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Speaking and the International business negotiation (T.1) - Coggle Diagram
Speaking and the International business
negotiation (T.1)
Misunderstandings when speaking are frequent, we want to communicate something but those who are listening can understand the exact opposite.
Misunderstandings can be caused to
Linguistic reasons
,
Cultural differences
,
Contextual elements
(e.g. environmental noise) and
Personality factors
(our perception is filtered by personality traits and individual life experience)
The suggestion to avoid these problems is TIPS, acronym for
Target
Information
Process
Style
The
target
indicates your objective clearly providing enough background information and making it clear what you are not talking about.
Adapt the way you express to your listener thinking about your listener’s view and being sensitive to their needs.
The information shall
provide information that is relevant
(for example interesting and useful),
to the listener, Give as much information as is needed for the listener to understand
(no more, no less).
It is advisable a short and simple speech, rather than long and complex.
Manage the
process of interaction in compliance with the rules and procedures of a given institution organisation
. (for example) In intercultural settings,
negotiate the communication process
(when to ask questions , at what stage to make decisions , etc.).
Coordinating interaction through turn taking patterns.
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International business refers to economic activities (TRADE and FOREIGN INVESTMENTS) that are carried out across national boundaries
. In these activities are included:
The selling of
goods and services
; the purchase of raw materials and supplies;
marketing and distribution
; licensing and technology transfer agreements;
franchise a greements
;
cross
border mergers, acquisitions, and joint ventures
.
For Ghadi that
international business
is essentially a process of
give and take
in which the negotiators make initial offers, but then keep modifying them and making concessions to
eventually reach an agreement
.
The
negotiation process involves cooperative exchanges of information through a range of communication methods such as
: face-to-face meetings, telephone conversations, videoconferences, e-mail- and textual messaging
It is assumed that the
negotiators are very well informed
, rational and perfectly aware of what they and their
interlocutors want to achieve
. This hypothesis ignores the impact of psychological and cultural factors on negotiators behavior
Negotiating on the phone
has advantages and disadvantages, like all methods. The
advantages
are to save time and money (it is fast and avoids travel expenses)
and the
disadvantage
is certainly losing non-verbal signals more reliable indicators of feelings and attitudes than verbal ones, and this can cause misunderstandings.
Negotiating via email has the advantage, as on the phone, of saving time and money and this allows
the sending of documents and the signing of agreements very quickly
.
But of course there are disadvantages, there is an
impersonal method of communication
(making it difficult to establish mutual trust), it loses contextual cues and
does not allow negotiators to provide immediate response
.
1 more item...
1
Weiss distinguishes the types of negotiations between:
micro negotiations
involving bargaining between individuals and often consists of small-scale purchase/sale transactions, carried out every day for personal interests;
negotiations at macro level
involving bargaining between companies or between companies and a foreign government.
Negotiations may be bilateral or multilateral. The
multilateral negotiations require weighted procedures
(for example scheduled meetings and timetables, reporting sessions, an appointed or elected chairman and rules for an orderly discussion);
Single issue negotiations are characterized by
competitive bargaining
(one side’s gain is the other side’s loss );
multiple-issue ones are characterized by negotiators adjusting their initial positions to reach a comprehensive agreement spanning all issues
International trade negotiations can be a
slow and difficult process
because negotiators have to take account of different trade laws and regulations, tariff structures, import regulations and exchange rate fluctuations.
Negotiators need
natural empathy
, this is important because it helps to
see the world as their interlocutors see it
, and this allows to anticipate commercial tactics based on culture and negotiation strategies.
For example In the
Chinese mentality it is ambition and self-sufficiency
, resulting from the economic success of the country and such qualities are at the basis of Chinese negotiating behavior. Or In oriented cultures (such as those of Western Europe and North America), meeting times are planned and respected.
1)
Relationship building
, spending time on relationship building reduces the risk of conflict and interrupts negotiations
2)
Information exchange
, gathering preliminary information is a crucial stage (this is particularly true for Japanese negotiators)
3)
Persuasion
, three main persuasion tactics: rational, emotional and ideological; Western Negotiators often use a combination of rational and emotional style, which is seen as too intrusive by Asian negotiators.
4)
Concession
, a common tactic is to start at the top, then make concessions with the idea of arousing counter-concessions
5)
Agreement
The
agreement
is, for Western negotiators,
a signed contract that represents the closing of the negotiation
. For example Japanese negotiators creating a long-term relationship; with the contract being simply an expression of that relationship.
The draft agreement is when one of the negotiating parties presents the other with a comprehensive draft agreement to serve as the basis for discussion
. If the draft is accepted, then one party has set the agenda for the entire negotiation and has speeded up the process towards agreement.