03 Feb Phases of International Negotiation
Negotiation is a means by which various skills of both parties are developed to achieve a joint decision and obtain clear and beneficial results. Currently, we live in a globalized world, many economies seek to generate agreements and alliances. In this way they seek to improve their competitiveness and positioning in the international market. To do this, they manage relationships based on dialogue and active listening to the interests of each country or market.
On the other hand, before an international negotiation, the negotiating profile and culture of trade negotiators must be considered. In addition, unlike a business negotiation, sudden changes are perceived as political issues in the international arena. Likewise, the negotiator must have knowledge of the fiscal, mercantile, labor, technical or environmental regulations that the destination country presents. However, there may be a discrepancy due to the fact that each country develops different commercial practices. Which leads to a lack of coordination in the concessions and makes a more complex negotiation. For this, it requires a team with high performance to obtain an effective negotiation.
Types of international negotiation
International sales: It is characterized by the commercialization of products and services of the different markets or countries that you want to reach.
Agreements with intermediaries: It is where the possible agreements between the parties are facilitated, promoted and endorsed.
Strategic alliances: This type of negotiation is more complex, since it entails extensive research in relation to the most relevant aspects of the country with which an agreement is desired.
Phases of international negotiation
Preparation: It is where the objectives and goals that you want to obtain in the negotiation are established. Likewise, it is possible to establish a direction and strategies to fulfill them. This includes in-depth research on the market, product, relationship and counterparty.
Development: At this stage, the interests and offers of both parties are discussed in detail. In addition, from the positions that are found, on the other hand, doubts are clarified and concessions are presented.
Agreements and conclusions: Documents detail the main agreements of the negotiation, steps to follow, strategies, people in charge and dates that the agreement will be carried out.
Evaluation: An evaluation of the process and comparison of results is carried out based on the objectives and goals that were agreed upon.
Conclusions
The negotiation process is a work of hard learning and skill development that is perfected with practice. Likewise, the negotiator must know her profile and evaluate her performance. On the other hand, you must have a high interest in research when entering a new market or country. This is because each country has a different history, culture, politics and economy. Therefore, through research, it will be possible to know the opportunities and threats that would be obtained when carrying out the negotiation. In addition to considering the strengths and weaknesses to face all kinds of problems that may arise.
References:
EAE Business School. (June 4, 2021). La negociación internacional, claves para triunfar. Recovered from https://retos-directivos.eae.es/la-negociacion-internacional-estilos-y-caracteristicas/
Marrero, Y., Ortiz, M. & Márquez, F. (2018). Perfil de los negociadores comerciales: elementos para su caracterización. GECONTEC: Revista Internacional de Gestión del Conocimiento y la Tecnología.