International Business Negotiation: Cross-Cultural Negotiation Essay

This essay delves into the intricacies of international business negotiation, examining its significance in a globalized world where cross-cultural understanding is paramount. The introduction highlights the increasing importance of negotiation due to industrialization and globalization, emphasizing the need for effective negotiators who can navigate diverse national and ethnic alterations. The essay defines negotiation and its essential elements, such as effective communication, understanding conflicting interests, and moderating expectations. It differentiates between distributive and integrative negotiation approaches, explaining the skills and strategies required for each. The essay further explores the requirements for an effective negotiator, including strategies, behaviors, and tactics. It also discusses the role of BATNA and the Prisoner's Dilemma in negotiation, highlighting the importance of understanding these elements for achieving successful outcomes. The essay aims to provide a comprehensive understanding of international business negotiation, offering insights into the processes, skills, and challenges involved in cross-cultural contexts.

Running head- INTERNATIONAL BUSINESS NEGOTIATION
International Business Negotiation
Name of the Student
Name of the University
Author Note
1.

1International Business Negotiation
Introduction
There has been a significant increase in the industrialization and globalization that has
also led to an increase in the organizational levels across the national boundaries. It also
headed to an upsurge for a pattern across the national limitations. As a consequence, there has
been an affected upsurge in the figures of negotiations or bargaining dealings that happen in a
universal, somewhat than in the outdated native framework. One could contend that
negotiations have a significant role in safeguarding a positive consequence when leading a
global occupational, as the mainstream of dealings is to a greater or lesser amount negotiated.
As the negotiations ensue through the nationwide borders, there is an upsurge in the
connected problems that do not relay to the negotiations in a private setting (Lewicki, Barry
and Saunders 2016). National ethnic alterations are identified to be an issue that enhances the
complication. It is the catastrophe of the part of a negotiator to forestall and comprehend the
national alterations that often outcomes in consultations disappointment Though international
negotiations are progressively significant in the field of research, inquiries in part are still
inadequate and have been designated as the normative. Researches are concentrating on a
massive quantity of country alterations and characteristics of Mediation. Furthermore, the
mainstream of these studies made evident that negotiations in the developed markets such as
the US, Canada, and Hong Kong and the developing markets like China, and Taiwan. All
these require an efficient negotiator who can understand the requirements and through his
skills makes the negotiating procedure effective (Lewicki and Barcellos 1977). The primary
aim of the study is to understand the negotiating processes and the cross negotiation and
bargaining cultures, specifically in Western cultures such as the UK and the NEW Zealand.
Further, this essay identifies the skills that are required by the negotiator that is the crucial
player in the negotiation process.

2International Business Negotiation
Negotiation- Meaning
A negotiation or bargaining is known as an effort to encourage or cause an impact
upon another party to do something or make them do something (Ghauri and Usunier 2003).
Usually, it is a debate amongst the parties, to attain a pact upon the courses of the act, by
determining any matters or disagreements through negotiation, or attainment of the benefits
from a particular state for each contributing revelries. Thus in safeguarding the operational
discussions, various characteristics are essential to be in explanation of such Approach such
as establishing an efficient communication and impose a long-term result upon the
relationship supporting the unprejudiced and prospects of the procedure of the negotiation. In
a negotiation that is effective few elements are vital such as the such as handling the
emotional sentiments of both the parties, understanding the contradictory thoughts and
interests and prioritize them, discovering the results, and moderating prospects which shall be
balanced before each contributing party agrees to a solution. Thus it becomes essential to
ensure that the negotiation procedure is effective. These skills are attained through years of
practice and experience. In general terms, it is stated as the communication or the
conversation amongst two people or more in order to reach to a conclusion that shall be
benefitting all the parties those are negotiating (Putnam and Roloff 1992). Through this
procedure, a collaboration could be established amongst objects which comes to a neutral
point and agrees on difficulties of the shared concern between the parties, while enhancing
their discrete services. This constructive consequence can be for all of the gatherings
convoluted, or fair for the majority. A negotiator needs to understand the requirement of the
negotiation procedure and other mediators to upsurge their probabilities to close pacts and
evade the struggles by founding such connection with other parties with the intention of

