Critical Evaluation of International Business Negotiations

This essay critically evaluates the statement that negotiation is a daily activity for everyone, regardless of skill level, and explores whether negotiation skills are universally applicable. It provides a working definition of negotiation supported by academic references and counter-evidence. The analysis delves into key concepts such as the role of ethics, negotiation strategies, and often-ignored aspects, comparing their application by trained and untrained negotiators. The essay further discusses the ideal outcomes of negotiation and bargaining sessions, highlighting the differences and counter-arguments to the initial statement.

Running Head: International Business Negotiations
International Business Negotiations
Essay
System04104

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Table of Contents
1. Introduction...................................................................................................................................2
2. Literature Review..........................................................................................................................2
Role of ethics in Negotiation.............................................................................................................4
Strategies used in Negotiation...........................................................................................................4
Aspects that are ignored by the untrained people............................................................................5
3. Analysis of Lewicki.........................................................................................................................5
E-Negotiation in Business Organisations...........................................................................................8
4. Conclusion.....................................................................................................................................9
References...........................................................................................................................................10

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1. Introduction
In our life, every people have to face differences and then, people have to negotiate to
mitigate these differences even though they like it or not. Whenever, the need and desires
clashes of one party to other, this is a start for negotiation in order to satisfy all the needs,
desires and demands, maintain the relationship and achieve agreement. Negotiation is an
obvious thing in our life, no matter we like it or not. People have to negotiate with the boss
for salary, customer negotiates with product seller about the price, product, or services and a
country negotiate about the business with another country about to deal of import and export
products, services or taxation rate (Thompson, Wang, and Gunia, 2010). Although
negotiation is a part of human life and happens daily, it is not easy for a person to negotiate
easily with other, because of the difference in interest, likes, nature and motives. When a
business organisation negotiates the purpose of another party so they can get a better deal
than just accepting or rejecting what the other business organisation is offering. Negotiation
is generally a voluntary process of managing the relationship between two parties where both
bargaining with each other and try to come closer to their expectations. Negotiation is usually
so much in practice in business organisations where every organisation wants to earn the
highest profit. This need for earning the highest profit depends on diplomatic negotiations of
business organisation with their counterpart.
Now in these days, negotiation is the main aspect of international business. The two countries
(Parties) negotiating with each other faces different problems related to negotiation because
of their cultural difference. Negotiation is not an easy-going task for any party (People,
organisation or country) rather it will be so complex when a party does not have ideas about
the culture, thinking, motive or need of another party. The business negotiations are different
from other negotiations and require a number of strategic decision-making of a business
manager (Vingtoft, 2017). Therefore, it is the necessity of business to understand the
importance of negotiation, which involves a challenging communication process and task
2. Literature Review
According to Khakhar and Ahmed (2017), negotiation is generally a way of what we
expected and want to achieve from others. Whenever, the needs and desire of a person or

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party clashes with another, this is a start for negotiation. Negotiation can be defined as a
communication process between two parties, which designed to reach an agreement, which
has right to share for the gaining advantage over other parties. Negotiation conditions have
basically the same objective whether the negotiation of countries at war, negotiation of a
buyer with the seller about the product or services regarding price, facility or post-selling
services, or negotiation about labour conditions between the management and labour,
negation in finding sponsor company for arranging an even which is including apportion
benefits and resolve conflicts. Corresponding to the preferred position in which parties want
to win the conflict whereas the need corresponds to the major profits of their own.
Negotiation is an essential activity in international business and is particularly important
when there is a cultural difference between the two countries and their interest and desire
profit. The negotiation terminology and different strategy of negotiation used in when two
parties involved in a conflict regarding their interests, desires and need.
Nelson, Bronstein, and Ben-Ari (2015) defined in his article “The Power to Oblige: Power,
Gender, Negotiation Behaviours, and Their Consequences,” differences in negotiating style
originate from the cultural and social difference of the society or of two countries. These
social and cultural differences push every society to give importance to "relationship
development, decision-making methods, contracting practices, negotiating strategies and
illegal activities such as bribery. The effective negotiation skills not only require the technical
communicative abilities, but it also requires an understanding of the negotiation context by
both the parties. After successful accomplishment of the negotiation process, both the parties
in a formal agreement which is the exchange of conditional promises and rules and
regulations, in which both the parties decide and settle to act in accordance with their
promises.
Ramsbotham and Schiff (2018), described in his article “When Formal Negotiations Fail:
Strategic Negotiation, Ripeness Theory, and the Kerry Initiative,” different countries
negotiate in a different style, which is according to their culture. Negotiating style of a party
directly determine the terms of the final agreement. Therefore, good understanding of the
negotiating styles and culture of other party determine the behaviour during handling the
negotiation. All the business agreement and transactions between two parties require having a
certain level of knowledge and skills (Vetschera, 2013). Understanding and knowledge of
agreement terms and conditions require another high level of skill and knowledge. One big

