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International Business Negotiation Zhang Li Chapter 1 Negotiation Motives and Key Terminology Generally speaking, two approaches have been applied to conflict settlement: military means and peaceful means. Negotiations are referred to as peaceful means or political approaches. It is misleading to conceive that negotiations are only applied to significant issues. As a matter of fact, negotiations are applied to all situations of conflicts, arguments and bargaining arising in the normal course of business, personal relations and daily life. Everyone has been engaged in negotiations in such daily activities as shopping, arguing with someone else and dealing with people around. Chapter 1 Negotiation Motives and Key Terminology 1.1 Negotiation 1.2 Conflicts 1.3 Stakes Questions for discussion and consideration Case Study 1.1 Negotiation A Negotiation is a process of communication between parties to manage conflicts in order for them to come to an agreement, solve a problem or make arrangements. Negotiation is back-and-forth communication designed to reach an agreement when you and the other side have some interests that are shared and others that are opposed. The conditions a successful negotiation must satisfy 1. The outcome of negotiation is a result of mutual giving and taking. One-sided concession or compromise can not be called a successful negotiation. 2. Negotiations happen due to the existence of conflicts, however, no negotiation can proceed smoothly and come to a satisfactory solution without collaboration between the participants. 3. In spite of unequal strength and power on the side of one party, it should not be viewed as a success if the other party can not excise veto right to the result of the negotiation, which is a show of equal right of the parties. 1.2 Conflicts A conflict is a dispute, disagreement or argument between two or more interdependent parties who have different and common interests. A conflict can block each other’s ability to sa

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