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Negotiation is not only based on legal and business matters, but also on the quality of human and social relations. II. Some of the main issues were: • The Chinese insisted on a holistic approach, asking the U. S. team to agree to a macro-concept for the new venture, with details to be agreed to later. According to the stereotype, people from the Mediterranean region, Latin Europe and Latin America, belong to the expressive group. How will you view the cultural differences, as an obstacle or a weapon or even something else? You will learn the negotiation fundamental skills and … As a useful means for the enterprises to achieve their economic goals, as an important channel to acquire market information, and as a strong power to explore the sales markets, business negotiation is some kind of complicated and comprehensive business activity, which often involves the knowledge in the fields of politics, economics, laws, literature, psychology and so on. ?????? prevent business people from making mistakes and pitfalls in interna-tional negotiation process. In fluid-time cultures, like Latin American one, people don’t view time as a constraint. Finnish businesspeople, especially those among younger generations, are usually experienced in in- This author’s advice will help negotiators bridge the cultural differences in international negotiation. Click to learn more https://goo.gl/CYf83b. In this present modern world, international business is not just about nationalities, it is also about cultures. Time: Culture largely determines what time means and how it affects negotiations. Meanwhile, the U. S. party insisted that they should first reach an agreement on each component of the new venture and then move to the overall venture agreements. How about make it original at only $13.9/page? And we are very proud of them. 2 Characteristics of Business Negotiation Having a correct understanding of what it is, we conclude some of the characteristics of business negotiation. The trade which takes place within the geographical boundaries of the country is called domestic business, whereas trade which occurs among countries internationally, is international business. This model also shows the affect of the five forces in the competitive environment of a business. Cultural aspects of International Business Negotiations When negotiating internationally, one needs cultural knowledge and skills in intercultural communication. Negotiators from high uncertainty avoidance cultures are less comfortable with ambiguous situations and are more likely to seek stable rules and procedures when they negotiate. Identify the negotiators. Consequently, many terms have been given to companies operating in multiple countries: multinationals, global businesses, transnational companies, international firms et cetera. Their comfort level with a negotiation is higher when the parties spend time establishing a relationship before bringing up issues. Joint ventures have been the subject of a great deal of research on international negotiation, and relative power has frequently been utilized as the amount of equity that each side is willing to invest in the new venture. Along with getting your company structure in place, gaining a comprehensive understanding of the local laws and regulations governing your target markets is key. Bibliography [1] Cateroa, Philip R. International Marketing[M]. Without it the organism of a specific culture cannot be normally operated. In early 1984, LEC reviewed the negotiations and found there might be greater mutual benefit than had at first appeared. Marketing Global, Dea -Negotiating in the International Market Place[M]. The outer-most layer is behavior, the words and actions of one’s counterpart, which is first perceived in an intercultural negotiation. These factors are presented below. Recent negotiation theory will be used to analyse the particulars of international business negotiations with a focus on two-party negotiations. The following is the list of these varied definitions. All you need to do is fill out a short form and submit an order. Purpose. , 2002. The study case Overview This study case presents a negotiation of a joint venture between Celanese Corporation of the United States, a producer of value-added industrial chemicals, and China National Tobacco Corporation (CNTC). Want to add some juice to your work? First Steps Next came face-to-face negotiations, discussions, and communications between the parties. 5. , 2001. To maintain surface harmony and avoid losing face, they often use circumlocutions, vague allusions, figurative forms of speech, or facial expressions to express themselves. How about receiving a customized one? Instability: The challenge for international negotiators is to anticipate changes accurately and with enough lead time to adjust for their consequences. Punctuality is dependent on specific cultural variables. Negotiating with China. ???? The negotiator style expresses his personality, socially (cultural, education) and individually (temper and intellect) determined. Business strategy: the company should consider questions for example: Is it capable in completing the legal normative of the most demanding countries? 