In this chapter, we shall only consider the distinctive features of internationalnegotiations. We shall consider the types of international negotiations and the specialissues of place, time, language, etc. Other aspects of negotiation discussed in earlier chapters remain applicable to international negotiations. The problems of understandingdifferent cultures in negotiations will be dealt within the next chapter..
The main features of international negotiations are:
Whether the issues involved have commercial or non-commercialobjectives, their outcome can have far-reaching effects on the industry, economy or onthe socio-cultural aspects of either of the parties involved. Hence apart from the threemain parties, in collaboration negotiations, namely the host country's partner, the hostcountry's government and the foreign collaborator, many other interests are also involved,which have to be kept in mind during the process of negotiation.For example, when Mitsubishi and Chrysler were negotiating a joint venture in Japansome years ago, it took many years to be completed. Among other reasons, an importantone was that in the case of Mitsubishi, it had to take care of the interests of the Ministryof Trade and Industry (MITI), Government of Japan, the politicians, bureaucracy, theAutomobile Association of Japan, other competitors like Nissan and Toyota, the U.S.Auto Industry, media, Mitsubishi's relationship with the U.S. Government, and theJapanese public. Similarly, this was true for Chrysler which had to contend with similar players and issues in its own country and in Japan.
Each player has his own frame of reference depending on his personal interests, which must be analysed by the parties before negotiation.For example, in the case referred to, the Government of Japan recognised the need for trade and capital liberalisation in Japan. Yet, its basic philosophy was to proceed asslowly as possible. On the other hand, MITI was concerned about the effect on Japan'seconomy and society as a result of massive direct foreign investments. The Japaneseautomobile industry was interested in thwarting the joint venture since it was afraid thatsuch liberalisation by the Government of Japan would eventually lead to much greater liberalisation, i.e. with 100 percent foreign ownership. Mitsubishi's interest was to participate in the growing auto industry (especially for passenger cars) and to diversify its product-mix for mass markets while recognising its weakness in marketing, which ithoped to compensate through Chrysler, and also to thwart MITI's policy of reorganising