INTERNATIONAL BUSINESS NEGOTIATIONS

By: Krishna Parimal Reddy 128929

What is negotiation???
The definition of negotiation is very simple, while its scope is wide. Every wish or need may cause a negotiation. Once people exchange their ideas to adjust their relation, or they exchange views to reach agreements, they are negotiating.
Gerafd I Niernberg, The Art of Negotiating

Characteristics of negotiation
(1) Every negotiation involves two or more parties. (role-play negotiation, marriage events) (2) The objective of a negotiation must be definite. (persuasion, mutual interests) (3) Negotiation must be conducted on an equal basis. (4) A consensus must be built on the basis of mutual concession. (5) Negotiation involves exchange of ideas, communication, persuasion, compromise and suchlike. (process)

The Dual Concerns Model

Definition of Business negotiation

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.

Characteristics of Business Negotiation

(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

Principles of business negotiation

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

Definition of International Business Negotiation

International Business Negotiation -> the business negotiation that takes place between the interest groups from different countries or regions.

Features of International Business Negotiation

(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

Forms of International Business Negotiation

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

Classification by chief negotiator

(1) (2) (3) (4) (5) (6) (7) Government- to- governments negotiation Government- to- Businesss negotiation Producer- to- Producers negotiation Producer- to- Traders negotiation Retailer- to -Producers negotiation Business- to- Businesss negotiation Business- to- Consumers negotiation

Classification by negotiation object

(1)Product trade negotiation (2)Technology trade negotiation (3) Service trade negotiation (4) International project negotiation

Classification by form
(1) One- to- one negotiation (2) Team negotiation (3) Multilateral negotiation

Classification by procedure
(1) Horizontal Negotiation (2) Vertical Negotiation

1.3 The Basic Forms of International Business Negotiation

1.3.1 Host Court negotiation and Guest Court negotiation 1.3.2 Oral negotiation and Written negotiation 1.3.3 Formal negotiation and Informal negotiation

Host Court negotiation and Guest Court negotiation

(1) (2) (3) (4) Host- Court negotiation Guest- Court negotiation Changing- Court negotiation Third- place negotiation

Tips for International Business Negotiations

The following basic rules should be followed by the international business negotiator: 1. Organize a competent delegation. 2.Identify a couple of dependable contacts in the host country and work with them on logistics prior to your visit. 3. Do homework on the host countrys time consciousness, communication styles, protocol and etiquette, etc. 4. Bring proper gifts because gifts are appreciated in every culture.

5. Choose proper topics for socializing. 6. Bring along a qualified interpreter in case of need. 7. Learn how to pronounce names of host contacts correctly and clarify their positions and job titles. 8. Be well prepared; define in advance your basic interests, objectives and bottom line.

THANK YOU !!!