School of Business, Yangzhou University

Final Examination 2021

International Business Negotiation

EXAM CONDITIONS: Open Book

WRITING TIME: 3 hours

NUMBER OF QUESTIONS: Part A Multiple Choice Questions.

Part B True/False Questions

Part C Short Answer Questions

Part D Mini Case Analysis Questions

VALUE: 50% of total assessment

INSTRUCTIONS TO CANDIDATES:

1. Enter your name and student number at the bottom of this page.
2. The exam will begin at 2pm Beijing time. You will have 3 hours and 10 minutes to
complete the exam, typing your answers into this Word document.

DECLARATION:
By completing and submitting this exam, I declare that the answers are my own
work and I will not knowingly share the contents or my answers with any other
person before I or they have completed and submitted the exam.

STUDENT NAME: MONDAL PALASH (刘伟)…… STUDENT NUMBER: …188801099……………….

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International Business Negotiation 2021 Exam
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 Part A Multiple Choice Questions（1 mark/question, 20marks total）
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
E B C B C B E B D E
11. 12. 13. 14. 15. 16. 17. 18. 19. 20.

E E E A E D C B E E

1. Which perspective can be used to understand different aspects of negotiation?

A) economics
B) psychology
C) anthropology
D) law
E) All of the above perspectives can be used to understand different aspects of
negotiation.

2. To most people the words "bargaining" and "negotiation" are

A) mutually exclusive.
B) interchangeable.
C) not related.
D) interdependent.
E) None of the above.

3. Which of the following processes is central to achieving almost all integrative

agreements?
A) moderating the free flow of information to ensure that each party's position is
accurately stated
B) exchanging information about each party's position on key issues
C) emphasizing the commonalties between the parties
D) searching for solutions that maximize the substantive outcome for both parties
E) All of the above processes are central to achieving integrative agreements.

4. A zero-sum situation is also known by another name of a situation. Which of the

following is that?
A) integrative
B) distributive
C) win-lose
D) negotiative
E) None of the above

5. In brainstorming
A) individuals work in a large group to select a single optimal solution.
B) all solutions are judged and critiqued as they are recorded, and a weighted-
average percentage is assigned to each solution.
C) parties are urged to be spontaneous and even impractical.
D) the success of the approach depends on the item-by-item evaluation and critique
of the solutions as presented.
E) None of the above is a part of the brainstorming process.

6. When confronted with complex problems, or a large number of alternative options, which
of the following steps is necessary?
A) broaden the range of solution options

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 B) evaluate solutions on the basis of quality, standards, and acceptability
C) decide on criteria while evaluating options
D) maintain a focus on the influence of tangibles in selecting options
E) All of the above steps should be used when confronted with complex problems.

7. Integrative negotiation fails because

A) negotiators fail to perceive the integrative potential of the negotiating problem.
B) of distributive assumptions about the negotiation problem.
C) of the mixed-motive nature of the issues.
D) of the negotiator's previous relationship with one another.
E) All of the above are reasons why integrative negotiations fail.

8. What is the dominant force for success in negotiation?

A) a distributive vs. integrative strategy
B) the planning that takes place prior to the dialogue
C) the discussions that precede planning sessions
D) the tactics selected in support of strategic goals
E) all of the above

9. What are the two dilemmas of negotiation?

A) the dilemma of cost and the dilemma of profit margin
B) the dilemma of honesty and the dilemma of profit margin
C) the dilemma of trust and the dilemma of cost
D) the dilemma of honesty and the dilemma of trust
E) None of the above.

10. Frames are shaped by conversations that the parties have with each other about the
issues in the bargaining mix. Which of the following factors can affect how the
conversation is shaped?
A) Negotiators tend to argue for stock issues, or concerns that are raised every time
the parties negotiate.
B) Each party attempts to make the best possible case for his or her preferred
position or perspective.
C) Frames may define major shifts and transitions in a complex overall negotiation.
D) Multiple agenda items operate to shape issue development.
E) All of the above contribute to the shaping of the conversation.

11. The best way to manage perceptual and cognitive biases is:
A) to be aware that they exist.
B) to participate in group discussions.
C) to tell people about the bias.
D) complete a questionnaire.
E) All of the above help manage biases but may not be enough in and of
themselves.

12. Resources are more useful as instruments of power to the extent they are highly valued
be participants in the negotiation. Which of the following is not a resource of
organizational context?
A) Money, in its various forms.
B) Supplies, in form of materials, components, parts.
C) Human capital in available labor supply, staff, temporary help.
D) Critical services, in repairs, upkeep, technical support.

