The pre-negotiation stage, which involves the preparation and planning, is the most important step in negotiation (Ghauri 1996:14). It sets the foundation for the process negotiating (Lewicki et al. 1994). It consists of interactions, such as building trust and relationships, and the task-related behaviors which focus on the preferences related to various alternatives (Graham & Sano 1989, Simintiras & Thomas 1998). In brief, the first stage of negotiation emphasizes getting to know each other, identifying the issues, and preparing for the negotiation process.
The negotiation stage involves a face-to-face interaction, methods of persuasion, and the use of tactics. At this stage negotiators explore the differences in preferences and expectations related to developing an agreement.
The post-negotiation stage relates to concessions, compromises, evaluating the agreement, and following-up.
These stages are often done concurrently. The negotiation process is a dynamic process, involving a variety of factors related to potential negotiation outcomes.
International business negotiations are typically more complicated and difficult to assess than the negotiations taking place between negotiators from the same culture. This is because the values of the negotiators are different. Negotiators have unique perspectives on negotiations leading to different styles. Other external influences such as international law, exchange rates, and economic growth also increase the complexity of negotiations. International business negotiators need to understand each other’s values so that they can adapt their negotiating approaches to emerging situations.