The different negotiation styles between U.S. and Sweden Research Paper

The different negotiation styles between U.S. and Sweden - Research Paper Example   The business environment in Sweden and U.S. is completely different as analyzed by PEST analysis. According to AMB Country Report (2010), Sweden has very low economic risk, political risk and financial risk. Political conditions in Sweden are very stable for doing business. For example, although Sweden is a member of European Union, however, it has not joined European Exchange Rate Mechanism because political parties argue that Euro cannot be adopted without the public referendum (AMB Country Risk Report, 2010). With a population of 9 million in 2010, annual GDP growth rate of 4.5 percent in 2010, inflation rate of 1.4 percent and abundant of natural resources of forests, timber, arsenic, copper, gold, silver, zinc, tungsten, hydroelectric power, iron, uranium, feldspar and arsenic, Sweden offers ideal economic conditions to conduct business (Bureau of European and Eurasian Affairs, 2010). Swedish people have direct communication style; however, they are usually quiet, reserve an d shy. Moreover, they prefer working in flat hierarchical organizational structures with informal working conditions and authority at all hierarchical levels (Communicaid, 2009). Technological developments and innovation in Sweden provide a highly competitive business environment. According to Global Information Technology Report 2009-2010, Sweden is the highest scorer in Information and Communication Technology (Hennigan, 2010). Companies operating in U.S. are more exposed to political risks because of high government interference.   ... According to Global Information Technology Report 2009-2010, Sweden is the highest scorer in Information and Communication Technology (Hennigan, 2010). Companies operating in U.S. are more exposed to political risks because of high government interference. Early U.S. leaders believed in Laissez-faire concept which opposes government interference except to sustain law and order and the new leads are seeking to develop close ties between business and government (U.S. Department of State). U.S. is a developed state with 9.65 million population in 2010, GDP growth of 3.5 percent in 2009 and highly developed manufacturing and service sector (U.S. Department of State, 2010). People in U.S. are very excited and adventurous towards their tasks and they prefer working individually rather than teams (LMSCO, 2004). Technological conditions in U.S. are very favorable for businesses and it is evident from the fact that U.S. has been rated on number 2 in the last of top ten innovation driven econo mies (Virki, 2010). Negotiation styles vary based on culture. According to Hofstede, negotiators in the national cultures with high power distance are more comfortable with hierarchical structures, transparent authority figures and in an environment where the right to use power with discretion is preferred. On the other hand, negotiators in the national cultures with low power distance are more comfortable with flat hierarchies and democratic structures, shared authority and in the environment where the right to use power is limited to certain circumstances (LeBaron). The negotiation styles of U.S. and Swedish negotiators vary because American negotiators are aggressive, strong and have a formal