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Part Ⅰ an Overview of International Business Negotiation Part Ⅰ an Overview of International Business Negotiation Part Ⅰ an Overview of International Business Negotiation Part Ⅰ an Overview of International Business Negotiation International Business Negotiation * Part Ⅱ Negotiation Mechanism Chapter 5: Strategies and Tactics * Key points Negotiation interests and position; Negotiation power as an indication of the trend of whole process; Strategies and tactics that may be useful in negotiation. * NEGOTIATION INTERESTS AND POSITIONS The basic reason why many people fail to find agreement is that each has taken what is known as a position. One wants something that the other doesnt. The main problem is that the people involved in a negotiation always know the positions of the parties, but they often neglect to understand why the other person has taken this position in the first place. * NEGOTIATOG POWER AND SOURCES OF NEGOTIATING POWER Power and Negotiating Power Sources of Negotiating Power Factors Causing the Changes of Negotiating Power Application of Power Tactics * Power and Negotiating Power The more power that a country, an institute or an individual can make use of, the more powerful they are, because by definition, power is a social phenomenon, which endows people with control over other people or events or activities. Negotiating power is the ability that one negotiator can make use of to control over and affect the other sides decision making and to resolve the dispute and attain the target of negotiation. * Sources of Negotiating Power Some of the basic considerations that provide sources of bargaining strength: The State of the Market Market Share Information Time Corporate Size and Structure Reputation Product Life-cycle * Factors Causing the Changes of Negotiating Power Relations of the three factors with the power changes are expressed in the following equation: P(A~B) = MB×DB:A /SB -MA×DA:B /SA P(A~B) —— As power relative to B (A=self, B=othe
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