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Case Study: Power Balance Timothy T. McGee International Negotiation Southern New Hampshire University September 24, 2017
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1.Develop an argument to show that an imbalance of negotiating power probably existed between the parties during the negotiations. Identify the factors accounting for the imbalance. In this case study there are many factors that create and imbalance in power. IBM clearly had the upper hand in the deal by actually produces skilled labor for a country like Mexico in the 80's that is a really big deal. You can also in a way for the Mexican government it was a win win situation. IBM was willing to provide all resources for the project the Mexican government. Simply had to ok the process. To completely understand the negotiating tactics we have to understand what it means to have an imbalance in negotiating power. According to Mediate (2017) Some theorists suggest that the mediator has an obligation to "balance negotiating power," to, essentially, "level the playing field." The author suggests that this is not the best approach. Rather, the mediator's obligation with regard to negotiation power is to ensure that each party in mediation has sufficient capacity to effectively represent their interests in mediation. In other words, each party must have a certain threshold of negotiation effectiveness to be able to effectively and appropriately take part in mediation. In this case the Mexican government use a great tactic to try to level the playing field by including 'middle men” also know as mediators including actor's and numerous groups within the country. Assurance of ability to intercede ought to be made as for each companies capacity to speak to their interests, which is just to some extent a relative assurance between the gatherings. This assurance requires not be made right now the
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