Chapter 19

Negotiating with International Customers,

Partners, and Regulators

PowerPoint presentation prepared by:

Professor Rajiv Mehta
Associate Professor of Marketing
New Jersey Institute of Technology
Newark, N.J.

McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.

Chapter Learning Objectives

1. The problems associated with cultural

stereotypes

2. How culture influences behaviors at the

negotiation table

3. Common kinds of problems that crop up

during international business negotiations
Chapter Learning Objectives

4. The similarities and differences in

communication behaviors in several
countries

5. How differences in values and thinking

processes affect international negotiations

6. The important factors in selecting a

negotiation team
Chapter Learning Objectives

7. How to prepare for international negotiations

8. Managing all aspects of the negotiation

process

9. The importance of follow-up

communications and procedures
 Introduction

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
 The Pervasive Impact of Culture
on Negotiation Behavior
Companies and countries do not negotiatepeople do

Cultural differences in negotiation

styles can cause problems in
international at the levels of:
(1) Language
(2) Nonverbal behaviors
(3) Values
(4) Thinking and decision-making
processes
 Implications for Managers and Negotiators

Four steps lead to more efficient and effective international

business negotiations, which include:

1. selection of the appropriate negotiation

team
2. management of preliminaries,
including training, preparations, and
manipulation of negotiation settings
3. management of the process of
negotiations, that is, what happens at
the negotiation table
4. appropriate follow-up procedures and
practices
 Negotiation Teams

Criteria for selecting successful negotiators include:

1. Maturity
2. Emotional stability
3. Breadth of knowledge
4. Optimism
5. Flexibility
6. Empathy
7. Stamina
8. Willingness to use team assistance
9. Listening
10. Influence at headquarters
 Negotiation Preliminaries

Many companies in the United States provide employees

with negotiations training on:
1. Language skills
2. Social and diplomatic skills
3. Knowledge specific to the diplomatic
profession
4. Including diplomatic history and
international relations
5. Law
6. Economic
7. Politics
8. International organizations
9. Foreign policies
 Planning For International Negotiations

The following checklist ensures proper preparation and

planning for international negotiations:

1. Assessment of the
situation and the
people
2. Facts to confirm
during the negotiation
3. Agenda
4. Best alternative to a
negotiated agreement
5. Concession strategies
6. Team assignments
 Negotiation Setting
There are at least seven aspects of the negotiation setting that
should be manipulated ahead of time if possible:

1. Location
2. Physical arrangements
3. Number of parties
4. Number of participants
5. Audiences (news media,
competitors, fellow vendors, etc.)
6. Communications channels
7. Time limits
 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:

Nontask sounding
Task-related exchange of
information
Persuasion
Concessions and agreement