International Business Negotiation

(STRM060)

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Contents
Introduction................................................................................................................................3

A Critical Evaluation of Negotiation.........................................................................................3

Negotiation styles.......................................................................................................................4

Negotiation Ploys and Techniques.............................................................................................5

Main Negotiation skills..............................................................................................................6

Collaborating and Compromising in Negotiation 650...............................................................8

Conclusion..................................................................................................................................9

References................................................................................................................................10

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‘Negotiating, or bargaining, is the practical application of collaborating and
compromising.’ Bloisi et al. (2003, p449)

Critically evaluate this statement linking it to cross cultural negotiations and ground it
to a specific country of your choosing.

Introduction

The process by which two or more parties end up with a mutually acceptable solution for
their different needs and goals can be referred to as negotiation. In business, negotiations are
essentially required for informal purposes of actuating daily life operations and in formal
purposes as well to finalise with a sale, lease or any other agreement. According to Lewicki et
al. (2016), through good negotiations within businesses, it would be beneficial to build
trustworthy and long-lasting relationships with clients and provide them with long term and
high-quality solutions rather than disappointing and thereby avoid the occurrences of
problems or conflicts in future as well. Therefore, negotiation is established between two
parties leaving each one of them satisfied and chances for further business in the future as
well. 

A statement issued by Bloisi et al. (2003) claims that negotiating or bargaining is the practical
application of collaborating and compromising. Through the current report, this statement is
critically analysed, relating it in the context of cross-cultural negotiations. By profoundly
analysing the case of China profoundly, the validity of the statement of Blosi et al. (2003) is
evaluated. Moreover, the different ploys techniques and practices involved in the negotiations
are also elucidated through the present report.  

A Critical Evaluation of Negotiation 

Negotiation can be considered as the most acceptable means of resolution of disputes on

account of the fact that the people and parties who are interested and involved in the matter of
concern will only be present for the process. Hence negotiations are generally shaped in
accordance with the demands and needs of the parties involved taking into the concern of
actions like setting the agenda, selecting the type of organisations and selecting the
participants and even more. Strentz (2017) claimed that the possibilities that are reaching an
agreement satisfactorily can be accomplished when the parties involved both are consulted

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regarding their interests and willingness to participate. Adequate safeguards are ensured to
avoid chances of equities are present. It does not guarantee that negotiations end with
successful outcomes always. However, Fells and Sheer (2019) stated that it becomes
successful when the parties conceive the ultimate decision on the basis of interest rather than
their position. A “win-win” approach that deals with fulfilling the needs and demands of both
the parties are usually followed in negotiations wherein the chances of reaching an agreement
is significantly high. Negotiation cannot be made compulsory; rather it is done with the
course of both the parties’ interest and wish to do so. Negotiations are meant to preserve and
in some cases, enhance the relationship between the parties.

However, success cannot be gained from all negotiation processes, and in some case, the
powers of the parties involved may be varied, and one of them may be under a disadvantage
with final agreement met. Ting-Toomey (2017) pointed out that the value of the agreement
also considers diminished when one of the parties participating in the negotiation is
inadequately represented or excluded in the negotiation. Moreover, the absence of any
safeguards ion the negotiation process can also make the final agreement set as invalid or
result in future challenges. Hofstede (2019) commented that an unclear or indefinite
understanding of the role and authority of each of the party within the negotiation process
could also make bad results. In the same way, the absence of a neutral third party can also
produce negative impacts on the negotiation process when the parties are incapable in
defining their issues at stake and in some cases, one party may take advantage of the other in
such absence. Hence negotiation is a very critical process, and it has to be carried out with
high precision and care.

Negotiation styles 

The negotiation process may be confusing and worrying for some people, while some others
may thrive under pressure. There can be five different styles that people take into action when
they take part in negotiation procedures.

