International Business Negotiation

International Business
Negotiation 2
Table of Contents
Introduction......................................................................................................................................3
Negotiation......................................................................................................................................5
Negotiation Skills............................................................................................................................8
Linkage Theory..........................................................................................................................10
Cross cultural negotiations............................................................................................................11
Conclusion.....................................................................................................................................14
References......................................................................................................................................16

International Business
Negotiation 3
Introduction
The daily life of people covers different levels of negotiations, even when the individuals may
not realize that they are indulged in negotiations. The negotiations have a common place in the
life of individuals, due to the frequency with which it is used (Salacuse, 2013). The individuals
undertake negotiations on the price which is to be paid for a certain service, and even in the high
end transactions, for instance, the ones undertaken for carrying out an agreement between Gulf
nations and United States for oil. These discussions require negotiations to be undertaken,
particularly before any final decision is made. To elucidate this with a real time example, the
decision to go for a particular movie, or to choose the location where a group of friends would
eat involves certain level of negotiation. When it comes to more crucial topic negotiations, there
is inclusion of communication for ratifying a treaty of the United Nations, or for ratifying a
particular terms of such treaty. All in all, negotiation is a very important and unique tool, which
allows for the objectives to be attained in a successful and peaceful manner (Benoliel, 2014).
Negotiation is thus a skill which is used by all, despite the economic level to which a person
belongs. So, it is used not only by general public, but also by skilled diplomats, top salesman,
and even for the ardent advocates representing the organized lobby. Lewicki et al (2011) have
rightly stated that negotiation is something which is carried regularly by different individuals.
Despite negotiations being such a common parlance, these are not given the significance which
they should be given. Also, negotiation skills are something which does not come naturally to
individuals, and is thus not a cup of tea for individuals. This is the reason why the individuals
need to have the negotiating skills, where they want to be an effective negotiator and where they
want the desired objectives to be attained.

International Business
Negotiation 4
The negotiations skills also take different form, based on the level of significance of the topic for
which these skills are made use of. So, based on the level of complexity and the situation, the
process of negotiation is changed. An example of this covers the economic negotiations which
are undertaken for the diverse and rick individuals, in which the goals relate to a particular
business activity, or could be the ones related to the social production development at the very
top level (Maude, 2014).
The negotiation process evolves with type and place of transaction, and there are different
manners in which negotiation is undertaken for different individuals. The purpose and the need
define the manner in which a particular negotiation would be shaped, along with factors like the
culture of an individual. Where the negotiation is on sensitive issue, where the matter could go
either way, a highly experienced negotiator is required. Also, such person needs to have the
knowledge of dealing with complex situations and effectively solving the situation through
negotiation skills. The negotiation techniques are commonly used in international business but
the intricacies and nuances of negotiation techniques get changed based on different factors
(Cellich, 2012).
In international businesses, the success of relationships is dependent on proper negotiations
being undertaken. As a result of this, there is a need for effective negotiator. In gaining an
understanding on how exactly negotiations have to be carried out, the negotiator takes into
consider all such factors which are related to the process of negotiations, based on the goals set.
As per the study which had been undertaken in Thailand, for understanding the negotiation
process, there was a need to analyse how negotiations took place in Thailand and their results,
which the business negotiators perceive in the nation and in international business. This required