Negotiating with International Customers, Partners, and Regulators

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

2. 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 Introduction

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

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

10. Maturity Emotional stability Breadth of knowledge Optimism Flexibility Empathy Stamina Willingness to use team assistance Listening Influence at headquarters Negotiation Teams • Criteria for selecting successful negotiators include:

12. Language skills Social and diplomatic skills Knowledge specific to the diplomatic profession Including diplomatic history and international relations Law Economic Politics International organizations Foreign policies Negotiation Preliminaries • Many companies in the United States provide employees with negotiations training on:

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

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

17. Nontask sounding Task-related exchange of information Persuasion Concessions and agreement At the Negotiation Table • 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: