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Gist of General Review
for International Business Negotiation
Part I Terminology
1. NO TRICKS---need, options, time, relationships, investment, credibility, knowledge,
skills
N represents needs. Generally, as far as the buyer and the seller are concerned,
the one who has stronger need is least powerful. If the buyer needs the product badly, the seller has a stronger negotiation power. Conversely, if the seller urgently wants to sell the product the buyer has the stronger position.
O represents options. Should initial negotiationxs fail, the one who has more options has
greater negotiation power. Suppose the seller has more available markets, or his products and services are unique, so the buyer has no other options, then the seller can capitalize better on the negotiation.
T represents time. The more limited your time is, the weaker your position is in
negotiation. If the seller is pressured by critical time constraints, the buyer’s negotiation strength would be increased.
R represents relationships. The better and stronger your relationship with your existing client is, the more powerful you are in your negotiation with other potential clients. These relationships reflect your reputation for morality and competence, and influence word-of-mouth within an industry.
I represents investment. The more time and energy you invest in the negotiation, the
weaker your negotiation posotion becomes.
C
represents credibility. Having reliable products that your potential clients are
interested in can enhance your negotiationpower.
K represents knowledge. Knowledge is power. If the seller fully understands the buyer’s
problems and needs, and is confident that the product can satisfy the buyer’s demand, then this negotiation ability will be increased.
S represents skills. Consummate skills directly and easily enhance negotiation power. Of
course, negotiation skills are not innate, they are acquired by comprehensive learning, including extensive knowledge, speaking eloquence, and acute thinking, and by experience.
2. Qualifications and Credit status
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Consist of the history and status quo, the economic and political power, and corporate
reputation –its liabilities, capotal quantity, operating capability, bank credit and such of the partner company.
3. Fault-finding opening
Refers to the way in which at the very early phase of the opening, we blame the other party for their bad manners, diplomatic and cultural mistakes severely so as to bring a sense of guilt to them and to create tension and disorder in their thinking, suppress their requests to force the other party to make compromises and concessions.
4. Offensive Opening refers to the way in which we express our firm attitude
through prepared speech or behaviour so as to gain the awe from the rival and force them to start the negotiation in accordance with our intention. 5.
Mid-way Price Change It is also known as provisional shift of price. This
strategy involves a tactic in the process of making a quotation where the trend of quoted prices suddenly changes to the opposite direction midway through the process.
6.
Follow Suit
When you are prepared to make a concession, most often, you should ask the other party to raise the request or conditions first and then based on the real situation make a decision about the bargaining margin.
7.
Collaborate The useful strategy when negotiation comes into conflicts, the basic
point of this strategy is to maintain a good relationship with the other party, to assure that the settlement is benefitial to each other.
8. Impasse During the negotiation process, the two parties strongly insist on their own
profits and ignore whether the other party understands or accepts one’s ideas or whether it is harmful to another party or not. Then it leads the negotiation in a dilemma. This situation is the so-called\ impasse\.
9. Body Language
also known as gestures or nonverbal language, as used in
negotiations, mainly consists of facial expressions (eyes, brows and mouth), limb (arms and legs) language and other bahaviours.
10. The Ultimatum Strategy
When two sides can not reach an agreement after rounds of negotiation, one side
shows its hand: either close the deal at the conditions granted in their compromise or declare the negotiation a failure. This ultimatum obviously can be viewed as a signal to close the negotiation. It is very risky to use this strategy. The key is to seize the right time.
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11. Taboos Some negotiations will have special habits or sensitive points. Do not
annoy them by breaking taboos.
12. Friendly Break-down of negotiations
The negotiation parties understand each other’s difficulties and thus conclude the negotiation in a friendly manner. This break-down does not hurt the relationship, and leaves an opportunity for future cooperation.
13. Antagonistic Break-down of negotiations
This occurs when one party or all parties become angry and declare the closure of
negotiation in a hostile manner without any agreement. Concluding the negotiation in thid way tends to damage the relationship and make it diffficult to cooperate again in the future. Therefore, this kind of situation should be avoided in international business negotiation.
14. Closing A Deal When all the negotiating parties have reached agreement over all
the terms and conditions, it can be declared that the deal is done. The deal can be closed through verbal or written agreement.
15. Five Tips for good Listening
a. Don’t cut in or refute in haste. You can make your comments after your counterpart
finishes the whole statement, or you will be likely to paint yourselves into a corner and find yourself trapped and helpless. Learn to be patient. Unpleasant or offending words deprive one of the ability to use rational reasoning.
b. Don’t be absent-minded. You should have a good grasp of key points and new
information, and do not think about other problems while listening
c. Keep proper records. Putting down the key points, especially during a long and
complicated negotiation, can help you maneuver through the process of negotiation as well as giving you a way to exert pressure on your counterparts to keep their word.
d. Do not let your counterpart lead you by the nose. Sometimes, your counterpart may
subtly attempt to change the topic or distract you by paying you a compliment. In these cases, you should keep clear-headed and direct the conversation back to the topic you have been talking about.
e. Overcoming preconceptions. The intonation, wording, or tones and ways of
expression can provide certain clues to the meanings behind words. But sometimes your counterpart may give false impressions, so you should overcome your preconceptions and make correct obsevations. Analyze the words and behaviour of your counterpart objectively and reasonably.
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16. 自留风险 是可以被动的，也可以是主动的；可以是无意识的，也可以是有意识的。当风险在没有被预见，因而没有做出处理风险的准备时，自留风险就是被动的或者是无计划的。所谓主动的或有计划的自留风险通常是采取建立一笔专项基金的做法，以此来弥补可能遭遇的不测事件所带来的损失。
17. 风险规避 并不意味着完全消灭风险，我们所要规避的是风险可能给我们造成的损失，即一是要降低这种损失发生的概率，这主要是指采取事先控制措施；二是要降低损失程度，这包括事先预控、事后补救两个方面。
18. 偏激的感情色彩，是指谈判者对所商谈的议题过分的表现出强烈的个人感情色彩，提出一些不合乎逻辑的议论和意见，形成强烈的个人偏见或成见，引起对方的不满，造成谈判的僵局，甚至使谈判破裂。
19. 互惠式谈判，是谈判双方都要认定自身需要和对方的需要，然后双方共同探讨满足彼此需要的——·切有效的途径与办法。即视对方为解决问题者，而不是敌人。
20. 多头并进，就是同时讨论有待解决的各个项目，如价格、付款条件、交货条件及售后服务等。由于各个具体项目之间有较大的伸缩性可以调整，当其中的一项遇到难题时，可以暂日寸搁置，移到下一项，或是当某一项不得不作退让时，也可以设法从其他项目得到补偿。
21. 适当馈赠，是指馈赠要讲究艺术，一是注意对方的习俗防止“贿赂”之嫌，做到“礼轻情义重”。
22. 调解，是通过第三方的工作来解决僵局的一种做法。调解对谈判双方并不是强制性的，仅是作为中间人，对双方进行调解劝说。
23. 仲裁，是指通过专门的仲裁机构，按照仲裁规则解决纠纷的一种办法。仲裁必须是双方自愿的，其结果具有强制执行力，对双方都有约束作用。
24. 谈判实力，是指影响谈判双方在谈判过程中的相互关系、地 位和淡判的最终结果的各种因素的总和，以及这些因素对谈 判各方的有利程度。
25. 所谓“一揽子交易”主要是指美国商人在谈判某项目时，不是孤立地谈其生产或销售，而是将该项目从设计、开发、生产、工程、销售到价格等一起商谈，最终达成全盘方案。 26. 全能型专家，“全能”，是指一名商务谈判人员通晓技术、商务、法律和语言，涵盖商务谈判中的各种纵横向的知识，“专家”即指于某一方面具有专长。
27.执行期僵局，是在执行合同过程中双方对合同条款理解不同而产生的分歧，或出现了双方始料未及的情况导致一方把责任有意推向另一方，亦或一方未能严格履行协议引起另一方的严重不满等而引起的责任分担不明确的争议。
28. 进取型对手以对别人和对谈判局势施加影响为满足。这类人的特点是，对成功和与对方保持良好关系的期望一般，对于权利的期望也——般。这类人能够与对方建立友好关系，能有。力控制谈判过程，在必要的情况下会作出让步，达到一个勉强满意的交易，而不愿意使谈判破裂。
29.信贷担保不仅是一种支付手段，而且在某种意义上也具有规避风险的作用。在大型工程项目中，为了预防承包商出现差错，延误工程进度，业主为了保护自己的利益，可以要求承包商或供应商在鉴定合同时答应提供银行担保。通常这类担保必须由银行作出，这类担保分为三类：(1)投标保证书，（2）履约保证书，(3)预付款担保。
30. 权利型对手以取得成功为满足，对权力与成功的期望都很高，对友好关系的期望则很低。这类人尽力争取凡是他认为重要的东西，极力想向对方施加影响，以强权办法求得利益。这类人的目标可能定的并不高，主要是为了能轻易达到谈判目标，甚至轻易的超过目标。
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