Key to Exercises from Chapter 1 to chapter 15Introduction to NegotiationsCase one: The price of the rugNegotiation is the means by which people deal with their differences. Whether those differences involve the purchase of a rug, a contract dispute, the terms of a sale, or a peace accord between warring nations, resolutions are typically sought through negotiations. To negotiate is to seek mutual agreement through dialogue. Since almost everything is negotiable, there are so many negotiations taking place anywhere and anytime. Although you may not be involved in high-level international negotiations, most of you will have to negotiate with colleagues, bosses, customers, and suppliers at some stage in your career. In the above case, the couple negotiate with the seller about the price of the rug. Negotiating effectively promises some of the biggest prizes of all communication skills. The wife wants the particular rug no matter what the price is. In such a situation, the husband becomes totally subverted坏事的 si nee he wants to lower the price. The same seen ario can occur freque ntly in our life. To avoid this, every couple should have a frank discussion about their differences prior to entering into negotiations. At a minimum, it will give you a positive feeling about the process. Most important, you can reduce or eliminate the surprise that may emerge as you negotiate.Case two: Human resource managerWe can understand that negotiation is a means by which people involved solve their differing aims and objectives in a nonviolent and humanly acceptable manner. In this case, the boss has authority, but he did not force Li Tian to stay on the job. The boss manipulated the situation in a soft way: instead of demonstrating his authority by denying his request an authoritarian approach that he knew would alienate Li Tian he set up a situation that would give him the desired results without dictating the outcome. The boss was creative in the approach. They struck a deal which was acceptable to both sides: If Li Tian could find a replacement to do his job, the boss would make the switch. At last the bossstrategy worked.Chapter 1 Preparation for Negotiation ExercisesI. Identify the following statements as TRUE or FALSE.1. T 2. T 3. F 4. F 5. T6. F 7. F 8. F 9. T 10. FII. Discussion1. Students should identify:(1) . Information on Related Environmental Factors(2) Knowing the Opponent(3 ) Knowing competitors(4) Knowing oneself2. For example (students will find their own examples, but should identify:A toy, cost 50 yuan ideal target 90 yuan bottom line: 60 yuan acceptable price between 60 yuan to 90 yuan3.Students should identify:? Avoidance, Competition, Accommodation , Compromise, and Collaboration? Avoidance is non-negotiation.? Competition is also known as distributive or win-lose strategy.? Accommodation is“I lose youwinpolicy.? Compromise is a combination of competition and accommodation, two distributive strategies.? Collaboration is also called integrative, or win-win strategy.III . Role PlayWithin this case, the position of Chinese side is producing 3 types of furniture, its underlying interestis to keep the cost down. While the American company s position is 5 types, its interest is to makemore profits. This problem can be solved from the interest angle so that win-win results can be achieved. Conversely, if it is solved from the positional angle, one party has to make concessions, so that the result is only in one party s favor.They can make a plan stating that the per unit price of furniture remains unchanged, the increased cost of making the extra 2 models of furniture can be spread on to the new products, shown through its higher prices, and finally pass onto the final consumers. Since Chinese furniture enjoys a ready market there, the American company can make more profits by selling more goods, and theChinese side s interest is also protected, thus achieving a win-win result.IV . Case studies :Case one: Sino- Japanese negotiations1. What factor played an important role in concluding the deal at the figure given by the Chinese side ?Preparation played an important role in concluding the deal at the figure given by the Chinese side. Before the negotiation, the Chinese side devoted much energy to preparation including doing market research, gathering information. During the negotiation, they still kept a close look at the changing market, therefore they had a card up their sleeve from the beginning to the end of the negotiations that laid a foundation for further discussions, during which, a series of tactics were wisely used.2. What tactics did the Japanese side use in the first round of negotiation?The Japanese side used a tactic of ballon dessai by making an offer at 10 million Japanese yen. Their purposes are two fold: if the Chinese side did not know the international market,they can take it as abasis, a starting poin