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Unit4TheContentofNegotiation1NegotiationAwarenessInternationalbusinessnegotiationisakeycomponentofconductingforeigntrade.Itisaconsultativeprocessbetweenbuyersandsellersconcerninginvestment,projectcontracting,andtheimportandexportofgoods,technology,andlaborservice.Forgoodstrade,bothpartiesofnegotiationneedtoreachanagreementonthequantity,quality,price,payment,packing,shipment,andinsuranceofasale.下一页上一页返回Unit4TheContentofNegotiation1Similartodomesticbusinessnegotiations,internationalonesusuallyinvolvefoursteps:inquiry,offer,counteroffer,andacceptance,amongwhichnotallthestepshavetobetakentoeachtransactionandonlyofferandacceptancewilldoonsomeoccasions下一页上一页返回Unit4TheContentofNegotiation1InquiryandreplyAsthefirststepofbusinessnegotiations,inquiryisusuallymadebybuyerswithoutengagement,theaimofwhichistoinviteaquotationoranofferforcertaingoodsfromsellers.However,attimessellerscanalsoinitiateanegotiationbymakinginquiriestobuyersabouttheirintentionsofplacinganorder下一页上一页返回Unit4TheContentofNegotiation1Theinformationthatbothpartiesneedaboutatransactionincludes:Thecatalogueandtheprice;Thesupplyofcommodities;Thepacking;Thedeliverydate;Termsofpaymentandothertermsconcerned下一页上一页返回Unit4TheContentofNegotiation1Inquiriescanbemadeineitheroralorwrittenform.Ifthewrittenformisadopted,whoevermakesinquiriesshouldconsidercarefullytowhichregionstheinquiriesaretobesentandhowmanysuppliersorpurchasersaretobeapproachedinoneandthesameregion.Havingreceivedtheinquiryletter,thereceivershouldstudyitwithcautionandreplytheinquiryletterassoonaspossible,tellingthemwhetheryoucouldsellorbuy.Ifinoralform,theinquiriesandreplieswillbeveryeasyandsimple,especiallywhenthebusinessrelationshipshavebeenestablishedbetweenthebuyersandthesellers下一页上一页返回Unit4TheContentofNegotiation1OfferandcounterofferOffersandcounteroffersarethemiddletwostepsofbusinessnegotiation.AccordingtoTheUnitedNationsConventiononContractsfortheInternationalSaleofGoods(CISG),anofferisaproposalforconcludingacontractaddressedtooneormorespecificpersonsifitissufficientlydefiniteandindicatestheintentionoftheofferortobeboundincaseofacceptance下一页上一页返回Unit4TheContentofNegotiation1Inbusinessactivities,anofferisusuallymadebythesellertothebuyerinresponsetotheinquirymadebythelatter,whichusuallyincludessuchtermsasthenameofthegoods,price,packing,quality,quantity,termsofpayment,dateofdelivery,thevalidityoftheoffer,etc.Therearetwotypesofoffer:firmoffer(offerwithengagement)andnon-firmoffer(offerwithoutengagement).Firmofferisdifferentfromnon-firmoffer.Thelatterisnotlegallybindingandsubjecttochangewithoutpreviousnotice.Eventhoughtheoffereeacceptsallthetermsconcerned,theofferorcanstillrevokeoramendthem下一页上一页返回Unit4TheContentofNegotiation1Afirmoffer,however,isapromisetosellgoodsatastatedpricewithinastatedperiodoftimeItislegallybindingontheofferorwithinitsvalidityInpracticalbusinessnegotiations,ifthebuyerrejectscertaintermsorconditions,hemaypresenthisownonestorenewthereceivedoffer.Thisrenewedofferisacounteroffer.Acounterofferisactuallyanewoffer.Theoriginalofferororthesellernowbecomestheoffereeandisentitledtoacceptorrefuse.Inthelattercase,hemaymakeacountercounteroffer.Thisprocessofoffer—counteroffer—countercounterofferisaprocessofbargainingandcangoonformanyarounduntilthetransactionisconcludedorcalledoff下一页上一页返回Unit4TheContentofNegotiation1PricePriceisoftenthemostsensitiveissueinbusinessnegotiationsandtendstoinfluencetheentirenegotiationprocessPricereferstoanamountofmoneypaidbythebuyertothesellerforaproductorserviceor,inotherwords,priceisthemoneyvaluesofaproductorserviceasagreeduponinamarkettransaction.Ifcustomersrejectit,thepriceusuallywillbechangedquickly,ortheproductmayevenbewithdrawnfromthemarket下一页上一页返回Unit4TheContentofNegotiation1Theproductpriceincludesfixedcost,variablecostandexpectedprofit.However,thefixedcostandvariablecostofexportproductsmeanthetotalfigureofproductioncost,sellingcost,deliverycost,taxesandtariffsandsomeotherunknowncostsThethreebasictechniquesofpricingexportproductsare:①costpluspricing;②marginalcostpricing;③breakevenpricing.Besideswhathavebeenmentionedabove,theinternalandexternalfactorsshouldalsobetakenintoconsideration下一页上一页返回Unit4TheContentofNegotiation1Internalfactorsinclude:①costs;②marketingobjectives;③marketingmixstrategies.Externalfactorsinclude:①competitorspricesandoffers;②themarketanddemand.Inpracticalbusinessnegotiations,becausepricehagglingisacommonoccurrence,bothpartiesshouldnotignorethefollowingitems,whichcanalsoaffectpricing:①dateofdelivery;②termsofpayment;③packing;④fluctuationsofthecurrencyusedinthetransaction,etc.Boththebuyerandthesellershouldbefullyawareofthesepricingstrategiesandthefactorsaffectingthepricesothattheymayselectaworkablepriceorevaluateagivenprice下一页上一页返回Unit4TheContentofNegotiation1Inbusinessnegotiations,ifthebuyerdoesnotaccepttheprice,thesellershouldreactpositivelybyinitiatingdiscussionsonnon-priceissuesratherthanimmediatelyofferpriceconcessionsortakeadefensiveattitude.Wideningtheissuesandexploringthereasonsbehindtheobjectionstothepriceofferedwillputthenegotiationonamoreconstructivefooting下一页上一页返回Unit4TheContentofNegotiation1PaymentGenerallyspeaking,internationaltradeisnotastransparent,controllableandreliableasdomestictrade.Sinceeitherpartyofatransactionhaslimitedknowledgeofthefinancialstrengthandcommercialreputationofhiscounterpart,manyrisksordifficultiesmayariseinforeigntrade.Oneofthebiggestconcernsforthesellermightbethefailuretoreceivepaymentfromthebuyerforthegoodsdelivered.Therefore,asuitablepaymentmodeshouldbeadoptedtoensurethepunctualdeliveryonthepartofthesellerandthetimelypaymentbythebuyer下一页上一页返回Unit4TheContentofNegotiation1Themodesofpaymentcanfallintothreecategories:remittance,collection,andletterofcreditRemittanceisoneofthemostconvenientandcommontermsofpaymentininternationaltrade.Therearegenerallythreetypesofremittance:①mailtransfer(M/L);②telegraphictransfer(T/T);③demanddraft(D/D),ofwhichT/Tisthemainstaymeans.Whenremittanceisadoptedininternationaltrade,thebuyershouldremitthemoneytotheselleronhisowninitiative,andthesellershouldsendthegoodstothebuyeraccordingtothetermsandtimestipulatedinthecontract,becauseremittancebelongstothecommercialcredit下一页上一页返回Unit4TheContentofNegotiation1Collectioncanbedividedintotwocategories:cleancollectionanddocumentarycollection.Mosttradecollectionsaredocumentary,whichincludesdocumentsagainstpayment(D/P)anddocumentsagainstacceptance(D/A)paymentmodeofcollection,thesellerissuesadrafttowhichtheshippingdocumentsareattached,forwardsthedrafttohisbank(i.eremittingbank),makesanapplicationforcollectionandentruststheremittingbanktocollectthepurchasecashfromthebuyerthroughitscorrespondentbank(i.ethecollectingbank).Accordingtothetimeofpayment,D/Pcanbedividedintothreekinds:①D/Patsight;②D/Paftersight;③D/Pafterdate下一页上一页返回Unit4TheContentofNegotiation1Letterofcredit(L/C)isoneofthesafestpaymentmodescommonlyadoptedininternationaltrade.ItisatooloraninstrumentofpaymentbasedonthebankcreditL/Cisveryusefulininternationaltradeinthatitsolvesthedilemmathatthebuyerwantspossessionofthegoodsbeforepayingandthesellerwantspaymentbeforemakingdelivery,andensuresasmoothbusinesstransactionbetweenthetradingparties下一页上一页返回Unit4TheContentofNegotiation1NotesIt(Internationalbusinessnegotiation)isaconsultativeprocessbetweenbuyersandsellersconcerninginvestment,projectcontracting,andtheimportandexportofgoods,technology,andlaborservice国际商务谈判是一个发生在买卖双方之间的关于投资、项目承包、商品进出口、技术进出口以及劳务进出口的磋商过程。下一页上一页返回Unit4TheContentofNegotiation1Whoevermakesinquiriesshouldconsidercarefullytowhichregionstheinquiriesaretobesentandhowmanysuppliersorpurchasersaretobeapproachedinoneandthesameregion询盘人应仔细考虑向哪些地区发出询盘以及在同一个地区要与多少供货人或购买人联系。下一页上一页返回Unit4TheContentofNegotiation1Anofferisaproposalforconcludingacontractaddressedtooneormorespecificpersonsifitissufficientlydefiniteandindicatestheintentionoftheofferortobeboundincaseofacceptance向一个或一个以上特定的人提出的订立合同的建议,如果十分确定并且表明发盘人在得到接受时承受约束的意旨,即构成发盘。concludeacontract订立合同beboundto必定,一定It’sboundtorainsoon过一会儿肯定下雨。Inagroupasbiga
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