1. Negotiating with International Customers, Partners, and Regulators Chapter 19 McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved.

2. Introduction Face-to-face negotiations are an omnipresent activity in international commerce Once global marketing strategies have been formulated, then the focus of managers turns to implementation of the plans Plans are always implemented through face-to-face negotiations with business partners and customers from foreign countries Some of these negotiations can become quite complex, involving several governments, companies, and cultures Business negotiations between business partners from the same country can be difficult This chapter discusses the challenges and opportunities of international business negotiations

4. Cultural differences in negotiation styles can cause problems in international at the levels of: (1)Language (2)Nonverbal behaviors (3)Values (4)Thinking and decision-making processes The Pervasive Impact of Culture on Negotiation Behavior Companies and countries do not negotiate—people do

9. Implications for Managers and Negotiators 1.selection of the appropriate negotiation team 2.management of preliminaries, including training, preparations, and manipulation of negotiation settings 3.management of the process of negotiations, that is, what happens at the negotiation table 4.appropriate follow-up procedures and practices Four steps lead to more efficient and effective international business negotiations, which include:

10. Negotiation Teams 1.Maturity 2.Emotional stability 3.Breadth of knowledge 4.Optimism 5.Flexibility 6.Empathy 7.Stamina 8.Willingness to use team assistance 9.Listening 10.Influence at headquarters Criteria for selecting successful negotiators include:

12. Negotiation Preliminaries 1.Language skills 2.Social and diplomatic skills 3.Knowledge specific to the diplomatic profession 4.Including diplomatic history and international relations 5.Law 6.Economic 7.Politics 8.International organizations 9.Foreign policies Many companies in the United States provide employees with negotiations training on:

13. Planning For International Negotiations 1.Assessment of the situation and the people 2.Facts to confirm during the negotiation 3.Agenda 4.Best alternative to a negotiated agreement 5.Concession strategies 6.Team assignments The following checklist ensures proper preparation and planning for international negotiations:

14. Negotiation Setting 1.Location 2.Physical arrangements 3.Number of parties 4.Number of participants 5.Audiences (news media, competitors, fellow vendors, etc.) 6.Communications channels 7.Time limits There are at least seven aspects of the negotiation setting that should be manipulated ahead of time if possible:

17. At the Negotiation Table Nontask sounding Task-related exchange of information Persuasion Concessions and agreement Differences in the expectations held by parties from different cultures are one of the major difficulties in any international business negotiation Everywhere around the world we have found that business negotiations proceed through four stages: