International Negotiation: 5 Techniques to Apply in Your Company

International negotiation is part of the initial stage for trade in goods or services, it is negotiations between institutions from different countries that allow the administration and control of foreign trade.

The purpose of negotiating is to find the satisfaction of both parties involved. This step can define the entire logistical and commercial process of import and export operations. The professional must be prepared to negotiate rates, values, terms with their customers and suppliers . Achieving a good deal can significantly reduce costs and increase the company’s profit.

The success of the negotiation turns barriers into bridges and shortens Brazil’s paths abroad. International economic factors can change the relationship between countries, as was the case with Argentina, China and the United States, with their trade with Brazil:

Argentina, which went from the 3rd main importer to the 4th position in 2019, the Netherlands, knew how to take advantage of the relationship with Brazil and started to negotiate more and more, surpassing Argentina.

With the increase in the Chinese Gross Domestic Product (GDP) in the 2000s, China managed to surpass the United States and become Brazil’s main trading partner (imports and exports), in addition to becoming the main supplier of commodities in the world.

The 5 techniques presented below must be followed so that the negotiation is interesting to those involved and brings good results to companies and countries:

1) Respect for local culture

2) Study and control over the country

3) Partnerships, solidity and trust

4) Quality of products and services

5) Budget for international negotiation

1) Respect for local culture

“Respecting different cultures and traditions is essential for international negotiations”

Religion, language, values, customs, education, social and geographic conditions and history are examples of cultural factors that must be respected for the negotiation to take place effectively.

Understanding and respecting culture, it is necessary for the international negotiator to adapt to it as a form of respect. In the article How the culture of a country influences international trade , it was mentioned how respect and adaptation can bring benefits in the commercial, logistical, bureaucratic areas and in the search for partners abroad.

In its initial plan, the company must accept suggestions for changes in its product or service, the international market may stop buying or selling for cultural reasons.

2) Study and mastery of the country

Traders should study their own country’s indicators and external indicators, this analysis must be done taking into account political and economic forces. Mastering the subject is essential, the seller must know all the sectors and stages of the company and the good or service they are offering.

A meeting in which for all questions, the answer is “ I’ll check with sector X ” , can become very tiring and unproductive, so it is important to know all sectors of the company, commercial, financial, operational and logistical.

Data on countries

Before the negotiations, it is important to know some data about the country itself and about the foreign country:

• Country’s trade balance
• Main trading partners
• Inflation, political prospects, political stability
• Per capita income
• Customs controls, exchange
• Protectionism vs. Liberalism
• Probability of international conflicts
• Use of production capacity and goods and/or services that can be replaced locally

3) Partnerships, strength and trust

The selection of partners must be done carefully, as it is often through partnerships that negotiation opportunities arise.

Some cultures in some countries, especially Asians, value long-term relationships. In other words, it will not always be possible to conclude a negotiation immediately.

Solidity and constancy are necessary to form relationships, in the sale or purchase of products periodically and not just in favorable times.

To consolidate the brand in international markets, many cultures value commercial visits in the company, at events and fairs.

4) Quality of products and services

One of the challenges that Brazil has in internationalization is competition at a global level. Many countries manage to achieve more competitive prices, but Brazil is able to easily adapt to international requirements for products or services according to the culture.

It is important to offer quality products and services so that your customer or seller can be loyal to the company. In cases of product export, the samples sent must be identical to the product that will be sent in the future.

5) Budget for international negotiation

According to the Canadian, Barry Siskind, writer of the book Powerful Exhibit Marketing, there can be no improvisation, so before the negotiation there must be all the financial planning, so that the company can articulate the negotiation and draw attention at the same time, knowing the cost for this.

The three factors below must be analyzed to define the budget during the negotiation:

1. Price
2. Productivity = added value / hours of work x cost
3. Exchange rate

The 5 techniques for international negotiation are: respect, study, search for the right partnership, offer quality service and/or product and plan the budget in the negotiation.

Following these tips can help you carry out more strategic negotiations, bringing even more positive results for the operation.