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Dialogue is a special kind of discourse that enables people with different perspectives and worldviews to work together to: Dispel mistrust and create a climate of good faith; Break through negative stereotypes; Shift the focus from transactions to relationships, creating community; Make participants more sympathetic to one another even when they disagree
The discourse is a particular expression of the story. In simplest terms, the story is the what in the narrative that is depicted, discourse is the how. Some people would break this down into text (the concrete product) and narration (the inferred process of expression).