Global Corporate Intelligence: Opportunities, Technologies, and Threats in the 1990s

By George S. Roukis; Hugh Conway et al. | Go to book overview

The team will set up its command center, analyze the situation, and set priorities. The team also can establish the necessary contacts with the national and local law enforcement authorities to insure local cooperation, logistical support, and decisions that meet the country's legal requirements pertaining to ransom or extortion payments and intracountry currency restrictions. The host government's policy may prohibit ransom payments or the importation or exportation of large sums of money.

The responsibility of a proper response to a kidnapping is equally shared between the terrorist management team and the victim. The team must do anything in its power to insure the safe release of the victim, but the victim, in turn, must draw on his earlier training as to personal behavior in a kidnap situation. It is suggested that the team structure a negotiating climate that is closer to the collective bargaining model, in which the mixed tactics of coercion and cooperation are used. 15 Since trust is a prime ingredient of the negotiating process, it should be thoughtfully cultivated by the team and the hostage. Minimal concessions to the terrorists should be made to extend the negotiations, to reduce the competitive aspects, and to build a more cooperative relationship. The more trust between the negotiators and the longer the time span of the negotiations, the higher the likelihood of a successful outcome.


NOTES
1.
Joseph V. Miscallef, "Political Risk Assessment," Columbia Journal of World Business 16 ( January 1981): 47.
2.
See Laurent L. Jacque, "Management of Foreign Exchange Risk: A Review Article," Journal of International Business Studies, Spring-Summer 1981, 81-101.
3.
Examples of involuntary divestiture by U.S. companies are the Coca-Cola Company and IBM in India and United Fruit in Latin America. Under the Foreign Exchange Regulation Act of 1973 (FERA), the government of India required all foreign-owned subsidiaries operating in India to reduce the proportion of ownership held in foreign hands to 40 percent or below. Coca Cola and IBM decided not to accept shared ownership, and both companies withdrew from India in 1977. The United Fruit Company was forced to divest itself of its landholdings and banana-growing activities in Costa Rica. The company continued in the banana business by concentrating on its marketing and transportation operations.
4.
Webster's New Collegiate Dictionary, 1976, s. v. "terrorism."
5.
Rod Willis, "Corporations vs. Terrorism," Management Review, November 1986, 27.
6.
See Brian Duffy, "Iran's Agents of Terror," U.S. News and World Report, March 6, 1989, 20-25.
7.
This section is from Robert J. Kühne and Robert F. Schmitt, "The Terrorist Threat to Corporate Executives," Business Horizons, December 1979, 78-79.
8.
Richard Clutterback, Living with Terrorism ( London: Faber and Faber, 1975), 28- 30.
9.
For an in-depth analysis of the terrorist philosophy, see Anthony Burton, Urban Terrorism ( New York: Free Press, 1975), chapter 12.

-206-

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