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1、Referential Answer for the case studies and negotiation simulations:Chapter one Negotiation Motives and Key TerminologyGroup discussion: Negotiation: This negotiation is an equal exchange process, in which the both parties share common interests as well as different interests, but in the end they re

2、ach a mutually acceptable outcome.Business negotiation: The content of the negotiation is related to commercial interests, and the issues are specific and clearly expressed. A win-win result is sought fbr their respective commercial interests, and a binding contract is formed after the two parties r

3、each consensus. International business negotiations: The parties in the negotiations come from different countries. Such risks and uncertainties increase as different languages, transaction currency, trading conditions, market prospects, and changes caused in the Covdid-19 pandemic have made the neg

4、otiations more complicated and made both parties more cautious.5. Read the case study, and consider the questions: What are the major reasons that Chrysler misses its opportunity entering China automobile market? What is the opportunity cost of Chrysler?Chrysler made a wrong estimation about the dev

5、elopment of Chinese automobile market and development of Chinese automobile industry. Chryslers interest in selling just a processing line is a strategic blunder. Its opportunity cost is missing the chance of entering Chinese automobile market, the most lucrative and potential one.Chapter Two Negoti

6、ation Procedure and StructureDo simulation “An Economic Recession“ as required.Analysis: The interests of the employees are to keep the present job, which is also the bottom line of the employees, and at the same time try to negotiate a rise in their wages. While for the management to tide over the

7、recession and avoid losses are the most important. Comparing the two options, the first one is better choice fbr the labor representatives, since at least both white-and-blue collar workers, jobs are kept.4. Read case study (I) and discuss the following questions:1) Do you think the case shows the p

8、rinciple of mutual giving and taking for negotiation? Yes. The seller also asks the buyer to give their retailing sales cost and the buyer agrees, which is a practice of giving and taking.2) How important is the exploration of alternative option in this case?The cost of producer is proprietary infor

9、mation. The negotiation would have failed if the seller insisted on not giving the information. The seller here shows flexibility by providing an alternative solution that saves the negotiation.5. Read case study (II) and discuss the following questions:1) What are Chinas interests and what are US i

10、nterests in IPR negotiation respectively? Chinas major interest is to get US support to join WTO as a developing country.spare no effort fbr 100 job opportunities not to say over one million jobs.Chapter thirteen Culture Patterns vs. Negotiation Patterns6. Do the simulation in this chapter. Follow t

11、he direction as required by the role and try to experience cultural differences in the course of the negotiation.The final agreement of the negotiation is reached based on mutual concessions. The World Bank officials agreed not to refer to all detailed information but the most important numbers must

12、 appear in the document delivered to the villagers, such as how much they have to pay fbr the wter tariff. The Chinese project officials agreed to mention of water tariff and the contribution that villagers had to pay.7. Read the case study and discuss the following questions:l. ) Why did Mr. Durand

13、 decide not to carry the Southern Candles product line?The reason is due to the mistakes Mr. Picard made.m. ) Point out Mr. Picards cultural mistakes during his Paris visit after a research into the French culture.n. Picard believed he has a good understanding of the European culture based on his pa

14、st trips to Europe to attend international trade shows. He was confident that his business experience in the US market would carry over to the European market. Many business men make this same mistake.o. Mr. Picard was impressed to see the French business cards printed in English and French, which m

15、ay mean that his business card was printed only English. In todays global business environment, business travelers should have business cards printed in their own language on one side and the language of the country with whom they want to do business on the other side.p. Unlike Americans, many cultu

16、res take long lunch breaks, but work later in the day. This is true in France as well most other European countries.q. The French are very social conscious and tend to be formal and reserved. Mr. Picards taking off his coat is considered too casual by French standards.r. The messages conveyed by non

17、verbal communication must be considered when dealing with people from a different culture. Mr. Picard used the “okay” sign, which is inappropriate because in France the okay sign means zero.s. Mr. Picards blunders did not end at the business meeting. They carried over to the dinner party at Mr. Dura

