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Tobacco growers in Swabi Essay (Article)

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Updated: May 1st, 2019

Tobacco growers in Swabi, Pakistan have warned to hold protests to the Pakistan Tobacco Board due to low payments for tobacco production. The tobacco growers who are dissatisfied with the current payment threaten to stage protests at the offices of PTB.

Their main frustrations are with the multinational corporation whom they claim to exploit the farmers, and policies set by the Pakistan Tobacco Board. The farmers feel that the board is not representing their issues well, thus no action is being taken by the government. Farmers across the globe need protection to be provided by their respective governments to give desirable results.

The tobacco growers feel that they are not protected from the exploitation of multinational companies. They asked the government to solve the issue of tobacco growers so that the country can continue earning revenue from tobacco.

This is because the government earns much revenue from tobacco, but if the problems of the farmers continued they would opt for another crop. They would most likely go for the crop that would not experience such exploitation.

The tobacco growers were all concerned about the issue of poor payment because this is their only source of income. The families of tobacco growers all work on tobacco fields expecting to earn enough income for the entire family. They complained that whatever they earned from the farms was not enough to sustain the whole family, and meet all the requirements.

Earlier negotiations with PBT did not yield any results; however, multinational companies had consultations with PBT whereby they fixed the price at Rs 117/Kg. The farmers do not accept this price because they claim it was reached at illegally (Shah 2012).

The multinational companies in Pakistan that are involved in the production of tobacco have to assist in resolving the issue of tobacco prices for the growers. They have to consult three major players in the industry i.e., the farmer, PTB and the government. All these are interested parties in the price of tobacco in Pakistan.

The manager of the multinational company should know the goal and concept of negotiation. The tobacco growers want the price of tobacco increased; therefore, the managers should ensure that there is mutual satisfaction of all parties concerned. The manager should understand that different cultures view issues differently thus they should be able to accommodate the cultural differences.

Protocol and business etiquette should be considered during negotiation. Factors such as dress code, greetingthe number of negotiators and entertainment should be considered by the managers of MNCs.

Communication is extremely essential in negotiation. Both verbal and nonverbal communication assists in the negotiation process. The use of body language and tone variation will determine how the other party responds and perceives the conveyor. The conveyor should speak directly, and not leave room for assumptions.

Another issue facing MNCs is sending experts to host countries; this causes them to feel isolated from the home country. Most experts sent to foreign countries end up dealing with stress and personal issues.

In the following article, 49 years old Japanese hanged himself in New Delhi after writing several suicide notes. Mr. Omori was the managing director of Indian operations in Olympus Corp. This is the second case of suicide after Adrian Rowland from Britain who slit his throat open.

Most employees who are sent to host countries end up suffering from occupational stress. Most employees who travel to countries like India are not emotionally prepared to face the challenges of their work and a new culture. They are not prepared to meet new work ethics which can cause disorientation in work schedule.

Most employees sent to host countries spend much time talking to their bosses in their home countries about the progress of work. This leaves them with no time to talk to the families, thus creating gaps in their marriage and personal life.

India poses challenges for many people posted their as international employees. Most of them view it more as a punishment than a posting. The country is deeply involved in corruption and has poor infrastructure and services. International assignees to India are faced with corruption, and a different working culture where managers do not mind deadlines.

The art of negotiation in India takes a long time to reach an agreement. An employee has to explain to his bosses why negotiations take a long time to close a deal. It is the culture of Indians to drag deals and ask for bribes to hasten the deal.

Multinational companies like Ericsson, Toshiba Corp and Kyocera Corp send their expert executives to India because of its liberalized economy. Several multinationals are moving into new towns in India, and more employees are being sent there to work as expatriates. The country is developing, but expatriates have to find western life in their five-star hotels or cope with the Indian culture.

When an MNC sends employees to host countries, they should communicate clearly the nature and working conditions of their work. The employee ought to know exactly what they are going to deal with before they travel to avoid suicide incidents. Clear and consistent communication makes the working environment free of conflict and disagreement.

The employees also ought to understand why businesses venture into international business. They need to know the company’s strategic plan so that they can perform effectively.

Some cultures value time as money, but in this article we notice that the culture of India does not value time. They work at their own pace and do not keep deadlines. Before an employee travel to India they should be able to understand the working culture of the place.

One should understand the decision-making system of the country they are posted. For example, in India they take a long time to reach a decision because of the rampant corruption in the country. During negotiations, they would like to be bribed to make a decision. The manager of an MNC should be aware of the culture and look for means to change or adapt to it.

Before sending employees to foreign countries, the management should analyze the strategies of the company. This will enable them to send the right employees who are able to deliver the results. Some negotiations can be done online to avoid personal conflicts and to hasten the procedure.

The negotiations carried out should be in line with the culture of the country. The traditions and beliefs of the host country should be respected, for example, religion. The manager should ensure that all deals are properly documented to avoid misunderstandings. Culture affects the process of decision making, but the managers should ensure that it does not derail the process (Politzer & Handique 2012).

‘Ethiopia negotiating with Walmart’ 26th March 2012 by Meron Tekleberhan. Walmart a US based Multinational Corporation is preparing for entry into the Ethiopian market. The Ethiopian government sent a delegation to begin negotiations with Walmart to facilitate the entry into Ethiopia.

The government took this move to invite Walmart into its market so as to control the rising commodity prices in Ethiopia. They have considered other multinational corporations which have been successful, but they settled for Walmart. Experts were also sent to countries like India to find out the progress of multinational retail stores in the country.

Due to the rise in inflation Ethiopian government is looking for solutions to control the rate of inflation in the country. Walmart is one of the largest multinational retail stores in the world and it employees approximately 2 million employees (Tekleberhan 2012).

The negotiation between Walmart and the Ethiopian government have just started and both sides have to be represented by experts in negotiation skills such as managers.

During the negotiation the Walmart (MNC) will be aiming at maximizing the degree of foreign ownership, amount of imported goods and equipment, they would want to know the tax and import duty rates in the country.

The MNC should also be interested in maximizing incentive from the government and local authorities and also maximize rates of depreciation so as reduce taxes in the host country.

On the other hand, the Ethiopian government would want to maximize on local ownership, direct labor and employment opportunities in senior positions of foreign companies. The government would also want to maximize on local production and protection of local investors.

Members of the negotiation team should prepare themselves for negotiation process. They have to take time to get to know more about the other negotiators and exchange information.

The negotiations between Ethiopian government and Walmart have just started, but they will go through the process of persuasion and finally, agreement. Each side has to take a firm stand by taking into consideration its negotiating strength so that their demands can be met.


Politzer, M., & Handique, M. (2012). Isolation takes its toll on expat execs. The Wall Street Journal. Retrieved from

Shah, S. (2012). Growers demand hike in tobacco price. Retrieved from

Tekleberhan, M. (2012). Ethiopia negotiating with Walmart. Retrieved from

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