From long-term contract to market: An RBC perspective on international negotiations of iron ore prices in the Asia-Pacific region, 2009-2010

Yue Wang, Akira Tanaka, Xiaochun Huang

Research output: Contribution to journalReview articlepeer-review

Abstract

The collapse of a long-term contract-based (LTC) benchmark system and the rise of a market-based index system in international negotiations of iron ore prices in the Asia-Pacific region has attracted much media attention. However, a systematic analysis of why and how such a change occurred from a negotiation point of view is absent. Drawing upon a relationship-behavior-conditions (RBC) perspective from the international business (IB) negotiation literature, this article investigates how negotiations between parties unfolded during the 2009-2010 period. Specifically, the article contributes to a deeper understanding of the subject by evaluating the relationships between various negotiating parties, investigating some intriguing behaviors by negotiating parties, and identifying important conditions surrounding the negotiation process. The case of iron ore price negotiation also offers a vehicle to advance the RBC perspective in untangling complex IB negotiation problems and generate some broad implications for IB negotiation research and practices.

Original languageEnglish
Pages (from-to)345-371
Number of pages27
JournalInternational Negotiation
Volume25
Issue number2
DOIs
Publication statusPublished - 7 May 2020

Keywords

  • Asia-Pacific region
  • International business negotiation
  • Iron ore prices
  • RBC perspective

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