This document discusses various topics related to conflict and negotiation in international business including: 1. Types of conflicts such as organizational, external, environmental resources, and international conflicts. Factors causing conflicts include disputes over resources, decision making, lack of clear goals or agreements. 2. Strategies for solving conflicts including avoidance, accommodation, compromise, competition, and collaboration. Examples of international conflicts between NATO/USSR and environmental conflicts between US/Iraq over oil resources. 3. The negotiation process in international business, including different types of negotiations, managing negotiations, and examples of conflicts in EU/North-South Korea talks and US/Russia talks. Anti-dumping practices under WTO are also summarized.

1. CONFLICT A N D
NEGOTIATION IN
INTERNATIONAL
B US I N E S S
Created by -.
VIBHORE JAIN

2. CONFLIC T IN INTERNATIONAL B US INES S
Conflict as a concept can help explain many aspects of social life such as social disagreement ,conflict
of interests, fight between groups, individual and organizations.
In political terms conflict can refer to wars, revolutions or other struggles which may involve the use
of force as in the term armed conflict.

3. TYPE S O F CONFLICT
Organizational conflict
External conflict
Environmental resources conflict
International conflict
Military conflict

4. FACTORS CAUSING CONFLICTS
1. There can be conflict over resources or area.
2. Conflicts can arise over right to participate in decision making.
3. No- clear cut goal can also lead to conflict
4. No clear cut agreement or contract may lead to legal mess and conflict.
5. Misleading communication may lead to conflict.
6. Corruption may also create conflict.

5. Strategy to solve conflicts
International businesses use five distinct forms of solutions to solve conflicts are-
1 Avoidance strategy tends to ignore the conflict. Therefore, it provides no
resolution to the disagreement.
Accommodation strategy believes in handling a problem as quickly as possible.
2.Compromise is preferably a good strategy, as both parties involved in the process
are willing to give and take.

6. 4.Competition occurs as both parties attempt to maximize their own
agenda.
5.Collaboration strategy starts with the manager taking a preliminary
initiative step in handling the issue already set.

7. International conflict - NATO A N D U S S R
In 1949, the prospect of further Communist expansion prompted the United States and 11
other Western nations to form the North Atlantic Treaty Organization (NATO).
The original membership of the North Atlantic Treaty Organization (NATO) consisted of
Belgium, Britain, Canada, Denmark, France, Iceland, Italy, Luxembourg, the Netherlands,
Norway, Portugal and the United States.

8. Environmental resources conflict USA and
Iraq
Iraq war was only partly however it was about big profit for Anglo-American oil conglomerates.
The real goal as mentioned by Greg Muttitt documented in his book fuel on the fire citing
declassified foreign office files from 2003 onwards - was stabilising global energy supplies as a
whole by ensuring the free flow of iraqi oil to world market ,though this was not possible until
they overthrew Saddam Hussein .

9. Military conflict - India and China
The first of which, Aksai Chin, is claimed by China as part of the Xinjiang Uygur Autonomous Region and
Tibet Autonomous Region and claimed by India as part of the union territory of Ladakh; it is a virtually
uninhabited high-altitude wasteland in the larger regions of Kashmir and Tibet and is crossed by the
Xinjiang-Tibet Highway. The other disputed territory is south of the McMahon Line, formerly known as
the North East Frontier Agency and now called Arunachal Pradesh. The McMahon Line was part of the
1914 Simla Convention signed between British India and Tibet, without China's agreement.[1] As of
2020, India continues to maintain that the McMahon Line is the legal border in the east. China has never
accepted that border, stating that Tibet was never independent when it signed the Simla Convention.
This has been a constant tussle between India and China therefore this has also affected there trade
relations time to time

10. D U M PING
Dumping, in economics, is a kind of injuring pricing, especially in the context of international
trade. It occurs when manufacturers export a product to another country at a price below the
normal price with an injuring effect.
The objective of dumping is to increase market share in a foreign market by driving out
competition and thereby create a monopoly situation where the exporter will be able to
unilaterally dictate price and quality of the product.

