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Thread: HRM624 GDB idea solution June 2011

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    Icon16 HRM624 GDB idea solution June 2011

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    Assessing Power among Disputants
    In many situations, a smaller company wants to form a partnership with a large organization to expand their business objectives. On October 3, 1987, The Free Trade Agreement (FTA) was signed by representatives of Canada and the United States after two exhausting years of intense efforts.Canada is a medium sized economy and population is 1/10th of the size of the U.S (which is an economic superpower in comparison). Canada is economically dependent on the United States. The main reason is its small domestic market, scattered over a vast geographical locale. More than 75% of total is exported to the U.S and making the U.S. Canada’s prime trading partner. By contrast, the U.S. was exporting less than 20% of its total exports to Canada. In the 1970’s, Canada’s economic health rose and fell like the proverbial yo-yo. It was too resource based and needed to add something more to its manufacturing industry to stabilize the economy. A Royal Commission concluded that Canada’s only way to achieve this stability was to engage in an open free trade partnership with the United States. The problem was that the United States wasn’t especially interested in such a free trade partnership agreement. The U.S. was also becoming increasingly protectionist during this same time period. In the result, Canada was facing a whole host of penalties and countervailing actions against Canadian goods. Canada clearly needed a plan. 1. What will you suggest in this situation, which technique is the most appropriate way to get out of this situation while considering the this scenario?Note: Just mention the name of the technique and one line justification.

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