This thesis is a review of relevant literature on business negotiation between Japanese and American and an analysis of cultural differences in negotiation from an intercultural perspective. The following four key issues are explored and analyzed with intercultural communication concepts: 1. major differences in approaches to the process of business negotiation between the United States and Japan; 2. potential friction between Japanese and Americans in business negotiation that is attributable to Japanese and American cultural differences; 3. the applicability and usefulness of an intercultural perspective in enhancing business negotiation skills; and 4. main factors affecting the use of an intercultural perspective in cross-cultural business negotiation and the degree to which they are manifested in the u.s.-Japan business negotiations.