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Tropicalia B:

Sample Post Negotiation Report

University of Kentucky

I. Post-Negotiation Strategy/Entry Report

Entry Mode

Initially the Tropicalian government wanted to focus on improving the strength of our local firms, increase exports from our country, and increase the technology transfer within our country. It was important to uphold the established relationships we have built with the local corporations. This relationship was not only important for us, but also even more important for the local corporations. “If you don’t have someone leading the business [locally], you don’t get government contacts, education contact and political contact” (White & Trachtenberg, 2003). Some specific points listed in our initial policies directly related to entry mode of multinational corporations (MNCs) include the following:

1. Export level of any joint venture must not go below 20%

2. Loans will be available for joint venture projects between MNCs and local firms

(for a full policy report, please see figure 1)

After initial negotiations, we were not successful in initiating an international joint venture between our local firms and a multinational corporation. At first, our strategy was to approach Tanaka and Eurodata as soon as possible and explicitly establish are government policies (figure1). We did not mention anything about negotiating our policies during our first contact with Eurodata or Tanaka, but were willing to change several policies in order to land a deal to benefit our country’s economic situation. After being rejected or blown off by both Eurodata and Tanaka, we quickly realized we might have to make amendments to our existing entry mode strategy and related policies in order to achieve our ultimate goals.

Although our government was not supportive of wholly owned subsidiaries (WOS) in our country, we were approached with a deal we could not pass up. After being rejected by both...