...

ChatGPT & AI in
Procurement Course

Free Preview Lesson

Written by Marijn Overvest | Reviewed by Sjoerd Goedhart | Fact Checked by Ruud Emonds | Our editorial policy

International Negotiation — The Ultimate Guide of 2024

Key take-aways

  • International negotiation involves countries, individuals, and multinational companies seeking agreements through power-based dialogue.
  • Negotiators must be aware of cultural nuances and avoid stereotypes to prevent disputes.
  • Common tactics include extreme demands, issuing threats, pressure tactics, personal insults, bluffing, and non-negotiable offers.

International negotiation is so frequent nowadays due to the interdependence of countries with one another. However, not many people understand it fully.

For this article, we will discuss what international negotiation is. We will also show you examples of international negotiation in a real setting.

After reading this article, you will have a deeper understanding of international negotiation. Furthermore, you will know the importance of international negotiation through the examples that we are going to show you.

International Negotiation: What is it? 

International negotiation, as from the word itself, is about negotiation between two countries. It occurs all the time between governments, especially due to numerous disputes that we hear from the news nowadays.

International negotiation may also happen between individuals and multinational companies as many people outsource suppliers or expand to different parts of the world. You must take note that it is not often just between individuals but between large delegations. Thus, negotiators must be aware of cultural sensitivity.

Additionally, international negotiation is usually a process of power-based dialogue that intends to attain specific goals or ends. It can be bilateral or multilateral and may involve conflicting forms of negotiation between all the parties involved in the negotiation.

International Negotiation: What to Prepare?

As we have told you earlier, international negotiation involves large delegations. Thus, negotiators must be sensitive to what they may say in the negotiation.

When you prepare for a negotiation, especially in an international setting, you must know something about the culture of the person across the table to be wary of disputes that may arise due to your stereotypes.

When you are determining what strategies you must use in international negotiation, you must keep in mind that it needs to be different from what you are used to doing in your home country.

However, focusing too much on their culture may also backfire, as the other side may be doing the same thing. Therefore, here are some guidelines to help you balance the negotiation in the international setting:

1. Consider the other party

While cultural norms and practices are relevant, remember that individuals within the other party may have their unique perspectives and preferences. Recognize their individuality and adapt your approach accordingly, taking into account their personal communication style and decision-making process.

2. Widen your scope and adopt an inclusive approach

Go beyond cultural stereotypes and expand your understanding of the other party’s background and values. Embrace an inclusive mindset that considers diverse viewpoints and experiences, fostering a more open and productive negotiation environment.

3. Establish trust

Building trust is crucial in any negotiation, especially in an international setting. Take time to establish a rapport with the other party by demonstrating respect, active listening, and genuine interest in their needs and concerns. Trust forms the foundation for a successful and enduring business relationship.

4. Ask questions and share information

Engage in meaningful dialogue by asking questions about the other party’s objectives, challenges, and expectations. Similarly, share information about your company, values, and goals. Transparent communication promotes mutual understanding and helps identify common ground for collaboration.

5. Manage stress and stay calm

International negotiations can be stressful due to various factors like language barriers, time zones, or cultural misunderstandings. Take breaks or extend deadlines if needed to reduce stress levels. Staying composed and maintaining a calm demeanor will create a more relaxed atmosphere, fostering productive discussions.

Tactics Commonly Used in International Negotiation

Here are some of the tactics that are used commonly in international negotiations:

1. Extreme demands followed by small concessions

A commonly used hard-bargaining tactic where negotiators start with unreasonable demands and make small, slow concessions. This strategy aims to delay reaching a deal and protect the negotiator from giving in too quickly. To counter this, know your goals, BATNA, and bottom line, and stay composed when facing an aggressive opponent.

2. Issuing threats and warnings

Recognize and respond to threats and indirect warnings strategically. Ignoring or directly addressing the threat can help defuse the situation.

3. Pressuring you to give in

The opponent keeps escalating demands to force you into conceding. Address this tactic directly, asserting your commitment to engage in fair and balanced offer exchanges.

4. Using personal insults and provocations

Using personal attacks to unsettle you. Take a break if needed and communicate that insults and cheap ploys are unacceptable.

5. Bluffing

Exaggerating or misrepresenting facts to gain an advantage. Be cautious of claims that seem too good to be true and conduct thorough investigations.

6. Non-negotiable Take-it-or-Leave-it offers

An inflexible approach where offers are presented as non-negotiable. To diffuse this tactic, focus on the offer’s content and make a counter-offer that aligns with both parties’ needs.

