BUS403: Negotiations and Conflict Management (2016.A.01)

In these lecture notes, Mary Rowe describes various opportunities for negotiation, specific strategies you can employ to create effective outcomes for you and others, and questions to consider when preparing for a negotiation. Before read, attempt the thought exercises on pages 2–6 and record your responses. Don't worry if some of the terms are unfamiliar; we will discuss them later in this course.

Study this section to learn about the factors that can negatively affect our decision-making. After decades of study, researchers Daniel Kahnemann and Amos Tversky found that in decision-making, individuals are influenced by overconfidence bias, hindsight bias, anchoring bias, framing bias, and escalation of commitment. Awareness of these decision-making traps can help us avoid them.

Read this section to learn the five phases of negotiations and strategic advice to plan for effective outcomes. This section describes how to avoid some common mistakes made during the negotiations.

Read this chapter, which defines conflict, describes various conflict styles, and offers effective conflict management strategies. Try to answer some of the exercise questions at the bottom of each section.

Watch this video.

Read this section to recognize tools and techniques for making better decisions.

This section will help you distinguish between decision-making and problem-solving. The author describes five methods for group decision-making and defines autocratic, democratic, and participative decision-making styles.

Read the section on workplace violence and bullying on pages 444–451. The United States Occupational Safety and Health Administration (OSHA) describes the types of workers at an increased risk of workplace violence. The Workplace Violence Research Institute cites indicators of pre-violence in the workplace.

Read this section to learn about two models for characterizing conflict and how healthy conflict can benefit a group.

Read this section to define interpersonal conflict, compare and contrast the five styles of interpersonal conflict management, explain how perception and culture influence interpersonal conflict, and list strategies for effectively managing conflict. For the time being, skip the "Culture and Conflict" section, which we will cover in Unit 6.

Read this section to learn about common components/characteristics of problems and the five steps in group problem-solving. This article also describes the brainstorming and discussion that should occur before group decision-making, compares and contrasts decision-making techniques, and discusses various influences on decision-making.

Read this section to learn how people often employ a contending (or competing) style to reach their goal regardless of what others say or how they feel. Take a look at the exercise questions at the bottom of the section. Do you deal with conflict differently with friends and family than you do with your coworkers? If so, why do you think that is? The yielding (or accommodating) style is cooperative and unassertive. In this style, the person gives in to what the other side wants, even if it means giving up their personal goals. Have you employed this style in either a work or home situation? Was the outcome successful? The compromising style is one where individuals have some desire to express their own concerns and get their way but respects the other person's goals. Does it sound good to compromise? Is the compromising style always appropriate? Why or why not?

Read section 1.3 on pages 24–27 to learn how others' perceptions may not be identical or compatible with our own. Perception is the driving force behind our reaction to things. Then, read Chapter 9 on pages 256–293 to refresh your knowledge of conflict management styles and effective management techniques, including changing organizational structures to avoid built-in conflict, changing team members, creating a common enemy, using majority rules, and problem-solving. 

Read this article for an overview of how to improve critical thinking by moving beyond biases and stereotypes. While we may recognize a bias (or the preferred way of looking at things) in others, it is easy to overlook our own biased thoughts or emotions.

The authors suggest two methods for developing a way to apply critical thinking to question information and situations and consider their context. These include recognizing assumptions and examining information for accuracy, assumptions, biases, or specific interests. This article also discusses how biases create obstacles to effective decision-making, especially in our negotiations.

This article explains how decision making is a cognitive activity. Our predispositions can be an obstacle or an enabler to the decision-making process. It briefly describes the most common types of cognitive bias: confirmation bias, anchoring, halo effect, and overconfidence bias. Awareness of these concepts enables us to negotiate and resolve conflicts more effectively.

Read this chapter, which explains that interpretation is the part of the perception process in which we assign meaning to our experiences using mental structures known as schemata. Our previous knowledge and experience help us make sense of the perceptual cues around us. The perception process affects our communication because we respond to stimuli differently based on how we perceive them. Take time to review the questions at the end of each section.

Read the introduction to this case study and then read part 1. Forensic scientists (who are supposed to remain impartial) can become partisan and see their function as helping the police. Motivation bias is usually conscious and may depend on one's personal situation. You may be interested in reading the rest of the article and noting the Supreme Court's statement in the conclusion.

Read this section to learn why our emotions can help or hurt us in our decision making. Emotions that allow you to deny reality generally produce undesirable results. In contrast, emotions that encourage you to explore alternatives based on fairness and justice can produce very desirable results.

