One day someone from Johnson’s visited Sam in his office. He said, on behalf of the company, that if Sam agreed with their condition, he would be offered a position in the new company and 5% increase in his salary.
Country B’s Acceptability-set Country A’s acceptability-set
Law of Two Level Game
The win-set which is reached with less disputes at home, more narrowly arranged and specific, will have more chance of success.
Organizational interests: private or stateowned enterprises, institutions, other entities
National interests: sovereignty countries, independent states and regions
Needs Theory
Professor Abraham H. Maslow presents seven categories of needs
Physiological (homeostatic) needs
Safety and security needs Love and belonging needs Esteem needs Needs for self-
actualization Needs to know and
understand Aesthetic needs
Three Layers of Interests at Home
Personal interests: represented by individual negotiators
Chapter Six
Introduction Case
Sam’s company is negotiating with Johnson’s on the acquisition by the latter. However several months have passed, nothing came out because Sam, the general manager refuses the price Johnson’s has to pay for buying his company.
The Law of Two Level Game
International level----(level I) represented by countries, international organizations, enterprises, etc.
Domestic level----(level II) represented by government government institutions, intc.
Case Study
US-Japan Negotiation on Semiconductor
American charges Japanese chip-makers dumping semiconductors in the US market
Japan was not providing access to its domestic market for foreign chip-makers
Contradiction of personal interests and organizations when personal interests prevail that of the organizations
Personal interests in line with national interest when representing nation in international affairs
Interests of nations and organizations in conflicts when organizations only consider their own stakes, but in convergence when in international affairs in most cases
Simulation A Dam on a River
Negotiation requirement Organize a team of 6 students, representing 3 parties. Follow the steps: First, generate as many options as possible; Second, discuss and pick out a few options which are feasible; Third, choose the one which satisfy the interests of the three parties
Personal Interests vs Personal, Organizational
Organizational Interests vs National Interests
Personal interests frequently in line with organizational interests because realization of personal interests depends on organizations