7. Undermining your alternatives

Attempting to weaken your BATNA to influence your decisions. Remain firm and resilient, not letting the other party undermine your resolve.

Examplesof World-Changing International Negotiations

Here are some reasons why you should pay attention to International negotiation. These examples will show how they can literally be world-changing!

1. US trade wars with China

The former President of the United States, Donald Trump, held a crucial negotiation with Chinese President Xi Jinping at a post-G20 summit in 2018. According to the White House, the meeting between the two presidents was successful.

Both parties merely agreed to stop the new trade tariffs for 90 days with the condition that if both of them are unable to reach an agreement at the end of the period time, the 10 percent tariffs will be raised to 25%.

Long story short, China agreed to buy agricultural, industrial, and energy products to fight the surplus. Additionally, it pleads to control Fentanyl which is an opioid responsible for the rise in addiction in the US.

Nonetheless, the two parties will try to work on structural changes with consideration to forced technology transfer, non-tariff barriers, intellectual property protection, and cyber intrusions.

2. The South China Sea Negotiations

In 2018, negotiations between China and the 10 members of the Association of Southeast Asian Nations (ASEAN) led to a “code of conduct” in the South China Sea.

The sea, with its bountiful resource of stored natural gasses, has been the object of dispute between the countries near the South China Sea for almost 50 years.

In 2013, the Philippines instituted arbitral proceedings against China regarding the South China Sea. After 3 years, the Permanent Court of Arbitration at The Hague ruled in favor of the Philippines. However, China refuses to accept the court’s authority.

China is expanding its land in the South China Sea. It has particularly piled up sands, constructed ports, built military bases, and deployed heavy armor in the Spratly Islands.

This alarmed many countries and has led the USA to publicly announce its support to other Asian partners and establish six freedom of navigation operations to ensure free access to the South China Sea.

The Sea of Conduct is focused on dispute resolution and does not attempt to settle disputes regarding territorial issues. This text has been regarded as a work in progress on the way to a final Code of Conduct

This deal is significant as it is the start of a peaceful resolution of a regional conflict. It is also a major step to weaken foreign influence, such as the US intervention.

3. The Acquisition of Fox by Disney

The deal became official in 2019 after Walt Disney Co. announced the $71.3 billion merger. This has reshaped the media landscape and has made Disney an even greater being in the entertainment industry.

The deal has been in the works for more than a year but it was never official until various regulatory agencies around the world agreed. The acquisition offered Disney a chance to bring together talented leaders in television and movie production into Disney’s ESPN programming.

The deal hit a snag in 2018 when Comcast tried to bid $65 billion to get Fox. However, Disney was able to keep the deal moving when it increased its offer of $71 billion.

The Justice Department has given its approval to Disney to acquire Fox as long as it agreed to sell 22 regional sports networks that were originally part of the purchase.

Techniques for Conflict Resolutionin International Negotiation

Here are some of the techniques you can use for conflict resolution in international negotiations:

1. Select negotiators carefully

The choice of skilled negotiators who can build trust and empathy without compromising on critical negotiation points is essential for successful conflict resolution

2. Practice active listening

Utilize active listening skills, especially when language barriers exist, to enhance understanding and foster effective communication between parties.

3. Build rapport and trust

When dealing with significant problems on the horizon, consider starting with smaller, less complex issues to create goodwill and establish trust between the parties.

4. Embrace positivity

Use neutral words instead of strong ones to avoid confusion and create a friendly negotiation atmosphere.

5. Perceive resolution as a process

Recognize that resolving international conflicts is a gradual journey, acknowledging each party’s pain and perspective in pursuit of lasting resolution.

Conclusion

In-depth knowledge of international negotiation, effective preparation, and awareness of negotiation tactics are crucial for navigating complex global interactions and fostering successful agreements.

Frequentlyasked questions

What is international negotiation?

International negotiation is a process of power-based dialogue that intends to attain specific goals or ends.

What is its importance?

International negotiations are essential for the peaceful resolution of disputes and for maintaining stability in international relations.

What are the different types of international negotiation?

International negotiation can be bilateral or multilateral, secret or public, and can involve dissimilar forms of negotiation among states and non-state civilian actors.

About the author

My name is Marijn Overvest, I’m the founder of Procurement Tactics. I have a deep passion for procurement, and I’ve upskilled over 200 procurement teams from all over the world. When I’m not working, I love running and cycling.

Marijn Overvest Procurement Tactics