Book Report on International Business Negotiation
International Business Negotiation Theory Cases and Practices is a book written by Bai Yuan. It is a text book for international economy and trading of the 21st century and has been compiled to contribute to high qualified negotiation specialists, who will possess necessary knowledge in both negotiation theories and practices. The objective of the book is in complete accordance with the need of China’s requirement for high qualified personnel after its accession into WTO; therefore the book has been widely accepted by experts, professors and students. In 2006, the book was chosen into the list of the national textbooks for “the Eleventh Five Year Plan”.
Introduction of the author:
Bai Yuan, Assistant professor, advisor of postgraduates, now teaching in the Department of Foreign Trade and Economics in Beijing Second Institute of Foreign Languages (BSIFL). After graduation from English Department of BSIFL, she pursued M A degree in world economy in both New York University and International University of Japan. She worked as a
special advisor with the national project office for World Bank project of rural water supply for 6 years and participated in quite a few complex negotiations on investment and trade.
Introduction of the content of the book:
negotiation autoThe focus of the book is on negotiation theories and principles, case studies and practices rather than negotiation skills. The deliberation of the writer is to let students understand the general characteristics of a negotiation so that they will be able to deal with all kinds of negotiations no matter where, when and with whom they are talking with.
The book has three components:
1. Lectures: concentrating on motives, structure, basic theories and principles, personality styles and culture patterns.
2. Case studies: to facilitate better understanding of lectures, both famous cases and cases happening in normal business activities provided for analysis, for example, Sino-US Intellectual Property Right Case, US-Japan Negotiation on Auto and Auto Parts, and cases
based on writers’ personal experiences. Also the book made studies on trust and cultural values, cost structure analysis and ways of achieving win-win result.
3. Simulations: compiled in light of true stories to suit for class practices. Students can, after negotiating among themselves, compare their results and results actually happened and find out the discrepancy. Simulations and other purposely designed exercises aid learning of (1) different negotiation situations, (2)absorbing information and sizing up a situation quickly，(3) condensing and intensifying what happens in business and personal situations,(4) connecting theory with practice.
My understanding of the book
The book has developed a comprehensive knowledge system consisting of negotiation motives, procedure and structure, preparation, basic negotiation theories and principles, negotiators’ psychological behavior and personality styles, negotiation categories, culture patters, exercises and cases. Through learning, we will be able to:
1. Increase understanding the characteristics of a negotiation;
A negotiation is a process of communication between parties to manage conflicts in order for them to come to an agreement, solve a problem or make arrangements. It is a basic means of getting what you want from others. James Wall believes that “business negotiation is a process through which two or more parties coordinate an exchange of  goods or services and attempt to agree upon rate of exchange  for them. ”(James Wall, 1985: 4) ;Ways Max defines negotiation as “a process in which two or more parties, who have both common interests and conflicting interests, put forth and discuss explicit proposals concerning specific terms of a possible agreement. ”(Ways Max, 1979: 15)
2. Develop ability to analyze the process and structure of a negotiation;
People negotiate due to the following motives: 1) to get the limited resources; 2) to fulfill the task both the party can’t do it on his own; 3) to reach an agreement when have different ideas.
Structure of business negotiations consists of inquire, offer, counteroffer and acceptance.
3. Increase awareness of attitudes, mind set and basic theories in different negotiation situations;
Here are the major steps for negotiation: 1) determine interests and issues; 2) design and offer options; 3) introduce criteria to agreement; 4) estimate reservation points; 5) explore alternative to agreement; 6) reach an agreement.
While the negotiation format steps including: 1) introduction of team members; 2) negotiation agenda and its arrangement; 3) formal negotiation; 4) wrapping up.
4. Increase awareness of one’s psychological behavior and personality style as they are backed by one’s culture.

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