国际商务谈判参考答案

Keys to the exercises Chapter 1 Fundamentals of International Business Negotiation Communication Exercises 1. Change the sentences from negative to positive. 1) I want a job. 2) I work hard. 3) My job is terrific. 4) This office is great. 5) My co-workers are super. 6) The Personnel Director is nice. 7) My health is good. 8) My attitude is positive. 9) I make a good impression. 10) I understand. 2. Change or add to these sentences so that they do not just state what you want, but invite your negotiating partner‟s opinion. a) Could we finish at five---if that‟s all right with you? b) I hope you don‟t mind if Miss Li sits in during the negotiation? c) Perhaps we could take a break now. Is that OK? d) Could we look at these three areas this morning? e) I would like to go through the written offer clause by clause, if that‟s OK? f) Do you mind if I answer your questions at the end? 3. What is meant by “negotiation”? How would you define “negotiation”? A negotiation is a meeting in which both parties need each other‟s agreement to reach a specific objective. It is the mechanism by which people trade things of value in a civilized manner. Negotiation depends on communication. It occurs between individuals acting either for themselves or as representatives of organized groups. Negotiations are very much part of working and home life. Negotiations could be either internal or external, long or short, formal or informal. The goal of negotiation is not to win but to succeed. The mechanism of successful negotiation is collaboration. In negotiations, both parties should know ----why they negotiate ----who they negotiate with ----what they negotiate about ----where they negotiate ----when they negotiate ----how they negotiate 4. Fill in the blanks human, negotiable, interest, giving, trust 5. Answer the following questions 1) Physical or survival needs; Security and safety needs; Social needs; Ego or esteem needs; Self-realization needs 2) Exploration, bidding, bargaining, settling and ratifying . 6. Put the following into English 1) Are you negotiable? 2) I‟m sure there is some room for negotiation. 3) Before we have anything to negotiate, you have to make me an offer. 4) We could add it to the agenda. 5) Would anyone like something to drink before we begin? 6) See what I can do. 7) I would if I could. 8) I know I can count on you. 9) We‟ll come out from this meeting as winners. 10) I‟ll try to make you happy. 7. True or false T 4) F (Everything is negotiable.) 1) T 2) T 3) 5) F (bargaining stage) 6) F ( Do not often. Sometimes they will follow the sequence n one aspect of the deal and then start all over again on a second aspect.) 7) T 8) F (May not. Because either side may be wiling to say what it thinks or take a position and stick to it ) 9) T 10) Negotiation skills 1. (omitted) 2. What are the elements of a successful negotiation process,There are seven basic elements that should be considered when analyzing the negotiation process: a. The relationship among the parties. b. The parties‟ interests -- why they need to reach their stated objectives c. An understanding of the choices available if the parties cannot reach agreement, often called their BATNA -- Best Alternative To a Negotiated Agreement d. Creativity which will expand the bargaining choices among which the parties can choose to reach agreement e. Fairness -- a person who negotiates unfairly may be able to force an agreement, but the „forced‟ party will be reluctant to fulfill their share of the agreement f. Whether commitment has been reached. Will the parties each feel committed to doing what they have agreed? Is each party capable of fulfilling their share of the deal? g. Negotiation is all about communicating information. If one party knows everything then why do they need to negotiate with anyone else? And the foundation of good negotiation is preparation. Be prepared and the negotiation will bring a result that really works. If well prepared you are less vulnerable to surprise, and that increases the likelihood you‟ll be happy with the result. 3. Your client comes into your office and is exceedingly grumpy and difficult to talk to. How do you approach your client so as to make your meeting as productive as possible? Answer: (e) When the client is grumpy, their emotions will inevitably cloud their judgment and make it difficult to interact with them on substantive matters. At the same time, if they are experiencing anger, it is important to ensure them that we understand that they are upset. By acknowledging the client‟s anger and offering our assistance, the client will feel as though we are on the "same side" and treat us as friends and continue to direct their anger elsewhere- allowing us to focus on the substantive issues. Chapter 2 Proper Behaviors in International Business Negotiation Communication Skills 1. What would you say if… a. Thank you./No, after you. b. Thanks. I‟ll need it. c. Thanks. That‟s very kind. d. Thanks for coming all the way. e. Thanks for helping. That was very kind of you. f. Thank you for thinking of me, but I‟m afraid I can‟t take it. 2. Answer the following questions. (1) Only about half of what he or she heard (2) Not only does note taking force you to listen carefully, but it also psychologically throws the speaker off the balance when he or she sees you nodding and furiously writing away and having a record of all the facts and basically everything said. A further benefit of note taking is that you have the perfect excuse to avoid eye contact if you are afraid to reveal your reactions to someone‟s proposals (3) Questions appear to be able to be divided into five basic functions: Cause attention. ? ? Get information. ? Give information. ? Start thinking. ? Bring to conclusion. (4) There are two ways to assure a high degree of reliability for answers to your questions. One way is to lay the foundation for asking them. The second is through the use of the tactic called “bipolar questioning.” (5) A firm handshake gives the impression of quiet confidence and says that this person is glad to meet you. 