Final answer:
An integrative approach is used when parties in a budget negotiation seek to expand the overall budget to benefit all. This strategy aims for a win-win outcome by finding mutual benefits, contrasting with other negotiation strategies such as distributive or accommodating approaches.
Step-by-step explanation:
When both parties involved in a budget negotiation seek to expand the overall budget so that each party gets more, this is an example of an integrative approach to negotiation strategy. Unlike the concession approach where each party gives up something, the integrative approach looks for ways to expand the pie so that all negotiating parties can benefit. This method often involves creative problem-solving and finding mutual interests that satisfy all parties involved.
In this scenario, each party attempts to not only secure their own interests but also accommodate the interests of the other, seeking a win-win outcome. This is distinct from a distributive approach where the resources are fixed and each party aims to maximize their share, or the accommodating approach where one party may sacrifice their interests to satisfy the other's. The integrative approach fosters cooperation, innovative solutions, and often results in better relationships between the negotiating parties.