The Zone Of Potential Agreement

In trade negotiations, two contradictory mistakes are common: reaching an agreement if it was not wise to do so and moving away from a mutually beneficial outcome. How can you avoid these pitfalls? Through careful preparation including an analysis of the area of the possible agreement or ZOPA in trade negotiations. . Read Of course, common sense requires that if there is no overlap in the areas of expectation of the seller and the buyer, an agreement becomes highly unlikely. Even if zopa exists, the agreement may still not be reached if the parties still do not reach an agreement. The letter “P” in ZOPA, which means a possible agreement, will be more likely to occur, but it is not definitive. .

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