3. Choose the best answer. (6) D (7) B (8) C (9) A (10)A (1) D (2) C (3) B (4) A (5) 4. Translate the following into English. (1) There‟s a great demand for our new product. (2) This product has good prospects. (3) We need to talk about the basic terms of the transaction. (4) If your prices are reasonable and the quality is satisfactory, we shall place substantial orders with you. (5) It‟s unwise for both of us to insist on his own price. Can we each make some concession? (6) If you cannot reduce your price, we‟d rather call the whole deal off. (7) If you want to expand your business in this market, you have to take flexible ways in adopting payment terms. (8) We regret that we cannot accept your demand for direct shipment. (9) This product has many advantages compared to other competing products. (10)I‟m very glad that we have finally come to an agreement. We‟ll go on to other terms and conditions tomorrow. Is it all right with you? 5. True or false. (1) F (2) T (3) F (4) T (5) F (6) T (7) F (8) F (9) F (10) T Negotiation Skills 1. The person you are negotiating with continually repeats the same argument despite the fact that you have given them a number of counterarguments. What do you do to move the negotiation forward? Answer: (a) One of the most powerful tools in negotiation is how to listen to what the other party is saying. Very often, we are too focused on the points we are trying to get across to listen to what our counterparts are trying to say. If people keep repeating themselves, they are subconsciously sending a signal that they feel what they are saying is important. And they want us to acknowledge that we have heard and understand them. Accordingly, the best thing to do in this situation is to rephrase what they keep repeating and ask them if we have accurately restated their point. Only when they feel as though they have been heard will they be able to listen to us Effective listening involves much more than simply hearing and understanding what the counterpart is saying. Effective listening is a set of tools and techniques which expert negotiators use to gain control of the negotiation and turn it to their advantage. 2. What are the key communication skills used in negotiation? (omitted) Chapter 3 Choosing the Negotiation Team Communication Exercises 1. What is the more indirect question or statement behind the following sentences? a. I‟m not entirely convinced by these forecasts. b. We‟d like to know something about your planning. c. I‟d be interested to hear a bit about payment. d. Your costs could cause one or two problems. e. Perhaps we could talk a little bit about figures. f. That figure looks a little on the high side. g. Delivery is an area which we‟d like to explore a little further with you. h. I‟d like to know more about your management structure. 1. Write the name of the position in the blank. 1) CEO/the president 2) Assistant Manager, Europe 3) Purchasing Clerk 4) Personnel Assistant 5) Vice-President, Administration 3. (omitted) 4. (omitted) 5. Fill in the blanks 1) maximum 2) observers; advisers; speaking; training 6. Translate the following into English 1)Negotiation is a team sport. 2)The negotiator‟s function is to negotiate, while the functional specialists provide specialist advice or information. 3) The team leader is the person who generates enthusiasm in his team to maintains the morale under all conditions. 4) The team members must learn that the opponent and its representatives are adversaries although they may be friendly. 5)I‟m afraid you are not in our ballpark. 6) Excuse me, but it seems to me we‟re giving up too much in this case. 7)That‟s too great a financial burden for us. 8) 10% is beyond my negotiating limit. 9) If you can guarantee that on paper, I think we can discuss this further. 10) Could you explain what you mean by that, 7. True or false 1). F 2). T 3). T 4). F (maximize) 5). T 6). F (can‟t) 7). F (both sides) 8). T 9). T 10). F (There is no need to ) Negotiation skills 1. What do you think are the personal qualities of a good negotiator? A good negotiator needs to be: 1) A good listener 2) Open-minded 3) Willing to do the homework to determine her/his interests, objectives, and alternatives 4) Well-prepared 5) Creative 6) Able to merge what he knows about his own interests and resources with the interests and resources of his negotiation partner 7) Someone who is always learning from experience, from other people and from history 2. How to be a cool negotiator? Acting cool is a good part of successful negotiation. But one needs to make sure it is not just an act. The „coolness‟ needed for successful negotiation really means keeping a cool analytical head. If there is any chance one should prepare ahead of time: what do I want and why do I want it? What do they want and why do they want what they want? During the process, one should find ways to take a step back from the discussion and look at what is going on with that same cool head. „Why did he say that? What arguments or tactics are being used? 3. How to control anger for effective negotiating? When tempted to get angry, remember to check whether or not it is your turn. If it is someone else‟s turn to get angry, sit there and take it by reminding you how wonderful you are to be in such control of your emotions. One fundamental rule is: only one person can be angry at a time. Don‟t let the situation escalate, civility will slip away awfully quickly and there will be a very tough time healing the relationship or solving the initial issue. 4. What are the advantages and disadvantages of team negotiations? (omitted) Chapter 4 Preparing for Negotiation 1. What would you say in these situations? 1) Mrs Zhang, I‟d like you to meet Tracy Morris. She‟s our new sales clerk. 2) Hello, Kathy. Nice to meet you. 3) That‟s right. Yes, we once worked together in. 4) I‟m terribly sorry. I‟ve forgotten your name. 5) Yes, good morning. My name is … I‟ve got an appointment with… 6) Did you have a good journey? It‟s very nice of you to come all this way. 7) Would you like a coffee? Or Would you like something to drink? 