CONFLICT & NEGOTATION

IN
INTERNATIONAL BUSSINESS

UNDER THE GUIDENCE OF:- PROF. A. R. POPHALE

PRESENTED BY:-

SACHIN MAGAR :- 04
PRASAD BHOLE :- 11
YOGESH PATIL :- 09
VIKAS BHUVAD :- 33
 WHAT IS CONFLICT?

"when two or more parties, with

perceived incompatible goals, seek to
undermine each other's goal-seeking
capability".
 CONFLICTS IN INTERNATONAL
BUSINESS

Conflicts arise mostly due to the conflict of

interests of global companies with those of :-

 host country’s companies,

 host country’s government,
 host country’s society,
 home country’s customers
 Factors causing conflicts

Varying goals of MNCs and countries results in

conflicts.

Host country prefers the global companies to

contribute to contribute to its economic and social
development.
 Conflict between the host country &
the transnational company

Macro – economic Areas

 1. Structural factors
 2. Exploitation of natural resources

Marketing Areas
Conflicts in promotional programmes, pricing & place of
markets
 Conflict between the host country &
the transnational company (Cont…)

•PRODUCTION AREAS
•Location of Mfg., Technology, Resources.
•FINANCE AREAS:-
•Profit
Sharing
•Manipulation of A/C’s
•HUMAN RESOURCES AREAS :-
•Direct & Indirect Employment
Conflict between the host country & the
transnational company (Cont…)

Environment Issues :-
conflicts in Mexico Environment….

Competing Areas :-
collaboration with the domestic business

Company level conflicts :-

 Negotiation

Negotiation is a dialogue intended to

resolve disputes, to produce an agreement
upon courses of action, to bargain for
individual or collective advantage, or to craft
outcomes to satisfy various interests. It is the
primary method of
alternative dispute resolution.
 Negotiation lines
Negotiating strengths: Govt. and Co.

Govt. formulates regulations to control & prevent

disputes & conflict.

Negotiating strengths

Weak Strong
 Negotiation lines (Cont…)

Negotiation Strengths:-
Bargaining Process :-
Behavioural Aspect in Negotiations :-
Bilateral & Multilateral Agreements :-
Corporate Citizenship :-
 Role of international agencies
in conflict management

The United Nations Code of conduct for

Transnational Corporations, 1983

UNCTAD Codes

The OECD Code of Practice on MNC operations

The ILO declaration for MNCs and social policy

Dispute settlement system in WTO

“Difference in interests result in
conflict, but negotiation
reduce / vanish the differences”

- P. Subba Rao
THANK YOU