What are the types of international negotiation?
Posted: Mon Dec 23, 2024 5:40 am
These are transactions that can occur in scenarios of confrontation, subordination, inaction, collaboration and reasoning. Read on to learn more about what the international negotiation process entails.
Globalization has led to agreements between nations or companies from different countries becoming more frequent and beneficial for the parties involved. This also presents a scenario of emerging economies that increase the level of commercial competitiveness. In this way, foreign trade becomes more important when organizations want to position themselves in the global market.
By establishing effective sales strategies, a discussion can be fostered that favors the achievement of agreements or international negotiations. This process has a series of peculiar characteristics and steps, necessary for all parties to benefit.
The international negotiation process
In order to understand what international negotiation entails, it is necessary to see everything as a process that, through preparation, discussion, agreement, closing and follow-up, serves to carry out import and export operations or purchase and sale outside of countries . It is an activity that is established between actors from different nations, so they operate in different markets.
This process is based on dialogue and communication skills that allow the proposed goals to be achieved, which mostly have to do with the favorable conclusion of a trade agreement. Generally, what is negotiated is usually very important, and requires careful planning and preparation to achieve a situation acceptable to both parties , thereby creating, maintaining or developing an international business relationship .
In some cases, negotiations may focus on reaching agreements on cpa email addresses prices, guarantees, delivery locations and times, payment conditions and collaboration with a distributor . Also considered are the terms for the establishment of a franchise and distribution contracts between manufacturers, as well as the implementation of mergers and acquisitions.
In the book International Negotiation (2018), by the Spanish strategic consultant José Fulgencio Martínez Valverde , it is explained that this activity “is the basis on which all the processes for the development and consolidation in foreign markets of companies that, at any time, decide to complement their presence in their home market with the commercial expansion of their products or services to other points on the planet” are based. It seeks to reach increasingly global consumers.
You are interested in knowing if international business is the same as foreign trade .
Types of international negotiation
The economist and foreign trade expert, Olegario Llamazares García-Lomas , explains in his book International Negotiation (2015) that it is possible to identify five types or most common ways of negotiating abroad, detailed below:
Negotiation with confrontation. It is also known as distributive negotiation, and the condition that underlies this discussion is the “win or lose” type, so what one party wins, the other loses. From this perspective, any condescension made to the other party is seen as a weakness.
Subordinate negotiation. The aim is to put the interests of one party above those of the other. It is used to reach an agreement when one negotiator is not willing to make a concession, but the other does want to do so, or when the negotiating skills of one actor are superior to those of the others.
Negotiation with inaction. In this situation, the goal is not to negotiate. However, when a situation arises where it is believed that there is a conflict that cannot be resolved, it is time for the parties to discuss whether they want to suspend the negotiation or avoid a specific issue.
Collaborative negotiation. Also called integrative negotiation, it involves seeking to ensure that both parties win or benefit equally by considering creative ways to conduct the discussion. An exchange of important information must be established to create a high degree of trust.
Reasoned negotiation. This involves resolving potential differences through objective criteria to obtain consent from the other party. It is generally due to the high level of negotiation of those involved, who focus on the specific interests that each party has for the common benefit.
Globalization has led to agreements between nations or companies from different countries becoming more frequent and beneficial for the parties involved. This also presents a scenario of emerging economies that increase the level of commercial competitiveness. In this way, foreign trade becomes more important when organizations want to position themselves in the global market.
By establishing effective sales strategies, a discussion can be fostered that favors the achievement of agreements or international negotiations. This process has a series of peculiar characteristics and steps, necessary for all parties to benefit.
The international negotiation process
In order to understand what international negotiation entails, it is necessary to see everything as a process that, through preparation, discussion, agreement, closing and follow-up, serves to carry out import and export operations or purchase and sale outside of countries . It is an activity that is established between actors from different nations, so they operate in different markets.
This process is based on dialogue and communication skills that allow the proposed goals to be achieved, which mostly have to do with the favorable conclusion of a trade agreement. Generally, what is negotiated is usually very important, and requires careful planning and preparation to achieve a situation acceptable to both parties , thereby creating, maintaining or developing an international business relationship .
In some cases, negotiations may focus on reaching agreements on cpa email addresses prices, guarantees, delivery locations and times, payment conditions and collaboration with a distributor . Also considered are the terms for the establishment of a franchise and distribution contracts between manufacturers, as well as the implementation of mergers and acquisitions.
In the book International Negotiation (2018), by the Spanish strategic consultant José Fulgencio Martínez Valverde , it is explained that this activity “is the basis on which all the processes for the development and consolidation in foreign markets of companies that, at any time, decide to complement their presence in their home market with the commercial expansion of their products or services to other points on the planet” are based. It seeks to reach increasingly global consumers.
You are interested in knowing if international business is the same as foreign trade .
Types of international negotiation
The economist and foreign trade expert, Olegario Llamazares García-Lomas , explains in his book International Negotiation (2015) that it is possible to identify five types or most common ways of negotiating abroad, detailed below:
Negotiation with confrontation. It is also known as distributive negotiation, and the condition that underlies this discussion is the “win or lose” type, so what one party wins, the other loses. From this perspective, any condescension made to the other party is seen as a weakness.
Subordinate negotiation. The aim is to put the interests of one party above those of the other. It is used to reach an agreement when one negotiator is not willing to make a concession, but the other does want to do so, or when the negotiating skills of one actor are superior to those of the others.
Negotiation with inaction. In this situation, the goal is not to negotiate. However, when a situation arises where it is believed that there is a conflict that cannot be resolved, it is time for the parties to discuss whether they want to suspend the negotiation or avoid a specific issue.
Collaborative negotiation. Also called integrative negotiation, it involves seeking to ensure that both parties win or benefit equally by considering creative ways to conduct the discussion. An exchange of important information must be established to create a high degree of trust.
Reasoned negotiation. This involves resolving potential differences through objective criteria to obtain consent from the other party. It is generally due to the high level of negotiation of those involved, who focus on the specific interests that each party has for the common benefit.