白远-国际商务谈判：理论、案例分析与实践-英文版课后习题参考答案

Referential Answerfor the case studiesand negotiation simulations:Chapter oneNegotiation Motivesand KeyTerminologyGroup discussion:Negotiation:Thisnegotiation is an equalexchange process,in whichthe both parties sharecommon interestsaswell as different interests,but in the endthey reacha mutuallyacceptable outcome.Business negotiation:The contentof the negotiation isrelated tocommercial interests,and theissuesare specificand clearlyexpressed.A win-win resultis soughtfor theirrespective commercialinterests,and abinding contract is formedafter the two partiesreach consensus.Internationalbusiness negotiations:The partiesin the negotiations comefrom differentcountries.Such risksanduncertainties increaseasdifferentlanguages,transaction currency,trading conditions,marketprospects,and changescaused in the Covdid-19pandemic havemade the negotiations morecomplicatedand madeboth partiesmore cautious.

5.Read the case study,and considerthe questions:What are the majorreasons thatChrysler missesitsopportunity enteringChina automobile market What is theopportunity costof ChryslerChryslermade awrong estimation about thedevelopment of Chinese automobilemarket anddevelopmentof Chineseautomobile industry.Chryslers interest in sellingjust aprocessing lineis astrategicblunder.Its opportunitycost ismissing thechance ofentering Chineseautomobilemarket,the mostlucrative andpotential one.Chapter TwoNegotiation Procedureand StructureDo simulation“An EconomicRecession^^as required.Analysis:The interests of the employees are to keepthe presentjob,which is also thebottom lineof theemployees,and at the sametime try to negotiatea risein theirwages.While for themanagement totide overthe recessionand avoidlosses are the most important.Comparing thetwooptions,the firstone isbetter choicefor thelabor representatives,since atleast bothwhite-and-bluecollar workers9jobs arekept.

4.Read case study Iand discuss the following questions:1Do youthink the case showsthe principleof mutualgiving andtaking fornegotiation Yes.Theseller alsoasks the buyer togive theirretailing salescost and the buyeragrees,which is apractice ofgiving andtaking.2How important is theexploration of alternative optionin thiscaseThe costof produceris proprietaryinformation.The negotiationwould havefailed ifthe sellerinsistedon notgiving theinformation.The sellerhere showsflexibility byproviding analternativesolution thatsaves the negotiation.

5.Read case study IIand discuss the following questions:1What areChinas interests and whatare US interests in IPR negotiationrespectively Chinasmajorinterest is to getUS support to joinWTO as a developing country.spare noeffort for100job opportunitiesnot tosay overone millionjobs.Chapter thirteenCulture Patternsvs.Negotiation Patterns

6.Do the simulation inthis chapter.Follow thedirection as required by the roleand try toexperience culturaldifferences in the courseof the negotiation.The finalagreement of thenegotiation is reachedbased onmutual concessions.The WorldBankofficials agreednot torefer toall detailedinformation butthe mostimportant numbersmustappear in the documentdelivered to the villagers,such ashow muchthey haveto payfbr thewtertariff.The Chineseproject officialsagreed tomention ofwater tariffand thecontribution thatvillagershad topay.

