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Chapter 5Types of International Business Negotiation
QuotationNegotiation is a process in which people learn to accept an available compromise as a satisfactory substitute for that which they thought they really wanted. —George H. Ross
Contents Background Information5 Section A Text Study 2 Humor3 Situational Dialogue 9 Words and Expressions6Section B Long Live Price Negotiations4 Lead-in1 Exercises10 Chinese Case7 Chinese Culture8
Section A Types of International Business NegotiationChapter 05Types of International Business Negotiation
Lead-in Back in the 1850’s, Lehman Brothers was formed and became a vital and affluent trading house on Wall Street. Unfortunately, some 134 years later, the company fell afoul of misfortune and had to be sold to avoid bankruptcy. Part of the downfall occurred because of the intense enmity between Peter Peterson, chairperson of the banking department, and Lewis Gluckman who was the head of the trading department. This rivalry between the two departments had become deeply rooted over time and is said to permeate many other trading houses on Wall Street. It is quipped that traders are often described by the investment bankers as “poorly educated drones… thinking of the moment, not the long term.” On the other hand, it is said that the traders describe the bankers as “elitist Ivy League preppies who rise late and take leisurely lunches.” (continue)
Lead-in As the rivalry intensified, both Gluckman and Peterson struggled for supremacy within the company. They both began to seek out alliances to enhance their respective positions. As the power coalitions built, Gluckman and his coalition prevailed and won the turf war. The trading department under Gluckman’s control began to act unilaterally. They bypassed the board of directors and made their decisions by majority rule, refusing to nego
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