The endowment effect explains that people are willing to pay less for something than the amount they require to sell the same item if they own it. The stronger the link between the self and the item, the more one would be willing to pay or require to sell an item. Do you agree? Why or why not? This article focuses on women's willingness to accept risk (WTA) and willingness to pay (WTP). Read the introduction, section 1.1, and section 5. The researchers test a popular theory that women are more risk-averse than men.

Read the section on negotiation to learn why managers need to generate options that advance shared interests. This article cites Vijay Verma's description of four principles of negotiation:

1. separate people from the problem,
2. focus on common interests,
3. generate options that advance shared interests, and
4. develop results based on standard criteria.

Read the "Strategy Overview on Collaborative Problem Solving" section. Collaboration is necessary to craft plans, policies, and programs that are regarded as legitimate and sustainable. The strategy builds consensus by having participants analyze the issue, hear from experts, generate and evaluate options, review draft documents, and revisit group agreements at every stage. This article takes us through nine stages in the process and offers helpful key tasks, checklists, and vignettes for each of the stages.

Robert Cooper and Ayman Sawaf define emotional intelligence as the ability to sense, understand, and effectively apply the power and acumens of emotions as a source of human energy, information, connection, and influence. Daniel Goleman said that the emotional intelligence quotient (EQ) is more important than IQ in predicting leadership success. Emotional Intelligence is critical to managers. The more complex the project profile, the more important the project manager's EQ becomes to project success.

Read the "Negotiation Strategies" section to learn how the distributive approach may result in missed opportunities to "expand the pie". Rather, one party may get more of the pie, and one party may get less: a win-lose outcome.

Watch this video on distributive negotiation to learn when this strategy might be appropriate and when a collaborative (or integrative) strategy may result in "expanding the pie" for both parties. Parties often use distributive bargaining (or win-lose bargaining) when they are negotiating over price. Words often associated with one or both parties in this type of bargaining include deadlock, final offer, firm, hostile, ultimatum. Inherent in distributive negotiation are the concepts of the target price, buyer's resistance point, seller's public (asking) price, seller's resistance point, and bargaining range.

This lecture describes positional bargaining and cites Fisher and Ury, who argue that positional bargaining will not produce sustainable agreements and is an inefficient means of reaching win-win solutions. Pay particular attention to the "orange" example that explains the benefits of moving beyond the position to the issues of the conflict.

Read section 2 of chapter 1. Game theory has applications for economics, operations research, and psychology, to name a few disciplines. This section gives a basic explanation of game theory, which is the study of optimal decision-making under competition when one individual's decisions affect the outcome of a situation for all other individuals involved. For a classical example, watch the video below on the Prisoner's Dilemma, which you will read about it in many discussions about game theory. How would you describe this in relation to game theory?

The Prisoner's Dilemma is a situation where you base your strategy on what you think the other party will do, and that party bases his strategy on what he thinks you will do. In game theory, the Prisoner's Dilemma illustrates how people's individual choices can lead to the worst situation possible.

View this brief video to learn the basic concept of a zero-sum game.

Read this paper, which describes how the Hobby Lobby case can be thought of as a zero-sum Religious Freedom Restoration Act (RFRA) claim.

This article describes research that seems to indicate that people who view life as a positive-sum game are happier than those who view it as a zero-sum game. While there does not seem to be any direct survey evidence relating to this question, some assessments have been made on the effects of different life goals on happiness. Personal success goals can be viewed as zero-sum, whereas altruistic goals and goals relating to family life are positive-sum goals. Research on neuroeconomics experiments in which participants play games relating to cooperation and trust tends to confirm that people who believe that others can generally be trusted would tend to have a positive-sum attitude to life.

Watch this video to learn examples of zero-sum and positive-sum games. Zero-sum games create a dynamic of competition, whereas positive-sum games can create strong attractors for cooperation. Complex scenarios exist where there are incentives for both cooperation and competition. You will learn more about how these complex and adaptive systems are affected by negative externalities later.

Read the sections on the distributive and integrative approaches to negotiations. The often-cited analogy for an integrative or collaborative concept is to "expand the pie", whereas in a distributive negotiation, the parties view the pie as fixed. Each of the parties tries to get more of the pie and win.

Read this article to expand your knowledge of the distributive and integrative approach to negotiations. The author gives pragmatic examples of using distributive and integrative approaches in his life. He also lists requirements for effective negotiations. If the negotiation involves a "fixed pie", what type of approach is that? What type of negotiation is it if the parties hope to "expand the pie"? Is one approach necessarily better than the other? Why or why not?