7.Read thecase study and discussthe following questions:l.Why didMr.Durand decidenot tocarry theSouthern Candlesproduct lineThereason isdue tothe mistakesMr.Picard made.m.Point outMr.Picards culturalmistakes duringhis Parisvisit after a researchinto theFrenchculture.n.Picard believedhe hasa goodunderstanding of the Europeanculture basedon hispast tripstoEurope toattend internationaltrade shows.He wasconfident thathis businessexperience in theUS marketwould carryover tothe Europeanmarket.Many businessmen makethis samemistake.o.Mr.Picard wasimpressed tosee the French business cards printed in Englishand French,which maymean thathis businesscard wasprinted onlyEnglish.In todaysglobal businessenvironment,business travelersshould havebusinesscardsprintedin their ownlanguage ononeside and the languageof thecountry withwhom theywant todo businesson the other side.p.Unlike Americans,many culturestake longlunch breaks,but worklater in the day.This istruein Franceas wellmost otherEuropean countries.q.The Frenchare very social consciousand tendto beformal andreserved.Mr.Picards takingoffhis coatis consideredtoo casualby Frenchstandards.r.The messagesconveyed bynonverbal communicationmust beconsidered whendealing withpeoplefrom adifferent culture.Mr.Picard usedthe“okay sign,which isinappropriate becauseinFrance theokay signmeans zero.s.Mr.Picards blundersdid notend at the businessmeeting.They carriedover tothe dinnerpartyat Mr.Durands home.Roses aregiven atfunerals.His mentioningbusiness duringtheevening is not appropriateeither because it is a verycasual situation,although theFrench liketodiscuss businessduring lunch.t.Mr.Picard didnot doany researchabout conductingbusiness inFrance.Had hedone so,hecertainly wouldhave realizedhow nationalistictheFrenchare.This factalone wouldhave toldhimthat Mrs.Duboiss CanadianFrench wasnot anasset buta liability.When inFrance,one speaksParisianFrench.Mr.Picards lackof culturalawareness andsensitivity ledto Mr.Durands decisionnot tocarrythe Southern Candles products.Mr.Picard cameacross asbourgeois middleclass,which didnotimpress Mr.Durand,who wasverysocialclass conscious.Remember,Les BellesChoses cateredtoan eliteupper-class clientele.Initially Mr.Durand sawSouthernCandlesas complementinghisalready exclusiveline ofproducts.However,his one-day experiencewith MrPicard andhis teamprofessionallyand sociallymade Mr.Durand realizethat Mr.Picard wastoo uncouthto dobusinesswith.

8.Case StudyII HowGiving FaceCan BrewSuccess

8.Read thecase studytwo and discussthe followingquestions:1How didunderstanding the Chinese culturehelp Benjaminachieve the final successofthe negotiationTry topoint outthe behaviorof the Chinese negotiatorsthe Benjaminfeels differentfromhis ownculture.To understand the Chineseculture inbusiness fieldshelps himwin thebrewery project,andlater developmentin China.To sumup thedifferences:•Inviting four teams at the sametime fbr them tocompete againsteach other;Chinese teammemberstaking turnsto talkwith thefourteams;•Implicit andimplied language;Crying poorsaying theyhad alimited budget;•Enough patiencefbr longtime negotiation;Contract beingconsidered asa discussiondocument.9The Chineseexpect youtobe likebamboo andbend with the wind/Try toexplain thereason whytheChinesetake socareof theirfaces Do you alsothink keepingface isvery important for youExplainfrom thecultural perspective.2How muchdo youunderstand theChinese negotiationculture Doesreading thiscase helpyouknow moreabout yourown cultureChapter14:Case StudyICNOOC acquiringUnocal PetroleumCompany

1.Case studyThemain reasonfor the failure ofthis acquisitionis,first of all,the politicalrisks in the UnitedStates,especially theinterference ofanti-China forcesinthe US Congress.In addition,theacquisition involvesan importantindustrial sectorinthe United States,namely theenergy sector.More importantly,CNOOC isChinas thirdlargest state-owned oilcompany,and itsstate-ownednature hasbecome an important pretextfbr opposingChinese enterprisesinvesting inthe UnitedStates,revealing thefact that theChinese enterprises areexposed toincreasing ideologicalrisks inthe United States.Risks inthe economicand tradefield,including thetrade deficitbetween China and theUnitedStates,the strength of theRMB,the lossof assumedAmerican jobsabroad,the risein naturalgasprices,and Chinasworldwide acquisitionof naturalresources,are indirectreasons fbr thefailureofthis acquisition.From theChinese side,the lackof sensitivityof thesenior managementofChineseenterprisesto theunderstanding of the politicalrisks intheUnited States resultedin CNOOCs enteringinto theacquisitionprocess rashly.It was only afterrepeatedly encounteringdifficulties that it realizedthatthe politicalresistance inthe USwas sostrong thatit wasimpossible fbrthem toaccomplish theacquisition.

