18 Must-Have Negotiation Skills For Procurement Professionals

International Negotiation The Ultimate Guide of 2023

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 world 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, why 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 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 their culture 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:

  • Consider the individual
  • Widen your scope and adopt a more inclusive approach 
  • Work to establish trust between you and the other party
  • Asks some questions about them and tell them about yourself too
  • Take breaks or extend deadlines to reduce your stress level in the negotiation. Staying cool will make both of you comfortable with the negotiation. 


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Examples of World-Changing Negotiations

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 agree 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.

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. 

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