This document discusses negotiation in international business. It provides an introduction to negotiation and outlines that successful negotiation requires thorough preparation and understanding of cultural nuances. The document then defines negotiation as a process to manage relationships between various parties. It identifies key steps in the negotiation process like preparation, relationship building, and implementing agreements. It also discusses factors affecting negotiations and different negotiation styles. Finally, it covers cultural challenges, negotiating with regulators, tactics, personal characteristics of international negotiators, and differences in negotiation approaches across various countries.

1. NEGOTIATION IN
INTERNATIONAL BUSINESS
PRESENTED BY
•LAKSHITA ASAWA

2. INTRODUCTION
• Negotiating with international customers ,
regulators and partner often require a lot of
meticulious prepration.
• Successful negotiation requires analysis and
evaluation of the commercial and there
impressive presenntation and proper
understanding and appreciation of cultural
nuances of the negotiation a party and
skillfully navigating the negotiation process
accordingly.

3. Negotiation is a process to manage relationship.
It is basic human activity that exist between
employers and employee ,buyer and seller
and between business associates.
Characteristics of a negotiation situation :
There are two or more parties.
There is a conflict of need and desires
between two or more parties .
Parties expect a “give-and-take” process

4. Key step to an ideal negotiation
process
Preparation .
Relationship building .
Information gathering.
Information using.
Bidding .
Closing the deal.
Implementing the agreement .

5. 5 strategies for negotiation
international business contracts
1. Hire a consultant .
2. Choose your team wisely.
3. Gauge your counterpart’s.
4. Meet them in person.
5. Fix the agenda and keep detailed records.

6. FACTORS AFFECTING NEGOTIATION
PROCESS
• AUTHORITY
• CREDIBILITY
• INFORMATION
• TIME OF NEGOTIATION
• EMOTIONAL CONTROL
• COMMUNICATION SKILLS

7. TWO TYPES OF NEGOTIATION
COMPETITIVE
NEGOTIATION:
ONE TIME DEAL
COOPERATIVE :
LONG TERM
NEGOTIATION

8. 4 C’S OF NEGOTIATION
• Common Interest
• Conflicting interest
• Compromise
• Criteria

9. PREREQUISITES OF EFFECTIVE
NEGOTIATION
• Selection of the appropriate negotiation team.
• Management of preliminaries , including
training, preparation and manipulation of
negotiating setting.
• Management of the process of negotiation,
i.e., what happens at the negotiation table.
• Appropriate follow-up procedure and
practices.

10. CULTURAL PROBLEM IN
INTERNATIONAL NEGOTIATION
• Language & Non verbal behaviour.
• Values
• Thinking & Decision making process.
• Difference in political , legal &
economic system.

11. NEGOTIATION WITH REGULATORS
• In many instances government is a party in
International Business Negotiation.
• There are 2 view point of governmental
authority:
1. Hierarchical view
2. Bargaining view

12. THIRD PARTY NEGOTIATION
• MEDIATOR : A mediator is a neutral third party
who facilitates a negotiated solution by using
pursuasion , reasoning & suggestion for
alternative.
• ARBITRATOR : Third party negotiation to dictate
an agreement.
• Conciliator : It is a trusted third party who
provides an informal communication link
between 2 parties.
• CONSULTANT : It is an important third party
skilled in conflict management who attempts to
facilitate by creative problem solving tactics.

13. DETERMINANTS OF BARGAINING
POWER
• Relative importance of the project.
• Alternative
• Urgency
• Strengths

14. VERBAL AND NON VERBAL
NEGOTIATION TACTICS
• PROMISE
• THREAT
• RECOMMENDATION
• WARNING
• REWARD
• PUNISHMENT
• NORMATIVE APPEAL
• COMMITMENT
• SELF DISCLOSURE
• COMMAND

15. INTERNATIONAL NEGOTIATOR :
PERSONAL CHARACTERSTICS
• Tolerance of ambiguous situation.
• Flexibility & creativity
• Humor
• Stamina
• Empathy

16. Negotiation in Different Countries
• FRANCE : The french like to conflict in
Negotiation. They Don’t pay much attention
to likes & dislikes of the opposite party.
• Chinese : They use How & Why in Negotiation
process. Whenever we fell that they are
about to take decision they start negotiating
again.
• North Americans : very impatient , they take
decision on the basis of facts & logic . They
want to approach more & more.

17. • Arabs : They are very casual
regarding deadline. There is
difference in gender negotiation.
• Brazilians : They have a habit of
saying no as much as 83 times in
1 hour. They always try to there
opponent by making physical
touch.

18. THANK YOU
ANY
QUESTION ?