The distant countries both geographically and culturally. · Canadians

The key competencies were missing that
caused the venture to fail were:

First, the
Canadians were not persuasive enough during the negotiation. Persuading skills
are imperative in order for the Canadians to win the contract. For fear that
they might reveal too much about information regarding technical issues, the
Canadians chose to discuss in general instead of touching the main point
desired by their counterpart. Undoubtedly, the Chinese would not be convinced
to agree with the contract when there were still unsolved problems that the
foreign partner were unable to provide solutions to. A suggested strategy for
the Canadian executives is that they state their argument firmly to convince
the Chinese; especially when the Chinese were afraid that they would be unable
to fix the machines and required direct assistance from the Canadians.

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competency that was missing which led to the Canadians unsuccessful was their
lack of cultural understanding of the Chinese. China is known as a high-context
country, where values of long-term relationship and trust are considered
important. The Chinese are willing to spend time and money in order to get to
know more about their partner in terms of personal life, and eventually to make
sure that their partner is trustworthy. However, from the Canadian executives’
point of view, the Chinese are wasting time and trying to prolong the
negotiation. Because of this, the Chinese chose to sign their contract with a
Japanese company, who share more similarities with them and it would also be
easier for the Chinese to do business with the Japanese as they are not 2
distant countries both geographically and culturally.

failed the deal also because of miscommunication and language barriers. They
were not prepared enough and did not get needed information from the translator
as she/he seemed not to be a neutral participant when delivering contents of
the discussion.