Globalization means that international negotiations have become common, with multinational teams and supply chains now a standard part of business life. Smart negotiators know how to prepare accordingly, adjusting strategies to match the culture. After all, a São Paulo negotiation will be very different from one in Stockholm!
International negotiations aren't just trade deals and diplomacy, though. They appear in many parts of life, from cross-cultural relationships to vacations. Whether you need to secure an important business deal or want an extended hotel checkout, this guide will show you how to approach international negotiations with clarity, structure, and control.
An international negotiation involves parties from different cultures, usually based in different countries, trading value until they reach a mutually satisfactory agreement. The main principles of negotiation still apply, but the international element adds extra layers of complexity:
Language differences: nuanced communication, tone, idioms, and non-verbal signals can easily get lost or misinterpreted in translation.
Regulatory frameworks: compliance requirements and enforcement mechanisms differ across jurisdictions, affecting how agreements are structured and implemented.
Currency and economic stability: exchange rate volatility, inflation levels, and economic risk can influence pricing, payment terms, and the balance of power between parties.
Cultural expectations: norms relating to authority, hierarchy, communication style, and decision-making speed may vary significantly between countries and organizations.
Have you ever made a cultural faux pas while on vacation in another country? If so, you will know the sinking feeling of watching someone's smile fade, to be replaced with a frown. In social settings, that moment passes. In a business negotiation, it can cost you margin or even the deal itself. Here are some international negotiation strategies to reduce this risk.
A 2023 paper from the Journal of Business Research identified three main negotiation styles that different cultures fall into. Relational and flexible negotiators prioritize emotional expression and relationship-building and are happy with fluid agendas. Formal and transactional negotiators focus on structure and economic value, preferring stricter schedules. Mixed-behavior negotiators draw on both relational and transactional tendencies. By coming in with an awareness of the negotiating style of the other party, it will be much easier to understand them.
Now that you know the cultural context of the party you are negotiating with, it is time to build trust. Building trust means approaching the table with an understanding of the other party's business priorities and indicating that you respect them, even if you know you cannot meet every variable. For relational and flexible negotiators, this could look like taking the time for refreshments and ask about their families before getting down to business. For formal and transactional negotiators, you can build trust by respecting their schedule, arriving on time, and sticking to the agenda.
Like a normal negotiation process, you need to define and prioritize your objectives. This means clarifying (before you get to the table!) what you must achieve, what you intend to achieve, and what you would like to achieve. In international negotiations, this preparation must account for legal, cultural, economic, and organizational complexity. For example, if you require regulatory compliance in a certain area, be prepared that this may be more challenging for a company operating in a different country.
Different cultures manage time and agendas differently, but you still need process control. Practically, this looks like preparing a clear opening statement, agreeing on how the discussion will run, and deliberately moving from exploration to proposals. In a fluid, relationship-led environment, this may mean gently summarizing and refocusing. In a highly formal setting, you can set expectations early and stick to agreed-upon stages.
When you communicate, consider verbal and non-verbal signals and how they may be interpreted across cultures. The status quo for signaling flexibility or rigidity in a negotiation process is not set in stone. In some Japanese business contexts, direct refusal is often avoided to preserve harmony. To an American, "that will be challenging" could sound like the potential for flexibility, when in reality, it could be a polite but definite no. If there is ambiguity, ask for clarification.
When an international negotiation stalls, your instinct might be to give away value by conceding on price or overpromising on deliverables. This may not be necessary, or even effective. Deadlock often signals that the proposal is the wrong shape, not the wrong size. Let's take the case study of IBM selling its PC division to Chinese-owned Lenovo. Lenovo wanted IBM’s brand, distribution network, and technology, while IBM was concerned about reputation and transition risk. If treated purely as a price negotiation, the deal could have collapsed, but repackaging the structure allowed for agreement.
The Best Alternative to Negotiated Agreement (BATNA) is your plan B if your ideal outcome doesn't succeed. In international negotiations, alternatives matter even more for strengthening your position. Distance, regulation, and currency exposure can all affect how realistic your plan is, so having a fallback can help to alleviate the pressure. When a car rental desk insists to a prospective customer that there are no vehicles available at the advertised rate, only a higher upgrade option, the customer might be tempted to accept. When they know that two other rental companies operate in the same terminal, it gives them leverage to push back.
The negotiating process should end either with a clear closing of the deal or walking away. Different legal systems interpret wording differently, and other cultures might interpret verbal agreements differently, so always summarize the deal in writing. Include exactly what is agreed upon, what is conditional, who is responsible, and what the next steps are.
When you negotiate across borders, the stakes often feel higher, the variables multiply, and small mistakes can have outsized consequences. Here are some common pitfalls that negotiators sometimes fall into.
According to the Scotwork Capability Survey, 71% of negotiators know what they want before they enter a negotiation. Only 24% prepare by considering what the other party wants. International negotiations can magnify the cost of poor preparation, especially when the other party travels a long distance to attend. When you fail to prepare, you not only risk coming up against cultural barriers. Not knowing differences in legislation or compliance expectations could make you look unprofessional and cause you to lose control of the negotiation process.
While it is important to consider cultural differences, it isn't helpful to rely on stereotypes. We negotiate with individuals in specific businesses. Their culture might inform values and behavior, but it doesn't define them. Making assumptions based on stereotypes could even result in conflict. A British manager negotiating in Germany may assume the other party will focus solely on price and technical detail. He therefore opens with a highly structured, data-heavy proposal and moves quickly to commercial terms. In reality, his German counterpart is seeking a long-term development partner and wants to explore strategic alignment first.
Some negotiators assume the other side has more power because they are the host country or a larger organization. In reality, power comes from value offered and alternatives planned, not status. When a tourist wants to buy some hand-painted pottery in a local market in Marrakech, the seller appears to hold the power. It is their country, their shop, and their product. Once the tourist recognizes they can leave to compare options, they gain the confidence to negotiate collaboratively.
Want to approach the table with confidence, no matter where in the world you are? At Scotwork, we work with professionals across forty-six countries and twenty-nine languages to build practical negotiation skills. Our experiential training focuses on real-world scenarios, live practice, structured feedback, and disciplined trading. In other words, you leave with behaviors you can apply immediately, not nebulous theory you forget.
With our global corporate negotiation training, you will walk away with clarity on negotiating best practices, including how to prepare and manage international conflict resolution. Get in touch today to learn the art of winning deals across borders.