Compete: This is instead an approach that follows the model of “I win, you lose”. Caputo et
al. (2019) noted that these people are characterised in doing whatever is required to
ultimately attain their desired result even at the expense of another person or entity. There are
more kind of result-oriented and are mainly related to short term goals at a rapid pace. Even
though the motivational force for them is the desire to succeed, these people are at times

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found to have confronted with some negative impacts in the future. However, it can be the
best suitable approach when people need acquiring any short term goal

Collaborate: Collaborative negotiators accept an “I win, you win” model. The emphasis

mainly on that all the parties involved have met with their needs and demands. They give
more value to strengthen, sustain, establish and create relationships with great emphasis on
their interest. Generally, negotiator becomes collaborative as they evolve from their previous
experiences. Abbasi et al. (2018) mentioned that a negotiator is found to be more and more
confident when they participate in such procedures and play their part in reaching the final
decision. Moreover, with their prior situations confronted, they even become capable of
advocating their own needs. They become skilled in bringing a mutual balance between the
needs of both parties.

Compromise: The compromise model is entailed with “I win /lose some, you win/lose
some” In such approaches, when they accomplish in gaining some terms, some are lost and
relinquished. When n the agreement is under a tight deadline, and the opposite party is
trustworthy, a compromising negotiation is the most appropriate,

Avoid: “I lose, you lose” model is followed in this approach of negotiation. Those people
who are not at all interested in conflict and tend to talk in vague terms regarding the issue
rather than the original issue is observed to follow an avoid style of negotiation. Abbasi et al.
(2018) included that there are chances that avoiding negotiators may take revenge on the
other part when they are not satisfied with the outcome gained.

Accommodate: “I lose, you win” model is taken into consideration by the people who follow
an accommodating style of negotiation. Just opposite to the competitive negotiators, the
accommodating negotiators mainly focus on sustaining and preserving the relationships and
thus create a friendly rapport by sacrificing on some of their interests for the interests of the
opposite party. Haghirian (2016) illustrated that they instead follow a peacemaking approach
with the opposing party, trying to win people by accepting their requests and accomplishing
them as well.

Negotiation Ploys and Techniques 

To achieve the best possible outcome for a negotiation, the parties can employ different
techniques and tactics available in negotiation namely, Highball, Bogey, Snow Job, The

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Nibble, Lack of authority, Good cop, Deadlines and The Brink. However, the most common
techniques used by negotiators are discussed below:

Highball/Lowball: This is one of the oldest methods applied for negotiations. One of the
parties enters into the negotiation with an extremely high or low offer with the hope that the
opposite party would reconsider their resistance points and aims. Jung and Krebs (2019)
pinpointed that if the other party is unaware of this aspect, they may fall for it The best way
to continue with this type of negotiation is to call out their offer and instead of entering into a
counter, a reasonable offer can be opened including the terms and conditions of the other
party.,

Bogey: Some negotiators pretend some irrelevant aspects of the negotiation as essential and
make the other party accept and concede something important as well. This is one of the
difficult tactics to be recognised as it is challenging to realise the opposite parties’
instructions and intentions (Faure, 2020).    

Snow Job: It is a kind of tactic wherein one party provides a lot of information both relevant
and irrelevant including facts and figures to confuse the other party making it difficult to
realise what is to be considered crucially. Technical expertise is vital in handling with such
negotiations

The Nibble: These tactics are usually used at the end of negotiations wherein one party
makes the other party deal with a condition after spending a lot of time negotiating. Helmold
et al. (2020) added that the main idea behind this is to get a deal done with diminished minds
of the other party.

Lack of Authority: Some groups confront negotiation without the concerned authority to
make the final decision with the expectation that the opposite party will back down from the
negotiation energy and will power by repeated excuses of the other party to ask permissions
from their superiors.

Main Negotiation skills 

The ability to negotiate is the integration and combination of a number of skills and
capabilities related to interpersonal communications.

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Problem analysis: effective negotiators must have the skills to identify the problem
prevailing determini9ng the objecti9ves and interests of each party of the negotiation process.