Read this article for a description of five negotiation styles and strategies. There are three negotiating types: soft, hard, and principled. Principled negotiation is focused on the problem and the pragmatic and organized pursuit of solving it.

This article cites a study of more than 300 managers that found superior performers scored higher in all emotional intelligence attributes, including self-awareness and self-management. A lack of emotional intelligence, particularly self-awareness and self-control, is a key predictor of poor leadership. What are two major emotional intelligence attributes that indicate how EQ can contribute to leadership success?

This section describes five phases of negotiation: investigation, determining your BATNA, presentation, bargaining, and closure. Although the presentation stage normally receives the most attention, each phase can affect the outcome of the negotiation.

The chart in this section depicts the negotiation process in three steps: pre-negotiation, negotiation, and post-negotiation. Read the suggestions to consider during pre-negotiation, including assessing your confidence level, determining what is really important to your prospect, and identifying your pre-negotiation goal (the minimum you will accept during negotiation). In the third step, post-negotiation, you should celebrate with everyone who was part of the negotiation. This is an important step to help build your relationship and prepare for your next negotiation. Attempt the exercises questions at the end of the section.

Read this article and pay special attention to the description of SMART goals. Effective goals should be specific, measurable, achievable, realistic, and time-bound. Using quantitative (numeric) terms in their goals will allow parties to measure and benchmark progress.

Have you missed opportunities for effective outcomes by omitting pre-negotiation planning? You are not alone! Expert negotiators often bypass some of these important questions, to their detriment. These basic principles will help you achieve your desired outcomes during future negotiations. 

This video describes four parts to negotiation: goals, strategy, issues, planning. A key point for knowing whether you have won or lost in a negotiation is to compare the outcome with your initial goals. For example, what value do you place on the item or the issue? Outcomes must be clear and measurable so you can compare them to your original and subsequent goals.

This video stresses the need to prepare for successful negotiations. Two ideas will guide the chosen strategy: the importance of the outcome to you and the importance of your long-term relationship with the other party. There are four strategies you can use depending on the importance of the outcome and the relationship.

Read this article to learn about the advantages and disadvantages of coalitions and the challenges of multiparty negotiations. For example, in multi-party negotiations, the complexities are informational, procedural, and social. What is the definition of a coalition?

Read the four sections under the Mergers and Acquisitions header.

Review this presentation to learn about the selling points that would be included in the Investment Thesis for Sears, including real estate, operations, top brands, leadership, liquidity, and catalysts.

Read this section to learn more about how to write a clear and effective thesis statement. A clear thesis statement is essential to provide structure for a speaker and clarity for an audience. Answer the questions at the end of the section.

This article cites how important it is for international professionals to prepare thoroughly when negotiating with people from North America. There is an ingrained perception that North Americans are less adept at being flexible and changing things on the fly. As thorough as our preparation may be, we need to allow for flexibility at any point during negotiations to ensure a successful outcome.

Read this section to learn how to successfully close a sale. Successful closings start at the beginning. You will see many of the concepts you have been reading about in this course come to life. For example, a successful close is based on preparing to meet the opportunities. The analogy used in this article is that the selling process is like building a house: if the foundation is poured right, everything else will come together. You may find that the steps to closing a complex sale ($100,000 and higher), discover, diagnose, design, and deliver, are similar to the negotiating phases you read about earlier. Answer the questions at the end of the section.

This section describes social psychologist Robert Cialdini's six principles of persuasion. While there may not be a definitively correct answer to what is the best way to persuade your listener, these principles are powerful and effective.

Read this article to learn why businesses should have sustainable arrangements. In discussing the necessary roles of co-operation and collaboration, the author writes that the philosophy of "maximizing profit at any cost" is no longer appropriate for a world of finite resources, increasing consumer power, and increasing supplier importance.

Read this article on collective bargaining to learn the conditions and negotiation process between groups of employees (unions) and employers in the human resource frame. In the United States, the National Labor Relations Act of 1953 covers most collective agreements in the private sector. What actions are deemed illegal by this act? How would you describe arbitration?

There are stark differences in how women and men negotiate. Research has found that men are more likely to negotiate on behalf of their own issues. Women, if they negotiate at all, are more likely to negotiate on behalf of others. This difference has implications for the overall organization and has an accumulated disadvantage for women. Even if a woman assertively negotiates on her own behalf, the perception of her efforts may be negative.

