2. Disadvantages of international
business
Adverse effects on economy
Competition with developed countries
Rivalry among nations
Exploitation
Legal problems
Publicity of undesirable fashions
Language problems
Dumping policy
Complicated technical procedure
Shortage of goods in the exporting country
Adverse effects on home industry
3. Conflicts in International Business
Business and financial institutions have an
important role to play in avoiding or resolving
conflicts that are associated with economic
production.
International conflict is the clash of interest
between the host country, home country and
MNC or the firm related to these two countries.
4. Nature of Conflict
Functional versus Dysfunctional Conflicts
Competition and Cooperation Conflicts
Social, Ethnic, and Racial Differences Conflicts
5. Types of Conflict
Types
Individual Level
Intra
Individual
Inter
Individual
Group Level
Intra
Group
Inter
Group
Organizational
level
Intra Org. Inter Org.
6. Individual Level Conflict
Human behaviour is need motivated. A person
joins any organization to satisfy his needs.
An employee faces a conflict within himself
when he perceives that organization is not
satisfying his needs in accordance with his
perceived standards.
7. Individual Level Conflict - Types
Intra Individual Conflict
Conflict due to frustration
Goal Conflicts
Role Conflicts
Inter Individual Conflict
Personal differences
Information Deficiency
Role Incompatibility
Environmental Stress
8. Group Level Conflict
Intra Group (Within the Group Itself)
Facing New Problem
New values imported from Society
People from different socio economic background
Inter Group (Between Groups)
Competition from resources
Task interdependence
Jurisdictional Ambiguity
Status Struggles
9. Organizational Conflict
Intra Organizational Conflict
Horizontal Conflict
Vertical Conflict
Line & Staff Conflict
Inter Organizational Conflict
Between Organizations pursuing similar
objectives
Between Govt. Agency & Organizations
Between Head Office & a Mfg Unit
10. Sources of Conflict in International
Business
Host Country Factors
Home Country Factors
Combined Factors
11. Host country factors
Size & Equity
Sovereignty
Information Disclosure
Visibility
Regulation & Competition
Employment
Technology
Balance of Payment
Taxation
Specific concerns of the Least Developed Countries
15. Conflict Resolution Actions in IB
Contracts
Resolving Disputes
Local Courts & Local Remedies
Principle of Comity
Litigation
16. Negotiation in International
Business
Negotiation is face to face decision making
process between parties concerning specific
products. – J.L. Graham
Negotiation is any form of meeting or discussions
in which you and/or the persons you are in contact
with use argument and persuasion to achieve an
agreed decision or action. – Alan Fowler
Negotiation can be between home and host
Government, foreign company and local company,
foreign company and host country Government
and the company with its home Government
17. Role of Negotiations
Persuade Opponents to revise their BATNAs
(Best Alternative To Negotiated Agreement)
Determine the other Party’s Interests
Re-Assessing one’s own BATNA
Building Trust
18. Factors Affecting Negotiations
Language Variation
Trust
Cultural differences
Professional Conflict
Negotiated Goal
Protocol
communications
Risk taking propensity
View of time
Decision making system
Form of agreement
Power distance
Personal style
20. Role of International Agencies in
Negotiation
Role of International Finance Corporation in conflict resolution
(IFC)
Role of Multilateral Investment Guarantee Agency in Negotiation
(MIGA)
Role of International Centre for Settlement of Investment Disputes
in Negotiation (ICSID)
Role of International Chamber of Commerce in Negotiation (ICC)
Role of World Trade Organization in Negotiation
23. Ethical Values
Utilization of Natural resources of the host country
Utilization of Natural resources of the home country
Enter the foreign country through joint venture
Transfer of technologies to the developing country
Develop the managers and human resources of host country.
Discharge the responsibilities to various social segments of the host country.
24. Ethical Issues
Sexual & Racial Discrimination
Human Rights
Price Discrimination
Bribery
Ethical dimensions of Labour conditions
Harmful products
Environmental Issues
Telecommunications issues
Intellectual Property Protection
W.T.O
25. Ethical Decision Making
Recognizing an issues as an ethical one
Making the ethical judgment
Resolving to do the ethical thing
Actually acting ethically
26. Problems in Ethical Decision
Making
Rigid Rules and Regulations
Individual Values vs Organizational
Goals
Managers look for shortcut routes
Competitive Pressure
Poor Decisions
Ambiguous Situations
Budget