Preparation before a meeting: It is important for the negotiators to carry out a critical study
on the goals, areas for trade and alternatives past negotiations and history of the relationship
between the parties to succeed in making a final agreement.

Active Listening Skills: Active listening has to be maintained by the negotiator having the
capability to read both the body language and verbal communication. Wang and Chen (2019)
mentioned that it is vital to recognise the areas of compromise to be made and rather than
spending time exaggerating one own point of virtue, it is vital to listen to the other party.

Emotional Intelligence: In some negotiation involved with contentious issues, emotions may
take over the control, thus leading to unfavourable results. Compromises are not made in
some negotiations, ultimately making no successful results or agreements with the
negotiation.

Clear and Effective Communication: Negotiators are also required to have the ability to
communicate clearly and effectively without causing any misunderstandings. Negotiators
must have the skills to state the desired outcomes and the reasoning’s for them as well.

Collaboration and Teamwork: Negotiations may not be involved with two parties who are
entirely opposing and conflicting. Hennig-Schmidt and Walkowitz (2016) conferred that it
can also be carried out by forming a collaborative atmosphere discussing and listing the
desired outcomes

Problem Solving Skills: Negotiators will have to confront problems in the negotiation to
which practical and accurate solutions will also have to be made by the negotiators.
Negotiation cannot be accomplished by focussing entirely on the desired results agreement by
discussing and resolving the issues existing (Arnesen and Foster, 2018).

Decision-Making Ability: It is also a requisite to make decisions during a negotiation. And

hence negotiators are expected to have the skills to act and behave decisively make the most
wise decisions  

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Collaborating and Compromising in Negotiation

A collaborating and compromising approach towards negotiation has always been

advantageous and beneficial for the achievement of the desired outcomes and results of the
negotiation. These can also be attributed as two distinct styles used of the same purpose.
However, the underlying concepts in both of the styles are extremely different, claiming them
to be two different styles that can be used in approaches. While the collaborating style is to
achieve the desired outcomes on the part of both the parties’ involved in the negotiation, the
compromising style is achieved through the victory of one and the loss of the other. However,
Bitmis and McGuire (2019) observed that a mixture of both these styles together could be
more advantageous for negotiations to bee successful. However, it is not applicable thee
negotiators follows collaborative and compromising styles always, at some instance, the
negotiators are forced to make certain stern and uncompromising decision activities,
following a compete style. However, the accomplishment of negotiation through the
application of both compromising and collaborative style can result in minimum conflicts and
maximum benefits. Further, Liu and Adair (2017) observed that the combination of this style
is expected to be successful when both parties belong to the same ethnic groups; however it
may give unexpected results when both the parties are of different cultures. People of a
different culture may have different perspectives and viewpoints for each of the aspects
involved in the negotiation and hence cannot be acceptable in making a final agreement or
decision on the conflict of interest.

Analysing the negotiation styles in the context of a particular culture, say China can give
some peculiar and differentiating findings and observations. The role of negotiation in
international business has become profoundly crucial in China on account of the ever-
developing economy, and the strong influence of the international consumes. However,
Negotiation is considered to be an intricate art in China (Yue, 2016). Negotiations within
China are, and ongoing and dynamic process wherein the parties are expected to achieve a
common outcome, thus building trusts in them. Negotiation in China is more a kind of
exploring and understanding the different approach that the opposite party wishes to achieve
and accordingly formulate a strategy that will ultimately result in long term benefits for both
the parties. However, it is challenging to understand and recognise the well established
Chinese cultural practices, perspectives and behaviour that can cause effective impacts. These
are generally comprised of spiritual and philosophical codes of Confucianism, Taoism and

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Buddhism that encourages social relationships, comprehensive thinking and harmony,
respectively (Tsen et al., 2017). The Chinese negotiation strategy is inclined to following a
strategic approach that seeks mutual gains, that is contained with four different steps for
negotiating better outcomes while protecting reputation and relationships –preparation, value
creation, value distribution and follow-through. These steps are not accomplished with the
motive of focussing on a ‘win-win’ model; preferably, it is critically analysed, managed and
processed to fit into the Chinese contexts clearly.