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 E) Stress, in imposing deadlines, increasing workloads,

13. Why is it important to explore the other party's outlook?

A) It can give us more information.
B) It can lead us to designing solutions to meet both sides' needs.
C) It further increases the other party's feeling of being listened to.
D) It makes the other party more receptive to meeting our needs.
E) It is important to explore the other party's outlook for all of the above reasons.

14. A large majority of agreements in distributive bargaining are reached when the
deadline is
A) near.
B) flexible.
C) past.
D) undefined.
E) None of the above.

15. The negotiators' past relationship will affect current behavior if the parties
A) have been previously competitive.
B) have been previously cooperative.
C) feel indebted to one another.
D) hold grudges toward one another.
E) The negotiators' past relationship will affect current behavior under all of the
above conditions.

16. Which of the following is an immediate context factor in cross-cultural negotiations?

A) external stakeholders
B) instability
C) international economic factors
D) relationship between negotiators
E) All of the above are immediate context factors in cross-cultural negotiations.

17. Which of the following factors most influences relative bargaining power?
A) the extent to which negotiators frame the negotiation differently
B) tangible and intangible factors
C) management control
D) personal motivations of external stakeholders
E) None of the above factors influence relative bargaining power.

18. The goal of most negotiations is achieving which of the following?

A) A final settlement
B) A valued outcome
C) An agreement per se
D) A value claiming goal
E) A value creating goal

19. Research suggests that too much knowledge about the other party’s needs can lead
to a
A) quick and positive outcome.
B) dilemma of honesty.
C) negative effect on your reputation.
D) groundwork for agreement.
E) suboptimal negotiation outcome.

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 20.Negotiators should make a conscious decision about whether they are facing a
fundamentally distributive negotiation, an integrative negotiation, or a
A) combative negotiation.
B) group negotiation.
C) cooperative negotiation.
D) creative negotiation.
E) a blend of both distributive and integrative negotiation.

Part B.True/False Questions（1 mark/question, 20marks total）

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
T T F T F F T T F F
11. 12. 13. 14. 15. 16. 17. 18. 19. 20.

F T T F T T F F T F

1. If what we want exceeds what the other party is capable of or willing to give, we must either
change our goals or end the negotiation. （ ）
2. Negotiators who do not believe anything that the other party tells them will have a very
difficult time reaching an agreement. （ ）
3. Many of the most important factors that shape a negotiation result do not occur during the
negotiation, but occur after the parties have negotiated. （ ）
4. A creative negotiation that meets the objectives of all sides may not require compromise. （
）
5. It is possible to ignore intangibles, because they affect our judgment about what is fair, or right,
or appropriate in the resolution of the tangibles.（ ）
6. Studies indicate that negotiators who make low or modest opening offers get higher settlements
than do those who make extreme opening offers. （ ）
7. If a major concession has been made on a significant point, it is expected that the return offer
will be on the same item or one of similar weight and comparable magnitude. （ ）
8. A public commitment statement means that the wider the audience, the less likely the
commitment will be changed.（ ）
9. Hardball tactics are infallible if used properly. （ ）
10. Integrative agreements have been shown to be facilitated when parties exchanged information
about their positions on particular issues, but not necessarily about their priorities on those
issues. （ ）
11. "Expanding the pie" as a method of generating alternative solutions is a complex process, as it
requires much more detailed information about the other party than do other methods.（ ）
12. A single planning process can be followed for both a distributive and an integrative process.
（ ）
13. Single-issue negotiations can often be made integrative by working to decrease the number of
issues.（ ）
14. Tactics designed to create power equalization are often employed as a way to gain advantage
or to block the other's power moves. （ ）
15. When receivers are distracted, they are less able to engage in issue-relevant thinking, and
hence may be more susceptible to processing "peripheral" cues which may push them toward
a particular choice option. （ ）

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 16. If it is to your advantage to find and explore commonalties in experience, attitude, and
background with the other party, it is also to your disadvantage to highlight those areas where
you differ. （ ）
17. The fundamental questions of ethical conduct arise only when we negotiate in distributive
bargaining situations. （ ）
18. The concept of end-result ethics emphasizes that one ought to commit one's self to a series of
moral rules or standards, and make decisions based on those rules. （ ）
19. Ideological clashes increase the communication challenges in cross-border negotiations in the
broadest sense because the parties may disagree on the most fundamental levels about what is
being negotiated. （ ）
20. The "culture-as-shared-values" approach has advantages over the "culture-as-dialectic"
approach because it can explain variations within cultures. （ ）