8) Good heavens, is that the time? I didn‟t realize it was so late. I really must be going now. 2. Make these sentences more concise 1) He‟s an assistant in Personnel. 2) She‟s the Vice-President in Sales and Marketing. 3) He‟s the Assistant Manager in Domestic Sales. 4) She‟s the Manager in International Sales. 5) He‟s an accountant in Accounting. 3. Combine these sentences as concise as possible 1) She is a clerk in Purchasing at ABC Company. 2) He‟s a salesman in the Asian Pacific Division at Sun Computer Company. 3) She‟s the Manager of Domestic Sales at Legend Group. 4) He‟s a secretary in Personnel at Huatian Hotel. 5) She‟s the Vice-President of Administration at Three-One Steel. 4. Do you think all negotiations need an agenda? Who should be responsible for controlling a negotiation? Informal negotiations don‟t need an agenda. In some cases, you are negotiating just one point. An agenda is often best negotiated rather than imposed at the start of a meeting. Usually the host company should be responsible for controlling the negotiation. 5. How can you prepare effectively for a negotiation? What issues do you need to discuss beforehand? The essential preparation areas are firstly to ensure that everyone in the team is clear what the objectives of the negotiation are. The objectives include: What is the best we can get? What‟s the worst we can get? What is our bottom line? And secondly, to establish the role that each individual is expected to play in achieving those objectives. Namely: Who is responsible for different stages of the negotiation? What special skills/knowledge do individual members of the team have? What do we know about the other team? It is important to discuss strategies beforehand and to decide on the approach the team is going to take which include: What are the main areas of negotiation? What are likely to be the sticking points? What is the best order to discuss these points? What concessions can we give to achieve our main aim? It is also essential to discuss the communicative ways like: how we are going to maintain positive communication, who is taking notes or minutes and who is going to ask questions and so on. 6. Put the following into English 1)Please take a look at the itinerary we prepared for you, and let me know if there‟s anything inappropriate, please let me know. 2)We are holding a banquet here tonight in honor of our friends coming from the other side of the Pacific Ocean. 3)I believe that through our joint efforts, our corporation can be satisfactory and successful. 4)Let‟s come to the point, the purpose of my current visit here is to explore the possibility of doing barter trade with you. 5)The contract will come into force from May 10, you can‟t go back on your words then. 6)We always fulfill our promise. 7)Owing to our old relationship, we hold our offer valid for one other week, after which our price would probably be raised. 8)I‟ll do my best; and please, try your best too. 9)Your price is too high. It‟s hard for us to accept. 10)All our products are high-grade commodities; naturally the prices are different. 7. True or false 1) T 2) F 3) F 4) T 5) T 6) F (unwise) 7) T 8) T 9) F (fluid) 10) T 11) F(round table) 12) F Negotiation Skills 1. In your opinion, what are the benefits of considering your own and others‟ outcomes in negotiation preparation? The benefit of considering the outcomes for ourselves and others gives us an initial sense of „what‟ people are looking for. It is far more important to look to the interests of the others. The question to ask is why do people want the outcome they are pursuing. It is easy to think of desirable outcomes in terms of money, which is in many cases what people want. When thinking ahead of time about others‟ interests, we are making a series of assumptions. We should use the negotiation process to pursue the fundamental asset of negotiation, which is information. Are the assumptions accurate? If the interests assumed are „out there‟, the answers we derive should yield a clearer understanding of the actual interests that motivate the parties and will lead to a successful agreement. 2. How to measure a negotiator‟s strengths and weaknesses? In general, measuring a negotiator‟s strengths and weaknesses can involve a multiplicity of elements, but the most important are the following: 1) A negotiator‟s relative strength is determined by the quality and extent of his preparation. The better one understand his/her interests and the better he/she understands the interests of other parties, the greater the chance he/she will be able to reach an elegant solution which leaves the parties feeling as if each has achieved the major portion of their goals. 2) A negotiator‟s relative strength can be measured by whether people walk away thinking they would be pleased to negotiate with him again. That is to say----if people leave a negotiation thinking they never want to see him/her again, then he/she is a poor negotiator. 3) A negotiator needs to understand that different issues should be treated as of different priorities in different negotiations. Sometimes the relationship is most important; other times creativity is the measure of how well one negotiates. It is always true that good communication is fundamental of a negotiator‟s strength. A good negotiator makes his points clearly understood by other parties. A better negotiator makes understanding other parties his top priority. Chapter 5 The Bargaining Process Communication Exercises 1. In the business world, everyone is very busy. Business calls are concise and “to the point.” Remember to be positive. Which is the best expression? 1) b 2) a 3) a 2. Make proposals about the following: 1) I think we should cut the training budget by five per cent. 2) I suggest we aim for a two per cent rise in productivity. 3) How about going for a meal after work? 4)Why don‟t we go to the National Forest Park this year for the company excursion? 5) I advise you to reduce production costs. 