are highly skilled and highly educated; On the other hand, women in the United States are considered to have limitations because they do not have strong business skills of their own, so they have to negotiate with Japan.

In order to avoid uncertainty, Japan does not want to do business with the United States and wants to avoid the influence of GATT participants because the agreement can lead to losses. On the contrary, in the United States, Americans do not feel that way.


Culturally ( customary)Responsive Negotiation Approach (Strategy) for USA Negotiators.


The best way to help US negotiators develop a strategy that can be used to reach a good and healthy compromise with Japanese negotiators is to start a neutral meeting with two negotiators from the two countries. they are allowed to share their interests and hope each of them to reach a place where they will be safe and secure. Therefore, American negotiators should try to use the knowledge of Hofstede’s Cultural-Dimensions (Model) tool to identify some people who will be willing to negotiate in Japan. with them, thereby influencing Japanese negotiators through this strategy and persuading them to join and participate in the necessary US negotiations. According to (Metcalf et al., 2006), countries that want to participate in a profitable organization should look to the parties that negotiate collectively because they will be involved in trade transactions and that are willing to respect such people. transaction.

In addition, Hofstede’s Culture-Dimension Model (Model) is a powerful tool that can be very helpful in solving this problem, because the American discourse will be used to show (demonstration) its commitment by having a strong relationship with a small number of Japanese people. people Therefore, Japan’s main negotiators will accept full integration after analyzing their relationship with Japanese citizens. Therefore, the subject will work out the rules and regulations with Japanese negotiators important to deliver a good deal. Also, Japanese people are comfortable. In addition, the US must recognize that the demands of Japanese negotiators are reasonable and manageable; The only difference is that they have different cultural beliefs according to their economic understanding.



In conclusion, the two countries must ensure that they use the strategy that they agree to negotiate with each other. From Hofstede’s tool (Model) cultural dimensions, scholars can understand what these scientists say about different business cultural beliefs. So, it is a good model that helps America and Japan understand each other, which takes longer to reach an agreement (Roudijk et al., 2019). Therefore, US negotiators should not threaten Janet to negotiate with the US from GATT, but to understand it by using Hofstede’s tool Culture-Dimension (Model).

What do you think?

Written by Ecadimi

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