18、nds home. Roses are given at funerals. His mentioning business during the evening is not appropriate either because it is a very casual situation, although the French like to discuss business during lunch.t. Mr. Picard did not do any research about conducting business in France. Had he done so, he c

19、ertainly would have realized how nationalistic the French are. This fact alone would have told him that Mrs. Duboiss Canadian French was not an asset but a liability. When in France, one speaks Parisian French.Mr. Picards lack of cultural awareness and sensitivity led to Mr. Durands decision not to

20、carry the Southern Candles products. Mr. Picard came across as bourgeois (middle class), which did not impress Mr. Durand, who was very social class conscious. (Remember, Les Belles Choses catered to an elite upper-class clientele.) Initially Mr. Durand saw Southern Candles as complementing his alre

21、ady exclusive line of products. However, his one-day experience with Mr Picard and his team (professionally and socially) made Mr. Durand realize that Mr. Picard was too uncouth to do business with.8. Case Study II How Giving Face Can Brew Success8. Read the case study two and discuss the following

22、questions:(1) How did understanding the Chinese culture help Benjamin achieve the final success of the negotiation? Try to point out the behavior of the Chinese negotiators the Benjamin feels different from his own culture.To understand the Chinese culture in business fields helps him win the brewer

23、y project, and later development in China.To sum up the differences: Inviting four teams at the same time for them to compete against each other;Chinese team members taking turns to talk with the four teams; Implicit and implied language;Crying poor saying they had a limited budget; Enough patience

24、fbr long time negotiation;Contract being considered as a discussion document/ The Chinese expect you tobe like bamboo and bend with the wind/Try to explain the reason why the Chinese take so care of their faces? Do you also think keeping face is very important for you?Explain from the cultural persp

25、ective.(2) How much do you understand the Chinese negotiation culture? Does reading this case help you know more about your own culture?Chapter 14: Case Study ICNOOC acquiring Unocal Petroleum Company1. Case studyThe main reason for the failure of this acquisition is, first of all, the political ris

26、ks in the United States, especially the interference of anti-China forces in the US Congress. In addition, the acquisition involves an important industrial sector in the United States, namely the energy sector. More importantly, CNOOC is Chinas third largest state-owned oil company, and its state-ow

27、ned nature has become an important pretext fbr opposing Chinese enterprises investing in the United States, revealing the fact that the Chinese enterprises are exposed to increasing ideological risks in the United States.Risks in the economic and trade field, including the trade deficit between Chin

28、a and the United States, the strength of the RMB, the loss of assumed American jobs abroad, the rise in natural gas prices, and Chinas worldwide acquisition of natural resources, are indirect reasons fbr the failure of this acquisition.From the Chinese side, the lack of sensitivity of the senior man

29、agement of Chinese enterprises to the understanding of the political risks in the United States resulted in CNOOC s entering into the acquisition process rashly. It was only after repeatedly encountering difficulties that it realized that the political resistance in the US was so strong that it was

30、impossible fbr them to accomplish the acquisition.2. Enlightenment of the case study:From the economic perspective, CNOOCs acquisition of Unocal was beneficial to both sides, and the result should be a win-win situation. However, with the rapid development of Chinas economy and the growing strength

31、of Chinese enterprises, the concerns and precautions of US politicians about China have increased. But, at the that time, Chinas domestic circles from enterprises to academics were not keenly aware of the growing anti-China sentiment in the domestic political circles of the United States, and still

32、believed that the United States was the most open economy, and investment in the United States was only an economic act, until CNOOC encountered a man-made storm and the acquisition was stifled. CNOOCs failure also indicates the rise of political risk as a major one fbr Chinese enterprises engaging

33、in economic activity in the US.However it is also fbr Chinas future interest if such an IPR protection system is to be established. US interests are to protect their IPR holders, interests in China and gain more access to China market.2) What are the issues talked about in IPR protection negotiation