Part C. Short Answer Questions (6 marks/question, 30 marks total）

1. Why is important for goals to be concrete, specific and measurable?

Answer:

It's imperative in the counseling process that the goal set for the client should be specific,
concrete, and measurable, time in order to assess them and evaluate the change. The goal "I
want to figure out what to do with my life " is very broad. Hence it can be made more
specific, concrete as "By the end of the week, I'll be able to come up with three career options
that look appealing to me ". "By the end of the week, I'll be able to come up with 2 skills I
want to learn that will come handy in my future "

2. What role do frames play in the way they are constructed so that bargainers define
problems and courses of action jointly through their talk?

Answer:

Framing is an important technique of Negotiation that focuses on the interests of all the
parties concerned rather than their stated positions. This results in looking at innovative or
different solutions which are "win-win" for both the parties concerned. In this particular
example, the Office Manager looked at the interests of both the concerned parties rather than
their stated positions. He found that by opening the window of the adjoining room fresh air
could be circulated without the draft. This solution was seen as a "win-win" for both parties.
It has been found out that the fear of loss is a greater incentive than potential reward as seen
in this case as both the parties felt that they had "won" and not lost in the solution being
offered. Framing allows the negotiator to refocus the issue in a way that allows the aggrieved
or concerned party to look at things (frame of reference) differently and he is now in a better
frame to accept the proposed solution. However, the Framing method of negotiation has been
criticized by some as not addressing all issues and may lead to not fairly evaluating
alternative viewpoints.

3. What specific steps are entailed in effective planning?

Answer:

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  Defining the issues;
 Assembling issues and defining the bargaining mix;
 Defining interests;
 Defining limits and alternatives;
 Defining one's own objectives (targets) and opening bids (where to start);
 Assessing constituents and the social context in which the negotiation will occur;
 Analyzing the other party;
 Planning the issue presentation and defense;
 Defining protocol –where and when the negotiation will occur, who will be there,
agenda, etc

4. Why might it be beneficial for parties in an integrative negotiation to know and share
BATNAs?

Answer:

BATNA is the abbreviation for Best Alternative to a Negotiated Agreement. According to the
basic negotiation theory, BATNA should be the benchmark by which one can compare the
offer brought to the bargaining table with the best one would get if they would opt to walk
away. BATNA(The best alternative to a negotiated agreement) is the benefit to those people
who do not have knowledge of good alternatives in the negotiation agreement. Persons in the
negotiation agreement who possess good alternative knowledge can get better deals out of the
negotiation, But by sharing BATNA with the person in the agreement, negotiators are not able
to get unreasonable benefit from the BATNAs because the main core information/
alternatives regarding the agreement have been provided to them.

5. What are the strategies for responding to hardball tactics?

Answer:

Hardball tactics are measures used in a negotiation to set a competitive tone. It generally
involves using some form or power, leverage, or persuasion to coerce the other party into
changing their objectives, expectations, or position in the negotiation.

1) Chicken Tactic

In this hardball tactic, the negotiator take help of a big bluff with a frightening action to force
the other party to satisfy their demands. The negotiator forces another party to close the deal
immediately.

Example- one party is threatening the other party with, “If you do not sell this laptop at 200
dollar , I will buy the same phone from the next store who is interested in selling it at the 200
dollar . The seller believed the customer’s bluff and agreed to sell the phone at 200 dollar

2) Bogey Tactic

Bogey tactics are used when negotiators hides their interest in front of the other party.
Negotiators pretend that the issue have very little importance to the opposite party offering .

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But reality is that they have significant importance for that , but they do not want to show
their interest in front of the opposing party.

Example- Assume that you want to but a mobile phone with a fingerprint lock feature. Now,
the shop owner is showing you the latest mobile phone and indicting the new fingerprint
feature. You are glad to see the new fingerprint feature on the phone. However, you are not
showing interested in the fingerprint sensor lock feature. You are hiding your interest in front
of the shop owner. You think that store owner can increase the price if you show more interest
in the new fingerprint lock feature. Therefore, you pretend that you have no interest in buying
this new phone. Eventually, you buy a phone at a low price that has the new fingerprint
sensor feature.

