Game Principles of International Business Negotiation

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Game Principles of International Business
Negotiation

• Chapter 2

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Game Principles ofInternational Business
Negotiation

• Key Points
• Game principles of negotiation
• The Intention of equality and voluntary
• Negotiation Strategies of seeking common ground
  while maintaining differences
• Eight crucial elements which influence the
  negotiation

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Game Principles ofInternational Business
Negotiation

• 2.1 Equal and Voluntary Participation
• 2.2 Credibility First
• 2.3 Mutual Reciprocity and Mutual Benefits
• 2.4 Maximizing Commonalities and Minimizing
• Differences
• 2.5 Speak on Good Grounds
• 2.6 Separate the People from the Problem

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2.1 Equal and Voluntary Participation

• 2.1.1 All parties, big or small, should be equal
• 2.1.2 Veto power embodies equality
• 2.1.3 Respect embodies equality
• 2.1.4 Voluntary agreement embodies equality

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2.2 Credibility First

• 2.2.1 Understanding derives from credibility
• and trustworthiness
• 2.2.2 Credibility enhances trustworthiness
• 2.2.3 Be aware of the level of the counterparts
• credibility

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2.3 Mutual Reciprocity and Mutual Benefits

• 2.3.1 Interests first, position second
• 2.3.2 Bargaining over position, a taboo in
• negotiation
• Violating the equal negotiation game principle
• Sabotaging the harmonious atmosphere
• Hiding a snake in the grass

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2.4 Maximizing Commonalities and
Minimizing Differences

• 2.4.1 Seeking common goals
• 2.4.2 Abandon minor points
• 2.4.3 Compromise is the mother of success

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2.5 Speak on Good Grounds

• 2.5.1 Facts speak louder than words
• 2.5.2 Using objective criteria
• It should have objectivity independent from the
  subjective will of all parties
• It should be legitimate and operable
• It should be authoritative and scientific

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2.6 Separate the People from the Problem

• 2.6.1 The relationship between the negotiators
  and the
• negotiation
• 2.6.2 Specific methods of separating the people
  from
• the problem
• See the situation from the other sides point of
  view
• Present more objective information and avoid
  blaming the other side
• React tactfully to emotional outbursts
• Help them save face and do not hurt them
  emotionally

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The Eight- Word

• NO TRICKS
• N need
• O options
• T time
• R relationships
• I investment
• C credibility
• K knowledge
• S skills

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Excercises1. Fill blanks with proper
wordsBATNA, concession, bargining, position,
compromise, offers, standing point, dealock,
discuss, agreement

• A negotiation is a way of reaching an agreement
  by means of discussion and ( ). Each side has
  something the other wants and both sides are
  trying to reach an agreement. Negotiators bargain
  with each other as they make ( ) (We will if
  you ?) and ask for ( ) (If we , will you
  ?). Negotiators dont enter a negotiation
  expecting to get everything they want, they know
  theyll have to ( ). If they dont, there will
  be ( ) and the negotiation will break down. The
  purpose of every negotiation is to reach an
  agreement. Usually both sides are meeting because
  they have something to ( ). In a sales
  negotiation, the seller wants to sell the goods
  or services and the buyer wants to buy them. In a
  pay negotiation, the employer wants the workers
  to work and the workers want to work. Both sides
  want to reach an ( ), but they have different
  ( ). A long, important negotiation is conducted
  differently from a smaller, less important one,
  but most negotiations include these stages
• 1 Preparation Both sides decide what they want,
  and prioritize their wants. They anticipate the
  other sides ( ) and decide what
  concessions they can make.
• 2 Proposal Each side explains its proposalOur
  proposal is
• 3 Debate The sides discuss the proposals Can
  you explain why ?
• 4 Bargaining The sides make or ask for
  concessions If we agree to , are you prepared
  to ?
• 5 Closing The sides reach an agreement Do we
  have a deal then?

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2. Please answer the following questions.

• What is the Eight-Word Maxim of business
  negotiation? Could you explain briefly?
• What are the principles of international business
  negotiation?
• Strict equality is not exsisting, then how could
  equality embody in negotiation?
• Could you give an example showing the importance
  of credibility in business?
• What are taboos in negotiation when we bargain
  over positions?
• In the negotiation concerning Chinas entry into
  the WTO, how was maximizing commonality and
  minimizing differences principle embodied?
• How could we separate the people from the problem
  in negotiation?