Negotiation Impasse Resolution
This case study does not specify the conditions for opening the first offer. There is a possibility that the Chinese exporter required certain conditions or minimum prices to be met in order for them to negotiate. In this negotiation the main differences are in the pricing of the product as well as the way of quality inspection. Initial offers from the Chinese exporter were for $2000, and those of the Japanese importer were $1500. Each party was unwilling to compromise their offers, leading to a $200 price gap. Additionally, the Japanese importer suggested that their quality inspection team be run by them, while the Chinese exporter insists on using an independent third party. This could lead to a breakdown in negotiations due to differences in quality and price. Lewicki and Saunders (2015) state that impasses in negotiations can be caused by parties becoming “ensconced in their positions” and refusing to compromise (p. 232). Cont…