International negotiations need the parties to follow legal, procedural, and political regulations of more than one nation. These laws and procedures are often inconsistent, or even directly opposing in nature. International business agreements should look into these differences. Arbitration clauses, specification of the governing laws, and tax havens should be well defined in the agreements. We have listed here the most common attributes and elements that must be taken into account while doing international negotiations.
● The presence of different currencies should be taken into account. As the relative value of different currencies is not fixed, the actual value prices may vary, and result in unanticipated losses or gains.
● Each government tends to control the flow of its domestic and foreign currencies. Therefore, business deals should look for the governmental willingness to make its currency available. Some policies of government may be detrimental as well.
● Governments often play a significant role in foreign business. Extensive government bureaucracies can affect the negotiation process. Legal complications may also set in.
● International ventures are vulnerable to political and economic risks. These risks require the negotiator to have knowledge and social insight.
● Different countries have different ideologies about private investment, profit, and individual rights. Effective negotiators will have to present ideologically acceptable proposals to the other.
● Finally, cultural differences, such as language and values, perceptions, and philosophies may result in very different connotations according to culture and norms. The international negotiator must be aware of this.