Transcript FOREIGN INVESTMENT NEGOTIATION SIMULATION BRIEFING AGENDA        Overview of FINS project Key issues Potential negotiation relationships Assignment / discussion of roles Negotiation process Graded assignments FINS Schedule.

FOREIGN
INVESTMENT
NEGOTIATION
SIMULATION
BRIEFING AGENDA
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Overview of FINS project
Key issues
Potential negotiation relationships
Assignment / discussion of roles
Negotiation process
Graded assignments
FINS Schedule
TEAM ASSIGNMENTS
MNCs
Local Firms
 Megatronics
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 EuroData
 Tanaka
Tropimatics
 Systrop
 ElectroParadys
 ParaInfo
 East
Governments
Tropicalia
 West Tropicalia
 Paradiso
MNCs:
Megatronics, Tanaka, EuroData
 Invest
in emerging markets?
 International strategy
 Entry mode: Risk, resource, control tradeoffs
 Type of plant, finished product vs.
components
 Bargaining power vs. local firms, govt.
LOCAL FIRMS:
ParaInfo, SysTrop, TropiMatics, ElectroParadys
 Enter
industry?
 Industry entry mode: alone, JV, SOE?
 How to facilitate MNCs entry into country
 Access to technology
 Government support
 Bargaining power vs. MNCs, govt.
GOVERNMENTs:
Paradiso, East Tropicalia, West Tropicalia
 Policies
for industry structure, access
 Economic integration
 Favorable aspects of FDI
 Labor
 High
technology
 Taxes
 Imports vs. exports
 Unfavorable aspects
 Dependence
 Low technology
of FDI
FINS Intl. Strategy and Entry Mode
Tanaka
North America
Country of Paradiso
Country of Tropicalia
ElectroParadys
SysTrop
ParaInfo
TropiMatics
Europe
Strategic Importance
of Country
Entry Mode Decision Matrix
Hi
Lo
Lo
Hi
Stand-alone Attractiveness
of Country
Entry Mode Decision Framework
Control Resources
Licensing
Risk
Dissem.
Low
Low
Low
High
High
High
High
Low
Exporting
Intermediaries
Direct
Joint Venture
Wholly-owned
Subsidiary
Potential Negotiation Relationships
MNC1
Local Firma
GovernmentY
MNC2
Local Firmb
GovernmentX
INITIAL CONTACT
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Get Yahoo! or Hotmail e-mail account
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Public Statements (required via MGT 610 LISTSERV)
1.
2.
3.
4.
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e.g., [email protected]
Send e-mail address to [email protected] ASAP
Team Name/Role
Team Members
Contact Information
Advertisements/RFP’s (optional)
Private RFP’s and Solicitations (optional)
 Direct contact between players
Written Reports and Briefs
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Pre-Negotiation Strategy Report
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Due Mon., APR 4
Post-Negotiation Reports
1. Entry Mode & Strategy Report
2. Transaction (Non-transaction) Report
3. Negotiation Process and Outcomes Report
 Due Monday, APR 11
Pre-Negotiation Strategy Report
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Intended End-Game Position (~2-3 pages)
 Details
about desired entry mode and international
strategy – or policy/economic objectives and
policy specifics
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Negotiation Game Plan (~1-2 pages)
 Key
parties
 Issue priorities
 Process strategies/tactics
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Internal Decision Process (~1/2 page)
 Authority,
information processing, decision-
making
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Key Contingencies (~1/2 page)
 Alternatives,
fall-backs, last resort, etc.
Post-Negotiation Reports
 Entry Mode & Strategy Report
 Transaction (Non-transaction) Report(s)
 Negotiation Process and Outcome Report
Post-Nego Strategy/Entry Report
(5 pages of text MAX … unlimited appendix items)
 Details
of current/future situation and
actions regarding:
 Entry mode
International strategy and operations
 Organizational structure
 (Government: Future policies package)
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Make explicit use of these frameworks
Post-Negotiation Transaction Report(s)
 Agreements/Contracts
Each
multi-party “agreement” (~1-3 pages)
 Type
and purpose of project
 Partners, ownership, structure, control, etc.
 Agreements on other key issues
 Non-Agreement
Why
Briefing (~2-3 pages)
no agreement?
Process and substantive barriers to agreement
 Future process and/or substantive alternatives
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Post-Negotiation Process Report
2-3 pages of text MAX … unlimited supporting documentation
 Negotiation
Process
Which
parties?
Timeline
 Negotiation
What
Issues/Points
were they?
Link to entry mode and/or international
strategy
Negotiation strengths vs. weaknesses
Negotiation issues won vs. lost
Post-Negotiation Process Report (cont.)
 Negotiation
Contact
Mode,
frequency, and substance
Bilateral vs. multilateral
 Documentation
Agenda,
progress, commitments, unresolved
issues, process, etc.
 Use
of Media/Press
Individual
press releases, joint
communiqués, etc.
Negotiation Outcome Conclusions (1 page)
 Governments
 Influence of policy package on entry mode
and strategy?
 MNCs
‘Intended’ versus ‘realized’ entry
mode/strategy?
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 Local
Firms
‘Intended’ versus ‘realized’ role in
facilitating MNCs local entry mode and
their overall international strategy?
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FINS CALENDAR
Date:
Task:
MAR 31 (Thurs.)
Negotiations Begin 8:00 a.m.
APR 4 (Mon.)
Pre-Negotiation Reports Due
by 5:00 p.m.
APR 11 (Mon.)
Negotiations End
Post-game In-class Debriefing
Post-Negotiation Reports Due