What is the purpose of negotiation in business?

Negotiation in business primarily serves the purpose of facilitating a discussion that aims to reach an agreement between two or more parties. This process is essential in various business contexts, such as forming contracts, resolving disputes, or agreeing on terms for partnerships. The negotiation process involves back-and-forth communication and compromise, allowing each party to express their interests and needs, ultimately leading to a mutually beneficial outcome. By engaging in negotiation, parties can build relationships, foster collaboration, and enhance their understanding of each other's positions, which is critical for long-term success in business dealings.