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problem in the agreement is that a single word keeps different meaning and interpretation in a
different culture. Therefore, it requires a common language in agreement after the final
negotiation that is understandable for both the parties.
Role of ethics in Negotiation
Ethics and value is a more important aspect of both negotiation and modern business world. It
is important for a negotiator to maintain ethical balance during negotiation. A trained
negotiator always thinks about the honesty and strong relationships with other people or party
(Bucaro, 2018). The ethical judgement depends on what types of people you dealt with and
that is eventually shaping the ethical behaviour of a negotiator (Staff, 2018). A trained
negotiator always try to honest with others and with himself as well, because if he/she is
lying over time, he may get in a habit of lying regularly or using other false tactics that are
harmful and risky for himself in future. For many professional negotiators, the idea of being
ethical during negotiation is dangerous for the business and its profit (Jacobs, 2012). The
ethical practice of negotiation can lead to the impossible feat and create a weak negotiation.
The ethical negotiations can be harmful to the business when it allows parties to disclose
information. It sets a degree of trust against the traditional negotiation process.
Strategies used in Negotiation
Vetschera (2013) explains in his article “Negotiation processes: an integrated perspective,”
that there are different negotiation strategies that determine the tactics of a negotiator with
another party. Understanding the other party's interests and tactics is also important for a
good negotiation. Selection of the best negotiation strategy helps to best response to other
party's interest and tactics and helps negotiator to achieve the best outcome (Druckmann
and Olekalns, 2011). A negotiator generally tries to understand and predict the interest and
desires of the opposition party and try to dominate by rejecting his offers and ideas. Good
initiators always believe in giving benefits to other parties when the negotiator found that the
point is not vital and give any benefits. Compromising is also a strategy during negotiation
where both parties preceding their idea outcomes, settling for an outcome that is satisfactory
for both the parties.
The chosen strategy of negotiator depends on to whom he/she is negotiating with and the also
on the relationship between them. For example, the level of interest and cooperation between
negotiator and other party determines the negotiation style and behaviour of the negotiator
during the negotiation process (Henery, 2012). It is essential during the negotiation strategy

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that which type of approach does the negotiator adopt. Many researchers prefer the soft
approach of negotiation where some beliefs in a hard approach to issues handling during
negotiation.
Aspects that are ignored by the untrained people
Successful negotiation means find out positive results under any possible circumstances. An
untrained negotiator generally avoids proper planning before negotiation with other parties. A
trained negotiator always focuses on the time constraints and must aware of the interest of
other parties. Usually, two parties facing the same problem and want the same desired result
from the negotiation (Khakhar and Rammal, 2013). This situation is called “congruent issue,”
when both parties want the same thing. An untrained negotiator often fails to recognise this
situation and that cause a loose negotiation with the opposition. A trained negotiator needs to
analyse the biases their opponents bring to the table. However, an untrained negotiator
generally fails to recognise these aspects of negotiation and that cause a big loss in the
negotiation for the party. An untrained negotiator is failed to judge the cross-cultural aspects
in negotiation and act in unprofessional way (Heiba, 2013). A negotiator must understand and
aware of the differences exist between these two parties. Generally, these differences are not
necessarily unfavourable in negotiation rather it can create huge potential benefits for the
negotiator. For a successful negotiation process, it is compulsory to care about these aspects.
An untrained negotiator often discloses the deal and does the dance of joy in public (Schoop,
Kohne, and Ostertag, 2010). The untrained negotiator wants to show the opponents that the
negotiator would have done it for less. A trained negotiator never does such types of stupid
acts because it harms his/her image in the future. A good understanding of negotiation details
and process helps the negotiator to minimise the pitfalls of the deal (Long, 2013). Therefore,
it is usually recommended that a trained and experienced negotiator should do the
negotiations. A trained negotiator always cares about the interest of their own party and
respects of emotions and dignity of others.
3. Analysis of Lewicki
According to Lewicki “Negotiation is not a process reserved only for the skilled diplomat,
top salesperson, or ardent advocate for an organized lobby; it is something that everyone
does, almost daily” (Lewicki, Barry, and Saunders, 2016). Lewicki gave this statement, in his

