ABSTRACT
Inward investment often provokes clashes between a party's interests and a country's public policy rules, and this simulation provides opportunities for negotiators to package their proposals to address the inhibitions that stand in the way of package deals that would deliver their interests. The issues include the transfer of technology, remittance of profits, degree of local ownership, warranties and penalties for non-performance, preferred bidder status, return on investment and the requirement for an entire project to be divided into three separate phases. In these types of contract, the customer usually has the project assessed by firms of independent technical consultants, and their estimated price is treated as a ceiling price. Bidders coming in with prices 'close' to the consultant's price are generally acceptable, although they could fail on other grounds. The chapter illustrates the case study of Totec, a telecoms company for discussing the issues of inward investment. The case study is used for negotiation training.