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Part D. Mini Case Analysis Questions (15 marks/question, 30 marks total)
MINI-CASE: Pace of negotiations
When three senior managers from an Indian manufacturing company make a business trip to the US,
they are surprised by how quickly things get done.
Business negotiations that would take weeks or months in India, take just a few days to complete.
Other major differences become obvious to the managers. As they point out to their American
counterparts, in India many people are usually involved in making important decisions, and business
deals take a long time to set up. But US managers seem to make decisions quickly. The Indians get
the impression that the US managers do not need to consult their colleagues or even their boss.
Questions 1:
Why is the pacing of business negotiations in the US faster than in India? What cultural factors are
involved?

Answer:

Negotiations in the U.S. may take less time than anywhere else in the world. ‘Speed matters’
and ‘time is money’ are beliefs most members of this culture share, and doing is usually
valued much more highly than planning and analyzing. Accordingly, your counterparts will
generally want to finish the negotiation in a timely manner and implement actions soon. Even
complex negotiations may not require more than one trip, as follow-up negotiations are often
conducted via phone and e-mail.

The pace of Negotiation – Expect negotiations to be slow and protracted. Delays are often
inevitable, particularly when dealing with government bureaucracy. Be prepared to make
several trips if necessary to achieve your objectives. Throughout the negotiation, be patient,
control your emotions, and accept that delays occur. Indians view impatience or pushiness as
rude.

MINI-CASE: Scope of services

A European consulting firm bids to carry out a nationwide vocational education and training study in
an Asian country and is subsequently invited to attend negotiations with the appropriate government
agency. Inviting bidders to conduct negotiations on price before the award of a contract is confirmed is
common practice in the case of international agencies and with the international aid departments of
some national governments.
At one point in the subsequent negotiation, strong concerns are expressed by the government team
about the proposed starting and finishing dates for the study, and about the consultant's fees and
expenses as set out in the financial proposal. Government negotiators also strongly criticize the
imprecise nature of the scope of services to be provided by the consultant as set out in the
consultant's proposal document.
However, the disputes are resolved when the consultant provides further information which is much
more detailed than the information contained in the firm's proposal document. The new information
specifies the schedule of activities to be undertaken and the methods to be used by the consultant for
collecting and analyzing data. Precise details are also given of report-back
mechanisms to be established by the consultant, with the aim of ensuring that the government has all
the information needed for effectively monitoring and supervising the project.
This additional information clarifies the situation and satisfies the government agency. As a result, the
consultants' team feels that it will be able to work within the terms and conditions stated in the draft
contract.
Question 2:
In addition to providing the additional, higher-quality information, what other actions could the
consultants' team take during the course of the negotiation to resolve the conflict and ensure that its
plans for carrying out the project are approved?

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Answer:

Conflicts can arise at any time. How you utilize conflict resolution strategies depends on both
your conflict style and your conflict resolution skills. There are many different ways to
respond to conflict situations; some conflict styles involve a considerate or cooperative
approach while others involve either a competitive or passive approach.
Those who have proper conflict resolution training understand how to diffuse the situation
and reach an agreement that satisfies all parties. The first step in conflict resolution is
understanding the various styles of conflict. The five styles of conflict include:

Avoiding the Conflict- Avoiding or withdrawing from a conflict requires no courage or

consideration for the other party. By avoiding the conflict, you essentially pretend that it
never happened or doesn't exist. Some examples of avoidance or withdrawal include
pretending there is nothing wrong, stonewalling or completely shutting down.

Giving In- Giving in or accommodating the other party requires a lot of cooperation and little
courage. Basically, you agree to accommodate the other party by acknowledging and
accepting his point of view or suggestion. This style might be viewed as letting the other
party have his way. While this style can lead to making peace and moving forward, it can also
lead to the accommodator feeling resentment toward the other party.

Standing your Ground- While standing your ground requires courage, it can also be
inconsiderate. By standing your ground, you are essentially competing with the other party;
you'll do anything to ensure that you win the battle. The fact is, a competitive approach offers
short term rewards, but in the long term effects can be detrimental to your business.

Compromising- Compromising is a big step toward conflict resolution. Both courage and
consideration are used when both parties look for common ground. You agree to negotiate
larger points and let go of the smaller points; this style expedites the resolution process.
Occasionally, the person compromising might use passive-aggressive tactics to mislead the
other party, so beware.

Collaborating- Collaboration plays a major role within conflict resolution and requires great
courage and much consideration. Collaborating with the other party involves listening to their
side, discussing areas of agreement and goals, and ensuring that all parties understand each
other. Collaboration requires thinking creatively to resolve the problem without concessions.
Collaborators are usually admired and well-respected.

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