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famous book in which he tells about the daily uses of negotiation in human life. According to
Lewicki, the professionals like diplomats or Advocates rather it is a part of human life do not
only practise Negotiation. People negotiate almost all the time in their life. A friend
negotiates about the place where to have dinner, children negotiate to decide where and
which game to play, business persons negotiate about the purchase products and about the
price (Saee, 2008). An advocate negotiates about to settle the case and legal claims before
they go to court. Police negotiate with the thief to surrender without harming people.
Therefore, it is a journey of human lives to negotiate at every step in life for getting success
in both our professional and personal life. Sometimes people fail to negotiate because they do
not have known either they recognize that they are in a negotiation situation. In that
circumstance, when they fail to recognize the negotiation opportunities, people may fail to
attain their targets and desired results (Fleck et. al., 2017). Apart from this, people may also
recognize the negotiation need but because lack of expertise in negotiation skills they poor
understanding of the negotiation process they lost their benefits from the deal.
The concept of negotiation drew from three main sources i.e. our experience, media, and
social science research. The first negotiators are human beings and the large numbers of
negotiations that occur every day in our lives. Second negotiation source is from media like
television, newspaper, radio, social networks, and internet (Imai and Gelfand, 2010). These
media sources are supporting real negotiations every day. Finally, the last source is the social
science research that has been leading numerous source aspects of negotiation. The
negotiation is related to various fields like social science, economics, psychology science,
communication and labour relations, law etc.
Notini (2009) described that BATNA (Best alternative to a negotiated agreement) is a term
that is helpful is to understand the negotiator's need to understand their own BATNA and
BATNA of another party. The value of a person's BATNA always provides an alternative to
the possible settlement in the current negotiation plan. A BATNA may offer different
alternatives to the current negotiation plan by considering interdependence, independence,
and dependence on someone else (Pandey, 2017).
The business conflicts can easily solve by using negotiation. Negotiation can work when
there is a dispute found between two business organisations. Negotiation serves as a dispute
management instruments to keep the peace between two business organisations. Negotiation
is helpful to resolve the business disputes at the interpersonal, organisational and

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international level (Gunia, Brett, and Kamdar, 2011). The negotiators who deal with another
party in the negotiation process have to need certain skills and knowledge to be effective in
the negotiation situation. The negotiator must need the expertise and knowledge of proper
planning before the negotiation process, knowledge of subject matter being negotiated,
listening skills, integrity, general intelligence, ability to handle the pressure and patience.
The outcome of the negotiations must display the professional way of negotiation style where
the outcomes reflect the quality of discussions and process that should be expected from a
trained and expert negotiator. Negotiation requires a quality foundation for any further
discussion and dealings that one party may need to have with the other party on concerning
issue (Lars-Johan and Eklinder-Frick, 2017). An experienced and trained negotiator is one,
who has observed the negotiation in a larger context and negotiating with the other party by
considering the purpose of the organisation in his/her mind.
A UK based organisation established in 1982, for assisting other companies to improve
performance through the deployment of new strategies considering people, process, markets
and direction. They focus to establish a balance in their negotiating action and words. They
feel that because of using more non-verbal communication, it can frame a positive
negotiation environment. They feel that listening and an educated decision is compulsory for
the negotiation process. Successful negotiation is a vital part of communicational skills and
one can easily gain more profit and get success by mastering in negotiation. The quality
negotiation skills are compulsory everywhere, no matter it is your personal life or
professional life.
Understanding other arguments, the strength of your discussion and relationships with others
can make the difference between success and failure of negotiation. Weak argument and
discussions always break down by others. The weak discussions always bring trouble into
both, your personal life and your business life. Strong argument, discussions and agreements
bring you benefits during the negotiation and helpful in achieving your objectives, while you
considered the mutual satisfaction to all the parties who involved in negotiation with the
negotiator (Salacuse, 2015).
Negotiation is the way of exchanging information between parties for the purpose of
fulfilment of their needs. It means that every negotiation is traded between two individuals or
parties. The simple theory behind the negotiation is to give something and accept something

