International Negotiations

Extension activity

Use the commentary to generate four mini-discussions.

1 

What is anchoring? Do the benefits of anchoring outweigh the disadvantages of 

going first?

2 

What three examples of power relationships are given? Do you agree with the 

analysis?

3 

In what way is a negotiation like a poker game? What does a ‘poker face’ look like?

4 

What trick do devious negotiators use? Would you ever use this trick?

Answers

1  Anchoring involves setting the parameters for the rest of the negotiation.

2  A buyer–seller situation, where the buyer usually has the power; a joint venture 

negotiation, where the bigger partner has the power; a salary negotiation, where your 

boss has the power.

3  Because you don’t want the other party to know too much too soon about what you 

want and don’t want! If you have a ‘poker face’, it is impossible for others in the game 

to know what you are thinking.

4  They deliberately misinterpret the terms offered by the other party.