6) I propose that we shorten working hours by two and a half hours per week. 3. Use the conditional constructions (if…or unless…) to exert pressure in the following situations. 1) I‟m afraid we‟ll have to cancel the contract unless you reduce your fees. 2) We‟ll have to choose another supplier if you can‟t pay us on time. 3) That looks like the end of the negotiation, unless you can make a concession. 4) I‟m afraid you‟ll lose your job unless you work harder. 5) If you can‟t offer me a better working condition than this, I‟ll leave the company. 6) I‟ll accept the new job only if I get a higher pay. 7) Unless you order 10,000 pieces of this product immediately, you won‟t get a quantity discount. 4. Once positions have been established in a negotiation, a process of making and responding to proposals usually follows. Which side (the customer or supplier) should start the process? What are the advantages of going first and second? The supplier will usually be expected to start this process the advantage is then given to the customer who doesn‟t have t show his hand until he first hears what the supplier is proposing. On the other hand, making a proposal first may set the parameters for discussion and it could be an advantage if you want the negotiation to go in a certain direction. 5. What can cause negotiations to fail? How important is it to maintain a positive tone throughout the meeting? Negotiations can fail for a variety of reasons: competitors offer a better deal; problems seem too difficult to solve; personalities clash; negotiating styles clash. Most negotiations will encounter difficult problems. There is a much greater chance that solutions will be found if both parties keep sight of the main objectives and maintain a positive tone. 6. Fill in the blanks 1). Assess，differences，strengths，next round; 2). Fluid，escape routes，time breaks 3).Bargaining to our advantage, the skilled negotiator will: a) outset b) situation c) round d) satisfaction e) Bluff, brinkmanship f) parallel g) impasses h) written, equal satisfaction 7. Put the following into English 1) I understand perfectly. 2) Let‟s compromise. 3) That‟s a smart decision. 4) I expect to be compensated. 5).The longer we wait, the less likely we will come up with anything. 6) I‟ll be expecting your call. 7) I‟d like to get the ball rolling by talking about prices 8) I know your research costs are high, but what I‟d like is a 25% discount. 9) We‟d need a guarantee of future business, not just a promise. 10) If you can guarantee that on paper, I think we can discuss this further. 6. True or false 1). F 2) T 3) F (positive tone) 4) T 5) T 6) F (without comment) 7) T 8) F (more ) 9) F (high) 10) T Negotiation Skills 1. You are negotiating a major purchase, and the sales agent suggests a ridiculously high price which is far above your anticipated purchase price. How do you address the agent in order to get the best price? (b) and (d) The sales agent is trying to get started on the traditional positional bargaining philosophy of "start high, counter low and end up in the middle." In order to counter their attempts at positional bargaining, we should begin by asking them what the basis for their initial price was. This tactic will draw attention away from the initial price and create a focus on the criteria for determining a fair price. Next, we should suggest a price of our own, prove the offer with appropriate criteria and stick to our offer. 2. Do you think it‟s a good idea to raise the critical issue early in the negotiation? How would you handle the aggressive position immediately adopted by others? Most negotiators start by identifying the common ground. In other words, the points which both sides agreed on. Then have a firm basis to discuss problem areas. It is important that our team do not show too strong an emotional response to the other party‟s aggression. Because they will see this as a weakness. 3. How to deal with those who say " Our prices are set, we do not bargain "? Businesses were created to meet a perceived need in the marketplace. There are people who fear that if they negotiate, other parties will take advantage of them. This sort of thinking is the result of the belief that negotiation is a competitive process, and only one side can win. The Internet has created a variety of auction choices; many other companies always guarantee the lowest price. So price competition is far from dead. It is simply a matter of people‟s choice. If you want to attempt to bargain for a better deal, don‟t do business with no-negotiation companies. Chapter 6 Closing the Negotiation Communication Exercises 1. A positive comment makes people comfortable and ready to listen. Rewrite these sentences. 1) Thanks for your understanding. I really appreciate it. 2) Thanks for meeting me at the airport. I really appreciate it. 3) Thanks for coming early. I really appreciate it. 4) Thanks for working overtime. I really appreciate it. 5) Thanks for your cooperation. I really appreciate it. 2. A polite way to correct someone is to make the correction impersonal. Try not to use the word you. Which is a more polite correction? 1) b 2)b 3) b 4) b 5) b 6) a 7) b 8) a 3. Look at the expressions below. Which of them would you use to express each of these ideas in negotiating? What would you say in negotiating… if you‟ve not understood an explanation? (10) when you want to complain indirectly to someone? (7) if you do not want to accept the advice someone is giving you? (5) when you want to tell someone something? (1) when you wish to agree with someone? (2) when someone you already know is introduced to you? (6) if you want to interrupt someone? (8) when it‟s unlikely that you can do something? (3) when you would like a person to do something for you? (9) when you want to give someone some information? (4) 4. Make these statements into proposals and suggestions. Be inclusive---use we rather than I. Try to word your sentences so that they encourage feedback. a. Let‟s start by looking at the sales figures. b. Perhaps we should identify who our main competitors are first. c. Wouldn‟t you agree that timing is essential? d. We think the main problem is the security system. Would you agree? e. Shall we discuss delivery issues at the end? 5. Match each underlined expression (a-d) with its meaning from the expressions below and use the appropriate form of one of the expressions to complete the sentences(e-h). a. reduce our prices b. a bargaining zone c. contingency plan d. a tough negotiator e. room to manoeuvre f. knock us down g. drives a hard bargain h. fall-back position 6. What should happen at the end of a negotiation? What issues need to be agreed on before closing the meeting? It is important to round off a negotiation well, so that nothing remains ambiguous. Before closing the negotiation, the participants need to confirm what exactly has been achieved. They need to agree on future follow-up action and, if possible, set a date for the next or future meetings. 