Introduction to International Negotiations

In negotiation, parties need each other to achieve their preferred outcomes or objectives

• Interdependence and the structure of the situation shape processes and outcomes
• Zero-sum or distributive – one winner (win-lose)
• Non-zero-sum or integrative – mutual gains situation (win – win)
• A mix of convergent and conflicting goals characterizes many interdependent relationships

Stages of negotiations

• Preparation
• Relationship building
• Information gathering
• Information using
• Persuasion
• Making concessions and agreements
• Closing the deal (final offer)
• Implementing the agreement

B.A.T.N.A.: Best Alternative To a Negotiated Agreement

• What are you going to do if you do not make a deal with this person?
• Determined by your available alternatives
• Defines most you will pay (buyer) & least you will accept (seller)
• Key source of power: Ability to walk away
• Strategic advice:
• Should you reveal your BATNA?
• Falling in love rule

Goals, Strategy and Planning

The Direct and Indirect Effects of Goals on Strategy

• Direct effects
• Wishes are not goals
• Goals are often linked to the other party’s goals
• There are limits to what goals can be
• Effective goals must be concrete/specific and measurable.
• Indirect effects
• Forging an ongoing relationship

Strategy, tactics, Planning

• A negotiation strategy is an integrated set of behaviors chosen because they are thought to be the means of accomplishing the goal of negotiators.
• Tactics are short-term moves.
• Planning/Implementation: The “action” component of the strategy process; i.e. how will I implement the strategy?

Getting Ready to Implement the Strategy: The Planning Process

• Define the issues
• Assemble the issues and define the bargaining mix
• The bargaining mix is the combined list of issues
• Define your interests
• Why you want what you want
• Your “ideal” settlement
• Your bottom line