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INTERNATIONAL NEGOTIATION

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This is an aspect that is sometimes underestimated by companies, but they need to be prepared, and get the right information, for international negotiation. An important dimension of negotiation is the cultural dimension. In spite of globalisation, the Internet, theultural barriers still exist and can be a major obstacle to international business activity.

Businesses need to prepare for international negotiation, including its intercultural dimension. Negotiating is the most time-consuming activity for executives working in an international environment, no doubt, the most decisive in assessing the results obtained.

Add to this the great differences in business culture between countries, and you have the justification why it is so important to possess and hone negotiating skills when dealing with customers, suppliers, distributors, partners or subsidiaries abroad.

The aspects to be taken into account are

  • Verbal communication.
  • The context.
  • Non-verbal communication.

Certain principles of international negotiation must be applied wherever in the world they are negotiated:

  • Adopt a win-win approach.
  • To understand and apply the concept of room for manoeuvre according to each country.
  • Understand the differences between national and international negotiation.
  • Take into account the cultural elements of the country in which you are negotiating.
  • Know how to plan the negotiation, distinguishing between each of the stages.
  • Know the techniques used to move a negotiation forward and close the deal.

Whatever the type of business to be conducted in a foreign market and the negotiating style of the other party, it is advisable to maintain behavioural guidelines that are homologous to all countries and cultures.

In addition to the innate qualities and professional experience of each executive, these tips will help to negotiate effectively in an international context:

  • Flexibility and resistance to timetables.
  • Preparing for the trip.
  • Have a negotiating strategy.
  • Accepting the idea of being a foreigner.
  • To get to know the customs and social customs of the countries visited.
  • Adapt to the negotiating pace of the country in which you are negotiating.
  • Use negotiating skills that are common to all countries.
  • Have an entrepreneurial attitude.
  • Create and maintain personal relationships.
  • Summarise all the information obtained.

One of the most widespread problems in international negotiation is the generalised lack of adaptation of the international negotiator in a double sense: does not adapt to the proposals and negotiating style of the culture to which his interlocutor belongs and does not give arguments by putting himself "in the shoes" of others.

International negotiation is a key activity for companies operating in a globalised environment. This activity requires thorough preparation, including the intercultural dimension. Despite globalisation and the existence of the Internet, cultural barriers still exist and can be a major obstacle to international business activity. In order to negotiate internationally, it is important to take into account aspects such as verbal communication, context and non-verbal communication.

In addition, it is essential to apply certain principles of international negotiation such as adopting a win-win approach, knowing and applying the concept of room for manoeuvre according to each country, understanding the differences between national and international negotiation, taking into account the cultural elements of the country in which the negotiation takes place, knowing how to plan the negotiation, distinguishing between each of the stages and knowing the techniques used to move a negotiation forward and close the agreement.

It is important to maintain certain standards of behaviour that can be applied to all countries and cultures, such as being flexible and resistant to timetables, preparing for the trip, having a negotiating strategy, accepting the idea of being a foreigner, knowing the customs and social customs of the countries you are visiting, adapting to the pace of negotiation in the country where you are negotiating, using negotiating skills that are common to all countries, having an entrepreneurial attitude, creating and maintaining personal relationships and summarising all the information you obtain.

One of the most widespread problems in international negotiation is the generalised lack of adaptation of the international negotiator in a double sense: he does not adapt to the proposals and negotiating style of the culture to which his interlocutor belongs and does not give arguments by putting himself "in the shoes" of the others.

Therefore, it is essential that companies prepare adequately and obtain the necessary information for international negotiation, including its intercultural dimension.

EXAMPLES OF ENTREPRENEURS WHO HAVE BEEN SUCCESSFUL IN INTERNATIONAL NEGOTIATION:

  1. Juan is an entrepreneur who created a natural beauty products company in Mexico. To expand his business to the United States, he decided to attend a beauty products trade show in Los Angeles. During the fair, he established contacts with local distributors and used his negotiating skills to close distribution deals. In addition, she conducted research on US business culture and adapted her negotiation strategy accordingly.
  2. Maria is a Spanish entrepreneur who wanted to expand her clothing company to Japan. Before travelling to Japan, she studied Japanese business culture and made sure that her negotiation strategy was adapted to Japanese customs and norms. Upon arrival in Japan, he met with potential partners and potential customers and used his communication and negotiation skills to persuade them that his brand was a good fit. In addition, he established personal relationships with the Japanese contacts and maintained constant communication with them after the meeting.
  3. Pedro is an Argentinean entrepreneur who set up a food products company. He wanted to expand his business to Europe, but did not have the necessary contacts to do so. He decided to attend a food fair in Germany and used his ability to connect with people and build strong relationships with potential customers and distributors. He used his ability to adapt to the German business culture and managed to close distribution deals with local companies.

In general, Entrepreneurs who have been successful in international business have devoted time and resources to understanding the business culture of the countries in which they want to expand their business.

In addition, have used communication and negotiation skills to establish solid relationships with potential partners and potential clients.

The artificial intelligence (see+ TIP) can help improve international negotiation in a number of ways:

  1. Providing relevant information: can be used to obtain relevant information on the cultural aspects, business practices and negotiation strategies used in the country or region where the negotiation will take place. This will enable the entrepreneur to prepare adequately for the negotiation and increase the chances of success.
  2. Helping to develop communication skills: can be used to improve the communication skills of entrepreneurs. For example, it can be used to practice the language and pronunciation of key terms in the language of the country where the negotiation will take place.
  3. Providing negotiation simulations: can be used to simulate international negotiation situations and help entrepreneurs practice their negotiation skills in a safe and controlled environment. This can help entrepreneurs gain confidence and improve their ability to handle complex situations.
  4. Offering personalised advice: can be used to offer personalised advice on how to approach a specific international negotiation. Entrepreneurs can provide information on the country or region where the negotiation will take place and receive personalised recommendations on how to prepare and which negotiation strategies to use.

In short, artificial intelligence can be a valuable tool for entrepreneurs seeking to improve their ability to negotiate internationally.

From gathering relevant information to practising negotiation skills and providing personalised advice, artificial intelligence can help entrepreneurs to prepare adequately and increase the chances of success in international negotiation.

APPLY THIS TIP TO YOUR PROJECT

TASK

INTERNATIONAL NEGOTIATION CASE STUDY

The company "ABC" is a small Spanish company dedicated to the manufacture and distribution of textile products for babies. The company has been looking to expand into other markets and has identified Mexico as a potentially interesting market.

After conducting market research and competitor analysis, ABC identified a Mexican company called "XYZ" as a potential strategic partner to distribute its products in Mexico. After contacting the company and setting up a face-to-face meeting, ABC sent one of its executives to Mexico to negotiate a distribution agreement.

The negotiation was conducted in a cordial atmosphere, but the ABC executive quickly realised that XYZ's negotiating approach was very different from that of his company. "XYZ seemed interested in obtaining a higher profit margin for themselves and was unwilling to place large orders to help ABC expand in the Mexican market.

The "ABC" executive decided to use artificial intelligence to better prepare for the next meeting and improve his negotiation approach. The artificial intelligence provided him with advice on how to adapt his negotiation style to Mexican culture and how to present his offer in a more persuasive way. It also provided him with information on the legal and tax requirements he needed to meet to operate in Mexico and how to manage the risks associated with exporting products.

With this information, the "ABC" executive returned to the meeting prepared and was able to persuade "XYZ" to accept a distribution agreement in which both companies earned a fair profit margin. They also established a long-term business relationship in which both companies were able to grow and expand together in the Mexican market.

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