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Filtroil had opened a new factory that was a merger between Shenzhen Filtroil and its supplier, Liu Li—whose own factory was on the verge of bankruptcy. But the supplier had begun making excessive demands and threatening to delay product shipment to the United States if his conditions were left unmet. The case reveals the options that could be taken to manage the situation. The case is suitable for use in organizational behavior, human resource management, and strategy classes at the MBA and executive education levels.

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