Gist of General Reviewfor International Business NegotiationPart I Terminology1.NO TRICKS---need, options, time, relationships, investment, credibility, knowledge,skillsN represents needs. Generally, as far as the buyer and the seller are concerned,the one who has stronger need is least powerful. If the buyer needs the product badly, the seller has a stronger negotiation power. Conversely, if the seller urgently wants to sell the product the buyer has the stronger position.O represents options. Should initial negotiationxs fail, the one who has more options hasgreater negotiation power. Suppose the seller has more available markets, or his products and services are unique, so the buyer has no other options, then the seller can capitalize better on the negotiation.T represents time. The more limited your time is, the weaker your position is innegotiation. If the seller is pressured by critical time constraints, the buyer’snegotiation strength would be increased.R represents relationships. The better and stronger your relationship with your existing client is, the more powerful you are in your negotiation with other potential clients.These relationships reflect your reputation for morality and competence, and influence word-of-mouth within an industry.I represents investment. The more time and energy you invest in the negotiation, theweaker your negotiation posotion becomes.C represents credibility. Having reliable products that your potential clients areinterested in can enhance your negotiationpower.K represents knowledge. Knowledge is power. If the seller fully understands the buyer’sproblems and needs, and is confident that the product can satisfy the buyer’s demand, then this negotiation ability will be increased.S represents skills. Consummate skills directly and easily enhance negotiation power. Ofcourse, negotiation skills are not innate, they are acquired by comprehensive learning, including extensive knowledge, speaking eloquence, and acute thinking, and by experience.2. Qualifications and Credit statusConsist of the history and status quo, the economic and political power, and corporate reputation –its liabilities, capotal quantity, operating capability, bank credit and such of the partner company.3.Fault-finding openingRefers to the way in which at the very early phase of the opening, we blame the other party for their bad manners, diplomatic and cultural mistakes severely so as to bring a sense of guilt to them and to create tension and disorder in their thinking, suppress their requests to force the other party to make compromises and concessions.4.Offensive Opening refers to the way in which we express our firm attitudethrough prepared speech or behaviour so as to gain the awe from the rival and force them to start the negotiation in accordance with our intention.5.Mid-way Price Change It is also known as provisional shift of price. Thisstrategy involves a tactic in the process of making a quotation where the trend of quoted prices suddenly changes to the opposite direction midway through the process.6.Follow SuitWhen you are prepared to make a concession, most often, you should ask the other party to raise the request or conditions first and then based on the real situation make a decision about the bargaining margin.7.Collaborate The useful strategy when negotiation comes into conflicts, the basicpoint of this strategy is to maintain a good relationship with the other party, to assure that the settlement is benefitial to each other.8.Impasse During the negotiation process, the two parties strongly insist on their ownprofits and ignore whether the other party understands or accepts one’s ideas or whether it is harmful to another party or not. Then it leads the negotiation in a dilemma.This situation is the so-called" impasse".9.Body Language also known as gestures or nonverbal language, as used innegotiations, mainly consists of facial expressions (eyes, brows and mouth), limb (arms and legs) language and other bahaviours.10.The Ultimatum StrategyWhen two sides can not reach an agreement after rounds of negotiation, one side shows its hand:either close the deal at the conditions granted in their compromise or declare the negotiation a failure. This ultimatum obviously can be viewed as a signal to close the negotiation. It is very risky to use this strategy. The key is to seize the right time.11. Taboos Some negotiations will have special habits or sensitive points. Do not annoy them by breaking taboos.12.Friendly Break-down of negotiationsThe negotiation parties understand each other’s difficulties and thus conclude the negotiation in a friendly manner. This break-down does not hurt the relationship, and leaves an opportunity for future cooperation.13.A ntagonistic Break-down of negotiationsThis occurs when one party or all parties become angry and declare the closure of negotiation in a hostile manner without any agreement. Concluding the negotiation in thid way tends to damage the relationship and make it diffficult to cooperate again in the future. Therefore, this kind of situation should be avoided in international business negotiation.14.Closing A Deal When all the negotiating parties have reached agreement over allthe terms and conditions, it can be declared that the deal is done. The deal can be closed through verbal or written agreement.15.F ive Tips for good Listeninga.Don’t cut in or refute in haste. You can make your comments after your counterpartfinishes the whole statement, or you will be likely to paint yourselves into a corner and find yourself trapped and helpless. Learn to be patient. Unpleasant or offending words deprive one of the ability to use rational reasoning.b.Don’t be absent-minded. You should have a good grasp of key points and newinformation, and do not think about other problems while listeningc.Keep proper records. Putting down the key points, especially during a long andcomplicated negotiation, can help you maneuver through the process of negotiation as well as giving you a way to exert pressure on your counterparts to keep their word.d.Do not let your counterpart lead you by the nose. Sometimes, your counterpart maysubtly attempt to change the topic or distract you by paying you a compliment. In these cases, you should keep clear-headed and direct the conversation back to the topic you have been talking about.e.Overcoming preconceptions. The intonation, wording, or tones and ways ofexpression can provide certain clues to the meanings behind words. But sometimes your counterpart may give false impressions, so you should overcome your preconceptions and make correct obsevations. Analyze the words and behaviour of your counterpart objectively and reasonably.16. 自留风险是可以被动的，也可以是主动的；可以是无意识的，也可以是有意识的。
