Panama Canal Negotiations

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Article Analysis: Panama Canal Negotiations MGT445 February 6, 2012 Article Analysis: Panama Canal Negotiations Negotiations of any kind present challenges that require preparation and skilled representatives. Negotiations at home in the familiar work center or comfort zone are challenging enough, but imagine negotiations taking place in a foreign country. Cultural and ethical differences are presented in this situation and negotiators must be skilled and prepared for the challenges ahead. In addition to the cultural and ethical characteristics of an international negotiation the members must also consider the environment. The negotiation environment is part of the negotiation structure. The structure consists of the environment, the setting, and the process (Cellich & Jain, 2004). During the Panama Canal negotiation there were multiple nations involved that presented tense negotiations. The Panama Canal project was started by the French that had faltered financially when the United States stepped in to try and take over the project and negotiate for position. The United States interest stirred issues with Nicaragua and Columbia. Poor communication and unfamiliar negotiation authority resulted in tension with Columbia. Columbia’s representative signed an agreement without proper authority from the Columbian government (Negotiation Experts, 2010). Knowing the negotiation environment and preparing is paramount to the success of the stakeholders involved. The following are the components of the negotiation environment: legal pluralism, political pluralism, currency fluctuations and foreign exchange, foreign government control and bureaucracy, instability and change, ideological differences, cultural differences, and external stakeholders (Cellich & Jain, 2004, p. 4). The Panama Canal negotiation would have been more successful had the parties
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