Factors in negotiating overseas

Abstract

The Department of Defense has been expanding the volume of foreign purchases in compliance with directives intended to achieve our national goals regarding NATO Rationalization, Standardization, and Interoperability (RSI) . Implementation of this "two-way street" policy entails extensive negotiations at the governmental level in formulating the Memoranda of Understanding associated with a given transaction. Also, there have been increases in the volume of direct purchase transactions requiring negotiation between the U.S. Government and foreign private firms. The purpose of this study is to identify those factors which may affect the negotiation process with foreign firms and foreign government officials. Cultural differences which might influence negotiations are also reviewed. Most findings and conclusions are based upon personal interviews with U.S. negotiators from both the public and private sectors who have had extensive experience in negotiating overseas. The study concludes with some recommendations to help the U.S. Department of Defense contract negotiator prepare for negotiations overseas.