Role Of Negotiation In International Business | Negotiation | Business

Transcript

TEAM 10 Diplomacy is the art of letting someone else have your way.  Negotiation is a discussion intended to produce an agreement; a treaty with another representing sale or purchase; a transaction of business between nations; the mutual interaction of governments by diplomatic agents, in making treaties, smoothing differences, etc. Negotiation It is the action and the process of reaching an agreement by means of exchanging ideas with the intention of  dispelling conflicts and enhancing relationship to satisfy each other’s needs. Zhuge, Liang Disputes With The Southern Scholars Business negotiation A process of conferring in which the participants of 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 financial goal. (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 of contract should keep strictly accurate and rigorous  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 The business negotiation that takes place between the interest groups from different countries or regions. (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 domestic business negotiations 1.2.1 Classification by chief negotiator 1.2.2 Classification by negotiation object 1.2.3 Classification by form 1.2.4 Classification by procedure (1) Government- to- government’s negotiation (2) Government- to- Business’s negotiation (3) Producer- to- Producer’s negotiation (4) Producer- to- Trader’s negotiation (5) Retailer- to -Producer’s negotiation (6) Business- to- Business’s negotiation (7) Business- to- Consumer’s negotiation (1)Product trade negotiation (2)Technology trade negotiation (3) Service trade negotiation (4) International project negotiation 1. One- to- one negotiation 2. Team negotiation 3. Multilateral negotiation (1) Horizontal Negotiation (1) Vertical Negotiation  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  Who within the firm should negotiate  Expendable person  Individual versus team  What makes a good negotiator  Patience  Clarity of the agreement  What is a good outcome?  Can no agreement be a good outcome?  Are contracts used after signing?  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!!