Negotiation Tactics: Case Studies in Conflict Resolution
Essential Negotiation Vocabulary and Principles
- 1. Common, human, acknowledge, flexible
- 2. Concessions, trust, readily, exploited
- 3. Position, unwise, inefficient, either
- 4. Mutual, judging, easy
Four Pillars of Interest-Based Negotiation
- Separate people from the problem
- Focus on interests, not positions
- Invent options for mutual gains
- Insist on using objective criteria
- 6. Negotiation, rules, motivated, essential
- 7. Fairness, standards, open, pressure
- 8. Adversaries
- 9. Day, conflict, decisions, negotiate
- 10.
Transfer Pricing and Intercompany Fund Transfers Explained
Transfer Pricing
Transfer pricing involves the internal exchange of goods and services within a multinational corporation (MNC). Because this practice can impact national tax revenues, many governments have established strict enforcement procedures. The primary objectives of transfer pricing include:
- Reducing tax liabilities
- Lowering tariffs
- Circumventing exchange regulations
- Hiding affiliate profitability
- Enhancing joint venture earnings
Tax Effects
Adjusting transfer prices can decrease overall tax burdens
Read MoreSocial Policy, Welfare States, and Economic Institutions
Society, Institutions, and the Social Contract
Policy Analysis: Positive is factual and descriptive, focusing on how reality is. Normative is value-based, focusing on how society should be.
Correlation vs. Causation: Correlation occurs when variables move together. Causation occurs when one variable changes another. Correlation does not equal causation because of confounding variables and reverse causality. Policy should rely on causal evidence.
Basic Institutions
- Family: Provides care and shared resources.
Industrial Organization and Competitive Strategy Essentials
Topic 0: Economic Primer
- Cost Definitions: TC = FC + VC. Fixed costs remain constant in the short run; variable costs fluctuate with output. Sunk costs are unrecoverable and should be ignored in decision-making.
- Key Metrics: AC = TC/Q; MC = dTC/dQ (slope of TC).
- Time Horizons: Short run (fixed capacity); Long run (variable capacity, entry/exit possible).
- Elasticity: %ΔQ/%ΔP. High elasticity indicates price sensitivity; low elasticity indicates price insensitivity.
- Monopoly: TR = P·Q; Profit maximization
Macroeconomics: Nature, Scope, and National Income Analysis
Macroeconomics focuses on the “big picture” of an economy. While microeconomics looks at how individual people and businesses make decisions, macroeconomics zooms out to look at the entire economic system as a whole.
Nature of Macroeconomics
The nature of macroeconomics is aggregative. Instead of looking at a single consumer or a single company, it clumps everything together to study broad trends.
- Study of Aggregates: It deals with total national numbers, like total consumption, total savings, and
Business Profit Analysis: Case Study Calculations
a) Define Fixed Costs
Fixed costs are expenses that do not change with the level of output or sales volume in the short run. Razia must pay for items such as her car lease, insurance, and other overheads even if she runs fewer courses.
b) Define Sales Volume
Sales volume is the total quantity of units sold by a business during a specific period. In this case, the unit is a 1-day training course; Razia sold 200 courses in 2016 and 150 courses in 2017.
c) Calculate the 2016 Business Profit
Revenue: 200
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