1、Five Links of International Business Negotiation Cross-Cultural Problems in International Business Negotiation Basic Qualities for Negotiators Some Styles in International Business Negotiation Tactical Expressions in Business Negotiation Preparation for Exporting Preparation for Negotiation Business
2、 Negotiation IBusiness Negotiation IIBusiness Negotiation IIIBusiness Negotiation IV After the Negotiation Chapter Onee GTheneral Overview on International Business NegotiationAn Overall Framework of International Business Negotiation Features of International Business Negotiation Basic Rules of Int
3、ernational Business Negotiation Stock Phrases Some Tips for Trade Delegation 1.What is Negotiation? The word “negotiation” derives from the Latin Infinitive “negotiari” which means “to trade or do business”. This word itself is from another word, “negare”(拒绝), meaning “ to deny” and a noun, otium(休闲
4、), meaning “leisure”. Thus, the ancient Roman businessperson would “deny leisure” until the business has been settled. Negotiation is a common human activity as well as a process that people undertake everyday to manage their relationships such a buyer and a seller, a husband and wife, children and
5、parents. As the stakes in some of these negotiations are not very high, people need not have to get preparations for the process and the outcome. But in international business negotiations, the stakes are usually high, people cannot ignore this fact, they have to get preplans in a more careful way.
6、Both parties in this kind of negotiation should contact each other so that they can get a better deal rather than simply accepting or rejecting what the other is offering. The whole process of negotiation is based upon the premise that both parties are interdependent, that is, one side cannot get wh
7、at he/she wants without taking the other into consideration. In the process of negotiation, there are no rules, tradition, rational methods or higher authorities available to resolve their conflict once it crops up. Negotiation is a voluntary process of giving and taking where both parties amend the
8、ir offers and modify their expectations so as to come closer to each other and they can quit, at any time. 2. Why do People Negotiate?Negotiation is at the heart of every transaction and, for the most part, it comes down to the interaction between two sides with a common goal (profits) but divergent
9、 methods. These methods (the details of the contract) must be negotiated to the satisfaction of both parties. As we will see later that it can be a very trying process that is full of confrontation and concession. Whether it is trade or investment, one party will always arrive at the negotiation tab
10、le in a position of greater power. That power ( the potential for the profits ) may derive from the extent of the demand or from the ability to supply. The purpose of negotiation is to redistribute that potential. There is no such thing as “to take it or leave it” in international business. In fact,
11、 everything is negotiable. It all depends on the expertise of the negotiators. 3. An Overall Framework of IBN International business negotiation (IBN) is a consultative process between governments, trade organizations, multinational enterprises, private business firms and buyers and sellers in relat
12、ion to investment and import and export of products, machinery and equipments and technology. Negotiation is one of the important steps taken towards completing import and export trade agreements. To reach the desired results, the negotiators must seriously carry out the relative trade policies of t
13、heir own countries. They should have good manners and speak fluent English. They should have a profound knowledge of professional technology and international markets. They should know the specifications, packing, features and advantages of the products and be able to use idiomatic and professional
14、terms. In general, an overall framework of international business negotiation cover the following aspects: background factors, the atmosphere and the process.3.1 Background factors refer to objectives, environment, markets position, third parties and negotiators. They influence the process of negoti
15、ation and the atmosphere in a positive or negative way. Objectives mean what each side desires to achieve in the end. They are common, conflicting or complementary interests in both sides wanting a successful transaction to take place; their interests conflict as profit to one is cost to the other;
16、and complementary interest brings them together. Common and complementary objectives leave direct and positive effects while conflicting objectives have negative ones on the negotiation process. Environment here is defined as the political, social and structural factors related to both parties. It o
17、ften hinders the process in international negotiation. Political and social aspects can affect the process whereas market structure does the atmosphere. The market position of the parties involved plays a leading role in the negotiation process. The third parties such as governments, brokers, consul
18、tants and so on may influence the process with their own objectives. Negotiators affect the negotiating process by means of their own experience and negotiating skills. 3.2 The atmosphere is of great importance to the whole process of the international business negotiation. The atmosphere and the pr
19、ocess influence each other at each stage. Atmosphere refers to the perceived “milieu”(氛围) around the interaction, how each party regards the others behavior, and the properties of the process. It has to do with peoples perception of reality. To be more exact, in negotiation it is the perception of r
20、eality that is far more important than the reality itself. Some characteristics of the atmosphere are dominant at one stage; others at other stage. For example, cooperation is dominant at the pre-negotiation rather than conflict, as both sides look for mutual solutions. Different characteristics of
21、atmosphere dominate from process to process. These characteristics are classified as conflict vs cooperation, power vs dependence and expectations. The existence of conflict and cooperation is a fundamental characteristic of the negotiation process. On one hand, both sides have some common interests
22、 in finding a solution to the problem that fits them both. On the other hand, a conflict of interest may arise, as cost to one can mean income to the other. The relation between power and dependence is closely related to the actual power relation, which is affected by the value of the relationship t
23、o the sides and their available alternatives. As for expectations, there are two types: long-term expectations with respect to the possibilities and values of future business; short-term expectations regarding prospects for the present deal. Expectations develop and change in different stages of the
24、 process.3.3 The process of international business negotiation is made up of the three different stages. A stage is defined as a specific part of the process and covers all actions and communications by either side pertaining (relevant) to negotiations made during that part. Either side communicates
25、 with the other to exchange information within each stage. A specific stage comes to an end with where both sides decide to proceed on to the next stage or decide to abandon the communication if they see no point in further negotiations. The three different stages are: pre-negotiation, face-to face-
26、negotiation and post-negotiation.3.3.1 The pre-negotiation stage starts from the first contact between the two sides whose interest in doing business with each other is shown. From this stage on, both sides begin to understand one anothers needs and evaluate the benefits of entering into the process
27、 of negotiation. This stage is more usually important than the formal negotiations in the international business relationship. Social and informal relationships between negotiators, trust and confidence in each other are of great help. Both sides now also start to form their strategy for face-to-fac
28、e negotiation as well as try to foresee and take precautions against possible events.3.3.2 At Face-to-face stage, both sides know that they can work together for a solution to a joint problem in spite of that the fact that each side may view the situation in its own way. This indicates the importanc
29、e of having face-to-face negotiation in an open-minded way and getting ready several alternatives. It is time for both sides to explore the differences in preferences and expectations so that they can come closer to each other. Generally, the negotiation process is controlled by the side that has ar
30、ranged the agenda, for in the process, he can stress his own strengths and the opponents weaknesses, thus putting the other side on the defensive. However, the agenda may reveal the preparing sides position in advance and hence permit the other side to prepare its countermeasures. Some people prefer
31、 to start negotiations by discussing and agreeing on broad principles. Another way to ensure success at this stage is an initial discussion on items of common interest, which can help create an atmosphere of cooperation between both sides. As for the choice of strategy, it depends on 3.3.3 All the t
32、erms and conditions at this(Post-Negotiation ) stage have been agreed upon with the contract being drawn up to be signed. What is worth noticing is that writing the contact and the wording in it is a negotiation process in itself, for meaning and values may be different between both sides. This stage may lead to a renewed face-to-face negotiation if there is negative feedback from background factors and atmosphere. Therefore, the terms and conditions agreed upon should be read t
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