International Business Negotiations: Critical Examinations and Lessons from Select Cases Worldwide
In the dynamic world of international business, negotiations play a pivotal role in shaping global interactions. Recent case studies have highlighted various aspects of these negotiations, demonstrating the importance of strategic partnerships, technological advancements, and regulatory frameworks.
One significant development has been the collaboration between pharmaceutical giants during the COVID-19 pandemic. In early 2021, Merck agreed to assist Johnson & Johnson in producing its COVID-19 vaccine, following a government offer of over $250 million. This collaboration, born out of crisis, leveraged each company's strengths to meet urgent global needs [2].
Technological advancements have also made an impact. In 2025, a case study from AI-powered supplier negotiations showed a 40% reduction in costs, achieved through predictive analytics and scenario modeling. These techniques helped manage supplier performance and risk more effectively [3].
Trade agreements have also been a focus. The Canada–Indonesia Comprehensive Economic Partnership Agreement (CEPA), signed in December 2024, aims to provide preferential tariff treatment to over 95% of Canadian exports once fully implemented [4]. Similarly, the European Union–Chile Advanced Framework Agreement, which entered into force in February 2025, modernized trade relations by expanding tariff-free access and adding innovative provisions on sustainability and gender equality [4].
However, international negotiations are not without their disputes. A tragic incident occurred in Bangladesh in 2013, when an eight-story factory collapsed, killing an estimated 1,129 people, most of whom were low-wage garment workers manufacturing goods for foreign retailers. This incident sparked public pressure on companies to improve working conditions for foreign workers [1].
Another dispute arose over the chain of islands in the East China Sea, with several nations, including China and Japan, laying claim to the area. The creation of an "air defense" zone by China in 2013 escalated the dispute between the two countries [1].
In the political sphere, negotiations have played a crucial role in resolving conflicts and preventing wars. For instance, in 2013, then-U.S. Secretary of State John Kerry and his Russian counterpart, Sergey Lavrov, announced a deal to prevent the United States from entering the Syrian War, contingent on Syrian President Bashar al-Assad's promise to dismantle his nation's chemical weapons [1].
The interim agreement with Iran in 2013 was designed to give international negotiators time to negotiate a more comprehensive pact that would remove the threat of Iran producing nuclear weapons [1]. The negotiations were complex, with Iranian President Hassan Rouhani insisting that Iran had a sovereign right to enrich uranium, a claim that was rejected by the United States [1].
Negotiations between North Korea and South Korea were supposed to begin in Seoul but collapsed due to North Korea's complaint about the lead negotiator from the South not having a high enough status [1].
The European Union also faced challenges in coordinating economic activities and policies among its member states. A summit held in 2013 revealed strong German resistance and pessimism about a unified EU banking system [1].
Microsoft's $7.2 billion purchase of Finnish mobile handset maker Nokia in 2013 aimed to build Microsoft's mobile and smartphone offerings [1].
These examples demonstrate the variety of international business negotiations across different sectors and contexts, underscoring the importance of strategic partnerships, technological advancements, and regulatory frameworks in shaping global business interactions. They also highlight the importance of pride and power perceptions in international negotiations.
- In the field of business, research has shown that dispute resolution programs can be effective in resolving conflicts, as demonstrated by the interim agreement with Iran in 2013, which aimed to prevent Iran from producing nuclear weapons.
- Negotiations in the business world often require skilled communication, as shown by the Microsoft-Nokia merger in 2013, which aimed to build Microsoft's mobile and smartphone offerings, but collapsed due to power perceptions.
- Beyond direct business matters, negotiations have a significant role in finance, as seen in the collaboration between pharmaceutical giants during the COVID-19 pandemic, which was facilitated by a government offer.
- As technology advances, negotiation strategies in business are also evolving. For instance, AI-powered supplier negotiations in 2025 led to a 40% reduction in costs through the use of predictive analytics and scenario modeling.