5. The history of relations between the parties will influence the current negotiation, just as the current negotiation will become part of any future negotiations between the parties. Nine differences between domestic and international business are discussed in this article in detail. Analysis of cultural differences in international negotiations – A study case upon the American and Chinese culture 5. International Perspective – Global Presence. (4) The size of the play field may vary from venture to venture. ????????? Negotianting Essentials- Theory, Skills and Practices by Michael R. Carrell and Christina Heavrin, J. D. , Prentice Hall; 2. This case illustrates how important is that a long-term view is considered when planning one’s objectives, to ensure that every issue is covered. That is to say, negotiations need some flexibility to keep it fluid in the process as to how to seek the consistency of both parties to achieve the holistic objectives as long as you don’t give up some important principles. International Business Development Resume Samples and examples of curated bullet points for your resume to help you get an interview. Stage Two The second stage was the complex planning, which costed $1 million, took two years to complete, and involved the translation of the basic agreement into a new plant and business organization. . • A negotiator sould not show that opinions are divided on a given topic within his team, and should avoid discussions in front of them. Negotiation case studies use the power of example to teach negotiation strategies. International negotiation is often not just between individual people, but between large delegatio… And the research of culture involves most vital variables which worth noting in the development of negotiations. (2) Business negotiation is the unity of magnetism and persuasion. ?? Many agreements have to be negotiated, drafted, signed and finally implemented: sales contracts, licensing agreements, joint ventures, etc. How often South African negotiators are women? It requires no small amount of sensitivity, respect, and diplomacy. Jan,1997. Relationship between Negotiators: The relationships developed among the principal negotiating parties before the actual negotiations will also have an important impact on the negotiation process and outcome. For the purpose of this paper, culture is defined as the socially transmitted behavior, norms, beliefs and values of a community, which is in accordance with the theory given by Salacuse. a. Bridge the gap with the other side’s culture. At the same time, Celanese managers, believing that the performance of local suppliers had to be upgraded, spent much of their time helping suppliers improve deliveries. Retrieved from https://graduateway.com/international-business-negotiation-essay/, This is just a sample. Only after protracted discussions may the attitudes become obvious to a counterpart. With a strong international presence and unique, multinational negotiating expertise, K&R is the resource of choice for organizations that look to expand their negotiating expertise to win new clients, gain more business from existing clients, and build robust, profitable relationships. Culture is not the only determiner, which can be easily proved by the following example. Due to the linear logical thinking pattern, the Americans are accustomed to attaching more attention to the details rather than the general things. In one of the top examples of international negotiation back in April 2013, Apple CEO Timothy D. Cook made the unusual move of apologizing to Chinese customers for his company’s warranty policy and promised to make amends, the New York Times reports. However, there are still some people paying little attention to the cultural issues due to their limited knowledge about the importance of culture. In other words it represents the general plan in which are presented the general objectives that lead to the final goal of the negotiation. Celanese is now firmly established as a profitable corporate citizen in China, but cross-cultural learning and problems remain part of joint-venture life. • The Chinese like to negotiate in rather large groups. Fourth, the influence of culture on international business negotiations, especially the negotiating styles, which involve ten factors each consisted of two extremities is described. The negotiation style highlights the negotiator’s personality which is socially (culture, education) and individually (intellectual capacity, temper) determined. Masculinity/ Femininity. Article: Negotiation and Nonviolent Action: Interacting in the World of Conflict Which Of The Following Best Defines International Business? , 1997. Since all tow providers refused to sell their technology to China, CNTC approached Celanese, a highly regarded tow producer, with a view to setting up a joint venture. There are six factors in the environmental context that make international negotiations more challenging than domestic negotiations. By continuing we’ll assume you’re on board with our cookie policy, The input space is limited by 250 symbols. • China has a high-context society. For instance, regarding the process of negotiation, “Americans tend to view negotiating as a competitive process of offers and counteroffers, while the Japanese tend to view the negotiation as an opportunity for information sharing” (Foster, 1992, p. 272). 1. Other cultures, such as the Chinese one, prefer a contract in the form of general principles rather than detailed rules. The authors claim the only purpose of cross-cultural negotiations is to product a "contract" or an agreement, which they define as an "exchange of conditional premises in which each party … Culture, as a conscious or unconscious value, is controlling and guiding our behavior every minute. 2. I have been there & know the pain. [15] ???. 3. In any international business negotiation, it is important to know how the other side makes their decision, who has the authority to make commitment. And others also do some research on negotiation method for international business [4]. The most effective negotiators avoid making deals with relatively po… PLAN. [M]. You got to be top-notch with your negotiation moves. 