Negotiating Internationally
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Negotiating internationally
International negotiation is a challenge for most firms due to the unique nature of global markets—one of the most common problems in cultural differences, which occurs as a matter of ignorance among participants. The differences arise from the deep routed cultural believes and concepts that affect how people interact. Secondly, another problem that may occur in international deals is a corporate governance and decision making. The governance system varies among; it is vital to know who lies at the top of the decision-making hierarchy before initiating negotiations Cateora, (2016). Lastly, negotiations may be affected by the existence of a language barrier among negotiators. A firm should make arrangements for translators before talks. It can also train foreign language skills to its employees, for instance, sales personnel.
Globalization has opened up many opportunities, but it has created a considerable number of challenges. Firms should take keen consideration while initiating international negotiations to overcome these challenges. While developing a negotiation team, I would recommend the company to look into a few aspects; first, finance and currency are crucial and form a big part in international trade. It is, therefore, essential to have a team of experts to understand the workings of these two key concepts.
All nations charge tariffs and quotas on imported goods to create a market for local products. When a country charges expensive duties to its imports, it affects the pricing decision of firms, which may affect sales in the long run Cateora, (2016). Companies should know the number of tariffs in foreign markets before deciding to pursue them. Lastly, a firm should have a clear understanding of international legal and accounting rules. This is because such regulations affect the daily operations and decision-making process of an organization. Rules may affect the flow of goods as well as activities that can impact a firm’s performance in the market.
Reference
Cateora, P. R. (2016). International Marketing 17ed (Sie). Tata McGraw-Hill Education.