Role of Negotiation in International Business

7/30/2019 Role of Negotiation in International Business

1/21

TEAM 10


2/21

Diplomacy is the artof letting someoneelse have your way.


3/21

Negotiation is a discussion intended to

produce an agreement; a treaty with another

representing sale or purchase; a transaction

of business between nations; the mutualinteraction of governments by diplomatic

agents, in making treaties, smoothing

differences, etc.


4/21

Negotiation

It is the action and theprocess of reachingan agreement by

means of exchangingideas with the

intention ofdispelling conflictsand enhancing

relationship to satisfyeach others needs.

Zhuge, Liang Disputes With The Southern

Scholars


5/21

Business negotiation

A process of conferring in which the participantsof business activities communicate, discuss, and

adjust their views, settle differences and finally

reach a mutually acceptable agreement in order

to close a deal or achieve a proposed financialgoal.


6/21

(1) The objective of business negotiation is to obtain

financial interest

(2) The core of business negotiation is price

(3) Its principle is equality and mutual benefit

(4) Items ofcontract should keep strictly accurate and

rigorous


7/21

1. Equality principle

2. Cooperation principle

3. Flexibility principle

4. Positions-subjected-to-interests principle

5. Depersonalizing principle (Separating the people

from the problem)

6. Using objective criterion


8/21

The business negotiation that takes place

between the interest groups from different

countries or regions.


9/21

(1) Language barrier

(2) Cultural differences

(3) International laws and domestic laws are both in force

(4) International political factors must be taken into account

(5) The difficulty and the cost are greater than that of domesticbusiness negotiations


10/21


11/21

1.2.1 Classification by chief negotiator1.2.2 Classification by negotiation object

1.2.3 Classification by form

1.2.4 Classification by procedure


12/21

(1) Government- to- governments negotiation

(2) Government- to- Businesss negotiation

(3) Producer- to- Producers negotiation

(4) Producer- to- Traders negotiation

(5) Retailer- to -Producers negotiation

(6) Business- to- Businesss negotiation(7) Business- to- Consumers negotiation


13/21

(1)Product trade negotiation

(2)Technology trade negotiation

(3) Service trade negotiation

(4) International project negotiation


14/21

1. One- to- one negotiation

2. Team negotiation

3. Multilateral negotiation


15/21

(1) Horizontal Negotiation

(1) Vertical Negotiation


16/21


17/21

Identify contents of the deal

Create alternatives

Put yourself in their shoes

Gauge the appropriateness of the message

Build up relative power

Understand cultural differences


18/21

Who within the firm should negotiate

Expendable person

Individual versus team

What makes a good negotiator

Patience


19/21

Clarity of the agreement

What is a good outcome?

Can no agreement be a good outcome?

Are contracts used after signing?


20/21

The importance of negotiation in business is to

make sure that your company can and will continue

to thrive, grow and become leaders in your field of

business.

It is the best way to achieve a win all situation!!


21/21

2121

Role of Negotiation in International Business

Documents

Transcript of Role of Negotiation in International Business