Page 280 - DMGT519_Conflict Management and Negotiation Skills

Conflict Management and Negotiation Skills

Notes experienced steadily increasing acceptance and utilization because of a perception of greater
flexibility, costs below those of traditional litigation, and speedy resolution of disputes, among
other perceived advantages. However, some have criticized these methods as taking away the
right to seek redress of grievances in the courts, suggesting that extrajudicial dispute resolution
may not offer the fairest way for parties not in an equal bargaining relationship, for example in
a dispute between a consumer and a large corporation. In addition, in some circumstances,
arbitration and other ADR processes may become as expensive as litigation or more so

Online Dispute Resolution

Dispute resolution can also take place on-line or by using technology in certain cases. Online
dispute resolution, a growing field of dispute resolution, uses new technologies to solve disputes.
Online Dispute Resolution is also called “ODR”. Online Dispute Resolution or ODR also involves
the application of traditional dispute resolution methods to disputes which arise online

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Case Study Unequal Foreign Negotiation

hen two parties enter into an unequal negotiation, in terms of the power they
bring to the table, the interests or goals of either party can have a dramatic
Winfluence on the positions they adopt in the negotiations. Sometimes this can
have the affect of giving the weaker negotiating power the opportunity to gain advantages,
and similarly, this unequal status can also be influenced by their interests to their detriment.
The negotiation case study of the U.S. – Indonesian negotiations over the Conditions of
Aid is an example of both possibilities.

The takeover of China by the Communists in 1949 added a new geopolitical concern to the
interests of the United States in the Far East. Two theories of strategic concern were the
Domino effect of potential Communist takeover of countries near to China’s mainland,
and the Leapfrog theory, where it was considered the Communists might try to gain
control of a country within the protected geographic sphere, and deemed a protectorate or
ally of the Unites States. Of considerable concern was the potential threat to Indonesia.
In the Mutual Security Act of 1951, the U.S. committed its government to providing aid to
foreign countries but only in regards to that foreign government’s return commitment to
U.S. long term interests. The U.S. used trade embargoes against Communist countries, and
in particular China, especially as the U.S. became engaged in the Korean conflict. A foreign
country could not expect any foreign aid if it were to engage in any form of trade with a
member of the Communist bloc.
Indonesia considered itself a neutral country. It was responsible for roughly 40% of the
world’s exports in rubber. Indonesia was very strong nationalistic country and resented
foreign intrusion into its affairs. There were many radical elements within Indonesia that
sympathized with Communist China. The Indonesian government did not want to provide
the same level of commitment required by U.S. policies. Its goals consisted of the demand
that the U.S. provide assistance in the stabilization of the international price of rubber and
tin. It also wanted considerable compensation in the form of foreign aid to beef up its own
internal security and infrastructure. The interests of both countries were at cross purposes
and posed a challenge for the negotiation that followed.
Contd....

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