This section takes us through the phases of negotiation to explain how we can use these phases to optimize our negotiated outcomes. You may not want to accept the first offer extended to you. This article offers tips for negotiation success.

Read this section. Your past salary signals to employers your level, title, and responsibilities. To obtain a higher salary, you need to position yourself so employers do not question your abilities because you have not received a high salary in the past. However, sometimes it makes sense to take a lower salary. The article responds to similar questions: What is the best way to approach a recruiter about a salary negotiation? How does someone new to the workforce approach negotiation? How does that approach change after you have had a few years of experience? There may be other benefits worth negotiating besides salary. This section will help you consider several approaches to formulate your initial position.

In addition to salary and other cash components, non-cash components (stock options, stock grants, retirement accounts, benefits, start date, employee perks, paid versus unpaid leave, lifestyle and flexibility, outplacement service, and severance pay) can play a major role in whether or not to accept a job offer.

Read this chapter to learn about the types of agents and their relationship to their principals.

Read this chapter to learn about the agent's duty to the principal (fiduciary and general) and the principal's duty to the agent (contract and tort).

Leaders can employ sources of power and influence in a meaningful and ethical way. There are six sources of power and tactics (legitimate, referent, expert, reward, coercive, and informational) people use to push or prompt others into action. What are the six sources of power, and where does each source come from?

This interview compares bad and good conflict resolution. Compassion and respect are at the heart of effective conflict resolution, and you should look deeper at a situation to discover why conflict occurs. Although many task-oriented people do not want to discuss their feelings and emotions, they should take the time to address underlying issues rather than avoid conflict.

Read this article to learn that substantive and affective conflict can occur in intra-organizational (within the organization) and inter-organizational (among two or more organizations) situations. How does substantive conflict contrast with affective conflict?

This article discusses three types of conflict: intrapersonal, interpersonal, and intergroup. Although a moderate level of conflict (task conflict, for example) may be beneficial, personal conflicts are never healthy because they cause stress and distress, which undermines performance. Complete the exercises at the end to practice.

Mediation is relatively inexpensive, fast, and confidential. A downside to this method of alternative dispute resolution (ADR) may be that mediation relies on the parties' willingness to participate and on the skill of the mediator. The description of mediation has traditionally been focused on presenting the problem of the parties. The mediator looks at the conflict as a solvable problem. The objective is similar to a win-win negotiation, where the goal is to have both parties' interests met. In problem-solving mediation, success for the mediator is to have a resolution of the dispute. In transformative mediation, the mediator's goal is to increase each party's empowerment and recognition of each other rather than a one-time settlement of the dispute.

Conflict tends to destabilize each party's experience of themselves and others so that each party feels both more vulnerable and more self-absorbed than they did before the conflict. According to the transformative theory, people can regain their footing and shift back to a restored sense of strength or self-confidence. This outcome matters most to the parties in conflict. A transformative mediator will view empowerment and recognition as successful outcomes for the parties. How would you compare and contrast the objective of traditional mediation with that of transformative mediation?

Arbitration is another alternative dispute resolution that differs in its process and function from mediation. In arbitration, a third party reviews evidence in a dispute and makes a legally-binding decision for all involved. Arbitration can be used to resolve international, commercial, investment, and interstate conflicts. You will learn about the advantages and limitations of this type of ADR and how arbitration was used historically to settle boundary disputes.

Read pages 3–5 (Introduction, Context, and Importance), page 7 (AMD Results), and page 23 (Conclusion). This paper describes foreign investors' need to have assurances that disputes in other countries are settled fairly and promptly. Unfortunately, there is great inconsistency among global economies regarding policy and best practices. There are several opportunities for improvement, including greater flexibility in domestic arbitration regimes, reduction of the length of arbitration proceedings in many parts of the world, and specialized courts with the capacity and experience to deal with commercial arbitral awards. Significantly, many economies have acceded to the New York Convention to recognize and enforce arbitral awards.

Read this chapter for an overview of how cultural understanding applies to business negotiations. For example, you will learn how a message is communicated in high- and low-context cultures. In high-context cultures, body language is as important and sometimes more important than actual words spoken. In low-context cultures, people tend to be explicit and direct in their communications. Verbal language and body language can impact our chances of understanding and being understood in a positive or negative way.

Read about the role of ethics when negotiating with others and how national culture plays a role in negotiations. This section gives an example of the need to understand differences in cultures. In China, companies and workers do not like to say no. A question that asks for a yes or no answer, therefore, may put a Chinese official in an uncomfortable position of saying no, which they likely would not do. To accommodate this way of thinking, the author suggests that we might rephrase the question to open-ended questions, like "how will you do this for us, and will it be done?"

