Global Negotiations Article Analysis
MGT/445

Global Negotiations Article Analysis
Globalization has brought the world closer together and almost made it a requirement for businesses to develop plans and strategies to deal with different cultures. Businesses and managers must think on a more global scale and develop a global perspective to expand their businesses. In pursuing opportunities in the global marketplace, managers increasingly engage themselves in international business negotiations (Reynolds, Simintiras, & Vlachou, 2003). In this paper, I have decided to use an article that is an example of how a business failed in their negotiations overseas. I will also analyze the implications of globalization and technology on negotiation.
International Negotiation Situation Article
The article chosen for this paper involves Enron and their negotiations with the government of India and the Maharashtra State Electricity Board. The project proposal was for the construction of a US$3 billion power-plant in the town of Dabhol, situated on the Indian Ocean. There were many problems with the proposed project and the negotiations process that was undertaken by Enron. World Bank, acting as a consultant to the Indian government said that the project would produce an excess capacity of electricity for years and would be too costly in comparison to the more traditional sources of fuel, such as coal, already in use ("Enron’s Indian Negotiation Debacle " 1996-2012). The project was also too costly for the people and businesses who would be consuming the energy. A tariff was proposed to cover the cost of the project, and this expense was too costly for the consumers. This caused public opposition to the project and raised concerns over the electricity tariff, government official bribery, and about the project not being open to competitive bidding.
Because of the public outcry and protests over the project, and a lawsuit filed in the Indian High Court. Enron was forced to renegotiate the deal with the Maharashtra State Electricity Board. After the renegotiation, the project still could not continue because of various groups including unions, activists, and other public interest groups filed 24 legal actions in the courts in an effort to stop the project ("Enron’s Indian Negotiation Debacle " 1996-2012). Not long after the first phase of the plant began to operate, Maharashtra State Electricity Board was no longer able to pay for the electricity it had negotiated. Dabhol Power Company eventually had to close down and file suit against MSEB, the central government and the government of Maharashtra. The main fault of Enron in this project was their lack of inclusion of all the parties that would be affected by the project. The failure of this project was in 2001 and was a large part of the failure of Enron and the scandal that followed.
Implications of Globalization and Technology on Negotiation Technology plays an important part in our everyday lives and has made the world much more accessible to people and business. Many businesses that never would have had an opportunity to compete for contracts and business from other countries have that ability thanks to technology. Developments in technology and communications, the creation of intricate international organizations and transnational corporations have profoundly affected the context within which each person and community lives as well as the role of the state (Stimmann-Branson, 1999). Technology has also had a major part in the globalization of the world by making it easier to communicate and negotiate over long distances. Globalization gives businesses a growth-based advantage to break into new geographic markets by using the Internet and other technological advances. Although technology has made it possible to communicate and negotiate with people across the globe without meeting face-to-face, the rules for getting to know about the other parties’ culture and their preferred way of doing business is still an important aspect of the negotiation process.
Conclusion
In pursuing opportunities in the global marketplace, managers increasingly engage themselves in international business negotiations (Reynolds, Simintiras, & Vlachou, 2003). In the article about Enron and its dealings with India, their lack of inclusion of all the parties that would be affected by the project lead to the eventual failure of the project. This was part of the reason for the failure of Enron itself. Globalization and technology are important aspects of today’s business world. It is important to remember that although technology has removed some of the barriers to international trade and made communication across the globe much easier, managers must still abide by the same principles that are used when negotiation face to face with people from different cultures.

References
Enron’s Indian Negotiation Debacle . (1996-2012). Retrieved from http://www.negotiations.com/case/negotiation-project-india/
Reynolds, N., Simintiras, A., & Vlachou, E. (2003, March). International business negotiations Present knowledge and direction for future research. The Emerald Research Register, 20(3), 236.
Stimmann Branson, M. (1999). Globalization and Its Implications for Civic Education. Retrieved from http://www.civiced.org