STEP 1: Please read the article titled “Intl Negotiation Considerations” at the bottom of the page. Read this 2-page document to set the table for our discussion.
STEP 2: ROLE PLAY
You are the lead negotiator of a high-profile American trade delegation. Your assignment: Approve a new trade deal with either the Chinese or the Arabs (Saudi Arabia) by Jan 1 of the coming year for the current administration. You will have equal time to negotiate with both coutries, but the U.S. government can only approve one of the two trade proposals.
The chinese trade deal will bring billions of dollars in savings for the US steel industry by offering our market access to low-cost raw materials; in turn, this should help the ailing U.S. housing and construction industries recover from their slump. The savings should translate into lower house prices for American consumers.
The Arab trade deal will bring in billions of dollars in savings for the U.S. oil and gas industry by negotiating subsidies from OPEC oil producers, lowering the import price of OPEC oil for the next 5 years. This will relieve cost pressure on U.S. refineries and service stations. The savings should translate into lower fuel prices and automobile costs for American consumers, and help the ailing US auto manufacturers like Ford and GM.
You are receiving intense lobbying pressure from both sides: the steel/housing industry and the oil/auto industry. At the end of negotiations, your decision will make one group extremely happy and the other group will be extremely upset. Apart from benefiting one group of U.S. stakeholders over another, your decision must realistically consider with which foreign government (culture) your negotiations will have a better chance of success.
STEP 3: Read the following 2 short articles:
From the Denver Business Journal: “It takes special savvy to negotiate with Arabs“, by P.J. Dinner
From the Chinese Negotiation website, Negotiation in China: “Chinese Negotiators Talk Win-Win but Walk Win-Lose“
STEP 4: Answer the following questions in your first post:
(a) decide which of the 2 trade deals (Arab or Chinese) you will recommend for approval to the administration
(b) explain why you made that choice: Will you have more successful, more friendly or more productive negotiations with one culture compared to the other? Why?
(c) include any tactics or strategies your delegation will employ to ensure a successful cross-cultural negotiated outcome.