Seminar paper from the year 2007 in the subject Communications - Intercultural Communication, grade: 1,3, University of Auckland (Business School), course: International Management, 16 entries in the bibliography, language: English, abstract: This study analyses the challenges of cross-cultural negotiation settings by using a variety of cultural frameworks and theories. Basis for the analysis forms an incident between a Western company and the Chinese county which it operates in. The analysis reveals that major issues are grounded in different attitudes towards hierarchy, varying importance of group membership and loyalty as well as the cultures’ different perception of time. Further difficulties may result from distinct degrees of explicitness and differences in uncertainty avoidance. Concluding that awareness of cultural differences is crucial for successful negotiation outcomes the study will finally offer practical suggestions how to deal with the cultural challenges faced by each of the negotiating parties.