2.Enlightenment of thecase study:From the economic perspective,CNOOCs acquisitionof Unocalwas beneficialto both sides,and the result shouldbe a win-win situation.However,withtherapid developmentof China!seconomy and the growingstrengthofChineseenterprises,the concernsand precautionsof USpoliticiansabout Chinahave increased.But,atthethat time,Chinas domesticcircles fromenterprisesto academicswere notkeenly awareof thegrowing anti-China sentimentinthedomesticpolitical circlesof theUnited States,and stillbelieved thattheUnitedStates wasthe mostopeneconomy,and investmentintheUnitedStateswasonlyan economicact,until CNOOCencountereda man-made storm11and theacquisition wasstifled.CNOOCs failurealso indicatesthe riseofpolitical riskasamajor onefor Chineseenterprises engagingin economicactivity inthe US.However it is alsofbr Chinasfuture interestif suchan IPR protection systemis tobe established.USinterestsaretoprotect theirIPR holders5interests in Chinaandgain moreaccess toChinamarket.2What arethe issuestalked aboutinIPRprotection negotiationMajorissue:IPRprotection;Related issue:Chinas accessioninto WTO;China-US tradeunbalanceWhat arethedirect and indirect impactsof Chinaseffort intoWTO on theconsequence of the IPRnegotiationChinas effortto joinWTO wasfrustrated bycountries likeUS because of Chinasdevelopingcountry requirement.China makesuseofaccepting Chinasdevelopingcountrystatus asabargaining leveragein exchangefor USdemand toprotection ofits IRPholder interest.However ChinasWTO entranceis nota mainissue of thenegotiation,therefore ithas bothdirectandindirectimpact on theresult of thenegotiation.3What arethe implicationsyou havelearnt fromIPR negotiationAskstudents toanswer thequestion.Chapter ThreeNegotiation LubricationRead thecase study and discussthe followingquestions:1What isyour firstreaction afteryou readthe Gaboncase Interestingor surprisingAskstudents,feedback.2We have a sayingin Chinese“seeing isbelieving”.After youhave readthecase,do youthinkthe sayingis trueor notDependingon situations.In thiscase,seeing isnot believing.^^Do simulation:silk sellingAnalysis:the actualresult ofthis simulationis$

5.36per yard,however almostall studentsdoing thesimulation,their resultsare below$

5.36per yard.Discuss withstudents thereason behind.Chapter fourWin-win Concept

5.Do negotiationsimulation:Financial LeasingNegotiationAnalysis:The mostimportant interestof thelessee is the length of theleasing,however the length ofleasingis regulatedby businesspractices,so theleasing interest rate becomesimportant fbrthelessee.Take thereference of the bankinterestrateandthebenefits gainedfrom reducedincometaxes.For thelesser,the mostimportantisleasing interestrate,the higherthe better.In thisnegotiation,the actualresults:the length of leasingperiod:5years;way ofpayment:equalshare approach,Sanfeng Grouppays anequal amountat everyend ofa month,which isabout

24.19million yuan;service fee:

1.5%of1200million yuan;leasing rate:

7.76%of1200million yuan;additional benefitfor SanfengGroup,thelengthof depreciationyear:reduced from15years to5years,a reductionof

250.8million yuanof taxesChapterfive CollaborativePrincipled Negotiation

1.Case analysisForthe buyerand seller,the requirementsfor thelocation of their newconstructionsare highlycomplementary.The sellerneeds aquiet locationfor theconstruction of the new hotel,while the buyer needsa placewhere the sellers hotelis currentlylocated.The mutualneeds of theboth sidesmake iteasier for the buyerand sellerto reachan agreement.Comparatively speaking,theseller hasgreater bargainingpower inthenegotiationbecause of the scarcityof thehotels location.Moreover,the sellercan requirethebuyer to make concessions inthe priceby showingits goodwilltoyoung people,especially studentsfor whomthe sellermainly serves.

