Global Negotiations Article Analysis

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Global Negotiations Article Analysis

Global Negotiations Article Analysis
Globalization has brought the world closer together and almost made it a requirement for businesses to develop plans and strategies to deal with different cultures. Businesses and managers must think on a more global scale and develop a global perspective to expand their businesses. In pursuing opportunities in the global marketplace, managers increasingly engage themselves in international business negotiations (Reynolds, Simintiras, & Vlachou, 2003). In this paper, I have decided to use an article that is an example of how a business failed in their negotiations overseas. I will also analyze the implications of globalization and technology on negotiation.
International Negotiation Situation Article
The article chosen for this paper involves Enron and their negotiations with the government of India and the Maharashtra State Electricity Board. The project proposal was for the construction of a US$3 billion power-plant in the town of Dabhol, situated on the Indian Ocean. There were many problems with the proposed project and the negotiations process that was undertaken by Enron. World Bank, acting as a consultant to the Indian government said that the project would produce an excess capacity of electricity for years and would be too costly in comparison to the more traditional sources of fuel, such as coal, already in use ("Enron’s Indian Negotiation Debacle " 1996-2012). The project was also too costly for the people and businesses who would be consuming the energy. A tariff was proposed to cover the cost of the project, and this expense was too costly for the consumers. This caused public opposition to the project and raised concerns over the electricity tariff, government official bribery, and about the project not being open to competitive…...

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