Environment of Global Negotiation

Question 1

Two overall contexts have an influence on negotiations across national borders

Answer 1

Immediate context

Environmental context

Question 2

Which context includes factors over which negotiators appear to have some control?

Answer 2

Immediate

Question 3

Which context includes factors over which there is little control by negotiators, and which make negotiating globally more challenging than domestic negotiation?

Answer 3

Environmental

Question 4

What does ZOPA stands for?

Answer 4

Zone of Potential Agreement

Question 5

What is the possible sources of value?

Answer 5

Different capabilities, resources, valuations.
Different risk profiles.
Different time horizons.
Different predictions.

Question 6

What is the structures to capture value?

Answer 6

Make trades
Insurance contracts
Installment contracts
Contingent agreements

Question 7

Bakra Beverage case illustrates the challenges for businesses operating in countries/regions with:

Answer 7

political instability
security concerns
sudden change in government policy.

Question 8

Immediate Context:

Answer 8

1. Negotiation process
   ¡ Distributive versus integrative
2. Desired outcomes
   ¡ Tangible and intangible factors
3. Immediate stakeholders
   ¡ E.g., managers, employees, Boards of Directors
4. Relative bargaining power
   ¡ E.g., joint ventures, where party who invests more equity may have more power and influence over negotiation process and outcome
5. Levels of conflict
   ¡ High levels of conflict and interdependence will influence
   process and outcome, e.g. ongoing conflicts in the Middle East
6. Relationship between negotiators
   ¡ The relationship between negotiators as an important influence on process and outcome.

Question 9

Environmental Context:

Answer 9

1. Political and legal pluralism
   ¡ Different labor, contract or tax laws that business must meet
2. Currency fluctuation and foreign exchange
   ¡ Any change in the value of a currency can significantly affect the
   value of the deal
3. Foreign governments and bureaucracies
   ¡ Government intervention, heavily regulated industries, weak
   institutions, bureaucratic delays
4. External stakeholders
   ¡ Business and industry associations, Labor unions, Embassies, NGOs
5. Instability and change
   ¡ Shortages of goods, services, resources
   ¡ Political instability (coups, sudden shift in government policy)
6. Ideological differences
   ¡ Different views on individual rights, private investment,
   capitalism
7. Cultural differences
   ¡ Culture complicates negotiation, through different norms and values, different negotiation strategies, and different methods for conflict resolution