In: Economics
International negotiation Is the process of making business deals across national and cultural boundaries. It Precedes any multinational project.
nternational negotiation is as it says: inter-national. It is about negotiation between countries. International negotiation occurs all the time between governments and is the main subject of this page. It also happens between individuals and companies, where the traps and tricks of cross-border negotiation can ensnare even the most experienced home-country negotiators.
International negotiation is often not just between individual people, but between large delegations, each of which is well organized and where every person has specialized and skilled work. There may be cultural experts, linguists and subject specialists as well as a chief negotiator and support negotiators. In a complex negotiation, there may be multiple and interlined sub-negotiations going on at the same time, for example where a trade negotiation includes a deal involving various industries and interests.
The process of negotiation includes the following stages:
Without successful negotiation and the accompanying
cross-cultural communication, there are seldom successful business
transactions.
Successful negotiation requires successful communication
Negotiators must understand all components of culturally different
communication styles (both verbal and nonverbal)
Preparation: Before any negotiation takes place, a decision needs to be taken as to when and where a meeting will take place to discuss the problem and who will attend. Setting a limited time-scale can also be helpful to prevent the disagreement continuing.
Discussion: During this stage, individuals or members of each side put forward the case as they see it, i.e. their understanding of the situation.
Key skills during this stage include questioning, listening and clarifying.
Sometimes it is helpful to take notes during the discussion stage to record all points put forward in case there is need for further clarification. It is extremely important to listen, as when disagreement takes place it is easy to make the mistake of saying too much and listening too little. Each side should have an equal opportunity to present their case.
Clarification of goals : From the discussion, the goals, interests and viewpoints of both sides of the disagreement need to be clarified.
It is helpful to list these factors in order of priority. Through this clarification it is often possible to identify or establish some common ground. Clarification is an essential part of the negotiation process, without it misunderstandings are likely to occur which may cause problems and barriers to reaching a beneficial outcome.
Negotiate towards a Win-Win outcome: This stage focuses on what is termed a 'win-win' outcome where both sides feel they have gained something positive through the process of negotiation and both sides feel their point of view has been taken into consideration.
A win-win outcome is usually the best result. Although this may not always be possible, through negotiation, it should be the ultimate goal.
Suggestions of alternative strategies and compromises need to be considered at this point. Compromises are often positive alternatives which can often achieve greater benefit for all concerned compared to holding to the original positions.
Agreement: Agreement can be achieved once understanding of both sides’ viewpoints and interests have been considered.
It is essential to for everybody involved to keep an open mind in order to achieve an acceptable solution. Any agreement needs to be made perfectly clear so that both sides know what has been decided.
Implementation of a course of action: From the agreement, a course of action has to be implemented to carry through the decision.
Stages in the Negotiation Process
However, negotiators need not sacrifice effective negotiation in favor of a positive relationship between parties. Rather than conceding, each side can appreciate that the other has emotions and motivations of their own and use this to their advantage in discussing the issue. In fact, perspective-taking can help move parties toward a more integrative solution. Fisher et al. illustrate a few techniques that effectively improve perspective-taking in their book Getting to Yes, and through the following, negotiators can separate people from the problem itself.
Put yourself in their shoes – People tend to search for
information that confirms his or her own beliefs and often ignore
information that contradicts prior beliefs. In order to negotiate
effectively, it is important to empathize with the other party's
point of view. One should be open to other views and attempt to
approach an issue from the perspective of the other.
Discuss each other's perceptions – A more direct approach to
understanding the other party is to explicitly discuss each other's
perceptions. Each individual should openly and honestly share his
or her perceptions without assigning blame or judgement to the
other.
Find opportunities to act inconsistently with his or her views – It
is possible that the other party has prior perceptions and
expectations about the other side. The other side can act in a way
that directly contradicts those preconceptions, which can
effectively send a message that the party is interested in an
integrative negotiation.
Face-saving – This approach refers to justifying a stance based on
one's previously expressed principles and values in a negotiation.
This approach to an issue is less arbitrary, and thus, it is more
understandable from the opposing party's perspective.
Additionally, negotiators can use certain communication techniques to build a stronger relationship and develop more meaningful negotiation solution.
Active listening – Listening is more than just hearing what the
other side is saying. Active listening involves paying close
attention to what is being said verbally and nonverbally. It
involves periodically seeking further clarification from the
person. By asking the person exactly what they mean, they may
realize you are not simply walking through a routine, but rather
take them seriously.
Speak for a purpose – Too much information can be as harmful as too
little. Before stating an important point, determine exactly what
you wish you communicate to the other party. Determine the exact
purpose that this shared information will serve.