Negotiation is a process of bargaining with one or more parties to arrive at a solution that is acceptable to all. This process involves five basic steps: Planning Interpersonal relationship building, exchanging task-related information, persuasion, and agreement.

As learnt negotiation takes place between two or more people to meet their means, through process of bargaining, persuasion and followed by the agreement signed by both the parties. This can take place between two or more individuals, businesses, cross border businesses, businesses and governments, and between governments of two countries. Negotiation is step by step process of preparing or planning, bargaining and persuasion, and agreement, the parties also have to look into the cultural, political elements prior to going for negotiation in international business.

The core of negotiation is bargaining and persuasion. Either side would look into it that they do not give away more that it has to, both the sides are aware that concessions also plays an important role in converting the negotiation into a final deal. Bargaining and persuasion is successful only when one side understand the position of other side. Know-how of shared characteristic and differences between them, their abilities to work on alternatives and their readiness to work for a solution.

After bargaining a persuasion the final phase of negotiation is agreement. This is achieved through allowing concession from either sides and preparing an agreement. Negotiations approaching this phase are usually successful, and signed of agreement binds both the parties into a contract. In western countries the agreements are signed immediately after the negotiations are done, while in Asian countries this is believed to be a beginning of long time relationship, and the terms of the agreement can be modified as and when required, with mutual understanding.

Whenever we do negotiation we do it with people and they have emotions, perceptions, personality and communication and all this has a process to go through. These emotions can affect the result of negotiation extremely, producing unsatisfactory outcomes. It becomes very important for negotiation to be successful to distinguish between the people (emotions, perceptions, personality and communication) and problem (objectives).

It is important to understand the interests of other side, as it will help in understanding the other side in well manner, this will also help working on solutions. Concentrating on position of other side can divert the negotiation on wrong directions. Highlighting the mutual gain during the negotiation will help the process of negotiation in correct direction and both the side will work towards solving the problems rather than creating one.

Focusing on objective is core of all negotiations. Both the parties have to agree on that the negotiations will not turn in debate and which divert the main point of negotiation. This mutual agreement between both parties will help in saving time and reaching a successful negotiation process.