1. In the negotiations between FIJI Water and the Fiji government…

amandadeeley293 1. In the negotiations between FIJI Water and the Fiji government…Image transcription textFiji versus FIJI: Negotiating Over Water On November 26, 2010, apublic fight broke out between FIJ’I Water, one of the world’spremium bottled waters, and the government of the R… Show more… Show moreImage transcription textFiji was a remote island nation in the South Pacific Ocean locatedmore than 3,000 miles from Hawaii and more than 1,000 miles(2,000 kilometers [km]) from New Zealand (see Exhibi… Show more… Show moreImage transcription textAccusations of Corruption When Bainimarama reassumed therole of prime minister in 2006, he vowed to fight the racism,corruption, and wastefulness that had plagued the cou… Show more… Show moreImage transcription textEconomic Struggles During the decades of political instabilityassociated with the coups d’etat, Fiji also struggledeconomically.” Natural disasters such as cyclone… Show more… Show moreImage transcription textInternational Tensions Compounding Fiji’s crippling economicsituation were sanctions imposed by many of its trading partnersresulting from the 2006 coup. The European Union, fo… Show more… Show moreImage transcription textFIJI Water FIJI Water was founded in 1988 in Basalt, Colorado, byDavid Gilmour, a Canadian businessman who held investments inhotels, real estate, and gold mining. Gilmour owned an … Show more… Show moreImage transcription textOperations and Distribution FIJI Water’s water source was a17-mile-wide, 400-foot-deep aquifer, which was located below avolcano and tropical forest on the main Fijian island of … Show more… Show moreImage transcription textExclusive Image FIJI Water was positioned at the intersection of”pop-culture glamour” and progressivepolitics.” To brand FIJI Water as an “afford… Show more… Show moreImage transcription textEnvironmental Initiatives Bottled water became controversialduring the early 2000s, particularly in 2007 when numerousenvironmental groups, including the Rainforest Action… Show more… Show moreImage transcription textBrand Reputation FIJI Water received a good deal of mediaattention, attracting both positive and negative coverage. FIJIWater engaged in many environmental and charitable … Show more… Show moreImage transcription textAward from Fiji’s U.S. ambassador in recognition of the company’sefforts in disaster relief, volunteerism, and projects in health,education, and clean water infrastructure. 51 Neverth… Show more… Show moreImage transcription textNegotiating Over Water For many years, the Fijian governmenthad welcomed FIJI Water’s contributions to the country’seconomy. For example, in 1999, Fijian president Ratu S… Show more… Show moreImage transcription textbottlers will get together with the government and work out aform of compensation that is suitable to the government for theresource that we are extracting.” At the time, th… Show more… Show moreImage transcription textThe Fijian Government’s Perspective Extraction tax The Fijiangovernment criticized FIJI Water for making large profits fromFijian resources while contributing little in taxes. FIJI … Show more… Show moreImage transcription textYaqara Pastoral Company Limited from whom Fiji Water hasleased lands,” and that the government would then”call for international tenders from credible and … Show more… Show moreImage transcription textAlternate source In 2008, FIJI Water purchased a second artisanaquifer water source in Canterbury, New Zealand, where it ownedthe SpringFresh brand of bottled water. Some analysts… Show more… Show moreImage transcription textExhibit 1 Maps of the Republic of Fiji North America PacificOcean South America -Fiji Australia Source: Created by theHarvard Center for Geographical Analysis, March 201… Show more… Show more1. In the negotiations between FIJI Water and the Fiji government over the proposed tax increase on water extraction, which party is in a stronger position? Why?2. In what ways can each party leverage power to force a deal on favorable terms? Provide examples of power-based moves that each party could employ.3. FIJI Water relies on the Fijian government to access Fijian Water. How can the company build a trusting relationship with a government that has been unstable and is likely to continue being unstable?4. Suppose that just after the tax increase on water extraction was announced, you were hired to provide professional negotiation advice. What advice would you give to FIJI water? What advice would you give to Fijian government?  BusinessBusiness – Other