There must be a contractual relationship between parties for international trade to take place
Nevertheless, it is crucial to remember that the contractual agreement varies depending on the nature of commodities and services (Grath, 2016).
Other factors of foreign trade
include the nature of payment arrangements, such as letters of credit and their equivalents. The description of the commodity is given when doing international trade; this is significant in bringing to light the sort of risk that would be involved when exchanging the products. Some of the principal determinants of the same are legal structures in different countries, common and civil law cultures in different countries may create different ways in which international trading is undertaken (Grath, 2016). When doing international transaction negotiations, a brief description of the public law is given and includes the methods that are used in solving disputes as indicated by the World Trade Organization (WTO).
International trade negotiators work in a variety of industries
ranging from organization providing financial services, manufacturing companies to governments. Negotiators have the function of doing an analysis of trade information, market evaluation, and even prevailing economic factors that may have an impact on trade.
Becoming a successful negotiator.
International trade negotiators have a difficult task of negotiating and ensuring successful trading between nations, firms, and individuals in different countries. Having the right kind of negotiation skills involve coaching and self-reflection. Great negotiators should develop the ability to analyze the situation and see what might and might not happen; this enables them to make better decisions and do not react negatively. Good international trade negotiators have to be intelligent. When it comes to numerical reasoning, conceptual thinking, and even verbal skills, they should have the necessary knowledge and expertise. It makes it easy to come up with ideas that are workable. Good international trade negotiators also have high self-esteem as well as confidence; this is due to the fact that aggressive parties which you trade with can detect your lack of self-esteem and exploit it for their benefit. It allows people to be bold and take risks. When doing negotiations, it can be stressing and one needs to be able to make better decisions even in times of stress (Coffee, Sale, & Henderson, 2015). Those who get stressed too much often miss opportunities leaving a chance to their counterparts to exploit their stressful situation. Emotional control is also what could lead to a successful negotiation; this is due to the fact that it enables negotiators to remain in control of the negotiation. If you cannot control your emotions, the counterparts could harness the same and make decisions on your behalf. Before getting involved in trade negotiations, it would be important to have the necessary knowledge and expertise in the area, this enables you to make better decisions and gain consistent success.
Cultural influences on negotiations
International business not only transcends borders of countries but also cultures and due to the fact that firms trading trade in different cultures, it has had a profound effect on the way people think and even communicate. Cultures are also likely to affect the way people make negotiations and even perform transactions (Coffee, Sale, & Henderson, 2015). There are different cultures in different organizations, for example, when a Canadian family-owned business is trading with a Chinese firm, barriers would block or disturb business negotiations. The different cultures in the world pose a difficult to even the world’s most seasoned negotiators.
How cultures influence international business practices
The market becomes more and more dynamic and at the same time offers opportunities for firms to expand across borders. Global businesses face stumbling blocks when it comes to cultures in different countries. When it comes to international business, culture refers to the accepted mode of professionalism in a country. For international business to be successful, it would be important to overcome international business practices such as communications, etiquette, and even organizational structures.
Cultural influences on international apparel retailing
Many cultural factors have the influence of the success of retail businesses. Some cultural factors in a given country can entirely change the way the attitude of society in a given country towards certain brands of goods (Folsom, Gordon, Alstine, & Ramsey, 2016). If apparel retail business owners cannot cope and produce major changes in the way society perceives brands, it would completely be eliminated from the market; however, if retail businesses pay close attention to factors such as social responsibility of their customers, client preferences, and generational differences, it is likely to succeed in the market.
Cultural influences on international business especially risk and rewards
When conducting an international business that traverses different cultural environments, business managers must fully comprehend and acknowledge the function of culture therein in presenting both opportunities and threats (Gillette, & Walt, 2015). A business manager must learn cultural differences hence knowing the exact risks and rewards presented. The risks associated with national culture within which the organization operates have the ability to significantly affect the success of business. There are determinants of culture, and understanding the same presents barriers and other markets that are far different from the ones outside their homes.
References
Grath, A. (2016). The Handbook of International Trade and Finance: The Complete Guide for International Sales, Finance, Shipping and Administration. Kogan Page Publishers.
Gillette, C., & Walt, S. (2015). Sales Law, Domestic and International. West Academic.
Folsom, R., Gordon, M., Van Alstine, M., & Ramsey, M. (2016). International business transactions in a nutshell. West Academic.
