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.,Chapter2,GamePrinciplesofInternationalBusinessNegotiation,.,Keypoints:,GameprinciplesofnegotiationTheintentionofequalityandvoluntaryNegotiationstrategiesofseekingcommongroundwhilemaintainingdifferencesEightcrucialelementswhichinfluencethenegotiation,.,WhatarethegamePrinciplesofInternationalBusinessNegotiation?,Theyarealsocalledfundamentalsorguidelinesofinternationalbusinessnegotiation,whicharethebasicrules,beliefsornormsacceptedininternationalbusinessnegotiationthatallparticipatingpartiesareobligedtoobserve.,.,2.1EqualandVoluntaryParticipation,CasestudyPleaselookatthecasestudyinthetextbookofP28,thenegotiationbetweenBoeingCompanyintheUnitedStatesandChengduAircraftCompanyinChina.Q:WhytheChineseandAmericanpartieswereabletoreachsuchacooperativeagreement?,.,2.1.1AllParties,bigorsmall,shouldbeequalIninternationalbusinessnegotiation,allpartiesmustbeequalparticipantsandbewillingtoparticipateinit,nomatterhowgreatthegapsareintheireconomicpowerandorganizationalscale.Theparticipantsinnegotiationshavethesameoptionforchoosingthetradeitemsandterms.Themorepowerfulpartymakesfewerconcessionswhiletheweakonemakesmore.(PleasereadthecasecontinuedonP29),.,2.1.2VetopowerembodiesequalityIninternationalbusinessnegotiation,nosituationexistsinwhichonepartyisentitledtomakethefinaldecisionortheminoritymustbesubordinatetothemajority.Allpartieshavethepowertovetoanyclauseundernegotiation,andsonoagreementwillbeachievedifeitherpartyisnotsatisfied.,.,Asthecaseabovementioned,ifChinahadrefusedtoassemblyonlytheverticalfinsortheAmericanhadrefusedtoallowassemblinganypartinChina,thenthenegotiationwouldhavebrokendownandendedinfailure.,.,2.1.3RespectembodiesequalityAllpartiesconcernedshouldshowrespectregardlessoftheirpowerandsize,beingcarefultoavoidshowingdiscriminationordisdaintotheircounterparts.Ifanypartyabusesitspowerandbulliesothers,thenegotiationwillfail.,.,Taketheabovecaseforexample:AlthoughBoeingwaspowerful,itneededChinasbigordersforairliners,soithadtoconsiderChinasrequestfortechnologytransfer.ChengduAircraftCompanyitselfwaslesspowerful,butithadaChinasbigmarketbehindit.Therefore,itdidnotneedtobeserviletotheAmericancompany.,.,2.1.4VoluntaryagreementembodiesequalityItmeansthatallpartiescanparticipateinthenegotiationwillinglyandmaketheirowndecisions.Onlyifyouarewillingcanyoubeequal,understandoneanother,makeconcessions,andfinallyreachamutuallybeneficialagreement.,.,2.2CredibilityFirst,Casestudy:ThestoryofLiKa-Shing,therichestChinese,andZhouZhengyi,therichestmaninShanghai.Q:Whatcanwelearnfromthiscase?,.,2.2.1UnderstandingderivesfromcredibilityandtrustworthinessIninternationalbusinessnegotiations,beingcredibleandtrustworthydoesnotnecessarilymeanrevealingyourobjectivesandplansdirectlyandtotally,butitdoesrequiresayingfranklywhattheotherpartywantstoknowandensuringhisorhersatisfaction.,.,2.2.2CredibilityenhancestrustworthinessBeinghonestandcredibleininternationalbusinessnegotiationhelpstoremovepsychologicalbarriersandsuspicion,layingasolidfoundationformutualtrust.PleaseseethecasestudyonP33.,.,2.2.3Beawareofthelevelofthecounterpartscredibility,.,2.3Mutualreciprocityandthe“minordifferences”,theimpossibleearlylaunchofotherhighqualitysedansinChina,wasomittedtemporarily.Thisfinallyresultedinasuccessfulnegotiation.,.,2.4.3CompromiseisthemotherofsuccessNegotiatorshavetogothroughaprocessofnotonlyseekingmutualgainsbutalsomakingconcessions.“Necessaryconcessionisthemotherofsuccessfulnegotiationandseekingcommonalitieswhilereservingdifferencesisvehicleforbreakingupnegotiationdeadlocks”.Tokeepyourbottomlineandgiveupsomeminorinterestsforachievingthemaintargetisnecessaryandrequisite.,.,2.5SpeakonGoodGrounds,CasestudyonP40:CaseAorwhentheirnationalisticfeelingsareoffended.Ineachofthesethreesituations,thenegotiatorsfailtoseparatethepeoplefromtheproblemundernegotiation.,.,2.6.2Specificmethodsofseparatingthepeoplefromtheproblem(1)Seethesituationfromtheothersidespointofview.(2)Presentmoreobjectiveinformationandavoidblamingtheotherside.(3)Reacttactfullytoemotionaloutbursts.(4)Helpthemsavefaceanddonothurtthememotionally.,.,TheEight-WorldMaximofBusinessNegotiation
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