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International Business Negotiation Chapter One Summary of International Business Negotiation Teaching Objectives After studying this module, you should be able to: Understand negotiation; Concepts and features of business negotiation; Concepts, features and principles of international business negotiation; Classifications of international business negotiation; Negotiation is like fighting! Contents 1.1. Negotiation It is a process of communication between parties to manage conflicts in order for them to come to an agreement, solve a problem or make arrangements. 2.Negotiations must satisfy at least the following conditions: (1)The outcome of negotiation is a result of mutual giving and taking. One-sided concession or compromise can not be called a successful negotiation. (2)Negotiations happen due to the existence of conflicts, however, no negotiations can proceed smoothly and come to a satisfactory solution without collaboration between the participants. (3)In spite of unequal strength and power on the side of one party, it should not be viewed as a success if the other party can not excise veto right to the result of the negotiation, which is a show of equal right of the parties. 1.1.2 Characteristics of negotiation (1)Every negotiation involves two or more than two parties. (2)The objective of a negotiation must be definite. (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, persuation, compromise, and such like. 1.1.3 Conditions for successful negotiation (1)Identifiable parties who are willing to participate. (2)Interdependence. (3)Readiness to negotiate. (4)Means of influence or leverage. (5)Agreement on some issues and interests. (6)Will to settle. (7)Unpredictability of outcome. (8)A sense of urgency and deadline. (9)No major psychological barriers to settlement. (10)Issues must be negotiable. (11)The people m
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