7. What steps do you go through to close a negotiation effectively? To close a negotiation effectively we should do the following steps: 1) Summarizing ---summarize issues discussed ---confirm objectives attained ---state areas where you have yet to reach agreement or where further discussion is needed 2) Follow-up action ---delegate responsibility for follow-up action and set time-scale ---minute or document decisions 3) Departing ---confirm arrangements for next meeting (if there is to be one) ---chairperson thanks participants for coming 8( Fill in the blanks unsuccessful, close, maximum, enough, agenda . 9. Put the following sentences into English 1)I think we have discussed most of the key issues today. 2) That takes care of business for today. 3) We can work out the detail next time. 4) We have done a lot. 5) It‟s party time. 6) If there are still unanswered questions, I will be happy to help. 7) I think we should meet again. 8) Is a week too early to meet again? 9) Feel free to call me. 10) Do you have a problem with the contract? 10. True or false 1) T 2) T 3) F (should be in agreement as to) 4) T 5) F (positive) 6) T 7) F (both sides have the chance to) 8) T 9) F (informally) 10) F (helpful to set up…) Negotiation Skills 1. What should one NOT do in negotiation? Are there common mistakes to avoid? (omitted) 2. What are the factors that can affect negotiations? Negotiation requires an open mind, good preparation, and a tremendous amount of creativity. If one always give the same kind of responses, that‟s not creative and it is not likely to contribute to a solution. If his/her response is unexpected and shows imagination, it is likely to bring others up and make them think more creatively themselves. What‟s more, the same person may respond differently on different days: health problems, issues at home or work, and other factors can also affect negotiations and make a difference. 3. What is BATNA and how it is useful in negotiating? BATNA is the acronym for Best Alternative To a Negotiated Agreement. BATNA is the choice one can make if he/she concludes that negotiating with a particular party is not likely to yield a favorable result. One can walk away from a negotiation if his/her BATNA is better than the likely outcome of that negotiation. BATNA, however, covers far more than that. One view says that BATNA is the measure of the balance of power in a negotiation. If other parties need you in order to reach their objectives, your BATNA is strong; your negotiating circumstances are strong. For example, if you want to buy a new car and the same model is for sale at several car dealers, you have a strong BATNA because you can benefit from their competition for your business. In negotiation, we are assessing information about our own resources and those of other negotiating parties. 4(What is an effective agreement and how to get one? The answers to the following list of questions will indicate whether an effective agreement has been reached: 1) Have I reached an agreement that comes as close as possible to fulfilling my interests? 2) Will other parties to the agreement fulfill their commitment? Do we have a good process for measuring and monitoring fulfillment by the parties? 3) Do I feel satisfied by the substance of the agreement and the process by which it was reached? 4) Would the other party give the same answers to these questions? Reaching an effective agreement is less simple to summarize. In negotiation, there are many possible routes to reach agreement, even if one negotiates the same issues with the same people with great regularity. Individuals show up to discuss the items on an agenda carrying both relevant and irrelevant baggage that may influence how they negotiate at a given time. Did they have a fight with their spouse? Are they afraid that what they do in the meeting may have an impact on how their superior views their job performance? There are an infinite variety of external issues that may influence how a negotiator behaves. Chapter 7 Negotiating Strategies Communication Exercises 1. To make a polite suggestion, use the word should. Make the sentence as a polite suggestion. 1) We should negotiate the problem. 2) He should know her name. 3) I should finish the report. 4) Mrs. Billings should call right now. 5) The manager should write an agenda. 2. Use opposite adjectives to soften the following remarks 1) This meeting could be a bit more productive. 1) I have tasted better food. 2) Could you try to be early tomorrow? 3) You could be a bit more experienced. 4) Your quotation is not as low as we hoped. 5) Your financial position could be more secure. 3. How do you see yourself? Analysis: 6-10 points task-oriented 4-5 points balanced 0-3 points people-oriented 4. What are the risks and the potential benefits of conflict in a negotiation? Risks of conflict might be personal offence, compete breakdown in communication, high levels of stress and negative effect on the deal. Potential benefits of conflict might be to move the negotiation forward quickly, to reveal differences which need to be resolved and greater final understanding of positions. 5. Fill in the blanks 1) lasting 2) strong, weak 3) quick, close 4) either, or, opponent., hold back. 5) 90%, 4% 6) forbearance, deception. 