MGT 445 ORGANIZATIONAL NEGOTIATIONS
Global negotiations can be difficult because many factors involved, such as the cross-cultural boundaries, and external influences, or interests over the negotiations. A negotiation involving C&A Electronics, Inc., Vietnam Telecommunications Services, Inc., and the Vietnamese government will demonstrate challenges faced in international negotiations. Article Overview
Although Vietnam had several opportunities for international business agreements, the transportation, and telecommunications required significant improvements. A United States organization, C&A Electronics, Inc., supplied a communication switch to support, and boost the telecommunications systems Vietnam wanted to put into operation. First C&A Electronics negotiated with Vietnam Telecommunications Services, Inc., and the Vietnamese government joined near the end of the process.
C&A Electronics wanted to enter a licensing agreement to retain control over the technology, and provide the switches on an agreed-upon schedule. Initially negotiators from the Vietnam Telecommunications Services accepted, and asked the government for approval. The government official changed the negotiation with new requirements from the government with things like transfer of technology, exchange of foreign currencies, and employing operational staff.
Vietnamese government had a history of not protecting intellectual property rights, so C&A Electronics did not want to release its technology. The company had a complex chore negotiating the technology transfer without trusting the government not to reveal information. The Vietnamese government saw the value in possessing the technology because it was imperative to their economic success.
For C&A the release of the proprietary software could be catastrophic, so the recommendation for C&A was to agree to release the technology with two conditions. Vietnam Telecommunications Services cannot sell...