IM Final Flashcards
(73 cards)
Who is involved in negotiations?
foreign governments, distributors,
franchisors, customers, advertising
services et
What kind of problems do cultural differences cause in international negotiations?
Language, Nonverbal behaviors, Values, Thinking and decision-making processes
Some dimension of cultural variations in negotiations
goal, attitudes, personal styles, time, emotion, risk taking
Ex of nonverbal communication and language
yes, no, nodding, silence, facial gazing, touching
Verbal negotiation tactics
promise, threat, recommendation, reward, punishment, question, command
Differences in cultural values that can affect negotiations
Objectivity, time, competitiveness and equality
Four steps to have efficient negotiations
appropriate negotiation team; management of preliminaries, including
training, preparations, and manipulation of
negotiation settings; management of the process of negotiations; Appropriate follow-up procedures and practice
Components of negotiation preliminaries
Assessment of the situation and the people; Facts to confirm during the negotiation; Agenda; Best alternative to a negotiated agreement (BATNA); Concession strategies; Team assignment
Four stages of the negotiation itself
Nontask sounding (relationship building);Task-related exchange of information; Persuasion; Concessions and agreement
What is nontask sounding?
used to determine mood, communication styles, background, type of people
What to do during persuasion?
avoid threats or emotional outbursts, ask questions, use third parties
Definition of pricing
amount a person, gov, or company charges for a good or service
Active pricing
set prices to meet marketing objectives, such as share or return on profits
Static pricing
follow market prices, low focus on foreign business
Parallel Imports
Grey markets= importers buy products from distributors in one country and sell it in another to different distributors who are not part of the distribution system
When do parallel imports occur
whenever price differences are greater than cost of transportation between two market
Effects of grey trade
erosion of brand equity, strained relationship with authorized channel members, legal liabilites, complication of global marketing strategies
Variable cost pricing
Marginal or incremental cost of producing goods to be sold in overseas market
Full cost pricing
No unit of a similar product is different from any other unit in terms of cost
Skimming vs penetration pricing
Reach a segment of the market that is relatively price insensitive (low number of sales but higher profit); vs stimulate market and sales growth by deliberately offering products at low price and increase the number of sales but takes longer for profit
Regional cooperation groups
Two countries that agree to develop industries that can help each other
free trade area
two or more countries to reduce custom duties and nontrade barriers but maintain tariffs for external countries
Customs union
reduce/eliminated tariffs and common external tariff on products imported (used to be EU)
Common market
eliminates all tariffs and restrictions on internal trade, common external tariffs, allows for free flow of capital and labor
