INTERNATIONAL NEGOTIATIONS
STRATEGY
International Negotiation : Theory &Practice
Tran Thi Xuan Anh
082SIS40
Content
Theory
 Best alternative to negotiated
Practice
 Complexities of
multilateral international
agreement(BATNA)
negotiations(process
 “Seven element”
management, modality,
 Zone of potential
decision rules)
agreement(ZOPA)
 Case studies
 SMART(specific, measureable,
-Airbus airlines
achievable, realistic, time-Six Party Talks
frame)
Primary questions of negotiations
 When to agree and when to disagree on the draft
text on the table?
 How to create the maximum joint gain at the
negotiations?
 How to draft an effective final agreement?
Theory of International Negotiation
Strategy
FRAME
WORK
 Representatives come to negotiating table
because the principals have conflicts on
issues.
 Negotiations take place since people want
to resolve their conflict in a peaceful
manner
 Negotiation is the product of deliberate
choice of both side lead to recognition of
another important basic fact.
Theory of International Negotiation
Strategy
BATNA
 Best Alternative To a Negotiated Agreement
( Fisher and Ury, 1981)
Outcome superior to their BATNA
Theory of International Negotiation
Strategy
BATNA
Cooperation
Competition
Theory of International Negotiation
Strategy
BATNA
Cooperation
Competition
Benefits
Theory of International Negotiation
Strategy
BATNA
A
B
S(A)+S(B)
S(A)
S(B)
• V
• V
• ≤V
• ≥ D(A)
• ≥ D(B)
Practice of International Negotiation
Strategy
BATNA
 Relationships matter in international
negotiations.
 Relationships should be preserved no
matter what.
 US & China diplomatic relationship
Theory of International Negotiation
Strategy
 1.
“Seven
elements”
BATNA
CRITERIA
INTERESTS
COMMITMENTS
OPTIONS
COMMUNICATION
RELATIONSHIP
Theory of International Negotiation
Strategy
“Seven
elements”
 Without effective two way communication,
negotiators would have limited knowledge
about other side’s concern, interests and
preference on the negotiating agenda.
Theory of International Negotiation
Strategy
“Seven
elements”
Theory of International Negotiation
Strategy
“Seven
elements”
 Singapore Airlines cases
Why do you stick to this
particular price?
Interest
What leads you to believe
the price you ask is a
reasonable price?
Criteria
Is there any other way to
meet your needs other than
price?
Options
Practice of International Negotiation
Strategy
 “ Take it or leave it “ method
Use when you believe that you has the upper hand in the
negotiations.
Singapore airlines negotiator tries to clarify the interests
behind position, but airbus negotiator may not respond to
questions.
Practice of International Negotiation
Strategy
 “ I cut and you choose “
 Commonly technique at international negotiations
 Ensure the fair and impartial criteria
 If negotiations are successful, commitment should be used
Theory of International Negotiation
Strategy
Final
agreement
guideline
SMART
 The final agreement signed by negotiators
cannot be effective unless it gets ratification
 Implementation stage should be kicked in
through dispute.
 The final agreement should be as specific as
possible, should set an unambiguous
standard for implementation and drafted
along measurable indicators.
 SMART( specific, measurable, achievable,
realistic, time-frame) standards.
Multilateral International Negotiations
 N- party negotiation is called multilateral negotiation.
 Many different views
 Key role of chair
 Examples
 United Nation, WTO, IMF…
DECISION -MAKING
 No answer for how to make the best decision.
 Open the floor for discussion on the proposal and check
whether there is any outspoken to the proposal
 Cairns Groups
 G-77
Case study
 International Subsidy Agreement
Sharply divided into two group
GOOD
BAD
• Increase competitiveness through
R&D
• Develop logic through attack farm
subsidies
• Distorted international trade
flows by giving local companies or
industries an artificial advantage
• “illustrative”
Case study
Six-party talk
commitment
S.Korea
N.Korea
USA
China
Japan
Russia