2.Negotiation resultsThefirst bidof bothparties anchoredthenegotiationrange,andthefinal pricewas350,000dollars,of which50,000dollars weregiven tothesellerby thebuyer asinteriordecoration materialsof thenewhotel.The buyer9s intentionis toset upa goodreputation amongyoungpeople.The outcomeof thenegotiationisawin-win situationbecause thebothpartieshaveachieved theirgoals andrealized theirmostimportantinterests.

5.Read thecase studyand answer the followingquestions:1In thenegotiation,one partyuses positionalbargaining andthe otherprincipled negotiation.Tell whouses principled negotiation andhow hashe appliedit.Tom practicesprinciplednegotiationby nothaggling withthe insuranceadjuster,but byemphasizing“what isthe standardfor replacementofacomparable car”.2Has thenegotiation produceda winneror aloserEveryone isa winner.

6.Simulation:Hotel SellingTipsforthe simulation:the actualresult ofnegotiation pricefbr thecaseis$300000,plus$25000donation fbrhotels financialaid fundfbr thosewho maynot able topay fbrtheir stay.Chapter sixLaw ofInterest DistributionDosimulation“A Damon theRiver”asrequired.Analysis:The threeparties finallycame toa solutionafteracareful analysisof each othersinterests.The agreementincludes reducing the originalcapacity designunder thecondition thatthelocal peopleselectricity demandis satisfied.The modificationof thedesign guaranteesenoughwater flowatthelower reaches,meanwhile maintainingtheeco-environment.The agreementalsodecides toestablish aprotection fundfbr Americancranes.It isimportant tohave studentsrealize whyreducingthecapacity ofthe damisawin-win solutionandlearn notto turnto governmentfbr helpas Chineseare used to.The optionof reducingtheoriginal capacityis basedon carefulsurvey ofthe localneed forelectricity andwater needfbrfarmers.The protectionfund comesfrom moneysaved fromoriginal designbudget.

6.Read thecase studyand discussthe followingquestionsWhat arethe majorissues concernedinthe negotiationDirectissue:market access;related issue:dumpingWho arethe keyactors fromthe Americanside,and fromthe JapanesesideThe Americanside:the Departmentof Commerceandthe US TradeRepresentativeUSTR,The SemiconductorIndustry AssociationSIA andindividual chipmanufacturerswere thechief initiatorsand catalystsofthedisputeThe Japaneseside:Ministry ofInternational Tradeand IndustryMITI,the PrimeMinisterand LiberalDemocratic Partyleaders wereallied withMITLCompare theAmericanwin-sets withthe Japanesewin-sets andtell which is more specificThe Americanwin-sets ismorespecificbecause theyhave twotargets andare allsupportedwith specificmeasures andnumeral targets;while Japanesewin-sets arevery generalwithoutspecific measures.1Comment onthefinalresults ofthe Semiconductorscase andtrytoexplain whyAmericannegotiators couldgain whatthey demandedfbrBy thefinal deadlinefbr settlementset bytheUS,an agreementwas reached.It gavethe USeverythingit haddemanded,including Japanesegovernment monitoringof exportprices andthird-country markets,and provisionof firm-specific manufacturingdata totheUSCommerceDepartment todetermine whetherdumping,as definedbytheAmericans wasoccurring.The agreementisaresult ofAmericans specificand forcefulmeasurements,besides,theunification ofthe governmentandtheindustry,and lessdispute betweendomestic producersandend-users madeit possiblefor Americanside to work forone purposeset bythe Americannegotiatorsset inthe win-set.Chapter sevenNegotiating Powerand relatedfactors32:One wayto reducedependence istoseek alternativesupply sources,such asfrom Indiaand Russia,the fourthand fifthlargest inthe world interms ofproduction.The long-term goal isto achieve industrialstructureupgrading,because thesteel industryisacapital-intensive andhighly pollutingindustry,andthe futuredevelopment shouldgradually eliminatelow-value-added productioncapacity andthusreduce theimport demandfbr ironore.The secondgoalistoachievestructuralupgrading ofthe manufacturingindustry andchange theexcessive dependenceonthesteelindustry insome regionsin China.

