Comment on the following questions
1.The biggest reason as to why a third party without authority should be used in some sort of a dispute resolution is due to the issue of it not being tilted or biased towards one party over the other. The focus here by such third parties is that they would look at all of the issues involved, they will thoroughly listed to the parties who are involved, understand the dispute at hand and then find the right solution. The goal here for them also is to look at effective negotiations since they don’t have formal authority and therefore they can also be much more equitable in the way or the manner in which they would end up coming to a general solution or some good consensus. In addition to that, such a party will also not be using emotional thinking when arriving at a given solution but they would simply use the right facts and the factual information pertaining to the case to come to the right solution.
2.It is true that everyone has dispute resolution skill in itself, and we sometimes help our friend and collogues to resolve their dispute by giving them proper suggestions. But when we talk about conflicts related to ourselves, then it becomes hard to resolve them. There are various reason behind this, but simply we can say our mind is not in the state that we can listen to ourselves. Here is some reason for the third party involvement in dispute resolution.
- The third party doesn't have any emotional attachment to any disputant.
- The third party can understand the cause of the dispute and quickly resolve it.
- Third parity tries to listen to both sides and ask a question in case of lack of information and provide a solution to the problem.
3.There is no doubt that a warehouse can be regarded as a necessary evil. It is because a distribution cost increases to a great extent with the introduction of the intermediate warehouse that acts as a bridge between the production side and the marketing side of the product. It adds to the extra cost and leads to a significant cut in the total profits accessed from the product. According to me, the best condition in which we can combine the public and the private houses is when we want to make it highly efficient. In simple words, when we want to use the warehouse to utilize its capacity to 100%, then we can think about combining both the public and the private warehouses. The private warehouses can cover 75% requirement using the deployment strategy, and public facilities use rest of the 25% to fulfill the peak demand.
4.As evidenced in the chapters, the three main reasons of conflicts in multicultural teams can be the issue of a conflict with a task, the issue of a procedural conflict with the task or simply what we might consider more like an interpersonal conflict among the different people involved in that task. In the task conflict situation, there would be issues in terms of agreeing to the different processes that are involved and so the team members would just come to different solutions. When it comes to issues of procedures, what should be considered is that they would end up resolving the dispute at hand according to their own way and lacking a group consensus. But another bigger issue has to do with more of an interpersonal conflict that could be found among different team members. So due to that, the team members might just not agree with each other and will have their own way of doing things.
5.The situation in which there is a conflict between the collective interest and maximization of personal gain refers to the social dilemmas. Such conflicts are faced when individuals in different groups depend on each other. For instance, the government introduces taxes to obtain the money. In this way, they get a significant amount of money from foreign companies. They could also develop an environment where foreign companies need not pay for the first year of operation. In this way, global negotiations become difficult to attain in the presence of social dilemmas. Similarly, many companies choose to pay the minimum wage to the employees set up by the government instead of paying high wages to the local workers.
6.There are a number of reasons in which social dilemmas can end up hindering global negotiations. What we have to consider here is that social dilemmas are those types of situations where there are different types of conflicts that are found in the various groups and due to that, the goal here would be to both overcome and alleviate them in a shorter time span. When it comes to the arena of global negotiations, what should be considered here is that a big conflict could be around pay and wages that is given to employees. For example, there might be some expatriate employees of the firm and they might end up being paid more than the local employees. That is where this situation could escalate to it becoming a social dilemma since the local employees might come to feel that their hard work and all the productivity is not being valued. An example of this could be American employees working for their firm in a third world country such as Ghana. The local employees might be paid a fairly good wage compared to local wages but less than what the expatriates are making. So this could lead to a dilemma which itself if not resolved could lead to more hostility among these local and expatriate employees of the same firm. The end consequence of this would be less than effective negotiations.
7.I have selected India country to define the risk for the foreign investors. I cannot anticipate any political and sovereign risk for the investors. But commercial risks, risks due to terrorism and risk of foreign sanction would always be there for any investor who seeks to invest in India. Commercial risks always exist in every country, as no one service or product can be sold in the long run. To avoid commercial risk, the investor needs to study the supply and demand situation for any specific service or product. In the recent years, India has witnessed many terrorist attacks. Therefore, it is important for the investor to look for a location where it is safe to invest without any fear of terrorist’s attacks.
8.I would like to choose China for defining the concept of investor risks. As there are several investor risks which are persistent and may disturb the economy of the country such as:
- China does not work on the agendas of the free market as it is a communist country. Therefore, the rules related to investment and company operations are different.
- There are greater chances of manipulation of the prices of the stock as the norms for trading are sloppy in China.
- The trade operations are controlled at the central level, and there are various issues related to the transparency.
The risks mentioned above can be prevented or avoided to some extent but cannot be abolished fully. The risk can be lowered by the foreign investors by avoiding investment in companies having weak governance record as well as the investors can purchase equities through funds.
9.According to me, there is a need to develop a standard global negotiation protocol when conducting the business as every country has their own culture with which they are following. Some of the cultural conflicts which may occur in negotiation process are the way of communication Negotiation Style, Attitude, Perception, Body Language, Preferences, and Decision Making Authority. The differences in cultures of the various negotiating parties result in different views in the negotiation process. The different views of the negotiating parties can create a state of conflict which results in the failure of business on a global scale. So, it is important to understand the cultures of the opposition party before going into the negotiation process while conducting business. The standard global negotiation process also helps in the success of the business.
10.When conducting different types of business on a global scale, I don’t feel that a standard global negotiation protocol might be one that could work due to the premise that a one size fits all approach is not applicable here. For any business to be successful, it really needs to take out the time and the effort to observe the different customer markets around the world and then to see what are the underlying cultural, religious, social and traditional norms there. When those norms are understood, it should then tailor and customize its global negotiation protocol to that particular country or market. For example, there are just different types of cultural and social values that might be found in the Middle East where I come from versus some other place such as Latin America. As such, the firm has to really ensure that its negotiation style is adopted to that local culture. For example, when negotiating in the Middle East, it is often important to shake hands of the male business personnel but not that of females as that goes against local cultural and religious values. But in some other place such as Europe, it would be rather customary to shake the hands of both gender. So all these are important norms that a firm should understand and then tailor its negotiation so it suits well to those local values and norms.
11.The high context communication cultures can be described as those cultures of communication which involves the good use of the contextual components of good communication. These components can be described as the use of right pitch or tone, gestures and body language, and status of the person with whom conversation has been made. The low context cultures are opposite to the high context culture as it does not focus on the components of the effective communication.
Also, there are no particular cultures which can be stated as high or low context as every society has diversity in its communication practices. There are cultures like American culture which is stated as a low context culture, but the people of America also tend to involve in high context communication gatherings.
12.The nonverbal cues and implicit communication are the major factors on which high-context culture relies. In case of high-context communication culture, it is very difficult to understand the message if you don’t have high knowledge about the background information. For example, African, Central European, Asian and Latin American are all examples of high-context cultures. On the other hand, high-context communication culture relies on explicit communication. It is easy to understand the message in low-context culture communication as the information is designed and spelled out in the low context communication culture. For example, Austria United States are low-context cultures in which it is easy to understand the message.