Fiji versus FIJI: Negotiating Over Water
Posted: 5 Apr 2012
Date Written: March 8, 2012
This case examines negotiations between a company and government over natural resources. The Fijian government proposed a substantial increase in its water extraction tax that would only apply to large extractors, and thus to FIJI Water and not to its competitors. FIJI Water responded by calling the increase "discriminatory" and threatening to shut down its operations, but in the end its negotiations resulted in its agreeing to pay the tax increase.
Learning Objective: The case can be taught in MBA and executive level courses on negotiation or conflict resolution to highlight any of the following issues: negotiating over scarce resources in multi-party negotiations, ethics in complex negotiations, and establishing trust in long-term relationships involving negotiation. An analysis of the negotiations and the position of each of the parties allow students to reflect on issues of power, trust, strategic decisions and ethics in negotiations and conflict resolution.
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