4.DosimulationNegotiation onOil Contract“while consideringthe followingquestions:1Analyze CO company andJRs stakesand power.CO companysstakes:the estimationofthemarket fbrVCM supplyis overdemand,so successfulrenewofthe contractiscrucial fbrthe company.If thenegotiation fails,the companymay lose20%capacity,which meansthatitmay havedifficulty sellingenough VCMto runits plantprofitablybecause CObreaks evenat70%of ratedcapacity anditisnow runningat87%ofcapacity,including4%tothespot market.So CO company hasa highstake inthenegotiation.COs negotiating power:One ofthe largestand bestknown world-wide producersof industrialpetrochemicals;Good reputationfbr finequality ofVCM,whichisimportant forJR;Having itsown pipelineto JR,which ensurethe stable supply toJR,and relativelylower costoftransportation,5%less ofcost comparedwith supplierswithout pipelineJRsstake:To signthe contractisalso importantforJR,because JR is expandingitsmanufacturing operationsintheproduction ofplastic pipeand pipefittings,particularly inEurope.JR buysa largequantity ofVCM andCO isgeared tosupplying productto JRsqualityspecifications.Interruptions insupply dueto unacceptablequality ordelayed shipmentscan forceacustomer likeJR tocut backproduction orshut downin twoweeks.JRs power:COs secondlargest buyer,taking20%of COscapacityThe marketis gettingover supplied.2Use table7-1to estimate thetwo companies,negotiating power.With thechanging situationofthesupply anddemand market,JRisgaining upperhand inthenegotiation.3What alternativescan youexplore WhyCO company cansell itsVCM atinthespot marketwhere pricesand amountsavailable variedconsiderablyfrom weekto week.It couldreplace100million poundsof JRs200million pounds/year VCMdemand bysellingto foursmall,new customers.To getthese replacement sales intodays marketJune,1977,youwould haveto makeprice concessionswhich wouldreduce revenuesan estimated$1million ayearbelow yourprovisional agreementswith JR,Also thereplacementsaleswould increaseCOsoperating andadministrative costs$150,000a yearfor threeyears.Encourage studentstowork out otheralternatives.4What isyour companysinterestin,and yourwalk away“position for:MFN,MTC,RTRCO canaccept MFN,but notMTC andRTR.MTC wouldallow JRtodemand COto followthose supplieswho sellVCM atlow pricebut alsopoor quality.RTR wouldproducea potentialcompetitor withCOcompanyat VCMmarket.5Are thefundamental interestsofthetwo companiesin convergentor divergentThefundamental interestsofthetwocompaniesare convergentbecause COneeds JRto keepitsprofit andJR dependson COsstablesupplyof qualifiedVCM.6What concessionsor trade-off areyou willingto makeWhyCOcompanyhas madeconcessions onprice,minimum quantities,lengthofnew contractandmetering,so infuture negotiation,COcompanyshould makeno moreconcession exceptin MFN.

5.Read thecase studyand discussthe questions:1What arethe sourcesofthenegotiatingpowerof FAWand VolkswagenFAW:established itsposition asthe numberone automobilemanufacturer groupin Chinawith aconsiderableand stablemarket share inChina,its salesvolume hitting450billion yuanin2013Volkswagen relyingon China market.Volkswagen:the numberone automobileproducer intheworld,ranking thefirst inthe worldtop10automobile manufacturers,enjoying highreputation amongChinese consumers,controllinglatest technologyin developingcars drivenby newenergy whichFAW hopesto acquire,FAWdepending on Volkswagen fbrits supportin beinglisted onthe stockmarketWho hasstrongernegotiating power,FAW orVolkswagenVolkswagen hasstronger negotiatingpower.2Who haswon thelong terminterestsoftheir own,FAW orVolkswagenBoth ofthem have.However,FAW haswon lessbecauseitdoes nothave anyspecific returnexceptfbr thingslike higherinspiration ofthe foreignshare holders,more potentialinvestment,andconfidence forthe future.3What isyour commentonthelengthofthecontractlasting fbr25years25years istoo long.It ispossible thatFAWs dependenceonVolkswagenwill lastfbr another25years.Chapter eightLaw ofTrustRead thecase studyand discussthefollowingquestions:1Whatarethe major problems thecompany confrontsThemajorproblemistheconflict betweenmodernization andexpansion offacilities,essentialto thecompanys long-term success,and improvedprofits nextyear.2In thecasestudy,between theboard andthe managementaretheconflict ofpresent interestsandthe longterm development.What can be doneto addresssuch conflictsItrequires theboard andthe managementto trust eachotherto addressthe conflicts.Besides,the managementhas totrusteachother inorder toworkoutfeasible measuresto satisfythecompanys long-term success,and improvedprofits assuggested bythe hightrust groupinthe simulation.3The conflictsbetween theboard andthe managementare quietcommon.Try totell theintereststhey representrespectivelyThe boardrepresents investors9or shareholders5interestsandmanagement representsthe firmsinterests.4The resultsof twotrial groupsare quitedifferent.Do youthink the results reflect the realsituationofthenegotiationYes,theresultsof hightrust groupand lowtrust groupcanbeexpected andreflecttherealsituation.Chapter ninePersonal Stylesvs.Negotiation ModesThepoint ofthesimulationis thatstudentsshould keeptheir rolesas Americanor Japanesenegotiators asrequired bythesimulation.Thus theresultofthesimulationisnotsoimportant.

