Negotiating International Business Transactions

1
Negotiating International Business Transactions

• Professor Bobbi McAdoo
• Hamline University
• School of Law
• Slides adapted from Chris Guthrie

2
Adversarial Negotiation

• Theory
• Negotiation is a zero-sum game in which the gains
  one side receives are obtained at the expense of
  the other side.
• Strategy
• Accumulate as many gains as possible

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Common Tactics in Adversarial Negotiation

• Extreme opening offers
• Limited disclosure of information
• Small concessions made only as necessary
• Commitment (sometimes feigned) to positions

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Problem-Solving Negotiation

• Theory
• Negotiation is a collaborative problem-solving
  exercise in which the parties try to work
  together to devise creative agreements.
• Strategy
• Achieve a wise, efficient, amicable agreement

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Problem-Solving Negotiation

• Four Primary Tactics in Problem-Solving
  Negotiation
• Separate people from the problem
• Focus on interests, not positions
• Consider a variety of options
• Insist on outcomes tied to objective criteria

6
SKILLS

• Listening
• Asking
• Inventing
• Referencing

7
Getting Past No William Ury

• Theory
• Negotiators can unilaterally convert a zero-sum
  negotiation into a collaborative problem-solving
  exercise
• Strategy
• Make partners out of your adversaries

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Getting Past No William Ury

• Five Primary Tactics
• Go to the balcony
• Step to the other side
• Change the game
• Help the other side say yes
• Use your power to educate

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Key Negotiating With Skills

• Pause rather than react
• Ask problem-solving questions re interests,
  options, objective criteria
• Invite the other side to criticize your ideas and
  offer his/her own
• Build agreement where possible (even if only
  about how to conduct the negotiation)
• Ask reality-testing questions re alternatives to
  agreement