3International Business Negotiation
profit. It is intended to decide the opinions of alteration, to achieve a rate of benefit for a
separate or shared interest or to construct a result to contain the numerous benefits. It is
frequently lead by setting onward a situation and making concerns to attain a contract.
The amount to which the conveying parties belief each other to contrivance that the
assigned resolution is a critical feature in defining whether discussions are productive. People
are engaged in the negotiation procedures daily, not knowing the factors are present that of a
negotiation procedure. It happens in the organizations that include various business entities,
between the government bodies and even the individuals dealing with specific personal issues
(Khakhar and Ahmed 2017). Negotiators who are professionals are dedicated, such as the
negotiator dealing with the buyer-seller or the union negotiators, buyout negotiators,
negotiator who settles and issue through peace settlements and inmate negotiators that
generally deals with the prisoners. They graft below other headings, such as the
representatives, policymakers, or the dealers. There is also negotiation accompanied by
machinery and algorithms recognized as self-directed negotiation procedures. The facts and
the dealings shall be made correctly. The process of negotiation varies as it consists of
various kinds of procedures such as the Mediation, arbitration and bargaining (Derudder and
Witlox 2016). These are all various forms of the negotiating processes that may occur
between the individual parties, the individuals and the government, the government bodies
and the business organizations. The sole purpose of the negotiating procedures is to come to a
neural point such that the decision shall benefit all the parties negotiating. It is generally a
procedure in order to mitigate a conflict that arises out of a personal situation or a business
transaction (Carnevale and Pruitt 1992). Mediation is the procedure where a third party assist
the parties conflicting in cases where the procedure cannot be conducted by the parties
themselves. This procedure contrasts with the arbitration procedure where the ultimate
decision is upon the third party in which the conflicting parties are obligated to accept the

4International Business Negotiation
results (Thomas 1992). The Negotiation philosophers differentiate these various kinds of
negotiation procedure. The primary modification is in the practice of the various kinds of
processes that depends upon the Approach of the representative but also on the condition.
One-off the happenstances where long-lasting relations do not acquire are more probable to
harvest the “distributive negotiations” although the long-term associations are more probable
to necessitate the “integrative negotiating procedures” (Ghauri 1986). In a procedure of the
distributive negotiation, every side habitually accepts a tremendous or secure point, by the
knowledge that it shall not be accepted and then pursues both the parties in reaching a deal.
“Distributive Bargainers” perceive such negotiations as a procedure of dispensing a secured
was and the quantity of the value. This procedure does not involve people who have not ever
had another collaboration association, nor are they likely under a plan or thought repeat in the
future. Following this method, each representative contests for the leading conceivable part,
so the gathering incline to respect each other more as an opposition. The “Prospect Theory”
indicates that the person values the amount they lose in their lives more than focusing upon
the amount gained. These consist of more risks about the adverse losses, whereas the
“Integrative Negotiation” is known as interest, merit or principles-based. The set of
procedures endeavours to expand the superiority and probability of transferred arrangement
by taking benefit of the circumstance that dissimilar gatherings often charge several products
otherwise (Kraus and Arkin 2001). The procedure of the distributive negotiating procedure
depends upon the amount that has been fixed that is needed to be divided between the
negotiating party in such a way that benefits each party. It further states that under this, a
party generally accepts the loss over one item in order to gain the profit on the other item.
Though, even integrative negotiation is probable to have some distributive rudiments,
particularly when the dissimilar gatherings both worth the different substances to the similar
gradation or in cases where the allocation procedure only initiate after the end of the

5International Business Negotiation
negotiating procedures. While the concern is compulsory for negotiations, inquiry
demonstrates that people who acknowledge more rapidly, are probable to discover all
integrative and equally valuable resolutions.
Consequently, early granting lessens the reason for the commission of an integrative
negotiation. The Integrative negotiation procedure frequently includes an advanced step of
belief and the creation of an association. It can also include creative problem solving that goal
to accomplish the shared advances (Reynolds, Simintiras and Vlachou 2003). It realizes a
decent arrangement as not one with total distinct gain, but one that offers prime advance for
all gatherings. Gains in this situation are not at the outlay of the former, but with it. Both
pursue unity and other advantages that it will embrace the arrangement that stretches the first
party a friendly consequence, and the other side as well. Whereas the productive negotiation
emphases on the primary benefits of the parties somewhat than their preliminary situations,
methods negotiation as a communal problem-solving somewhat than a modified encounter,
and contends upon obedience to the neutral and the ethical standards as the foundation for
arrangement (Moran and Stripp 1991).
Requirement for an effective Negotiator
There are various ways in order to differentiate and categorize these elements that
consist of the procedure to conduct it, the behaviour and the skill by which it shall be
conducted and the substance. The procedure denotes to how the parties in the negotiation
process negotiate with each other. It further includes the necessary tactics. The Behavior
denotes to the relations amongst these parties entering the negotiation procedure, the
statement amongst them and the charms adopted by the negotiators (Pruitt 2013). The
constituent denotes to what the gatherings convey over the program, the subjects and the
options that are concluded at the end. Negotiation procedure also comprises of four elements