7.Read casestudyandanswerthefollowingquestions:1Whatisthe possiblepersonal styleoftheChinese studentinthecase studyHerpersonal styleis avoiding style becauseshe does not stateconsent orobjection openlyandresists passivelyall thetime byfinding excuses,or changingtopics orleaving thematters toothers.2Compare theChinese studentspersonality withthat ofMr.Wangs fromNew YorkConsumersAssociation.Doyouagree thatpersonality playsanimportantrole innegotiationsYes,certainly,but itdoesnotmean thatavoiding stylehas nomerits atall.For instance,aperson ofavoidingstylecan frustrateefforts ofa personof competingstyle effectivelyand makesthelatter tomakeconcessionintheend.Chapter tenGame Theoryand NegotiationApplicationRead thecasestudyanddiscussthefollowing questions:1The casestudy showshow wecan makea decisionwhen weareina dilemma.Do youthinkyou canapply themethod inyour negotiationdecision makingYes,I agreebecause Iwill beabletoestimatetheprobability oftheotherpartys decisionagainstor forme.2When youare notsure ofwhat todo,do youprefer toplay heador tailor tomake youdecisionbased ona rational analysisI wouldmake mydecision basedonarationalanalysisbecause totry onesluck isrisky.Chapter elevenDistributive Negotiationand PriceNegotiationRead thecasestudyand discussthefollowingquestions:1How did thebuyerfind outthe priceoftheequipment wasovervaluedThe buyerdidthecost analysis.2Point outthose factorswhich makeit possibleforthebuyertomake thecost analysis.They usedthe drawingsoftheequipment andbroke itdown itemby item.They thensought twoquotesfor eachitem totrytoestablish acomplete materialcost.They thenobtained thesellersannual reportsfbrthepast fiveyears.Material ratios,labor ratios,overheads,marketing costsandthe sellersprofit werecalculated,and builtinto afiscal model.Chapter twelveComplex Negotiation

5.Negotiation simulation:Green BankTipsfbrthenegotiationsimulation:bothsideshaveacommon interestof promotingsales oftheirproduct,so theymay establisha salespromotion teamconsisting ofboth productdevelopmentspecialists andsales personnel.

6.Readthecasestudyanddiscussthefollowingquestions:1Why didindustries inUS goup againstthe governmentsupporttorescue theChrysler CompanyfrombankruptcyUS isby traditionamarketeconomy,so itis widelybelieved thatmarket hasa finalsay indeterminingthe fateofacompany.2What wasthe mostpowerful pointof argumentthat lacoccausedtopersuade othercongressmenEmploymentrate.lacocca declaredatthecongress hearingthatthecompany had140,000employees and their dependents,4,700auto dealersandtheir150,000employees,19,000suppliersand their250,000employees,and alltheir families.The presidentoftheHouse ofRepresentativesmade hislast effortssupporting lacoccaby statingthat hewould。