Global Negotiation

Kimberly Walls
 OBJECTIVES/AGENDA
What Makes Cross Border Negotiations Different
Explain How External and Immediate Context
Factors Can Influence Negotiation
Culturally Responsive Negotiation Strategies
Demonstrate The Three Different Types of
Response Strategies Based on Familiarity
Low
Medium
High

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 What Makes Cross-Border
Negotiation Different?
Environmental Context
Forces in the Environment that are beyond
the control of either party
Immediate Context
Factors over which the negotiator has
influence and some measure of control

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 Explain How Environmental and Immediate
Context Factors Can Influence Negotiation
Environmental Context
Political and Legal Pluralism
Business Deals that interact with another country by
crossing the National Border
Different Tax Implications effect how much an
organization pays
The Implications and Effects on Labor Codes or
Standards
Different Contract Laws
Different Standards of Enforcement
Impact of Political Systems
International Economics
International Currencies Fluctuate Constantly
What Currency is Selected in Business Deals?
Possible Great Risk using Other Countrys Currency

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 Explain How Environmental and Immediate
Context Factors Can Influence Negotiation
Foreign Governments and
Bureaucracies
Government Regulations in Other Countries
Some Government Laws Maintain a Monopoly
in Dealing with Foreign Affairs
Strict Policies and Procedures Are Followed
when Importing Goods and Products Into
Certain Countries
Some Countries and States Have Strict
Environmental Regulations
Political Consideration about Economic Impact
of Business Negotiations
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 Explain How Environmental and Immediate Context
Factors Can Influence Negotiation
Instability Other Countries May
Does the country have Follow Group Rights
Available Resources? and Working in
Americans commonly
expect to have available
Teams to Reach Goals
paper, electricity, Public Investment
computers
Sudden Changes Occur in
More Important than
Government Policies and Private Investment
Currencies Differences can cause
Ideology communication
Differences in Values and problems which
Expected Outcomes
Ideology of Individualism
create a barrier
and Capitalism between the parties
Obtain a Profit
Private Investment

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 Explain How Environmental and Immediate
Context Factors Can Influence Negotiation
Culture External
People From Different Stakeholders
Cultures Negotiate Phatak and Habib
Differently believe the various
People interpret the purpose people and
of Negotiation and the
process Differently
organizations that
have an interest or
Relationship Between The
Parties Are More Important
stake in the outcome
than Substantive Issues of the negotiations.
Other Cultures More Include Businesses,
Inductive-Settle on a Series Associations, Labor
of Specific Issues for General Unions, Embassies,
Agreement and Industry
associations
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 Explain How Environmental
and Immediate Context Factors Can Influence
Negotiation
Immediate Context
Relative Bargaining Power
Relative Bargaining may be based on The Amount Of
Resources That Each Party Is Willing To Invest in The New
Venture
Relative Bargaining Also Influences Management Control
Special Access to Markets
Distribution Systems
Managing Government Relations
Levels Of Conflict
Interdependence between Parties
One Party Dependent on The Other High Conflicts

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 Explain How External and Immediate Context
Factors Can Influence Negotiation
Relationship between Negotiators Desired Outcomes
The Relationship that is
developed between the Principal
Tangible and
Parties Before the Actual Intangible factors will
Negotiation Process play a large role in
How Parties Frame Negotiations
determining the
Immediate Stakeholders
outcome
Negotiators themselves who
represent managers, Ethnic Conflicts can
employers, or boards of cause a disruption to
directors
a successful
Influence with their Skills,
Abilities, and international resolution if the
experience of the negotiators important Parties are
themselves clearly can have a not Recognized
large impact on the process
and out come of Negotiation
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 Culturally Responsive Negotiation
Strategies
It may be Difficult to Modify your Negotiation
Strategy
To Understand another Countrys Culture
Does not Mean that the Negotiator has the
Experience and Skill to Adapt to their
Negotiation Strategy
Changing Your Negotiation Strategy To
Effectively Communicate With Another
Countrys Culture May Not Bring The Desired
Outcome (Each Party Changing Their Strategy
Based on Their Understanding of the Other
Countrys Interests, Wants, or Positions)
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 Responsive Strategies
Low Familiarity Induce the Other
Party to Use Your
Employ Agents or Approach (Joint
Advisers (Unilateral Strategy)
Strategy)
Use Your
Hire an Agent or Approach
Adviser Who Is
Familiar with the Moderate Familiarity
Cultures of Both Adapt to the Other
Parties Partys Approach
Bring in a Mediator Keep Their Own
Approach but Make
(Joint Strategy) Modifications
Mediators May Coordinate Adjustment
Encourage One Side Both parties Make
to Adopt Ones Mutual Adjustments
Culture

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 Responsive Strategies
High Familiarity
Embrace the other Partys Approach
Completely Adopt the Other parties Approach
Improvise an Approach
Tailored to the Negotiation Situation
Effect Symphony
Exclusive Use of Either Home Culture

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