1. FINS

2. FOREIGN INVESTMENT NEGOTIATION SIMULATION

3. BRIEFING AGENDA Overview of FINS project Key issues
Potential negotiation relationships
Assignment / discussion of roles
Negotiation process
Graded assignments
FINS Schedule

4. TEAM ASSIGNMENTS MNCs Local Firms Megatronics EuroData Tanaka
Tropimatics
Systrop
ElectroParadys
ParaInfo
East Tropicalia
West Tropicalia
Paradiso
Governments

5. MNCs: Megatronics, Tanaka, EuroData
Invest in emerging markets?
International strategy
Entry mode: Risk, resource, control trade-offs
Type of plant, finished product vs. components
Bargaining power vs. local firms, govt.

6. LOCAL FIRMS: ParaInfo, SysTrop, TropiMatics, ElectroParadys
Enter industry?
Industry entry mode: alone, JV, SOE?
How to facilitate MNCs entry into country
Access to technology
Government support
Bargaining power vs. MNCs, govt.

7. GOVERNMENTs: Paradiso, East Tropicalia, West Tropicalia
Policies for industry structure, access
Economic integration
Favorable aspects of FDI
Labor
High technology
Taxes
Imports vs. exports
Unfavorable aspects of FDI
Dependence
Low technology

8. FINS Intl. Strategy and Entry Mode
Tanaka
Europe
North America
Country of Paradiso
Country of Tropicalia
Electro-
Paradys
SysTrop
TropiMatics
ParaInfo

9. Entry Mode Decision MatrixHi
Strategic Importance
of Country Lo Hi
Resources,
Control,
Risk Lo Lo Hi
Stand-alone Attractiveness
of Country

10. Entry Mode Decision Framework
Control Resources Risk Dissem.
Low
Low
Low
High
Licensing
Exporting
Intermediaries
Direct
Joint Venture
Wholly-owned
Subsidiary
High
High
High
Low

11. Potential Negotiation Relationships
MNC1
MNC2
Local Firma
Local Firmb
GovernmentY
GovernmentX

12. INITIAL CONTACT Get Yahoo! or Hotmail e-mail account
e.g.,
Send address to ASAP
Public Statements (required via MGT 610 LISTSERV)
Team Name/Role
Team Members
Contact Information
Advertisements/RFP’s (optional)
Private RFP’s and Solicitations (optional)
Direct contact between players

13. Written Reports and Briefs
Pre-Negotiation Strategy Report
Due Mon., APR 4
Post-Negotiation Reports
Entry Mode & Strategy Report
Transaction (Non-transaction) Report
Negotiation Process and Outcomes Report
Due Monday, APR 11

14. Written Reports and Briefs
Pre-Negotiation Strategy Report
Due Weds., APR 6
Post-Negotiation Reports
Entry Mode & Strategy Report
Transaction (Non-transaction) Report
Negotiation Process and Outcomes Report
Due Weds, APR 13

15. Pre-Negotiation Strategy Report
Intended End-Game Position (~2-3 pages)
Details about desired entry mode and international strategy – or policy/economic objectives and policy specifics
Negotiation Game Plan (~1-2 pages)
Key parties
Issue priorities
Process strategies/tactics
Internal Decision Process (~1/2 page)
Authority, information processing, decision-making
Key Contingencies (~1/2 page)
Alternatives, fall-backs, last resort, etc.

16. Post-Negotiation Reports
Entry Mode & Strategy Report
Transaction (Non-transaction) Report(s)
Negotiation Process and Outcome Report

17. Post-Nego Strategy/Entry Report (5 pages of text MAX … unlimited appendix items)
Details of current/future situation and actions regarding:
Entry mode
International strategy and operations
Organizational structure
(Government: Future policies package)
Make explicit use of these frameworks

18. Post-Negotiation Transaction Report(s)
Agreements/Contracts
Each multi-party “agreement” (~1-3 pages)
Type and purpose of project
Partners, ownership, structure, control, etc.
Agreements on other key issues
Non-Agreement Briefing (~2-3 pages)
Why no agreement?
Process and substantive barriers to agreement
Future process and/or substantive alternatives

19. Post-Negotiation Process Report 2-3 pages of text MAX … unlimited supporting documentation
Which parties?
Timeline
Negotiation Issues/Points
What were they?
Link to entry mode and/or international strategy
Negotiation strengths vs. weaknesses
Negotiation issues won vs. lost

20. Post-Negotiation Process Report (cont.)
Negotiation Contact
Mode, frequency, and substance
Bilateral vs. multilateral
Documentation
Agenda, progress, commitments, unresolved issues, process, etc.
Use of Media/Press
Individual press releases, joint communiqués, etc.

21. Negotiation Outcome Conclusions (1 page)
Governments
Influence of policy package on entry mode and strategy?
MNCs
‘Intended’ versus ‘realized’ entry mode/strategy?
Local Firms
‘Intended’ versus ‘realized’ role in facilitating MNCs local entry mode and their overall international strategy?

22. FINS CALENDAR

23. FINS CALENDAR