“If you know the enemy and know yourself,

you need not fear the result of a hundred

battles.
If you know yourself but not the enemy,
for every victory gained you will also
suffer a defeat.
If you know neither the enemy nor
yourself, you will succumb in every battle”
INTERNATIONAL NEGOTIATION

PRESENTED BY:
AWDESH KR. SHAW
BHAWANI SHARAN
INTERNATIONAL NEGOTIATION
An Overview:
 Negotiation is a dialogue intended to resolve disputes, to produce an agreement upon
courses of action, to bargain for individual or collective advantage, or to craft outcomes to
satisfy various interests.
 It is the primary method of alternative dispute resolution.
 International negotiation is as it says: It is about negotiation between countries. International
negotiation occurs all the time between governments , individuals and company’s.
 More complex than domestic negotiation.
 Generally negotiations prevailed only for direct investments , licensing agreements, debt
repayment.
STEPS OF INTERNATIONAL
NEGOTIATION PROCESS
 STEP 1: PREPARATION

STEP 2: BUILDING THE

RELATIONSHIP

STEP 3: EXCHANGING
INFORMATION/FIRST OFFER

STEP 4: PERSUASION

STEP 5: CONCESSIONS

STEP 6: AGREEMENT
CULTURAL DIFFERENCES: AN IMPORTANT
PLAYER IN INTERNATIONAL NEGOTIATION
CULTURAL TRAITS:
 LOW CONTEXT AND HIGH CONTEXT CULTURES

 MASCULINE AND FEMININE CULTURES

 MONOCHROMIC AND PLOYCHROMIC SOCIETIES

 UNIVERSALISM

 PARTICULARISM

 INDIVIDUALISM

 COMMUNITARIANISM
CULTURAL DIFFERENCES….Cntd.

 NEUTRAL AND EMOTIONAL

 SPECIFIC AND DIFFUSE

 ACHIEVEMENT AND ASCRIPTION

Differences in national cultures and differences in political, legal, and

economic systems often separate potential business partners.
Organizing International Negotiations

 Planning and preparation

 Conducting the negotiation
 Reaching an agreement
 What is a good negotiation?
Organizing International Negotiations
 Planning and preparation

 Where to negotiate: home country cultural advantage as

visitors acclimatize
 Assembling the right team: internationally experienced; locals

important; maintaining team is important

 Preparation: country,
company background,
clear objectives

It’s impossible to be over-prepared for foreign negotiations

Organizing International Negotiations
 Conducting the negotiation

 Relationship building required in most parts of the world;

socializing important
 Recognize the power brokers; usually senior people
 Show respect, patience at

all times
 Body language is important
 Negotiating style should be known
Organizing International Negotiations
 Reaching an agreement

 High context cultures take time (often years); often letters

of agreement to start
 Contracts signify the start of a relationship, but do not

define it totally
Organizing International Negotiations
 What is a good negotiation?
 Negotiation objectives important part of what is planned
 Focus on common ground and agreements, not
disagreement areas
 Flexible, not rigid in setting goals
 Take time to build relationships, knows all aspects of
proposed agreement to take place.
Basic Negotiation Strategies

 Competitive strategy – win-lose game

 Problem solving – win-win situation

THANK YOU!!!

QUESTIONS….???