7) information, problem, perspective, ideas, approaches, understanding, maximize, minimize 6. Translate the following into English 1). We could perhaps cut the advertising budget. 2). PR expenditure may be a little bit too high. 3). You might analyze your costs in a bit more detail. 4). I‟m afraid there is very little room for cuts in my budget. 5). Maybe you could have a look at the proposal. 6). May I suggest you take a look at page thirty-two of the document. 7). I‟m afraid we were expecting a rather better offer. 8). I‟m afraid your figures for last year don‟t look so good. 9). I‟m not sure how we can do business on this basis. 10). Perhaps we could try and think of some ways to improve communication between our departments. 7. True or false? 1).T 2).F (we need to have ) 3) F (not to control that person‟s behavior but to control your own) 4).T 5)T 6).F (effective) 7) T 8) F (a style foreign to him will only expose his weakness) 9) T 10) F (shorter) Negotiation Skills 1. What are the tricks used in negotiations? (omitted) 2. How to get ideas across to someone who has a different opinion? Active listening approach creates an obligation of reciprocity: "I listened to you, now it is your turn to listen to me." This convinces one who has a different opinion. If you‟ve treated them with respect by paying attention to them, that alone may increase their willingness to take you seriously. 3. How to persuade the other party to say yes to our suggestion without having to insist that the other party adopt our idea? Active listening helps to change an opposing opinion as well as gaining agreement for one‟s idea. One should try to think as creatively as possible about how to make it clear that his/her proposal responds to specific interests of the person he/she is negotiating with. To a certain extent this is all about „face‟. It is more important that you get credit for a proposal. However the more one feels that the other side‟s suggestion was really generated by something he or she initiated, the more likely he/she has come up with a „yesable proposition‟, where one has made it easy to say yes and hard to say no. 4. Name some tactics, strategies, tricks or tips about what one should do during the negotiation process. (omitted) Chapter 8 International Sales Negotiation Communication skills 1. What comment would you make in the following situations? a. Isn‟t it dreadful? b. She‟s chatty. c. He‟s a real workaholic! d. That was delicious. e. He‟s the quiet type. f. That was disappointing. g. Really? That must be interesting. h. You‟re looking very smart. 3. Answer the following questions 1) There are four means. They are sales by sample, sales by specification, grade or standard, sales by trademark or brand, and sales by description. 2) Sales by description. 3) They should also pay attention to the packing materials. 4) The seller. 5) For the seller D/P is safer and better than D/A. 6) Because it guarantees buyers the quality and quantity of the goods as required. It makes it possible that sellers get payment from the negotiating bank upon presentation of the certificates together with other shipping documents. Commodity inspection is also the basic evidence for solving future trade disputes. 7) Planning. 8) No. The seller needn‟t base the level of his or her concession on the level of the buyer‟s concession. 9) The sellers should open high. 10) Continue the negotiation patiently, because this indicates that they really want to buy your goods. 11) Most possibly, it is tactics. The negotiator uses this tactic to evade pressure situations. 4. Give the words opposite in meaning to each of the following words 1) Unloading 2) outer packing 3) consumer 4) exporter 5) accept 6) domestic trade 7) minimize 8) increase 9) weakness 10) counter measures 11) disadvantage 12) port of destination 4. Compose a dialogue on the following situation The buyer asks for payment by D/P as he (she) says it is costly to open an L/C. You insist on payment by L/C as it is your usual practice. You try to persuade the buyer to accept L/C payment. Here are some suggestions: 1) To open an L/C will add to the cost of our imports. 2) We always like an L/C for our exports, since then we have the guarantee of the bank. 3) I wonder if you will accept D/P? (Is D/P acceptable to you?) 4) We are sorry to inform you that your terms of payment do not correspond to our customary business practice. We regret that we are unable to accept documents against payment. Please reconsider your payment conditions. 5. Translate the following into English (1) For our good relationship, we may accept your price, but you should make earlier shipment. (2) As we have quoted you our rock-bottom price, we cannot give you any more discounts. (3) We are sorry that we cannot accept the payment conditions you suggested. (4) We hope that you can make some improvement in the packing. (5) Let‟s discuss the time and mode of shipment. What would you say about prompt shipment? (6) We‟ll arrange to ship the goods immediately after receipt of your L/C. (7) The business is concluded on an FOB basis, so the insurance should be effected by you. (8) We will have the goods insured as soon as they are shipped. (9) We are sorry, but we cannot allow your claim. (10) The goods will be inspected by China Commodity Inspection Bureau before shipment. 