International business negotiation: automobiles and ships

Abstract

PurposeThe purpose of this case study is to provide an opportunity for students to conduct realistic business analysis applying subject material related to cross‐cultural issues presented in the international business and international management courses.Design/methodology/approachThe hypothetical case study requires students to participate in a complex international business negotiation while treating cross‐cultural issues. Two profiled hypothetical companies are negotiating to transport product from Japan to the USA. Negotiation issues are identified and national cultural considerations are emphasized.FindingsThe case reflects refinements based upon its use during the past few years. Students are provided a realistic experiential exercise. Student feedback indicates a heightened sensitivity to cross‐cultural considerations and business negotiation skills that transcends their assigned textbook readings and traditional testing.Research limitations/implicationsAs with any classroom exercise, differences do exist with “real‐world” business practice. Students do not fully appreciate the pressures and tensions experienced by business professionals with respect to selecting a particular revenue stream from a series of potential revenue streams and resource limitations constraining managerial decision making.Practical implicationsThe case study provides an experiential exercise for students to apply theories and concepts learned from the textbook and the instructor's lectures.Originality/valueThe case study offers a complex view of the myriad of cross‐cultural considerations inherent in an international business negotiation. The case study provides value to the instructor and the students as it reinforces discipline theories and concepts in a meaningful way creating an active learning environment fostering academic excellence.