The transaction of business between nations; the mutual intercourse of governments by diplomatic agents, in making treaties, composing difference, etc.; as, the negotiations at Ghent.
Tweet! Squawk! SCREEEECH! That racket your modem makes when you go online is negotiation. Your modem is "talking with" the modem at the other end of the line, figuring out how fast each modem can go and how it wants to handle those bit and bytes. Once they've figured that out, your modem is ready to move the information going to and from the Internet. (The sound you hear is the steady burst of static just before everything quiets down.) An experienced Net user can tell how negotiations are going from the sound of the squeaks, creaks and shrieks; some people can even tell how fast the connection will be
Just as diplomats negotiate terms of a settlement or treaty, so computers running Internet Protocols negotiate with other computers running IP. These negotiations allow the computers to make sure they are communicating at the same speed, with the same processes, and that the information they exchange will be packaged in ways that each can properly direct the data to the intended destination. This process is also called handshaking, particularly when speaking of modems connecting to one another. WWWebfx Home Page