A U.S. company has sent a representative to negotiate a contract with a Japanese firm. The U.S.

representative arrives at the appointed time for his meeting and is shown to the meeting room, where six representatives from the Japanese firm meet with him. During his presentation, the Japanese move their heads in an up-and-down motion; however, they say very little. The presentation was given in English, as the representative had been told the Japanese understood English. When the representative asked if there were any questions, everyone nodded politely; however, no one said a word. After a few minutes, the representative asked if they were ready to sign the contracts. One of the Japanese said, “It is very difficult for us to sign.” At this point the representative said, “Should I leave the contract with you?” The Japanese said, “Yes.”

The U.S. representative returned to the United States expecting the Japanese to return the contract, which did not happen. Explain what the Japanese were really saying by nodding their heads and using the word “difficult.”