IBN Class 2 - 2/13/24
Negotiation- A process by which two or more parties reach agreement on matters of common
interest
All negotiations involve:
Parties
Issues
Alternatives
Positions
Interest
The should be identified and stated clearly at the start
Negotiations are difficult in global business because:
-Cultural differences
-Business environments in which parties operate differently
-Gender issues
Foreign negotiations can fail because of different legal systems and business practices
Negotiation is interdependent since what one person does affects another party
Negotiator must focus on how to interact, persuade, and communicate with other party
Three aspects to the architecture of global negotiations
1) Negotiation environment
2) Negotiation setting
3) Negotiation process
Negotiation environment refers to the business climate that surrounds the negotiations,
which is beyond the control of negotiators
Usually negotiators have influence and some control over negotiation setting
Negotiation process refers to the events and interactions that take place between parties to
reach an agreement: verbal and nonverbal communication, display of bargaining, strategies,
endeavors to strike a deal
Negotiation environment has these components:
-legal pluralism
-political pluralism (policy changes, etc)
-currency fluctuations and foreign exchange
-foreign govt control and bureaucracy
-instability and change
-cultural differences
-ideological differences
-external stakeholders