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,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,Chapter 2,Game Principles of International Business Negotiation,1,Key points:,Game principles of negotiation,The intention of equality and voluntary,Negotiation strategies of seeking common ground while maintaining differences,Eight crucial elements which influence the negotiation,2,What are the game Principles of International Business Negotiation?,They are also called fundamentals or guidelines of international business negotiation,which are the basic rules,beliefs or norms accepted in international business negotiation that all participating parties are obliged to observe.,3,2.1 Equal and Voluntary Participation,Case study,Please look at the case study in the textbook of P28,the negotiation between Boeing Company in the United States and Chengdu Aircraft Company in China.,Q:Why the Chinese and American parties were able to reach such a cooperative agreement?,4,2.1.1 All Parties,big or small,should be equal,In international business negotiation,all parties must be equal participants and be willing to participate in it,no matter how great the gaps are in their economic power and organizational scale.,The participants in negotiations have the same option for choosing the trade items and terms.,The more powerful party makes fewer concessions while the weak one makes more.(Please read the case continued on P29),5,2.1.2 Veto power embodies equality,In international business negotiation,no situation exists in which one party is entitled to make the final decision or the minority must be subordinate to the majority.,All parties have the power to veto any clause under negotiation,and so no agreement will be achieved if either party is not satisfied.,6,As the case above mentioned,if China had refused to assembly only the vertical fins or the American had refused to allow assembling any part in China,then the negotiation would have broken down and ended in failure.,7,2.1.3 Respect embodies equality,All parties concerned should show respect regardless of their power and size,being careful to avoid showing discrimination or disdain to their counterparts.,If any party abuses its power and bullies others,the negotiation will fail.,8,Take the above case for example:,Although Boeing was powerful,it needed Chinas big orders for airliners,so it had to consider Chinas request for technology transfer.Chengdu Aircraft Company itself was less powerful,but it had a Chinas big market behind it.Therefore,it did not need to be servile to the American company.,9,2.1.4 Voluntary agreement embodies equality,It means that all parties can participate in the negotiation willingly and make their own decisions.,Only if you are willing can you be equal,understand one another,make concessions,and finally reach a mutually beneficial agreement.,10,2.2 Credibility First,Case study:,The story of Li Ka-Shing,the richest Chinese,and Zhou Zhengyi,the richest man in Shanghai.,Q:What can we learn from this case?,11,2.2.1 Understanding derives from credibility and trustworthiness,In international business negotiations,being credible and trustworthy does not necessarily mean revealing your objectives and plans directly and totally,but it does require saying frankly what the other party wants to know and ensuring his or her satisfaction.,12,2.2.2 Credibility enhances trustworthiness,Being honest and credible in international business negotiation helps to remove psychological barriers and suspicion,laying a solid foundation for mutual trust.,Please see the case study on P33.,13,2.2.3 Be aware of the level of the counterparts credibility,14,2.3 Mutual reciprocity&mutual benefits,Mutual reciprocity and mutual benefit is the goal of international business negotiation.,Please read the,case study on P35,and answer questions as follows:,Q1:,What did the Brazilian footballer do when the Manchester United Club couldnt pay his salary on time?,Q2:,Why didnt he resort the Manchester United Club to the law?,15,2.3.1 Interests first,position second,No matter what scale it is,no matter what form it takes,an international business negotiation is centered on pursuing the interests of each party.,Negotiation must be arranged around the central goal of gaining realistic interests.,Focusing on interests rather than positions is a golden rule and precious precept in negotiation at all times and in all countries.,16,For example:,Two students quarrelling in a library.One wants the window open and the other wants it closed.They bicker back and forth about how much to leave it open:a crack,halfway,three quarters of the way.No solution satisfies them both.,17,Enter the librarian.She asks one why he wants the window open:”To get some fresh air.”She asks the other why he wants it closed:”To avoid the draft.”,18,After thinking a minute,she opens wide a window in the next room,bringing in fresh air without a draft.,19,Q:,What can we learn from the example above?,Th
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