Professional Documents
Culture Documents
Conflict and Negotiation
Conflict and Negotiation
RESOURSE MANAGEMENT
CONFLICT IN INTERNATIONAL
BUSINESS AND
NEGOTIATIONS
MEANING AND DEFINATION
• Conflicts ‘nested’
In conflicts, it is said. For example, conflict
within a work team may be the reflection of a
broader conflict in the organization as a whole.
A conflict is more than a mere disagreement.
Types of Conflict (Cont…)
Professional Conflict:
Governmental and MNEs’ business negotiators may start with
mutual mistrust(distress) due to historic animosity or to
differences in their professional status.
The MNE people may come armed with business and economic
data that governmental officials don’t fully understand, and the
officials may counter with sovereignty considerations that are
nearly incomprehensible to the businesspeople.
Types of Professional Conflict
(Cont…)
Interpersonal conflict, (though this usually just
gets delegated out to psychology)
Emotional conflict,
Group conflict,
Organizational conflict,
Community conflict,
Intra-state conflict (for example: civil wars, election
campaigns),
International conflict,
Types of Professional Conflict
(Cont…)
• Environmental resources conflict,
• Ideological conflict,
• Diplomatic conflict,
• Economic conflict,
• Military conflict,
• Religious conflict,
• Authority relationships
• Status Inconsistencies such as excessive/scanty power,
power without sincerity, and too much politically charged
atmosphere cause conflict.
Causes of Organizational
Conflicts (Cont..)
• Inconsistencies in asset endowments cause conflict. May
be it is class conflict the communists leaders project.
Poor Governance,
Weakest Economies,
Poverty and
• Political Umbrellas
Governance issues:
Economic issues:
Socio-cultural issues:
Security issues:
Enhanced Due Diligence
Human Rights Compliance Assessment (HRCA):
• Negotiation Strengths
• Bargaining/Negotiation Process
• Corporate citizenship
Negotiation Strengths
• Their stature in terms of global presence, competitiveness,
brand equity and financial strength outsmart the rest. Such
MNEs can dictate terms to countries. Usually uniqueness has
great bargaining power. These assets include:
Technology:
Marketing excellence:
Process Expertise:
Export ability:
Brand Equity:
Product diversity:
Large capital:
Bargaining/Negotiation Process
• Negotiations are a means by which an MNE may
initiate, carry on, or terminate operations in a
foreign country.
• In fact the world bank provides guarantee for the private investments.
Similarly EXIM banks of various countries also provide guarantees for
foreign countries.
• Appeals: Both sides can appeal the report. Either side can appeal
a panel’s ruling. Sometimes both sides do so. Appeals have to be
based on points of law such as legal interpretation — they
cannot reexamine existing evidence or examine new issues.
The Main Stages of Dispute
Settlement of WTO (Cont…)
• Hearing by 3 members of a permanent 7-member Appellate Body:
Each appeal is heard by three members of a permanent seven-
member Appellate Body set up by the Dispute Settlement Body and
broadly representing the range of WTO membership. Members of
the Appellate Body have four-year terms. They have to be
individuals with recognized standing in the field of law and
international trade, not affiliated with any government.
• Uphold, Modify or Reverse: The appeal can uphold, modify or
reverse the panel’s legal findings and conclusions. Normally appeals
should not last more than 60 days, with an absolute maximum of 90
days.
• Acceptance or rejection by DSB: The Dispute Settlement Body has
to accept or reject the appeals report within 30 days — and
rejection is only possible by consensus.