3. Topics
Steps in the Negotiation Process
Mistakes Commonly Made During Negotiations
Intercultural Negotiation Models
Negotiation Strategies
Trade Agreements
6. Why take ―no‖ for an answer?
Successful people don't. They get
what they want by negotiating better
deals for both parties.
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7. Steps in the Negotiation Process
Preparation
and Site
Selection
Team Selection
Relationship
Building
Opening TalksDiscussionsAgreement
8. Preparation and Site Selection
Hire a consultant in
the country.
Consult resource
videos and
written materials
on negotiation.
Choose a site—here or
there can be important.
9. Team Selection
Consider number, age, gender, and rank of team
members.
Consider background of players.
Evaluate other negotiators - their political affiliation,
social class, age, and risk-taking propensity.
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11. Opening Talks and Discussions
Observe opening rituals
- small talk, humor, etc.
Consider the
appropriateness of an
agenda.
Expect a variety of behaviors.
Plan ahead for concessions.
Move to an informal location when
appropriate.
13. Common Negotiation Mistakes
Making negative initial impression
Failing to listen and talking too
much
Assuming understanding by the
other culture
Failing to ask important questions
Showing discomfort with silence
Using unfamiliar and slang words
Interrupting the speaker
Failing to read the nonverbal cues
14. Common Negotiation Mistakes
Failing to note key points
Making statements that are irritating or
contradictory
Failing to prepare a list of questions for
discussion
Being easily distracted
Failing to start with conditional offers
Failing to summarize and restate to
ensure understanding
Hearing only what you want to hear
Failing to use first-class supporting
materials
15. Intercultural Negotiation Models
Problem-solving approach — considers national and organizational
cultural differences
Competitive approach — individualistic and persuasive orientation
Compromising — seeks a middle ground
Forcing — makes the other party comply
Legalism — uses legal documentation to force the partner to comply
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16. Four - Stage Negotiation Model
Investigative – Presentation – Bargaining - Agreement
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17. Negotiation Strategies
People act on the basis of their own best interests.
Truth in negotiations: Faith/Fact/Feeling
U.S. negotiators make fewer adjustments to their opponents.
Strategies include: preparation; tactics; conflict resolution and
mediation; and observation, analysis, and evaluation.
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18. Trade Agreements
General license – never actually issued
Validated license — allows specific exporter to export specific
products to specific places
Free trade zones or trade blocs — products enter without customs
duties
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19. NAFTA Benefits
To eliminate barriers to trade and
facilitate cross-border movement
of goods and services
To promote fair competition
To increase investment opportunities
To provide adequate and effective
protection for intellectual property
To develop effective
procedures to handle disputes
To expand cooperation and increase
benefits to the three countries
20. The U.S. Negotiator’s Global Report Card
Competency Grade
Preparation B-
Synergistic approach (win-win) D
Cultural I.Q. D
Adapting the negotiating process to the host country
environment
D
Patience D
Listening D
Linguistic abilities F
Using language that is simple and accessible C
High aspirations B+
Personal integrity A-
Building solid relationships D
21. Statements Characteristic of U.S. Negotiating Style
"I can handle this myself" (to express individualism).
"Please call me Steve" (to make people feel relaxed by being
informal).
"Pardon my French" (to excuse profanity).
"Let's get to the point" (to speed up decisions).
"Speak up; what do you think?" (to avoid silence).
"A deal is a deal" (to indicate an expectation that the agreement
will be honored).
22. China
Reserved; known for hospitality and good manners
Give small, inexpensive presents
Do not like to be touched
Consider mutual relationships and trust very important
Technical competence of negotiators necessary
Prefer to use an intermediary
Rarely use lawyers
Ample room for compromise
23. France
Have a sense of pride sometimes interpreted as supremacy
French logic ("Cartesian" logic) proceeds from what is known in a
point-by-point fashion until agreement is reached
Protocol, manners, status, education, family, and individual
accomplishments are keys to success with the French
24. Germany
Protocol is important
Dress is conservative; correct posture and manners are required
Use titles when addressing members of the negotiating team
Prefer keeping a distance between themselves and the other team
Have technical people as part of the negotiation team as Germans
are detail oriented
Punctuality is expected
Contracts are firm guidelines to be followed exactly
25. India
Bribery is common; having
connections is important
Avoid using the left hand in
greetings and eating
Request permission before
smoking, entering, or sitting
Building relationships is
important; an introduction is
necessary
Intermediaries are common
Use titles to convey respect
Knowledge of local affairs is
important
Negotiation process can be long
26. Japan
Business etiquette is
very important,
including business card
exchange
Meeting should be arranged by an
intermediary
Subtle and complex verbal and nonverbal
cues are used to avoid having someone lose
face or lose the group harmony
The Japanese use more silence and less eye
contact than U.S. persons
Consider contracts as flexible instruments
Are suspicious of a negotiating team that
includes lawyers
27. Latin America Relationships are important
Bribery is common
Government is very involved in
business
Negotiators chosen based on
family connections, political
influence, education, and gender
(females should be in the
background)
Social competence is important
Most agreements are
consummated over lunch
Numerous meetings is the norm;
time is not seen as important
Avoid gestures
28. Nigeria
Nigerians are skillful negotiators; they view negotiation as a
competitive process
When selecting negotiators, consider age (equated with
wisdom), gender, cultural background, and educational
credentials
Developing a personal relationship is important
Time is not particularly important so negotiations may be
lengthy
Use titles and last names
Use an intermediary to make initial introductions
Being well dressed is important; courtesy and consideration
are also expected
Contracts (oral or written) are flexible
A bribe may be needed to expedite business
29. Russian States
In the past, negotiation sessions have been long, with Russians
controlling the agenda
Are concerned with age, rank, and protocol
Tend to be formal
Friendships are not crucial to business
Contracts interpreted rigidly
Concerned with maximizing their profits
30. Negotiating globally can present many
opportunities. Corporations can expand
their markets, increase their markets,
increase their profits and productivity,
and lower their costs by negotiating
globally.
