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Negotiation Debrief Paper

Negotiation Debrief Paper - Paradiso Government Prof Helm...

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Paradiso Government 11/18/08 Prof. Helm IBUS 160 Negotiation Debrief Paper In preparation for the negotiation rounds, the overarching aim of our government was to foster the development of a sizable and profitable domestic microanalyzer industry. Maintaining an appropriate balance between the prosperity of national producers and the entry of MNCs was an essential factor in achieving our goals. Ultimately, we believe that the growth of the microanalyzer industry will produce many residual benefits for the economy of Paradiso. Increasing exports to reduce the trade deficit, creating new jobs to reduce unemployment, and long-term tax revenue from new manufacturing plants are several of the benefits expected from establishing a new high- technology industry within our borders. It was our belief prior to the negotiations that increasing free trade within the EXCOM and with Tropicalia would enhance not only our own ability to achieve or goals but maximize benefit in the region. Yet, it is important to note that our own economic gains are not contingent upon our neighbors, and our consideration must always be for the well being of our citizens. Our negotiations resulted in two major microanalyzer projects. Initially, Tanaka approached us with a proposal to establish a joint venture with Electro Paradys. Enticed by the idea of a merger, Electro Paradys also expressed interest in consolidating operations with ParaInfo. Tanaka and Electro Paradys presented a plan to ParaInfo to establish a domestic subsidiary, formed via a joint venture of the former two companies, and acquire ParaInfo as an additional piece of the new entity, ElectroParaNaka. The new entity would maintain 51% ownership by Electro Paradys and 49% ownership by Tanaka,
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while absorbing the current employees of ParaInfo and offerings two seats on the board of directors to ParaInfo executives. Once faced with the opportunity presented by this new joint venture, we felt that it was in the best interest of our economy and the potential new industry to facilitate the merger and subsequent buyout. While concerned about the overly expedient consolidation of such a new industry, we felt that the potential of our second project (to be discussed in greater depth later) would provide enough balance to the industry and still foster productive competition. Ultimately, given our open attitude to foreign entities and our desire to protect domestic manufacturers, we felt that the joint venture operation was an appropriate mix of opportunities that provided unrivaled potential in this new industry.
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