Fons Trompenaars, a Dutch organizational theorist, management consultant, and author, has developed a model of national culture differences to use as a framework for cross-cultural communication.

This model has seven dimensions:

1. Universalism vs. particularism;
2. Individualism vs. communitarianism;
3. Neutral vs. emotional;
4. Specific vs. diffuse;
5. Achievement vs. ascription;
6. Sequential vs. synchronic; and
7. Internal vs. external control.

Which of Trompenaars' five orientations describe a culture in which people are accorded status based on how well they perform their functions?

Now that you have read about Trompenaars' model of national culture differences, you may find it interesting to hear his perspective on social media. Trompenaars compares social media users by their age, country, and other demographics.

Read this article to learn about four models that provide a useful framework for managers. Geert Hofstede addressed six dimensions of culture in a study at IBM offices in 50 different countries to recognize the need to understand global differences in culture. These include power distance, uncertainty avoidance, individualism vs. collectivism, masculinity vs. femininity, long-term orientation, and restraint. Which of Hofstede's Cultural Dimensions describes an organization's comfort level with risk-taking?

To expand on Hofstede's six dimensions, this article offers scores for New Zealand. In each of the dimensions, the lowest possible score is 0, and the highest possible score is 100. The scores in this article are interpreted to describe people in New Zealand relative to the characteristics of a particular dimension. Look at the discussion questions at the end of the article. What answers would you give? Why?

This article describes a negotiation between a Chinese energy company (Sinopec) and a Brazilian energy company (Petrobras). The stage is set for a difficult experience by both parties because of several factors. The leaders on both sides had only limited experience with international negotiation, and both teams were hesitant to get the conversation started. Without an understanding of each other's backgrounds, it was hard to know where to begin. The facilitators had their work cut out for them.

Read to learn their progress on such issues as relationships, speaking a common language, research on each country's customs, history, and politics. In striving to make the negotiation a win-win, each side needed to learn what the other side hopes to accomplish. What are their goals? Through homework assignments and simulation exercises, the participants gained knowledge and skills to proceed with multiple negotiations.

In this video, Brendstrup cites the challenges of working with employees from multiple countries. He stresses that management must understand how different employees wish to be managed and what style they use to manage others. He points out that this becomes more complex when adding Asian management styles to the mix.

This chapter describes the difficulty of doing business globally without a sound knowledge of another country's local business practices and culture. Dunkin' Brands had first-hand experience with these challenges when returning to Russia in 2010 after pulling out of that country 11 years earlier. The company planned to open 20 new stores. A "challenging balance for Dunkin' Brands is to enable local operators in global markets to customize flavors and food product offerings without diminishing the overall brand of their companies".

For example, in Russia, people were largely unfamiliar with donuts, so Dunkin' has created several items that specifically appeal to Russian flavor preferences. You will also read about Dunkin's experiences dealing with cultural differences in China, Latin America, etc. Consider the questions in the opening case exercises at the bottom of the introduction. How would you respond?

This five-member panel debated the topic "Women, Civil Society and Leadership in a New Arab World". Follow along by reading the subtitles in English, and note the difference in opinion expressed by the men and women on the panel. One man, for example, explains that there are many women in business in various sectors. However, a woman panelist posits that if we look at the world of business as a world of profit and loss, there are exceptional and competent women who possess capital and leadership characteristics. Since they are capable of attracting capital, why are they being left out? She refers to families or traditions that may stand in the way of women's progress in business. Another obstacle for many women is that some Arab countries prohibit women from signing contracts or traveling to another country to conclude a deal. A vote is taken at the end of the debate to decide: Is the role of women in business less than it is supposed to be, or is it adequate? What do you think the vote will be?

What can the United States do currently to improve our relationship with the Arab World? Rather than thinking of the Arab world as a "region", we should recognize it comprises different countries, often with divergent cultural and political values. We need to have strong country teams to interact successfully with specific countries. Using television and radio to deal with an entire region is ineffective. A country-by-country approach based on the values of the people there is absolutely critical.

Mexico is an immense country, with enormous economic and social contrasts, thousands of cultural and regional differences, and a complex history that probably can never be understood completely by the foreign business person. This article holds a view similar to the last video. You must treat each region separately to respond to that area's economics and cultures effectively. This article addresses such topics as relationships, language, mealtimes, acceptable and unacceptable topics of conversation, politics and political parties, and the taxation system.

