Batna

Batna in International Trade

Meaning of Batna, according to the Dictionary of International Trade (Global Negotiator): An acronym for Best Alternative To a Negotiated Agreement. A technique used to negotiate a better contract or agreement mainly in international business negotiations. There are seven basic steps to developing a BATNA:

List what you will do if you fail to reach an agreement.

Convert the most promising options into practical choices.

Select the single best option (that becomes your BATNA).

Compare your BATNA to all proposals.

If an offer is better than your BATNA, consider improving or accepting it.

If an offer is worse than your BATNA, consider rejecting it.

If the other party will not improve their offer, consider exercising your BATNA.

One of the determinants of your power in a negotiation is the attractiveness of your BATNA as compared to the proposals made during the discussions. International

Business Negotiations.