Negotiations & Conflict Management BUS210


Access: Public Instant Grading

Start FlashCards Download PDF Learn

Get Jobilize Job Search Mobile App in your pocket Now!

Get it on Google Play

Do you use facebook?

Photo of a smartphone with the Facebook application open
Economics is greatly impacted by how well information travels through society. Today, social media giants Twitter, Facebook, and Instagram are major forces on the information super highway. (Credit: Johan Larsson/Flickr)

Decisions ... decisions in the social media age

To post or not to post? Every day we are faced with a myriad of decisions, from what to have for breakfast, to which route to take to class, to the more complex—“Should I double major and add possibly another semester of study to my education?” Our response to these choices depends on the information we have available at any given moment; information economists call “imperfect” because we rarely have all the data we need to make perfect decisions. Despite the lack of perfect information, we still make hundreds of decisions a day.

And now, we have another avenue in which to gather information—social media. Outlets like Facebook and Twitter are altering the process by which we make choices, how we spend our time, which movies we see, which products we buy, and more. How many of you chose a university without checking out its Facebook page or Twitter stream first for information and feedback?

As you will see in this course, what happens in economics is affected by how well and how fast information is disseminated through a society, such as how quickly information travels through Facebook. “Economists love nothing better than when deep and liquid markets operate under conditions of perfect information,” says Jessica Irvine, National Economics Editor for News Corp Australia.

This leads us to the topic of this chapter, an introduction to the world of making decisions, processing information, and understanding behavior in markets —the world of economics. Each chapter in this book will start with a discussion about current (or sometimes past) events and revisit it at chapter’s end—to “bring home” the concepts in play.


In this chapter, you will learn about:

  • What Is Economics, and Why Is It Important?
  • Microeconomics and Macroeconomics
  • How Economists Use Theories and Models to Understand Economic Issues
  • How Economies Can Be Organized: An Overview of Economic Systems

What is economics and why should you spend your time learning it? After all, there are other disciplines you could be studying, and other ways you could be spending your time. As the Bring it Home feature just mentioned, making choices is at the heart of what economists study, and your decision to take this course is as much as economic decision as anything else.

Economics is probably not what you think. It is not primarily about money or finance. It is not primarily about business. It is not mathematics. What is it then? It is both a subject area and a way of viewing the world.

Negotiation refers to the process of interacting in order to advance individual interests through joint action. Contrary to what you might think, negotiations are not confined to the professional world; we often negotiate in our personal lives. The principles that guide successful negotiations in world politics are equally important in the business world as well as our personal lives. In fact, almost every transaction with another individual involves negotiation. As you will learn in this course, negotiation, conflict resolution, and relationship management are complex processes. Successful practitioners possess and apply a blend of perceptual, persuasive, analytical, and interpersonal skills that you will examine carefully in this course.

In the ever-changing environment of modern business, firms start and grow by virtue of successful negotiations and by developing long-term relationships among two, three, or more parties involved, either directly or indirectly, in various business processes. By the same token, such relationships can break down due to ineffective negotiating behavior and conflict management approaches. Such breakdowns can also occur because of misunderstandings and misperceptions of the other parties? positions and interests.

Quiz PDF eBook: 
Negotiations & Conflict Management BUS210
Download Negotiations MCQ Quiz PDF eBook
36 Pages
English US
Educational Materials

Sample Questions from the Negotiations & Conflict Management BUS210 Quiz

Question: What result is accomplished in a successful negotiation?


A mutually satisfactory structure

An executed agreement

A lasting and mutually beneficial relationship

All of these answers

Question: What conflict style is represented by the statement: "If I don't mention it, perhaps it will blow over."?






Question: You plan to enter into a negotiation and realize that if you gain $100, the other party will lose $100. What Game Theory term describes this type of dispute?


Positive sum

Negative sum

Zero sum

None of these answers

Question: According to game theory, what outcome will result when one disputant perceives that $10 is a loss while the other disputant perceives the same $10 as a win?


A win-win outcome

A lose-lose outcome

A win-lose outcome

Both answers B and C

Question: You wish to purchase an item at an antiques store. You see an item you would like to buy, but you do not want to pay more than $20. You offer $10, and the proprietor says he will sell the item for $30. You then offer $20, and the proprietor says he will sell the item for $25. You agree to purchase the item at $25. You have paid $5 more than you wanted, and the proprietor receives $5 less than he wanted. What type of bargaining is this?






Question: What do experts recommend you do to invest in relationships with your customers?


Become a resource

Tailor your approach

Write a note

All of these answers

Question: In your current negotiation, you are "attempting to formulate principles on which you can both agree." What term is used for this phase of a negotiation?


Setting the details




Question: Which of the following best defines the term conflict?


It is a disagreement.

It is a perceived threat.

It contains substantive, procedural, and psychological dimensions.

All of these answers

Question: You plan to buy a used car and want to purchase it for the least possible cost. You realize the seller will try to get the most money that he can for the car. Which of the following best describes this type of bargaining?


Expanded pie




Question: You are planning to enter into a business partnership. What strategy is best for this type of negotiation?


A substantive negotiation

A compromise negotiation

A distributive negotiation

An interest-based negotiation

Question: When discussing Game Theory, what rule says that "you should pick the strategy where the maximum advantage of your opponent is minimized?"


Minimax theorem

Partial information theorem

Win-win theorem

Lose-lose theorem

Start FlashCards Download PDF Learn
Source:  Charles Jumper. Negotiations & Conflict Management (The Saylor Academy 2014),
Michael Sag
Start Exam
Copy and paste the following HTML code into your website or blog.
<iframe src="" width="600" height="600" frameborder="0" marginwidth="0" marginheight="0" scrolling="yes" style="border:1px solid #CCC; border-width:1px 1px 0; margin-bottom:5px" allowfullscreen webkitallowfullscreen mozallowfullscreen> </iframe>