This brief video traces the commercial, cultural, and political interests that created a national Hispanic identity in the 1970s and boosted the political clout of Mexicans, Puerto Ricans, Cubans, Salvadorans, Guatemalans, and other Latin Americans in the United States. Interestingly, it explains how these disparate cultures in America gained strength by developing a common identity. Global business leaders are realizing a need to identify and relate to specific cultures, even within the same country.

Watch this video to learn some of the challenges people face in China due to cross-cultural differences.

Today, the physical territories that constitute the countries of India and Indonesia are far different from a hundred years ago. The previous British rulers in India tended to hire locals for administrative positions, which established a strong and well-educated Indian bureaucracy. Although many business people complain about India's slow bureaucracy focused on rules and regulations, the government infrastructure and English-language education system helped position India as a strong high-tech economy.

This representation of India is through the eyes of several expatriates who describe their journeys and experiences and explain why they chose India as their home. More than just a tourist destination, many foreigners are learning that India has a booming economy that allows them to earn and live in India by taking up permanent residence.

This article describes Raytheon's effort to negotiate a NATO weapons system with a consortium of European companies. We return to a recurring theme that businesses need to understand the various economic, political, and social cultures of a particular country or region they wish to negotiate with. In this case, Raytheon learned that the governments of the countries they wished to negotiate with in Europe would make the purchasing decision, not them.

This lecture analyzes the Transatlantic Trade and Investment Partnership (TTIP), which sought to strengthen economic and trade ties between the U.S. and Europe. It gives a background on TTIP, its advantages and issues, and prospects for the future. The now-failed Trans-Pacific Partnership (TPP) was the idea of a regional free-trade agreement in the Asia-Pacific region, including Australia, Canada, Japan, Mexico, the US, Singapore, and Vietnam. One significant issue of TPP was its exclusion of China.

Read this chapter. While we are all a part of the economy, we can't see all parts of an economy at any one time. This chapter describes policy issues, controversies, and the history of international trade. You will learn about international economics, FTAs, GATT, WTO, anti-subsidy laws, and bound vs. applied tariffs. You will read about real-world issues such as policies restricting trade and forging agreements to reduce trade barriers. Test your knowledge by answering the exercises in each section.

Read this study on how international trade regulation addresses exchange rate measures. The authors look for provisions of the World Trade Organization (WTO) agreements that could address the exchange rate issue and rebalance the impacts of misaligned currencies on trade. These misalignments significantly affect international trade instruments and create incentives to export while disincentivizing imports.

Read this chapter to learn about currencies, foreign exchange rates, and global capital markets. It gives us a real-world example of a company that has to deal with different currencies. Small changes in the daily foreign currency market can significantly affect a company's costs and profitability. At the end of the chapter, read the ethical dilemmas. What would your responses be? Would you recommend that Walmart set up an offshore company? Why or why not?

This chapter argues for economic free trade through the lens of trade theory. While free trade may not be optimal, many consider it to be the most pragmatic policy option for a country. During the 19th and 20th centuries, policymakers asked whether free trade was in everyone's best interest. The modern case for free trade argues that government intervention in trade is impractical. Free trade is not always the best policy choice when the objective is to maximize national welfare. Free trade is pragmatically, rather than technically, optimal because it is attainable and most likely to produce the highest level of economic efficiency.

Commercial diplomacy is designed to influence foreign government and regulatory decisions that affect global trade and investment. This article differentiates commercial and economic diplomacy, which are often used interchangeably. It describes public and private sector practitioners and lists traditional commercial diplomacy activities under the umbrella of networks, intelligence, image campaigns, and support.

Read this article on the World Trade Organization (WTO) to learn why it was formed, its members and observers, the Doha Development Round, major obstacles, and agreements.

Listen to this podcast for an argument that the WTO needs to adapt its approach to trade negotiations and strike a balance between its strong dispute settlement mechanisms and a comparatively weak negotiating framework.

It may be legal, but is it ethical? Read this section to learn about the role of ethics in negotiations and how one culture may consider something to be right and fair, while another perceives it to be threatening and antagonistic. For example, an American nods their head to convey agreement, while someone from China nods their head to convey they are listening and following what you are saying. Attempt the exercises at the end of the section.

This lecture discusses when a voluntary choice is not really voluntary. Capitalism constantly tries to find new ways to make better stuff more cheaply and allocate a fixed amount of resources. What counts as voluntary? Is it possible to be coerced by circumstance? An overriding question raised in this lecture is: what is justice in market pricing?