Negotiation is a strategic discussion that resolves an issue in a way that both parties find acceptable. Negotiations can take place between buyers and sellers, an employer and prospective employee, or governments of two or more countries. There are a number of reasons for negotiations which is Costs, it helps to reduce the cost of acquisition by achieving a lower price. There are two types of negotiations, which is distributive and integrative negotiation. Distributive negotiations are an attempt to generate value through collaboration, alternative benefits and trade-offs, and time horizon expansion. For example, buying a car is a classic example of distributive bargaining. A car sale involves two disparate parties: a buyer and a seller. In this case, each person has different interests: while the seller wants to make as much money as possible, the buyer seeks to pay the least amount of money possible. Meanwhile, integrative negotiations are essential to the creation of long-term relationships and partnerships. In this example, a furniture vendor says the lowest price they will offer a company for five chairs is $3,000, but the customer says the highest they will pay is $2,800. The client convinces the vendor to lower the price to $2,900, and both parties compromise by giving up their original price to make a deal.