Negotiation is an important business function both in domestic and international business arena. Most of the business functions are driven by negotiations. In international business, negotiation plays a vital role in developing mutual agreements between two entirely different parties of different cultures. International business negotiation process may face lot of problems or barriers with respect to cultural differences between the negotiating parties. The success and failures depends on how well the negotiating parties conduct the business negotiation process. According Hofstede, cultural differences with respect to Power Distance Index (PDI), Individualism (IDV), Masculinity (MAS), Uncertainty Avoidance Index (UAI), and Long-Term Orientation (LTO) etc can affect international business negotiation process between two or more parties. America and Japan are two entirely different countries as far as culture is concerned. Language, environment, politics, social setups, contexting or level of knowledge possessed by the people, verbal and nonverbal communication means etc are entirely different both in America and Japan. Japan and America are extremely different countries as far as culture, politics, custom, traits, economy, social organizations, language etc are concerned. Even though both the countries are democratic countries, the functioning of democracy in these two countries are slightly different. America is a secular democratic country with Judiciary, Parliament and Executive as the three pillars on which democracy is cemented. Politics of Japan is established in a framework of a parliamentary representative democratic monarchy, where Prime Minister of Japan is the head of government even though the King holds the supreme power on paper. In other words, Japan is a constitutional monarchy. Like in America, in Japan also, multiparty system is prevailing. In America, legislative power is vested in congress whereas in Japan, it is vested in Diet. English is the language