2019

Negotiation and contracting in

international commerce
Review subject

Chapter 1 Setting the stage

DAVID GOLDWICH

Traian Ples

2/3/2019
 From this first chapter we can understand that the negotiation is a part of our life, even
if we realise it or not, all of us negotiate every day because negotiation has a lot of forms. We
also can see in chapter one a lot of summary things of the negotiation forms, from how to
spend our particular life until to make the best decission in a buissnes .
Many people dread negotiation, not recognizing that they negotiate on a regular, even
daily basis. Most of us face formal negotiations throughout our personal and professional
lives: discussing the terms of a job offer with a recruiter, haggling over the price of a new car,
hammering out a contract with a supplier. Then there are the more informal, less obvious
negotiations we take part in daily: persuading a toddler to eat his peas, working out a conflict
with a coworker, or convincing a client to accept a late delivery.
SO what is negotiation?
The negotiation can be define in multiple way, one of these can be following:
a) Negotiation is a way of satisfying your interests, of getting what you
need or want
b) Negotiation is a form of persuasive communication. It is a way of
getting others to do what we want them to do.
c) Negotiation is an opportunity to solve a problem in collaboration
with a partner.
d) Negotiation is a process.
e) Negotiation is a game.
f) Like most games, negotiation is meant to be fun.
We live in a web of relationships and interdependencies, and we negotiate with others
to help us get what we need or want. Negotiation is simply the art of bargaining or haggling.
Not so. It is much more than that. Negotiation is a process of persuasive communication that
begins as soon as you recognise an interest that you cannot satisfy on your own.
Specific forms of negotiation are used in many situations: international affairs, the
legal system, government, industrial disputes or domestic relationships as examples.
However, general negotiation skills can be learned and applied in a wide range of activities.
Negotiation skills can be of great benefit in resolving any differences that arise between you
and others.
Stages of Negotiation
In order to achieve a desirable outcome, it may be useful to follow a structured
approach to negotiation. For example, in a work situation a meeting may need to be arranged
in which all parties involved can come together.
The process of negotiation includes the following stages:
1. Preparation
2. Discussion
3. Clarification of goals
4. Negotiate towards a Win-Win outcome
5. Agreement
6. Implementation of a course of action
 1. Preparation
Before any negotiation takes place, a decision needs to be taken as to when and where
a meeting will take place to discuss the problem and who will attend. Setting a limited time-
scale can also be helpful to prevent the disagreement continuing.
2. Discussion
During this stage, individuals or members of each side put forward the case as they see
it, i.e. their understanding of the situation.
3. Clarifying Goals
From the discussion, the goals, interests and viewpoints of both sides of the
disagreement need to be clarified.
4. Negotiate Towards a Win-Win Outcome
This stage focuses on what is termed a 'win-win' outcome where both sides feel they
have gained something positive through the process of negotiation and both sides feel their
point of view has been taken into consideration. A partial win-partial lose result is the most
common negotiating outcome.
5. Agreement
Agreement can be achieved once understanding of both sides’ viewpoints and interests
have been considered.
6. Implementing a Course of Action
From the agreement, a course of action has to be implemented to carry through the
decision.
In any negotiation, the following three elements are important and likely to affect the
ultimate outcome of the negotiation:
1. Attitudes
2. Knowledge
3. Interpersonal Skills
Seating
There is a reason why round tables are used whenever heads of state meet at an
international summit — there is no head of a round table, so everyone appears equal.

Setting the agenda

Develop an agenda before you sit down with your counterpart. The agenda should
reflect the items to be discussed and their relative importance.
Should you bring a team?
It’s a good idea to bring a team, or at least one other person, to a negotiation whenever
possible.
I need to be a win-win negotiator because I value my business and social
relationships.