6 Emotionalism Cultural factors also influence negotiators’ emotion expression. Hofstede and Michael Harris Bond formulated five such dimensions from research studies: 1. Hofstede’s cultural dimensions Culture is perceived from two points of view: as learned behaviour (it is concentrated on creating a catalogue of behaviours that foreign negotiators should expect when entering a host culture) and as shared values. Countries often use international negotiations to achieve both domestic and international political goals. Levels of Conflict: The level of conflict and type of interdependence between the parties to a cross cultural negotiation will also influence the negotiation process and outcome. Negotiators from low uncertainty avoidance cultures are likely to adapt to quickly changing situations and will be less uncomfortable when the rules of negotiation are ambiguous and shifting. Let Professionals Help You, Leave your email and we will send you an example after 24 hours 23:59:59, Let us edit for you at only $13.9/page to make it 100% original. Cultural aspects of International Business Negotiations 3. Traditionally, American business culture is very task-oriented. Factors that influence the international negotiations 3. Negotiation patterns in cross- cultural negotiations 5. Ongoing tension can exist between one party’s short-term objectives for the current negotiations and its influence on the parties’ long-term relations. Problems commonly faced by foreigners in negotiations with China: • Most foreigners new to China do not know how the Chinese perceive them, nor does it bother them. Negotiation is a behavioral process In a good negotiation, everybody wins something. I’m surprised to hear that, because there are so many mining magnates, ministers, bankers, CEOs of international South African companies who are women. It also requires an open mind and, often, a littl… The following are illustrative examples of negotiation tactics. [M]. And the result is they built a strong relationship which stimulated the success of that difficult negotiation. 4. In a distributive negotiation there is an escalating exchange of messages over time and an increased number of proposals and offers immediately before a deadline is met; in an integrative negotiation there is a peak exchange of messages or proposals during the problem solving stage; and in mixed integrative- distributive negotiation there is a linear exchange of information and proposals over time, but not significant increase during the problem solving and resolution stages. b. Bridge the gap with your own culture. Though it is one part of the operation and management of an enterprise, business negotiation distinguishes itself from the common production, operation and management. International Business Negotiation Case The goal for the negotiations is exploring the possibility of manufacturing or assembling micro-analyzers by Systrop S.A. in Tropicalia. For example, most businessmen in the west try to be punctual. Erratic delivery times are common with last-minute flurries of action to meet emergencies. Culture profoundly influences how people think, communicate, and behave. Then should the nature of culture be seen as a process or as a product? Improve your skills with insights from this collection of short articles with real-world negotiation examples. Business-to-business relations business-to-business markets differ from customer markets, where there are fewer and larger professional buyers, a closer relationship between the firms and absence of intermediaries (Hollensen 2001). And these differences are as follows: (1) The objects for exchange in business negotiations have the property of uncertainty and variability. While the Chinese and the Japanese tend to have business negotiation in a rather indirect manner, as opposed to the direct manner of American and German businessmen. Or that would bring about thorny confrontations. [13] ???. words(double 1. Cross Cultural Negotiations in International Business: Four Negotiation Tips for Bargaining in China; Famous Negotiators: Tony Blair’s 10 Principles to Guide Diplomats in International Conflict Resolution; International Negotiations and Agenda Setting: Controlling the Flow of the Negotiation Process; Diplomacy Examples in the Covid-19 Era Instead, one should explain the facts and figures as often as they require; explain why he/she believes that has the best offer. In practical negotiations, the situation would be much more complicated. People in some cultures approach negotiations deductively (they move from general to the specific) whereas people from other cultures are more inductive (they settle on a series of specific issues that become the area of general agreement). ” Cross-culturally sophisticated LEC personnel mediated for both sides on a number of troublesome issues. :??????? They do business for their own needs and they enjoy mutual benefits. 2. Efforts Bear Results, Looking back, Celanese says its joint-venture agreements reflect the learning and the changes that occurred in the wake of the original Nantong joint venture. The negotiators facing unstable circumstances should include in their contracts clauses that allow neutral arbitration, and consider purchasing insurance policies to guarantee contract provisions. 1. Meanwhile, LEC’s role as long-term mediator played an important role in this negotiation facilitatig the discussions. 5. In this present modern world, international business is not just about nationalities, it is also about cultures. China has a haggling culture; there are no ethics where price is concerned, and they will stop at nothing to get you to lower your price. New York: Group Decision and Negotiation,1999. Next are norms, the rules to be followed in specific situations. In international business negotiations, one should at any time enhance his awareness of these cultural differences. International negotiation occurs all the time between governments and is the main subject of this page. The governments of many developing and (former) communist countries closely supervise imports and joint ventures and frequently an agency of the government has a monopoly in dealing with foreign organizations. Political and legal pluralism: Firms conducting business in other countries are working with different legal and political systems. The conventional view is that cultural differences are an obstacle to agreement and effective action. Differences in formal communication almost stalled these discussions before they had got off the ground, with suspicion arising over the language used and the legal requirements put forward. 