1. International Business Management – Unit – V Anna University Syllabus
Conflict Management & Ethics in IBM
International Business Management – Unit – V Anna University Syllabus

2. Disadvantages of international business
Adverse effects on economy
Competition with developed countries
Rivalry among nations
Exploitation
Legal problems
Publicity of undesirable fashions
Language problems
Dumping policy
Complicated technical procedure
Shortage of goods in the exporting country
Adverse effects on home industry

3. Conflicts in International Business
Business and financial institutions have an important role to play in avoiding or resolving conflicts that are associated with economic production.
International conflict is the clash of interest between the host country, home country and MNC or the firm related to these two countries.

4. Nature of Conflict Functional versus Dysfunctional Conflicts
Competition and Cooperation Conflicts
Social, Ethnic, and Racial Differences Conflicts

5. Types of Conflict Types Individual Level Intra Individual
Inter Individual
Group Level
Intra Group
Inter Group
Organizational level
Intra Org.
Inter Org.

6. Individual Level Conflict
Human behaviour is need motivated. A person joins any organization to satisfy his needs.
An employee faces a conflict within himself when he perceives that organization is not satisfying his needs in accordance with his perceived standards.

7. Individual Level Conflict - Types
Intra Individual Conflict
Conflict due to frustration
Goal Conflicts
Role Conflicts
Inter Individual Conflict
Personal differences
Information Deficiency
Role Incompatibility
Environmental Stress

8. Group Level Conflict Intra Group (Within the Group Itself)
Facing New Problem
New values imported from Society
People from different socio economic background
Inter Group (Between Groups)
Competition from resources
Task interdependence
Jurisdictional Ambiguity
Status Struggles

9. Organizational Conflict
Intra Organizational Conflict
Horizontal Conflict
Vertical Conflict
Line & Staff Conflict
Inter Organizational Conflict
Between Organizations pursuing similar objectives
Between Govt. Agency & Organizations
Between Head Office & a Mfg Unit

10. Sources of Conflict in International Business
Host Country Factors
Home Country Factors
Combined Factors

11. Host country factors Size & Equity Sovereignty Information Disclosure
Visibility
Regulation & Competition
Employment
Technology
Balance of Payment
Taxation
Specific concerns of the Least Developed Countries

12. Export & Import Control
Home Country Factors
National Security
Dumping
Embargos & Sanctions
Export & Import Control
Balance of Payment
Local Industry
Local Jobs

13. Combined Factors
Nationality
Business Practices
Taxation
Local Laws

14. Conflict Prevention Strategies
Participative Decision Making
Collaboration & Team Building

15. Conflict Resolution Actions in IB
Contracts
Resolving Disputes
Local Courts & Local Remedies
Principle of Comity
Litigation

16. Negotiation in International Business
Negotiation is face to face decision making process between parties concerning specific products. – J.L. Graham
Negotiation is any form of meeting or discussions in which you and/or the persons you are in contact with use argument and persuasion to achieve an agreed decision or action. – Alan Fowler
Negotiation can be between home and host Government, foreign company and local company, foreign company and host country Government and the company with its home Government

17. Role of Negotiations Persuade Opponents to revise their BATNAs
(Best Alternative To Negotiated Agreement)
Determine the other Party’s Interests
Re-Assessing one’s own BATNA
Building Trust

18. Factors Affecting Negotiations
Language Variation
Trust
Cultural differences
Professional Conflict
Negotiated Goal
Protocol
communications
Risk taking propensity
View of time
Decision making system
Form of agreement
Power distance
Personal style

19. Negotiation Process Planning Impersonal Relationship Building
Exchanging Task-Related Information
Persuasion
Agreement

20. Role of International Agencies in Negotiation
Role of International Finance Corporation in conflict resolution (IFC)
Role of Multilateral Investment Guarantee Agency in Negotiation (MIGA)
Role of International Centre for Settlement of Investment Disputes in Negotiation (ICSID)
Role of International Chamber of Commerce in Negotiation (ICC)
Role of World Trade Organization in Negotiation

21. Ethics in International Business
Ethics is a set of standards, or code, or value system, worked out from human reason and experience, by which free human actions are determined as ultimately wrong, good or evil.

22. Importance Ethics corresponds to basic human needs
Values create credibility with the public
Values give management credibility with employees
Values help better decision making
Ethics & Profit Ethics & Profit go together
Law cannot protect Society, Ethics Can

23. Ethical Values Utilization of Natural resources of the host country
Utilization of Natural resources of the home country
Enter the foreign country through joint venture
Transfer of technologies to the developing country
Develop the managers and human resources of host country.
Discharge the responsibilities to various social segments of the host country.

24. Ethical Issues Sexual & Racial Discrimination Human Rights
Price Discrimination
Bribery
Ethical dimensions of Labour conditions
Harmful products
Environmental Issues
Telecommunications issues
Intellectual Property Protection
W.T.O

25. Ethical Decision Making
Recognizing an issues as an ethical one
Making the ethical judgment
Resolving to do the ethical thing
Actually acting ethically

26. Problems in Ethical Decision Making
Rigid Rules and Regulations
Individual Values vs Organizational Goals
Managers look for shortcut routes
Competitive Pressure
Poor Decisions
Ambiguous Situations
Budget