The effects of cultural diversity in international business negotiations in Tanzania: the case of food processing companies

Cultural diversity has been an issue that has significant influence in any international business negotiations. This is due to the fact that the world is being affected by the globalization of the economy which make international business among countries to be possible. This study examines the effects of cultural diversity in the international business negotiations. The study specifically concentrated on the three variables which are ethnic background, time and attitude to establish its influence on the international business negotiations. The study used three phases negotiation model to provide explanation of the variables. The study was conducted in Dar es Salaam in which data were collected from food processing companies in Dar es Salaam. The questionnaires were distributed to 120 respondents and some un-structured interviews were also conducted. The study used non-probability sampling technique in determining the sample size. Descriptive statistics were analyzed in the tables showing frequencies and percentages while specific objectives were analyzed using regression tool. The study has found that there is significant relationship between the independent variables and dependent variable. This is to say time, attitude and ethnic background have significant relationship with the business negotiations. The study has also found that diversity of culture for the international traders affects the way in which they make decisions on the negotiations. The study recommended that it is essential for the policy makers and the regulatory authorities to keep a close eye on the preservation of culture, the efforts should be made from the grass roots moving to the top levels.