Deciding how to react when one is threatened is really a tricky
issue.
Usually I'll react in 3 ways according to situation.
First in condistions where 1) non-life threating and 2) nothing
will be lost except 'face', I'll try to assert my stance and
position peacefully, compromise, or even work with the other party
to come up with alternate solutions to his/her demands.
Second catagory of situation where conditions are 1) non-life
threating, but 2) moral or ethical values are at risk of being
violated, I'll firmly and solemnly make my position clear to the
opposite party and politely ask the other party to go fly a
kite.
Third catagory where there is a clear and present threat to Life or
property - I'll initiate physical combat enagament straight.
Ah... then we come to the last catagory - which is orders from Mum
or Dad.
This one I concede defeat.
Die-die also I follow with my tail between my legs. 
