Dynamics of international Business Negotiations

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Dynamics of international Business Negotiations by Mind Map: Dynamics of international Business Negotiations

1. Consist of factors over which the negotiators have some measure of control and which have an impact on the negotiation process (strategies and outcomes)

2. Forces in the environment that are beyond the control of either of party involved in the negotiation

3. Enviromental Context

3.1. Political Pluralism

3.1.1. It is vital to understand the constraints imposed by the foreign policies of countries that are directly or indirectly affected by the outcome.

3.1.1.1. Foreign Government Control & Bureaucracy

3.1.1.1.1. Government agencies have the authority to control:

3.1.2. ¡Before signing! Parties involved should thoroughly study the potential political fallout of this international business deal

3.2. Legal Pluralism

3.2.1. International transactions must comply with the laws of the countries involved. Certain laws prohibit certain types of transactions.

3.2.1.1. Currency Fluctuations & Foreign Exchange

3.2.1.1.1. A business deal should:

3.2.1.1.2. Financial External Factors:

3.2.1.2. international transactions take place in a world of multiple currencies of which fluctuate daily

3.3. Cultural

3.3.1. Cultural norms and differences between the parties, impacts on new they'll behave throughout the process

3.3.1.1. Ideological Differences

3.3.1.1.1. The conflicts in political ideologies makes it necessary to negotiators to find a middle ground and frame the language and context for he negotiated contract in a pattern that is acceptable to both sides

3.3.1.2. Cultural Differences

3.3.1.2.1. Building trust (Asian and Latin)

3.3.1.2.2. Getting things done in time, meticulous and punctual (Americans)

3.3.1.2.3. International business negotiators would be better off to the well versed in the cultural nuances and unspoken language of the negotiators at the other end of the table.

3.4. Ideological Differences

3.4.1. The conflicts in political ideologies makes it necessary to negotiators to find a middle grand and frame the language and context for the negotiated contract in a pattern that is acceptable to both sides

4. Immediate Context

4.1. External Stakeholders

4.1.1. The various people and organizations that have an interest or stake in the outcome of the negotiators are the external stakeholders

4.1.1.1. Shareholders always mantain an invisible prescience at the negotiating table

4.2. Relative Bargaining

4.2.1. The nature of dependence exiting between two sides determines the relative power of one side vis-á-vis the other

4.2.1.1. A company with a greater power is more likely to adopt an aggressive "take it or leave it" stance. Whereas a weather firm will most likely adopt for a more submissive stand

4.3. Levels of Conflict Underlying Potential Negotiators

4.3.1. Stablished whether the negotiators will be supportive or hostile

4.3.1.1. Agree on key issues > common grand both sides share < conflict

4.3.1.1.1. INTEGRATIVE BARGAINING, "win-win", "non-zero sum game" or supportive relationship

4.3.1.2. Disagree on key issues > conflict

4.3.1.2.1. DISTRIBUTIVE BARGAINGIN, "win-lose", "zero-sum game"

4.4. Relationships Between Negotiators Before and During Negotiators

4.4.1. The very first negotiating session would have a significant impact on their relations during the process

4.4.1.1. Harmonious Relationship (having a "win-win" type of deal)

4.4.1.1.1. The negotiated strategies adopted by each side

4.5. Desired Outcome of Negotiators

4.5.1. Outcome

4.5.1.1. Tangible

4.5.1.1.1. Includes agreement on such matters as "assets" having real substance

4.5.1.2. Intagible

4.5.1.2.1. Goodwill