Jun 23, 2013

Business Negotiation

What makes the various international negotiations?
It is suggests that two general relationships influence international negotiations: the environmental context and the immediate context. The environmental context includes the environmental forces that neither negotiator controls that affect the negotiations. The immediate context includes factor, s negotiators seem to have some control.

Environmental context
Salacuse (1988) identified six factors associated with the environment, the more difficult for national negotiations international negotiations makes it: the political and legal pluralism, international business, foreign govts, bureaucracies, instability of ideology and culture.

Political and legal pluralism:
Companies that operate in different countries with different legal and political systems. It can have an impact on the organization pays taxes, labor codes or standards that must be met, and the various codes of contract law and the application level. In addition, political considerations can help or harm business negotiations in different countries at different times. For example, the open environment in the former Soviet republic in 1990 is very different from the closed environment in 1960

International Economics:
The exchange value of international currencies fluctuate naturally, and this factor is to be taken into account in the negotiations in the individual countries. What is the currency of the contract is to be made? The risk is usually greater for the party that pays in the currency of another country. The less stable currency, the greater the risk for both parties. Moreover, any change in the value of a currency significantly to the value of the agreement for both sides, a valuable for both sides alternating offer in a windfall for one and a great loss for the other

Government and foreign governments:
Countries differ in the extent that the government regulates industries and organizations. Companies from the United States are relatively free of government interference, although some industries are heavily regulated than others, and some states have more stringent environmental regulations than others. Generally trade negotiations in the United States occur without government approval. However, the government in many developing countries and communist monitors imports and joint ventures, and often a government agency has a monopoly on the treatment of foreign organizations closely.

Instability:
Companies trading in North America are used to a certain degree of stability, which is not available in many parts of the world. The instability can take many forms, including a lack of resources that Americans often wait for Trade Negotiations (paper, electricity and computers), the lack of other goods and services (food, reliable transportation, drinking water), and political instability (shots shot changes in government policy., major currency appreciation.) The challenge for the international negotiators to anticipate and accurately enough lead time to adjust their consequences. Salacuse (1988) suggests that negotiators face volatile situations should clauses in their contracts that include simply allow cancellation or neutral arbitration, consider purchasing insurance policies to secure the contract.


Ideology:
Negotiators in the United States, generally a common ideology, on the advantages of individual rights, the superiority of private investment and the importance of making a profit in the company (Salacuse 1988). Negotiators from other countries do not always share this ideology. For example, from other countries, the negotiators (eg, China, France) on the role of collective rights are considered more important than the rights of individuals and the public investment as a better allocation of resources for private investment. Ideological confrontation increases the communication challenges in the international negotiations in the broadest because the parties negotiated on the basic conflict about the importance levels.


Culture:
It is difficult when the fundamental beliefs about what is being negotiated, and how is it different. The essential role of intercultural negotiations and other international culture are mentioned. People from different cultures seem to negotiate different. In addition to people from different cultures and different basic negotiation process are to be interpreted differently. After Salacuse (1988), people in some cultures the deductive approach negotiations (they move from general to specific), while people of other cultures are more inductive she settled. Onto a series of specific questions about the field of general agreement

External stakeholders
External stakeholders such as "various persons and organizations that have an interest or stake in the outcome of the negotiations." These actors are professional associations, trade unions and messages, and association, among others. Eg to the union were negotiating with foreign companies because of the fear that domestic jobs oppose lost. International negotiators can have a lot of support and guidance of their government. by the Commercial Section of the Embassy and other business people through professional associations.

Levels of conflict
The level of conflict and the nature of the interdependence between the parties to a cross - cultural negotiation will have an impact on the negotiation process and outcomes. These very conflicts based on ethnicity, identity and geography, are difficult to solve. The conflicts in Northern Ireland, the Middle East and Sudan are just a few examples. There is historical evidence, however, that civil wars have a comprehensive agreement and institutionalized, which prohibits the use of coercion and promotes equitable distribution of resources and political power lead to greater stability requirements completed.

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