Business negotiation

Business Negotiation
Student’s Name
Institutional Affiliation
Business Negotiation
Cross-cultural negotiations normally take place in business, and they need to be objective and strategic to ensure the intended message is passed. Even though closed-ended questions might be used, in most cases open-ended questions are used because of their benefits. These questions enable the parties involved in the negation to explain themselves extensively (DeFranzo, 2014). Since there maybe ideology, language, and even regional differences between the parties involved, this form of question enables the people involved to include extra information thereby creating understanding. Additionally, open-ended questions enable the parties involved to think freely and out of their cultural boundaries. They can then give unlimited responses a factor which eliminates all forms of errors.
Power distance can be defined as the state in which lower class people in the society perceive power to be distributed unequally. Power distance is relevant and therefore useful in a situation where business negotiation has to take place between parties of different regions. It ensures professionalism, accountability, and reliability are maintained. Because of the power distance, expectations of both parties are adequately met.
Anchoring refers to a situation where parties involved in a business negotiation try to establish a point or rather an ‘anchor’ in which the entire negotiation should revolve around.

Normally, anchorage is established during the first meeting of negotiation (Perry, 2018). This point of reference is an opportunity when the price of product depreciates since the parties involved will have to consider the anchor. At the same time, anchorage is a danger when the price of products has to be high, but the point of reference was set low. This will bring about losses to the business.
Legitimate power entails the power or authority that an individual from the office that they hold in an organization. The fact that the individual is given a formal position makes them in charge of some activities and therefore responsible. In the case of negotiation, this power can be used by the parties involved to establish professionalism. With professionalism, ethics sets in and this prevent any party from being exploited during the negotiation process. Even though there may be power distance, professionalism tends to bring about a sense of equality.
References
DeFranzo, S. (2014). Advantages and Disadvantages of Open Questions in Course Evaluations. Snap Surveys Blog. Retrieved 29 August 2018, from https://www.snapsurveys.com/blog/advantages-disadvantages-open-questions-course-eval/
Perry, R. (2018). Negotiation Anchoring Definition | Negotiation Experts. Negotiations.com. Retrieved 29 August 2018, from https://www.negotiations.com/definition/anchoring/