Owing to the country’s history within the former Eastern Bloc until 1996, many businesspeople and officials in Romania may have only limited exposure to other cultures except for neighboring countries. Its culture is quite homogeneous. When negotiating business here, realize that people may expect things to be done ‘their way.’ However, some among younger generations may have greater international experience and can be open-minded. We highlight some of the main aspects of negociating in business in Romania.

By Irina Budrina

Attitudes and Styles – To Romanians, negotiating is usually a joint problem-solving process. While the buyer is in a superior position, both sides in a business deal own the responsibility to reach agreement. Although the primary negotiation style is competitive, Romanians nevertheless value long-term relationships and look for win-win solutions. They avoid any open confrontation as it could damage relationships. It is best to remain calm, friendly, patient, and persistent, never taking anything personally.

Should a dispute arise at any stage of a negotiation, you might be able to reach resolution by focusing on logical arguments and facts. In extreme situations, use a mediator, ideally the party who initially introduced you.

Sharing of Information – Romanian negotiators usually play their cards close to the chest, although some may share information as a way to build trust.

Keep in mind that humility is a virtue in Romanian business culture. If you make exaggerated claims in an effort to impress the other side or to obtain concessions, they will likely investigate your claims before responding.

Pace of Negotiation – Expect negotiations to be slow and protracted. Relationship building, information gathering, bargaining, and decision making may all take considerable time. Be prepared to make several trips if necessary to achieve your objectives. Throughout the negotiation, be patient, show little emotion, and accept that delays occur.

Romanians generally employ a polychronic work style. They are used to pursuing multiple actions and goals in parallel. When negotiating, they often take a holistic approach and may jump back and forth between topics rather than addressing them in sequential order. Negotiators from strongly monochronic cultures, such as Germany, the United Kingdom, or the United States, may find this style confusing, irritating, and even annoying. In any case, do not show irritation or anger when encountering this behavior. Instead, keep track of the bargaining progress at all times, often emphasizing areas where agreement already exists.

Bargaining – While businesspeople in the country may have learned the ground rules of international negotiations, their experience is usually limited. They are used to bargaining but not overly fond of haggling. However, Romanians can be tough and persistent negotiators, and it may be difficult to obtain concessions from them. The bargaining stage of a negotiation can be extensive.

Though concessions never come easily, prices may move by about 25 to 40 percent between initial offers and final agreement.

Deceptive techniques are frequently used. This includes tactics such as telling lies and sending fake non-verbal messages, pretending to be disinterested in the whole deal or in single concessions, or misrepresenting an item’s value. Romanians may play stupid or otherwise attempt to mislead you in order to obtain bargaining advantages.

Negotiators in Romania may use pressure techniques that include silence, making final offers, or nibbling. Romanian negotiators avoid using overly aggressive or adversarial techniques.

As in most strongly relationship-oriented cultures, negotiators may sometimes use emotional techniques such as attitudinal bargaining, attempting to make you feel guilty, grimacing, or appealing to personal relationships.

As the country has moved from a socialist country to a free-market economy, corruption and bribery have become quite common in Romania’s public and private sectors. However, people may draw the line differently, viewing minor payments as rewards for getting a job done rather than as bribes.

Also, keep in mind that there is a fine line between giving gifts and bribing. What you may consider a bribe, a Romanian may view as only a nice gift .

Decision Making – Companies are often very hierarchical, and people expect to work within clearly established lines of authority. Openly disagreeing with or criticizing superiors is unacceptable. Decision

makers are primarily senior managers who consider the best interest of the group or organization. They rarely delegate their authority to lower levels in the hierarchy, but others are often consulted in a committee-style process in order to reach greater consensus over and support of the decision. This process can take a long time and requires patience. Romanians usually indicate it if they are not interested in doing business.

When making decisions, businesspeople may not rely much on rules or laws. They usually consider the specific situation rather than applying universal principles. Romanians are often reluctant to take risks. If you expect them to support a risky decision, you may need to find ways for them to become comfortable with it first, for instance by explaining contingency plans, outlining areas of additional support, or by offering guarantees and warranties.

Agreements and Contracts

Exchanging written understandings after meetings and at key negotiation stages is useful. Oral commitments may sound stronger than what your Romanian counterparts may be willing to put in writing. However, these documents are not final agreements. Any part of an agreement may still change significantly before both parties sign the final contract.

Written contracts tend to be lengthy. They often spell out detailed terms and conditions for the core agreements as well as for many eventualities. Signing the contract is important not only from a legal perspective, but also as a strong confirmation of your Romanian partners’ commitment.

Although your legal rights may not always be enforceable, you should consult a local legal expert before signing a contract. For the time being, it is wise to recognize that the country’s legal system is in a transitional mode, so be prepared for laws to change on short notice.

Signed contracts may not always be honored. This depends on the strength of the continuing relationship between the contract partners. It is strongly advisable to continue staying in touch and maintaining the trust of your Romanian business partner. Business partners usually expect the other side to remain somewhat flexible if conditions change, which may include agreeing to modify contract terms.

Irina Budrina, irina-budrina@hotmail.com. More about Irina Budrina on our editorial team here.