Cultural Factors and International Business Negotiation of Nepal and India

In countries like India and Nepal, where people have unique cultural diversities, the need for more cultural understanding arises for conducting international business. Despite the introduction of the ‘neighborhood first policy’ and other trade agreements with Nepal, The economic integration has been very low for years. Therefore, an understanding of cultural values and business negotiations is required. The present study highlights a number of similarities and differences in cultural values and negotiation styles among Indians and Nepalese. This paper employs Hofstede's dimension of culture and Hall's theory of high-context (HC) and low-context (LC) cultures. It is evident that both cultures are similar in all aspects of cultural value. The study also indicates Indians and Nepalese prefer collaborative and compromising negotiation styles, respectively.