WYOFF AND CHINA-LUQUAN: NEGOTIATING A JOINT VENTURE(A) Introduction & Situation Analysis Joint ventures (JV) are a popular method of foreign market entry because they theoretically provide a way to join complementary skills and know-how, as well as a way for the foreign firm to gain an insider’s perspective on the foreign market. Since China began its market opening in 1978, joint ventures have been the most commonly used form of foreign direct investment (FDI), with about 70% of FDI in China
Task 8- Wyoff and China -LuQuan: Negotiating a Joint Venture (A) Apply the Analysis process described in “Negotiation Analysis: An Introduction”, by Michel Wheeler to this case. Namely under separate headings (or in tabular form), address: 1. What were the parties BATNAs? Caxtalene Wyoff: * 60% and full management control and full license cost for technology. * Right to adjust price. * Profits paid immediately. CLQ: * 50% – 50% with lower license cost for technology.