86) During which phase of the negotiation process do the parties exchange their initial proposals
or demands?
A) preparation and planning
B) definition of ground rules
C) clarification and justification
D) bargaining and problem solving
E) integration of preferences
87) In a negotiation process, which of the following activities is most likely to be included in the
definition of ground rules step?
A) determining your best alternative to a negotiated agreement
B) determining time constraints, if any, applicable to negotiation
C) justifying your original demands
D) formalizing the agreement that has been worked out
E) determining the history leading up to the negotiation
88) Bill is negotiating for the labor union. Today, he is presenting the evidence and papers that
demonstrate the average wages in the area, the cost of healthcare for the average worker, and a
pie graph demonstrating how these costs affect the new salary request. Which phase of the
negotiation process is Bill currently in?
A) preparation and planning
B) definition of ground rules
C) clarification and justification
D) bargaining and problem solving
E) closure and implementation
89) During which phase of the negotiation process do the parties have the actual discussion to
hash out an agreement?
A) preparation and planning
B) definition of ground rules
C) closure and implementation
D) bargaining and problem-solving
E) integration of preferences
90) In a negotiation process, which of the following activities is included in the closure and
implementation step?
A) determining your best alternative to a negotiated agreement
B) justifying your original demands
C) formalizing the agreement that has been worked out
D) determining time constraints, if any, applicable to negotiation
E) exchange of the initial proposals or demands
91) In cross-cultural negotiations, it is especially important that the negotiations be high in
openness.
92) Making sure negotiations are designed to focus on well-defined and work-related terms also
has promise for reducing gender differences by minimizing the ambiguous space for stereotypes
to operate.
93) Jeff has a reputation for shouting angrily while negotiating. In contrast, Anita is known for
her soft-spoken agreeable approach to negotiations. Jeff is more likely to get the concessions he
wants than Anita.
94) Explain how self-efficacy impacts negotiation outcomes.
95) Explain how gender affects negotiating, and describe what this means to the outcomes of the
negotiation process.
96) Stratford Inc. is a company that hires culturally diverse people to perform Shakespearean
plays for high school students. The company employs actors and actresses from all over the
world. The actors and actresses have joined together to ask the company for higher salaries. The
employees are struggling over deciding who will negotiate for them. Which of the following
statements is true pertaining to the effect of individual differences on negotiations?
A) Women tend to negotiate better outcomes than men.
B) Extraverts tend to be very successful in distributive bargaining.
C) People who are highly interested in having positive relationships with other people are poor
negotiators.
D) Individuals who score high on agreeableness dimension tend to be very successful in
distributive bargaining.
E) Positive moods and emotions negatively affect integrative bargaining.
97) Xanadu Industries manufactures and sells the same calipers as Utopia Industries. Employee
wages account for 35 percent of the cost of manufacturing calipers at both Xanadu Industries and
Utopia Industries. Xanadu Industries is seeking a competitive advantage over Utopia Industries.
Richard, the manager put in charge of devising a strategy to meet this end, suggests lowering
employee wages. This leads to a grave conflict between Richard and the labor union. Which of
the following, if true, would suggest that the labor union will accept Richard’s suggestion to
lower the wages?
A) As they make a large number of precision instruments, caliper manufacturers receive huge
volume discounts on raw materials.
B) Utopia Industries recently set up a new manufacturing facility in the vicinity.
C) Xanadu Industries has taken away 20 percent of Utopia Industries’ business over the last year.
D) Utopia Industries pays its employees, on average, 10 percent more than does Xanadu
Industries.
E) Many people who work for manufacturing plants live in areas in which the manufacturing
plant is the only source of employment.
98) A(n) ________ is a neutral third party who facilitates a negotiated solution by using
reasoning, persuasion, and suggestions for alternatives.
A) plaintiff
B) mediator
C) agent
D) consultant
E) executor
99) In which of the following situations is mediation most likely to be effective?
A) The conflict between the parties involved in mediation is at a moderate level.
B) One of the parties involved in the negotiation perceives the mediator as biased.
C) There is a large gap between the target points of both the parties.
D) One of the parties involved in the negotiation perceives the mediator as coercive.
E) None of the parties is willing to disclose its BATNA.
100) Which of the following methods of third-party negotiation always results in a settlement?
A) mediation
B) consultancy
C) arbitration
D) conciliation
E) execution
101) What factor would most likely increase the negative impact of an arbitration session?
A) limited options of the arbitrator
B) heavy-handedness of the arbitrator
C) compulsory nature of the arbitration
D) voluntary nature of the arbitration
E) establishment of an agreement that is nonbinding
102) In third-party negotiations, a third party who provides an informal communication link
between the negotiator and the opponent is known as a(n) ________.
A) plaintiff
B) arbitrator
C) consultant
D) conciliator
E) executor
103) Megatron wants to bring in a neutral third party who will facilitate a negotiated solution by
using reasoning, persuasion, suggesting alternatives, and the like. This person is known as a(n)
________.
A) mediator
B) arbitrator
C) plaintiff
D) consultant
E) bailor
104) The home buyer wants to bring in a third party who will have the authority to dictate an
agreement. This person will be a(n) ________.
A) mediator
B) arbitrator
C) conciliator
D) consultant
E) plaintiff
105) The two parties eventually agree to ask Sam Spade, an attorney and trusted friend, to help
them informally to solve their problem. Sam’s role is that of a(n) ________.
A) mediator
B) arbitrator
C) conciliator
D) consultant
E) plaintiff
106) Negotiators who consistently act in a way that demonstrates competence, honesty, and
integrity will usually have better outcomes in the long run.
107) When it comes to negotiation, having a reputation for being trustworthy doesn’t matter.
108) A popular stereotype is that men are more cooperative and pleasant in negotiations than
women.
109) In third-party negotiations, a conciliator is a trusted third party who provides an informal
communication link between the negotiator and the opponent.
110) Discuss the effects of moods and emotions on effectiveness of negotiations.
111) Describe the preferred negotiating techniques that would be implemented by a manager
from China. What conflict management techniques would he use? What role would a third-party
negotiator be likely to have if no agreement could be reached?