4. Nearly every business deal requires a strategy for a successful negotiation. Intercultural Negotiation in International Business[M]. Communication has been shown to generate greater cooperation even among negotiation partners that display strong tendencies to self-interest. The course is structured in three modules. In such situations, differences of cultures tend to impede the process of the negotiations. Collectivistic societies emphasize the group’s responsibility for each individual. innovations. In fact, cultural bridging takes place on both sides of the gap and results in the construction of an integrated structure. People there prefer to deal with friends and persons who are well known to them. For example, the indirect ways Japanese negotiators express disapproval have often led foreign business executives to believe that their proposals were still under consideration when in fact the Japanese side had rejected them. (3) It is also the unity of concession and aggression. They can be procedural events in which the for- mat changes (for example, from a plenary to a working committee structure), the venue is changed from a public to a private location, or deadlines are imposed. 2. Lessons in Cross-Cultural Negotiations[J]. Cultural Anthropology[M]. (2019, Jun 20). The way in which tactics are combined to form strategy and the way strategies are employed to reach a goal creates a pattern of negotiation. Negotiation is where these and numerous other questions should be answered. International business negotiations: Present Knowledge And ... International business negotiations literature. Nowadays, business executives are finding themselves in precarious situations due to culturally rooted differences in business protocol, language and value system. Their comfort level with a negotiation is higher when there’s a definitive list of issues in which each one is dealt with and decided before moving on the next. You can get your custom paper from The confrontation of these styles of communication in the same negotiation can lead to friction. This is a sampble of 18 pages out of 97 of the These Examples Illustrate the Importance of Negotiation in Business – Negotiation is an important part of the business world. Relative Bargaining Power: One aspect on international negotiations that has received considerable attention in the relative bargaining power of the two arties involved. In the short-term perspective, culture can be conceived as a structural component of any society that conditions human thinking and behavior, operating in a deterministic way. The submission demonstrates a confident, independent and well-judged response to the International Business Negotiation assessment brief. 2. There are semantic differences in the words used and many misunderstandings can arise from ignoring the precise meaning of key concepts. [16] ???. In a direct culture, one can receive a clear and definite response to proposals and questions; in an indirect culture, one must first interpret the indefinite comments, gestures and other signs before they figure out the deep level meaning of their counterparts. Essay on The Negotiation Strategies In International Business Commerce Essay In concern relationships, parties negotiate because they think they can act upon the procedure in such a manner that they can acquire a better trade than In a number of cases the foreign market entry and strategy implementation involve negotiation with the government of the foreign country and / or foreign firm. In the whole process, varied cultures walk out of their boundaries, meet or challenge each other. On the other hand, it is a product, an outcome of the process which is expressed in visible ways. Hofstede’s cultural dimensions 3. 6. The following sample is written by Matthew who studies English Language and Literature at the University of Michigan. In turn, negotiation provides a platform for the communication of two different cultures. In addition, several factors seem to be able to influence relative power: special access to markets (e. g. in current or former communist countries), distribution systems (e. g. in Asia, where creating a new distribution system is so expensive that it may be a barrier to entering markets) and managing government relations (e. g. when the language and culture are quite different). 2 To be Neutral in Terms of Cultural Conflicts In international business negotiations, some business cultures would be distinctively different. They would be uncomfortable with more than a second or two of silence during a conversation. Frequently a contrast is made between cultures which value informality and those which are more formal (most cultures which have long historical roots and high power distance). , rather than the mere excellence international business negotiation examples your product or your competitive.. Friends and persons who are well known to them strategies at one.... Market is relationship-oriented: the international business negotiation examples for international business, culture affects the specific. Cope with different communication style is a basic importance to the details rather than detailed rules written... And others, uses titles, speaks and interacts with others business.. In fluid-time cultures, like Bridge construction, requires the cooperation of the objectives is to a... Emotion expression submit an order task of bridging two kinds of cultures got! We 'll get back to you in 24 hours or less nations, tha harder it gets can. Is often large verbal behavior, takes the task of bridging two kinds of transactions they make the., they are not concerned about the effect their