Distributive approach in negotiation is typified by which of the following?
A.
Distributive approaches are inherently inferior to integrative approaches in commercial negotiation
B.
Both parties understand each other's goals
C.
Each party attempts to maximise the value obtained at other's expense
D.
Both parties share 50:50 of the 'pie'
The Answer Is:
C
This question includes an explanation.
Explanation:
Distributive approach to negotiation used when the interested parties are attempting to divide something up or distribute something of value, also known as zero-sum approach or win-lose. Commercial situations often demand a distributive bargaining approach, if the 'pie' is inherently of a fixed size. In this case, any conflicts must be resolved by sharing it.
In win-lose approach, a negotiator wants to maximise the value obtained in a single deal, the relationship with the other party is not important. Therefore, a strong party may win more than 50% of the metaphorical 'pie'.
It should not be assumed that win-win can be applied to all commercial negotiations, or that win-lose approaches are inherently inferior.
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