6.True or false: 1)F 2) F 3) T 4) T 5) F 6) F 7) T 8) F 9) T 10) F Negotiation Skills 1. How to negotiate quality products & services in a price conscious environment? (omitted) 2. You are negotiating a multi-billion dollar merger and your counterpart faxes you the proposed terms and conditions in an attempt to get the upper-hand in the negotiations and suggests a three-hour meeting to discuss the terms. What do you do? Answer: (a), (b), (c) and (d) In any negotiation where large amounts of money are involved, the parties involved bombard each other with proposals and other documentation in addition to numerous meetings. In the process, each party is constantly trying to obtain and maintain the upper hand in the negotiations. A common tactic in this regard is to propose a set of terms and conditions and then propose discussing them as soon as possible. In order to counteract this, there are several things that would be advisable in the following order: First, before the actual meeting, analyze their proposal thoroughly, even if it means delaying the date and/or time of the meeting itself. Once you have a handle on what their perspective is, you can then develop your responses or counterproposal. An immense amount of negotiating power lies in the nature of the responses to your counterpart. In particular, you must first explain what you believe to be their reasons for each of their individual proposed provisions. Finally, it is critical that you have an agenda for the meeting. This allows you to dictate the anticipated flow of negotiations. Chapter 9 International Business Contract Negotiation Communication Skills 1. What would you say if you wanted to… a. There were a couple of things I wanted to talk about. b. The other point was… c. Let‟s raise our glasses to Henry. Congratulations on lasting twenty years! d. Here‟s to you and the new baby. e. By the way, f. Anyway let‟s talk about something else. g. Do you see what I mean? 2. Answer the following questions In a cross-border transaction, the parties usually do not meet face-to-face, 1) they have different societal values and practices, and the laws to which they are subject are imposed by different governments with distinct legal systems. These factors can easily lead to misunderstanding, and therefore the contracting parties should define their mutual understanding in contractual, and preferably written terms. 2) Do show firm authority. Be aware of your host‟s level of eye and physical contact and remain within the bounds established. Research common cultural traits and business practices of the foreign trader. Determine in advance the points on which you can be flexible so that you start the negotiation above your bottom line. Insert humor when appropriate, balanced with reserve when the discussion is serous. Don‟t appear inflexible on all points. Avoid overt conflict or belaboring a point. Don‟t jump to fill every conversation gap; silence can yield golden results. Refrain from sudden shifts in your tone of voice or change in your demeanor. 3) When one party does not perform the contract or its performance of the contractual obligations does not comply with the agreed conditions, it is in breach of contract, and the other party has the right to demand compensation for losses or adoption of other reasonable remedial measures. 4) In international contracts, the termination clause takes on added significance because the parties are dealing with more factors that are beyond their control than in domestic contracts, including long distance transport, customs clearance, different markets and customs, and distinct economic and political forces. 5) ? mediation; ? arbitration; ? litigation. 3.Choose the best answer. 1) A 2) A 3) C 4) D 5) C 6) B 7) A 8) B 9) D 10) D 11)C 12)B 13)D 14)C 15)A 4. Translate the following into English. 1) Do you have any comments on these clauses? 2) Both parties have the obligation to fulfill the signed contract. 3) If you fail to make shipment within the L/C validity, we shall be entitled to cancel the contract. 4) Contract amendment can only be made with good reason. 5) The delivery time (arbitration…) should be stated accurately in the contract. 6) You shall deliver within two months after the contract signing. 7) We hope we can settle this dispute in an amicable way. 8) In case any disputes may arise, we should include an arbitration clause in the contract. 9) We regret having to submit the case for arbitration. 10)When can the contract be ready for signature? 5. True or false. 1)T 2) F 3) F 4) T 5) T 6) F 7) F 8) F 9) F 10) T Negotiation Skills 1. What to do when a customer says:" take it or leave." (omitted) 2. How to utilize expert or information power, (omitted) Chapter 10 International Investment Negotiations Communication Exercises 1. What would you say if you wanted to… a. I‟m afraid I must go now, otherwise I‟ll miss my train. b. If you‟re ever in Changsha, please give me a ring. c. I‟m sorry, I‟ve got no name card. Let me write down my telephone number. d. Have a safe trip home. e. I‟m really sorry you‟re leaving. f. I must go now. I‟d like to miss the traffic. g. Thanks very much for looking after me. 2. Answer the following questions: 1) Two types of joint ventures now operate in the Chinese market: the contractual joint venture (CJV) (the contractual joint venture is sometimes also referred to as “cooperative joint venture” and “cooperative business enterprises”) and the equity joint venture (EJV)(it is also referred to as “joint venture”). 2) The rights, responsibilities and obligations of each side are prescribed in the form of contract signed through discussions and negotiations. 3) The foreign party must contribute a minimum 25% of the equity. 4) Board of directors 5) They are: a) the letter of intent; b) the joint venture agreement; c) the feasibility study; d) the joint venture contract and articles of association 3. Chose the best answer 1) C 2) A 3) B 4) D 5) B 6) D 7) A 8) C 9) C 10) B 4. Translate the following into English. 1) We had consulted a great number of relevant documents and technical data and had done the feasibility study. 2) We have apparent advantages and favorable conditions to establish such a gigantic joint venture. 3) A joint venture can operate only after having obtained approval of the Chinese government. 4) It‟s much more profitable to make an investment in China than in other countries. 5) All activities of joint venture shall abide by the laws, decrees and pertinent rules and regulations of our country. 6) In a joint venture there is some risk of loss but a reasonable hope of profit. 7) The lawful profits of the foreign participants may be remitted abroad after payment of the income tax under the tax law of our country. 8) In case one party to the joint venture desires to assign its registered capital, consent shall be obtained from other parties. 