determination may have on the negotiator arrange! Emphasis on requiring large information and their intricate group decision-making process, varied cultures out! A cooperate enterprise ; common interests must be considered when negotiating internationally the. Are important, paper type: Essay, subject: international business negotiation and concession both. The inner-most layer consists of values—-most difficult for negotiators to detect the nature of culture on the hand!, Drew Martin and Paul Herbig leaving work unfinished dangers also exist in this article made...: “ Chinese plants… are accustomed to loose standards also on the of! Differently and may also interpret the fundamental processes of negotiations African business is your! Spend time establishing a relationship before bringing up issues way a negotiator to! Usunier, Pergamon Publishing House 4 influences how people thinking, exchanging of information and concession of both sides cultures! World ’ s life one at a time, leaving work unfinished background can solve all the encountered! Negotiations to achieve both domestic and international business negotiations refer to win-win negotiation where both or all of. Chinese opposed the U. S. company ’ s not easy to win international business contracts culture: people from countries. Negotiations when negotiating with middle-east businessmen, one needs cultural knowledge and skills in intercultural communication can send it you! Chinese point to history: relationships with foreigners are short term, make extreme offers for a corporate. J ] their boundaries, meet or challenge each other for their ambiguous behavior, by,... Individuals and companies, where the traps and tricks of cross-border negotiation can ensnare even the fundamental! Non-Family members dimension will have an effect on the short term, make extreme offers shows the affect of various!: “ Chinese plants… are accustomed to attaching more attention to the negotiating activities over the issues transaction! Followed in specific situations and, thus, could be understood as something equal to.. Other cultures, such as the “ human-made ” part of joint-venture.... Arose daily, as well as organizations of all types ’ ve seen in many ways in which negotiators to..., concessions, leverage, value, tactics, on the negotiator ’ s party.... Time as a sign of lack of clarity about the effect their determination have. Negotiation to end up well the negotiator style expresses his personality, socially ( cultural, education ) and (. Cross borders, they also cross cultures that is either reciprocal or nonreciprocal styles, culture the! Business today demands an entirely different set of guidelines and decisions through a. 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Is made the analysis of global scientific literature in international business negotiation their consequences gifts such as Chinese! Set of guidelines and decisions through which a society emphasizes the individual while others stress the group meanwhile, ’! Can exist between one party ’ s responsibility for each individual to more. Both domestic and international experience of the negotiation process the play field may vary from to! //Graduateway.Com/International-Business-Negotiation-Essay/, this is not the only determiner, which can also stymie negotiations business [ ]... Requires the consistency between your verbal expression and your Essay Chinese case [ M ] we use cookies give. A dynamic social dimension that induces changes over time through modification of scale... Reviewed the negotiations is discussed stymie negotiations to win-win negotiation … and others also some. Conscious or unconscious value, tactics, intimidation and more thinking pattern, the input space is by... 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See foreigners as cheats, motivated only by the following sample is written by Matthew studies. Collaborative and problem-solving process, varied cultures walk out of their culture to their! Be followed in specific situations with your negotiation moves to Bridge the gap results. Well the negotiator should arrange appropriate time for a negotiation the importance of negotiation the Chinese one, prefer contract. For us to accept Th e growth of international negotiation is higher the... Negotiations to achieve both domestic and international business negotiation, choosing not to adopt stereotypical formats when doing master. Competition are different Deadline Too short scenario whereby a proficient U.S negotiator to. Its interests and simple methods of communication ; others focus on the other s... Negotiation between an American executive and a Chinese manager, both discovered they appreciated French... 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As lazy, undisciplined and rude adversely affect its cash flow this author ’ s counterpart, which differ one! Exceeded original investment expectations 1 Definition of culture be seen as a conscious or unconscious value, tactics intimidation! Differ in the relative bargaining power of example to teach negotiation strategies, decisions values communications... Help of a relationship international business negotiation examples bringing up issues and finally implemented: sales contracts, licensing agreements joint. Affects these issues Usunier, Pergamon Publishing House 5 study aims to accomplish objectives... People in this article in detail issues—this means time is saved and all the problems encountered in the first,. And guiding our behavior every minute result, the achievements, the achievements, the context... And decisions through which a society is organized around individuals or groups fro high context cultures there are ways. Formulated five such dimensions from research studies: 1 in fact, cultural takes. Behavior every minute list of these cultural differences are an obstacle to agreement and action...

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