Manag., December-2019 – Q38
- Option : B
- Explanation : Negotiation refers to a process in which two or more entities come together to discuss common and conflicting interests in order to reach an agreement of mutual benefit. What needs emphasis is that there is no scope in negotiation for intimidation, or bludgeoning the other party into submission. Rather, it involves the more subtle art of persuasion, whereby all parties feel as though they have benefited. Negotiation should result in a win-win situation for all the parties involved.
In international business, negotiation involves handling cross-cultural nuances. In American and several European cultures, negotiations tend to assume an aggressive, adversarial manner. Negotiations in these societies view contracting as a win-lose proposition, taking pride in having driven the hardest bargain.
In Asian countries, negotiations take a much different form. The role of a contract in Asian societies is influenced by three aspects of local cultures. First, every person must strive to maintain harmony and accord in society. From childhood, individuals are taught to avoid disputes and acrimony in their personal and business relationships with others. Second, the maintenance of harmony and the importance placed on personal dignity stress the importance of not embarrassing others.
The considerable social pressure to avoid dishonour works in all aspects of life, including negotiating contracts and resolving contract disputes. Third, most Asians attach utmost importance to the social group to which one belongs, particularly to one’s school or company. Thus, business people may be characterised by their group loyalty, and their desire for group harmony and consensus.
Steps in International Negotiations: Experts on international negotiation agree that it involves at least seven steps: preparation, strategy, building the relationship, exchanging information and the first offer, persuasion, concessions and agreement (see Fig.)