34、?Major issue : IPR protection; Related issue: Chinas accession into WTO; China-US trade unbalanceWhat are the direct and indirect impacts of Chinas effort into WTO on the consequence of the IPR negotiation?Chinas effort to join WTO was frustrated by countries like US because of Chinas developing cou

35、ntry requirement. China makes use of accepting Chinas developing country status as a bargaining leverage in exchange fbr US demand to protection of its IRP holder interest. However Chinas WTO entrance is not a main issue of the negotiation, therefore it has both direct and indirect impact on the res

36、ult of the negotiation.3) What are the implications you have learnt from IPR negotiation?Ask students to answer the question.Chapter Three Negotiation LubricationRead the case study and discuss the following questions:(1) What is your first reaction after you read the Gabon case? Interesting or surp

37、rising?Ask students feedback.(2) We have a saying in Chinese seeing is believing. After you have read the case, do you think the saying is true or not?Depending on situations. In this case, seeing is not believing.”Do simulation: silk sellingAnalysis: the actual result of this simulation is $5.36 pe

38、r yard, however almost all students doing the simulation, their results are below $5.36 per yard. Discuss with students the reason behind.Chapter four Win-win Concept5. Do negotiation simulation: Financial Leasing NegotiationAnalysis: The most important interest of the lessee is the length of the le

39、asing, however the length of leasing is regulated by business practices, so the leasing interest rate becomes important fbr the lessee. Take the reference of the bank interest rate and the benefits gained from reduced income taxes. For the lesser, the most important is leasing interest rate, the hig

40、her the better.In this negotiation, the actual results: the length of leasing period: 5 years; way of payment: equal share approach, Sanfeng Group pays an equal amount at every end of a month, which is about 24.19 million yuan; service fee: 1.5% of 1200 million yuan; leasing rate: 7.76% of 1200 mill

41、ion yuan; additional benefit for Sanfeng Group, the length of depreciation year: reduced from 15years to 5 years, a reduction of 250.8 million yuan of taxesChapter five Collaborative Principled Negotiation1. Case analysisFor the buyer and seller, the requirements fbr the location of their new constr

42、uctions are highly complementary. The seller needs a quiet location fbr the construction of the new hotel, while the buyer needs a place where the sellers hotel is currently located. The mutual needs of the both sides make it easier fbr the buyer and seller to reach an agreement. Comparatively speak

43、ing, the seller has greater bargaining power in the negotiation because of the scarcity of the hotels location. Moreover, the seller can require the buyer to make concessions in the price by showing its goodwill to young people, especially students fbr whom the seller mainly serves.2. Negotiation re

44、sultsThe first bid of both parties anchored the negotiation range, and the final price was 350,000 dollars, of which 50,000 dollars were given to the seller by the buyer as interior decoration materials of the new hotel. The buyers intention is to set up a good reputation among young people. The out

45、come of the negotiation is a win-win situation because the both parties have achieved their goals and realized their most important interests.5. Read the case study and answer the following questions:(1) In the negotiation, one party uses positional bargaining and the other principled negotiation. T

46、ell who uses principled negotiation and how has he applied it.Tom practices principled negotiation by not haggling with the insurance adjuster, but by emphasizing “what is the standard fbr replacement of a comparable car”.(2) Has the negotiation produced a winner or a loser?Everyone is a winner.6. S

47、imulation: Hotel SellingTips fbr the simulation: the actual result of negotiation price fbr the case is $ 300 000, plus $25 000 donation fbr hotels financial aid fund fbr those who may not able to pay for their stay.Chapter six Law of Interest DistributionDo simulation A Dam on the River as required

48、.Analysis: The three parties finally came to a solution after a careful analysis of each others interests. The agreement includes reducing the original capacity design under the condition that the local peoples electricity demand is satisfied. The modification of the design guarantees enough water f

49、low at the lower reaches, meanwhile maintaining the eco-environment. The agreement also decides to establish a protection fund for American cranes.It is important to have students realize why reducing the capacity of the dam is a win-win solution and learn not to turn to government for help as Chinese are used to. The option of reducing the original capacity is based on careful survey of the local need for