Case Study

Negotiation in International Business and Cultural Differences in Negotiations

What is negotiation?

Negotiation is an compromise between two parties or more parties, which aims to reach an understanding, resolving the difference, or gain advantage in outcome of communication, to obtain an agreement upon courses of action, to bargain for individual or groups, to produce outcomes to satisfy multifarious interests of two parties involved in negotiation process. Negotiation is a process where each party involved in to gain an advantage for their benefit. Negotiation occurs in business, but also, occurs in everyday life. Such as, organizations, non-profit organizations, government branches, legal proceedings among nations and in personal situations, marriage, divorce, parenting.

Negotiation strategies

Negotiation is taking part in various formats, from a trained negotiator acting on a formal position in a formal setting, to an informal negotiation between friends in an informal setting. Negotiation performs as imcompability as mediatiorship, where a neutral third party listens to each party’s arguments and to furnish an agreement between two parties. It also be compared with arbitratorship, which corresponds a legal proceeding. In arbitration, both sides make an argument as to the relevant parts of their case and the arbitrator decides the result.

Types of negotiation

Negotiation generally discriminate between two types of negotiation. Distributive negotiation is also called positional or hard-bargaining negotiation. It is wont to converge negotiation on the model of bargaining in a market. In a distributive negotiation, each party often espouse an extreme position, aware of that it will not be acceded, and then employs a combination of artifice, bluffing, and brinksmanship in order to cede as possible before reaching an agreement. Distributive bargainers apprehend negotiation as a process of distributing a fixed amount of value. Distributive negotiation...