11. CONFLICT MANAGEMENT
Conflict management refers to the long-term management of intractable conflicts. It is the label
for the variety of ways by which people handle grievances—standing up for what they consider
to be right and against what they consider to be wrong. Those ways include such diverse
phenomena as gossip, ridicule, lynching, terrorism, warfare, feuding, genocide, law, mediation,
and avoidance. Which forms of conflict management will be used in any given situation can be
somewhat predicted and explained by the social structure—or social geometry— of the case.

12. NEGOTIATIONS IN INTERNATIONAL
BUSINE SS
An international business negotiation is defined as the deliberate interaction of two or
more social units (at least one of them a business entity), originating from different
nations, that are attempting to define or redefine their interdependence in a business
matter. This includes company-company, company-government, and solely interpersonal
interactions over business matters such as sales, licensing, joint ventures, and acquisitions

13. NEGOTIATION MANAGEMENT
Generally, the process of negotiation consists of three different negotiation stages
including the pre-actual negotiation, and post- stages .The effective flow of the
negotiation process can determine the success of a negotiation. The negotiation
stage involves a face-to-face interaction, methods of persuasion, and the use of
tactics. At this stage negotiators explore the differences in preferences and
expectations related to developing an agreement.

14. TYPES O F NEGOTIATIONS
Distributive negotiation -- Distributive bargaining is a competitive bargaining strategy in
which one party gains only if the other party loses something. It is used as a negotiation
strategy to distribute fixed resources such as money,resources, assets, etc. between both
the parties.
Integrative negotiation -- Integrative bargaining (also called "interest-based bargaining,"
"win-win bargaining") is a negotiation strategy in which parties collaborate to find a
"win-win" solution to their dispute. This strategy focuses on developing mutually
beneficial agreements based on the interests of the disputants.

15. NEGOTIATION IN INTERNATIONAL
BUSINE SS
DISSENT IN THE EUROPEAN UNION
The European Union (EU) held a summit to address the coordination of economic activities and
policies among EU member states. German resistance to such a global deal was strong, and pessimism
about a unified EU banking system ran high as a result of the EU financial crisis. The conflict reflects the
difficulty of forging multi-party agreements during times of stress and crisis.
NORTH AND SOUTH KOREA TALKS COLLAPSE
Negotiations between North Korea and South Korea wre supposed to begin in Seoul aimed at
lessening tensions between the divided nations. It would have been the highest government dialogue
between the two nations in years. Just before negotiations were due to start, however, North Korea
complained that it was insulted that the lead negotiator from the South wasn’t higher in status. The
conflict escalated, and North Korea ultimately withdrew from the talks. The case highlights the
importance of pride and power perceptions in international negotiations.

16. CANCELED TALKS FOR THE U.S.AND RUSSIA Then-
U.S.president Barack Obama canceled a scheduled summit with Russian President
Vladimir Putin, citing a lack of progress on a variety of negotiations. The
announcement came on the heels of Russia’s decision to grant temporary asylum to
former National Security Agency contractor Edward Snowden, who made
confidential data on American surveillance programs public. From international
business negotiation case studies such as this, we can learn strategic reasons
for breaking off ties, if only temporarily, with a counterpar

17. ANTI - DUMPING
The Anti-Dumping Agreement clarifies and expands Article VI, and the two operate together.
They allow countries to act in a way that would normally break the GATT principles of binding a
tariff and not discriminating between trading partners—typically anti-dumping action means
charging extra import duty on the particular product from the particular exporting country in
order to bring its price closer to the “normal value” or to remove the injury to domestic industry
in the importing country.
There are many different ways of calculating whether a particular product is being dumped
heavily or only lightly. The agreement narrows down the range of possible options. It provides
three methods to calculate a product's “normal value”.