Relationship and trust are given the most emphasis and importance in Chinese viewpoints.
Thus a negotiation is involved in building robust relationships with Chinese counterparts
through whom a better understanding of the business, leading drivers and critical people can
be realised. Creating value is another such aspect that is relied upon in negotiations. Chinese
negotiators are very much offended in facing conflicts directly, and it is highly detrimental
for them to lose their face. Instead of making it too formal carrying out negotiation at an
office or some other official venues, Chinese people are more comfortable to conduct
negotiations at restaurants, parks, dinners or other places(Nguyen, 2018). Chinese people
cannot accept negotiations focussing just on the result that can be achieved. They rather
expect for a long term relationship, thus building and fostering trust and healthy relationships
with each other. Even after the deal is made with Chinese people, it is i9mportant to sustain
the relations of why maintaining trust and closeness.

Conclusion 

The current report thus critically evaluated the statement made by Bloisi et al. (2003, p449)
announcing that “Negotiation, or bargaining is the practical application of collaborating and
compromising. In order to make it more specific, the report has included a critical analysis of
the statement by exploring the negotiation styles of Chinese people. Additionally, the report
briefly discussed the various ploys techniques and tactics applied in negotiation, along with
describi9ng the negotiation skills that are necessary to succeed. However, through the report,
it could be estimated that a combination of collaborating and compromising stoles in
negotiation can significantly benefit the negotiation process accomplishing the achievement
of the outcomes more significantly. However, in the Chinese context, it is expected that the
relationships between the two parties are long-lasting and trust pertains to be the basic block
of ending up with an agreement in negotiations. 

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References

Abbasi, B.A., Gul, A. and Senin, A.A. (2018) Negotiation Styles: A Comparative Study of
Pakistani and Chinese Officials Working in Neelum–Jhelum Hydroelectric Project
(NJHEP). Journal of Creating Value, 4(1), pp.110-122.

Arnesen, D.W. and Foster, T.N. (2018) Guanxi, reciprocity, and reflection-applying cultural
keys to resolve difficult negotiations. Journal of Business and Educational Leadership, 8(1),
pp.39-47.

Bitmis, M.G. and McGuire, J. (2019) Developing Effective Cross-Cultural Negotiations. The

Belt and Road Initiative: Opportunities and Challenges of a Chinese Economic Ambition,
p.179.

Caputo, A., Ayoko, O.B., Amoo, N. and Menke, C. (2019) The relationship between cultural
values, cultural intelligence and negotiation styles. Journal of Business Research, 99, pp.23-
36.

Faure, G.O. (2020) Chinese Negotiators: Tradition and Modernity. International

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Fells, R. and Sheer, N. (2019) Effective negotiation: From research to results. Cambridge :

Cambridge University Press.

Haghirian, P. (2016) Japanese negotiation styles and decision-making processes.

In Routledge Handbook of Japanese Business and Management (pp. 369-379). Routledge.

Helmold, M., Dathe, T. and Chan, A. (2020) Negotiations in Japan, China and Asia-Pacific.
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Hennig-Schmidt, H. and Walkowitz, G. (2016) Negotiations among Chinese and Germans–

An experimental case study. Homo Oeconomicus, 32(4), pp.451-488.

Hofstede, G. (2019) National Negotiation Styles. Processes Of International Negotiations,

p.193.

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Jung, S. and Krebs, P. (2019) Cultural Differences in Negotiations: An Overview on the US,
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Lewicki, R.J., Barry, B. and Saunders, D.M. (2016) Essentials of negotiation. London:

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Liu, L.A. and Adair, W.L. (2017) Intercultural Communication in International

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Nguyen, J. (2018) Conflict Management. Legal and Ethical Issues for Health Professions E-
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Ting-Toomey, S. (2017) Conflict face-negotiation theory: Tracking its evolutionary journey.

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