Jeswald W. Salacuse, Arun Venkataraman, and Fritz von Carp
ENCO is a Texas-based power company that has begun to move aggressively into emerging markets. The Indian government has approached ENCO to build an electrical generating plant to increase the power supply to Maharashtra State, one of India’s most economically developed states. ENCO is willing to undertake the project if it can be assured of a credible, long-term purchaser that will buy the electricity t a price profitable to ENCO. Toward this end, ENCO has negotiated but not yet signed a long-term “Power Purchase Agreement” (PPA) with the Maharashtra State Electricity Board, a state enterprise that distributes electricity to consumers.
Since the negotiation of the PPA, however, developments in Maharashtra State have raised some concern. Communal rioting has begun and the local media has changed the ENCO project with corruption and foreign exploitation. Elections are scheduled for next year and the Congress Party, which controls the Maharashtra State Government and negotiated the PPA, might lose.
ENCO’s CEO Janet Thron, is scheduled to fly to India next to sign the PPA. She has asked her top five associates for advice on how to proceed. All five associates have offered differing advice, and Thorn must make a series of decisions in response to deteriorating circumstances.
All international contracts are potentially unstable, especially when governments are parties.
Political change is a prime cause of contractual instability.
- Contract enforcement mechanisms (such as international arbitration) can be important, but at best they are alternatives that strengthen a party’s position.
- Because international deals involve continuing negotiations, parties need to develop strategies to help cope with change even after a contract is signed.
- The legal and political context of a deal can influence its stability.
- When the net benefits to one party of not having a contract become greater than maintaining the contract, one can expect that party to reject or seek to re-negotiate the contract.
- Standard contracting practices in one country may not work effectively in other countries.
Teacher’s Package Includes:
- Participant Materials
- Teaching Note
- Charts that can be used as overhead transparencies
- Jeswald W. Salacuse, Arun Venkataraman, and Fritz von Carp
- Program on Negotiation
- Time required:
- 2 – 2.5 hours
- Number of participants:
- 10 – 200 (broken into smaller groups)
- Teams involved:
- Agent present:
- Neutral third party present:
- Teaching notes included:
PON Teaching Negotiation Resource Center
Soft copy vs. hard copy
You may order this role simulation in either soft copy (electronic) or hard copy (paper) format. If you select the soft copy option, you will receive an e-mail with a URL (website address) from which you may download an electronic file in Adobe Acrobat PDF format. You will have one week to download your materials from when you receive the email. You are then only authorized to use, print, or share the materials as many times as the number of copies you purchase. The TNRC charges for use of this simulation on a per-participant basis. Therefore, you must purchase a separate copy of this simulation for each person who will be participating, regardless of the number of roles in the simulation. You will only receive a link to one electronic file, which includes all general instructions, confidential instructions, and any teaching notes for the simulation. You should separate out the instructions before distributing to participants.
If you select the hard copy option, you will receive paper copies of this role simulation via the shipping method you select.
For additional information about the soft copy option, please visit our FAQ section, or contact the PON Teaching Negotiation Resource Center at email@example.com or 800-258-4406 (within the U.S.) or 301-528-2676 (outside the U.S.).
Please note: At the present time, Teaching Negotiation Resource Center soft copies are compatible with the following versions of the Adobe Acrobat Reader: English, German, French, Spanish, Swedish, Portuguese, Japanese, and Korean. If you have a different version of the Acrobat Reader, you may wish to download one of these at http://www.adobe.com/products/acrobat/readstep2.html, or contact the PON Teaching Negotiation Resource Center at firstname.lastname@example.org, 800-258-4406 (within the U.S.), or 301-528-2676 (outside the U.S.) for further assistance. This restriction does not apply to the freely available Teacher’s Package Review Copies.
Ordering a single copy for review
If you wish to review the materials for a particular role simulation to decide whether you’d like to use it, a PDF, or soft copy, version of the Teacher’s Package for the simulation is available as a free download from the description page of most role simulations and case studies. All Teacher’s Packages include copies of all participant materials. In addition, some Teacher’s Packages (but not all) include additional teaching materials such as teaching notes or overhead masters.
Ordering copies for multiple participants
To order multiple copies of a role simulation for use in a course or workshop, simply enter the total number of participants in the box next to “Quantity.” There is no need to calculate how many of each role is required.
If you are ordering hard copies, the Teaching Negotiation Resource Center will calculate the appropriate numbers of each role to provide, based on the total number of participants. For example, if you wish to order a 2-party role simulation for use with a class of 30 students, you would enter “30” in the box next to “Quantity.” You then would receive 15 copies of one role and 15 copies of the other role, for use with your 30 participants. As another example, if you ordered 30 participant copies of a 6-party role simulation, you would receive 5 copies of each role.
In the event that the number of participant copies you order is not evenly divisible by the number of roles in the simulation, you will receive extra copies of one or more roles. Participants receiving the extra roles may partner with other participants playing the same role, thus negotiating as a team. So, for instance, if you ordered 31 copies of a 2-party role simulation, you would receive 15 copies of the first role and 16 copies of the second role. One of the participants playing the second role would partner with another participant playing that same role, and the two would negotiate as a team.