International Business Negotiation

Power is never linked to price, but always to value.” Power in negotiations can be perceived or real which affects the final negotiation outcome. Generally all disputants have some power to an extent which is used to achieve a favourable outcome. It is unlikely the power balance stays consistent, power shifts throughout the negotiation process. Knowing how the power works and how to use power to achieve desirable outcome is important for successful negotiations. The notion of parity in power is vital in relationships between the disputants. The parity in negotiation is when one party perceives that the other party can oppose any form of power with dissimilar or similar form of power (Lewicki and Saunders et al., 1997). Power parity means there will be a balance in power positioning to some extent. The two different objective powers involving in the bargaining process are power depending on the lack of dependence and role power (Staff, 2013). The first power parallels to a disputants BATNA (Best alternative to a negotiated agreement). Going into a negotiation with strong BATNA means the disputant is less dependent on the other parties in achieving the desired outcome compared to having a weaker alternative. The second power is linked with the positions, titles or roles which grant power simply because of the control or authority they possess. This is often found in hierarchical organisations. Apart from the objective powers there is possibility of

Unpredictability of outcome. People negotiate because they need something from another person. They also negotiate because the outcome of not negotiating is unpredictable. For example: If, by going to court, a person has a 50/50 chance of winning, s/he may decide to negotiate rather than take the risk of losing as a result of a judicial decision. Negotiation is more predictable than court because if negotiation is successful, the party will at least win something. Chances for a decisive and one-sided victory need to be unpredictable for parties to enter into negotiations.

Nations have faced enormous increase in international negotiations from 20 years ago. In an increasingly globalized world, more businesses are trying to go beyond the borders. It is obvious that negotiations preceded all cosmopolitan commercial transactions such as a product sale, formation of a joint venture, merger or acquisitions of companies, or the licensing of the business to or from a foreign firm. Negotiations are unavoidable when an essential outcome is impossible to achieve unilaterally without incurring undesirable political, authorized, or cost-effective consequences. Hence, global negotiations play a crucial role to get a satisfactory multinational business

In my previous negotiations, I was more successful with the negotiations that involved my personal life as opposed to my professional life. It was easier to negotiate with others that I had close personal relationships with. Negotiating with my boss was much harder given that he had power, given that he had influence over me and being dependent on him only increased this power (Module 2.1 Lecture). When others initiated negotiations with me I found that I tended to agree and compromise too soon, and the other party getting the better end of the deal.

Consequently, negotiation is a process that can be approached in many ways. No matter what strategy we choose, success lies in how well we prepared. The key to negotiating a beneficial outcome is the negotiators’ ability to consider all the elements of the situation carefully and to identify and think through the options. At the same time, negotiators must be able to keep events in perspective and be as fair and honest as circumstance allows. Because a common ground or interest has brought the parties to the negotiating table, a negotiator can benefit by trying to capitalize on this common

When it comes to business, negotiation is treated as a process in which the participants bring their

Negotiation is one important part of both the professional and personal life in our everyday situations. It is critical for people to resolve disputes, distribute limited resources, and/or create something new that neither party could achieve on his or her own. Negotiations can range from coordinating project timelines with clients to asking for a raise to discussing holiday plans with family members.

Dawson (1995) has highlighted three critical factors to every negotiation4: 1) understanding of power, 2) information factor and 3) time element. But according to Brooks and Odiorne (1984, pp. 45 - 46), strategic planning, power skill and timing, constitute the agenda in successful negotiations5; in which, strategic planning is the key factor in shapes the dimensions, form and context of the negotiations. On the other hand, Mills (1990, pp. 177 - 179) and Scott (1981, pp. 89 - 90) has provides sixteen and eight different elements that contribute to negotiation success6 and enable two parties to negotiate towards agreement to theirs joint advantage7. As a whole, these conclude that in any negotiations, it is important to remember that both parties are working toward mutual satisfaction.

2. Discuss the relative use of nonverbal behaviors, such as silent periods, interruptions, facial gazing, and touching, by people from various cultural backgrounds. How does this behavior affect the negotiation process in a cross-cultural context?

I have set time to role playing the negotiations to get ready to address who, what and how of the negotiations in case our top interests are contested. It will be critical to have an accurate cultural context. Although I completed my MBA from the U.S.A. it was six years ago. I am familiar with U.S.A. cross cultural aspects, but I am rusty. I hired a consultant that is very adept of U.S.A. culture and will be able to

North America’s culture certainly affect international business activities, the same happen among all countries and continents in the world. Culture and tradition have a particular role in person’s critical thinking, communication barriers and behavior. In the business environment negotiation is an important skill in where all parties needs to be pleased, at the end you have to give for you to be able to receive, either is entering into a contract or building a

Cultural Differences. Cultural differences affect the perceptions and behaviors of different parties in any international negotiation in different ways. These include the goal of the talks; different cultures view negotiations differently with some negotiators viewing them as an opportunity to get a signed contract between the involved parties. Others view negotiations as a start of a relationship between the two parties. The concept of win-lose or win-win scenarios deeply ingrained in different cultures and might affect the perceptions of the many negotiators. The time factor is also sensitive in negotiations with Europeans consider highly punctual while Latinos are usually late and the Americans are fast at cutting a deal (Craig et al., 1996). By reducing formalities, Americans maximize on time available which could be central to the Japanese. Display of emotions during negotiations varies from one culture to another with the Asians are hiding their feelings while the Latinos show how they feel. The cross-culture attributes and skills needed for successful negotiation International business refers to the performance of direct investment activities and trade across the national borders. Globalization has pushed firms to pursue markets across the national builders. The growing numbers of collaborations and transactions across

Communication styles in negotiation are probably one of the most important skills or characteristics one will develop over a lifetime. From the point a human being begins to develop cognitive skills, the process of learning and understanding situations become more apparent. One will learn from a very young age the dynamics and characteristics of communication and its role in negotiation. To better understand the communication process, one must be able to recognize how they communicate, whether it is on an assertive, aggressive, passive, or passive-aggressive level of communication. The manner in which one conveys his/her message is critical, and the many methods in which they do it is

In life there is always some type of give and take amongst others. Some exchange may be beneficial and some can be regretful. This is all the same with negotiation, either is to negotiate a divorces decree, price of a new home, or a NFL or NBA contract deal. The world today is full of negotiating situation in and can be executed at any given time. There two common characteristic of a negotiation or bargaining situation. Negotiating parties have separate but conflicting interest.

Explain each stage of the negotiation process and the role that culture plays in each stage. Give example to support your answer