Globalization and technology moves the world of business forward. Globalization and technology are essential elements in providing new grounds for business transactions. Understanding how globalization and technology work to make negotiating across countries possible. This examination will discuss the various implications of globalization and technology in the negotiation process. Further, provide insight into the value of globalization and technology in business transactions.
Globalization plays a substantial role in the everyday business processes. Globalization allows companies or businesses to expand and outsource jobs to maintain a low price for products. “Negotiations and contracts constitute one of the major issues in business”(). Expansion to other countries will bring in more revenue for the business and create jobs. In a domestic business transaction, globalization may also include the expansion from one state to another.
The business process may vary from state to state; moreover, the needs and wants of the consumers vary as well. In negotiation, globalization takes the same business processes into consideration regarding whether to greet people in a specific way, a preference of gender at business meetings, or even the style of business cards. Another method of globalization may be from purchasing an ethnic item at the grocery store.
The negotiation process to arrive at an agreement or contract to distribute this specific ethnic product took place to allow this product to exist in the store. Undoubtedly, globalization employs the use of technology to permit an ease of business transactions. For example, instead of hosting a teleconference with the advancement of technology, businesses may videoconference and have the face-to-face connection. In relation to negotiation, videoconferencing allows the negotiations to take place through globalization.
Face-to-face situations compel a negotiator to be more honest and cooperative because of the personal and emotional consequences of being caught in a lie in the face-to-face context” (Thompson, 1998, p. 267). Therefore, technology may pose as a negative factor in the negotiation process. Nevertheless, the mix of globalization, technology, and negotiation may not necessarily work together to produce an ideal outcome. Ultimately, the effects of globalization and technology in the negotiation process may be beneficial.
However, adapting to the new methods of business and negotiation is important. In addition, practicing effective negotiation strategies through globalization is significant to understanding the best method of arriving at a settlement or agreement. In negotiating globally, understanding the opposing side’s culture may benefit the contract at hand. Therefore, studying the business practices of the opposing side is important to not offend them and prolong the negotiation process.