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in turn. This gives and takes exchange is the soul of every negotiation. Generally, negotiation
is a solution to a problem where two parties negotiate with each other for their own benefits
by accepting or rejecting the offer of other parties.
The success or failure of the negotiation based on to produce a beneficial and wise
agreement, that is efficient and helpful in improving the relationship with the opponents or at
least not damage the relationship (Goldwich, 2010). This is the ideal outcome of a negotiation
or bargaining process. The positional bargaining is normally a bargaining power over the
positions that are beneficial for each side and not damage the relationships between two
parties. Positional bargaining is generally used to give and take the theory of negotiations and
produces unwise positions that better the relationships between the parties involved in the
negotiation.
E-Negotiation in Business Organisations
This is the time of the digital world, where computers are taking place of humans and replace
the human work by the robotic works. E-negotiation taking place of human negotiator and
improve the efficiency of settlement (Harkiolakis, Halkias, and Abadir, 2012). Therefore, the
number of definitions of negotiation in context to the human factors and characteristics is
useless because of re-negotiation. The e-negotiation has the capability of suggesting solutions
within a second without any error. The negotiating party can quantify their choices to the
computers and it gives them the best possible results and solution. The e-negotiation reduces
the time, effort and cost as compared to traditional human negotiation techniques and
process. The modern time uses such as management science, computer science and
information technology for research and design related to negotiation technology regarding e-
negotiation (Mehta, 2016). According to various authors and negotiation experts, the human
factor plays an important role in negotiation but after the adoption of e-negotiation, there is
no need for human intervention in the negotiation process. In recent time most of the
researchers work on e-negotiation a negotiation support system (NSS) which have been
focusing on decision support in negotiation and considering the cultural effect in negotiation.
The most of the past studies on negotiations focused on the human negotiation style and its
importance, but the use of e-negotiation systems reduce the work of human factors in
business organisations. However, the problem with these new electronic systems is that these
systems are so costly and they are not commercially available for everyone. Therefore, the
human negotiation is still used in small business organisation for negotiation.

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4. Conclusion
Negotiation is an essential part of human life. Negotiation is a process where one party try to
reject or accept the offer of another party for their own benefits. Negotiation can prevail
everywhere where two parties involved and try to settle the differences. Negotiation is a
situation where either both the parties happy or think about the mutual benefits or think for
their own benefits that cause other's loss. Negotiation is essential in a business organisation
where a businessperson wants to gain benefits by settling the differences with their customer
or supplier. Every manager or businessperson needs to negotiate in his daily work life. A
manager has to play a role of negotiator that needs empathy. Knowledge, skills and planning
that determines the success or failure of the negotiation process. For effective negotiation, it
is essential for a negotiator to understand the cultural differences of the parties and taking
care of others interest. The skills and knowledge of a negotiator determine the success or
failure of the negotiation deal. An ideal negotiation is one in which both the parties are in a
win-win situation. The various authors and negotiation experts explain in their books about
the human factor that determines the negotiation success or failure, but in modern digitalize
word focuses on e-negotiation that provides an accurate and suitable solution for a
negotiation without consuming so much time or extra resources. The use of e-negotiation
system eliminates the human error and biases from the negotiation process. However, in the
end, the success of a negotiation process depends on the outcome of the negotiation because
negotiation is a give and take exchange process. If all the parties concerned should feel that
they won or secured a good deal under the given circumstances, then the negotiation is
considered as a successful negotiation between the parties.

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