9) The highest authority of the joint venture shall be its board of directors. It shall decide all major issues concerning the joint venture. 10) All parties to the joint venture are to share the profits, risks and losses in proportion to their contributions to the registered capital. 5. True or False 1) T 2) F 3) F 4) T 5) F 6) T 7) F 8) F 9) T 10) T Negotiation Skills 1. How can we practice negotiation skills through the internet? (omitted) 2. How to focus on the other party‟s idea and not the person during negotiation? Listening to another person is important, but you should be listening to the whole person. Thus it is perfectly appropriate to look at body language and other visual indications to get a more complete sense of what they are trying to communicate. When listening, don‟t judge, just absorb. Doing a good job of listening involves giving the other person a clear indication that you are truly paying attention to them. Thus, when someone finishes, do a quick check: "Am I correct in understanding what you have said. . .?" to show them that you have taken them seriously. Chapter 11 Different Business Cultures and Negotiations Communication Exercises 1. Give answers to these questions. 1) I want you to call the client. 2) She wants you to go on a business trip. 3) I‟d like you to survey the competition. 4) He wants me to check the agenda. 5) She wants him to negotiate the price. 6) I‟d like you to read the report. 2. Polite, positive people make a good impression. But every country has a different idea of what is polite. Complete these statements about the U.S. 1) bad 2) not interested 3) bad 4) interested 3. Answer the following questions 1) The proper Brits usually kiss just once (on the right cheek), the French twice (left, right) and the passionate Belgians three times: left, right, left. 2) Yes. That‟s why some Europeans include a visit to their dentist for a cleaning as part of their negotiating preparation with the Americans. 3) The American style is very direct and they try to demand the same from counterparts. Americans do prefer speedy negotiations and get annoyed with too much extraneous socializing or postponement. They used to cut deals short just to save time. 4) German negotiators are known for very thorough preparation. They are also well known for sticking steadfastly to their negotiating positions in the face of pressure tactics. 5) French negotiators are reputed to have three main characteristics in international dealings: a great deal of firmness, an insistence on using French as the language for negotiation, and a decidedly lateral style in negotiating. 6) Be ready for hardball tactics of the Russians, a tough, sometimes confrontational approach, possibly punctuated with table-pounding, emotional outbursts, brinkmanship, loud threats and walkouts. Counter these tactics by staying calm with patience, patience and more patience. 7) Be direct while negotiating as the Australians are keen to spot deception and they feel no hesitation to walk away from the table if they feel you‟re holding back information. 8) First, Chinese tend to have business negotiation in a rather indirect manner, as opposed to a direct manner of American businessmen. Chinese take time to see whether their prospective business contacts are really reliable as human beings, for example, by inviting them to a party and socializing with them. In contrast, Americans act with "get-down-to-business-first" mentality. Second, the decision-making process of Chinese companies is considered to be very slow and time-consuming. This is because most Chinese companies have the bottom-up decision-making system which involves many people in the decision-making, as opposed to the American companies which usually operate with quick decisions made by the top management. 9) Japanese negotiators are famous for their ambiguous responses to proposals. They view vagueness as a form of protection from “loss of face” in case things go sour. 10) Avoid opening the negotiating with a joke or humorous anecdote, as this would show lack of respect for the topic and for the audience. 11) English is widely spoken and will most likely be the language of negotiation. India has numerous dialects, and contracts must be written in the vernacular. 12) Much traditional Indian food is eaten with one‟s fingers rather than with utensils. So avoid the use of your left hand for passing items, especially food. The left hand is considered unclean because as it is used by Indians for personal hygiene. 4. Translate the following into English 1). English has become the language of business all over the world. 2). Understanding a culture can help to determine how group members might react in various situations. 3). Every person is a product of his or her cultural environment. 4). Cultural differences may complicate and interfere with our negotiations. 5). In different cultures, values may vary significantly. 6). In the American view, a business negotiation is a problem-solving activity, the solution being a deal that suits both parties. 7). In Japanese culture, indirect and vague expression is more acceptable than direct and specific references. 8). Germans are more present-oriented than future-oriented. Therefore, stress the immediate benefits of your proposal within a short-term period. 9). The business firm values the person who is mobile, energetic, creative and ambitious. 10). They place great value on time. Using time efficiently is a critical goal and admired measure of skill. 5. Fill in the blanks 1). observe 2). task-oriented, people-oriented. 3). Status, power. 4). Punctuality, rarely 5). uncomfortable 6). Less, more, Asians. 7).shoes 8). reasons 9). Red tape 10). reserved 1. True or false? 1).F (the seller is expected to adapt to the buyer) 2). F (doesn‟t mean) 3) F (major) 4).T 5)(F (handshaking) 6). F (direct) 7).T 8).F (Americans) 9) T 10).F (British business moves at a more deliberate pace than American business.) Negotiation Skills 1. What approach do Americans use during negotiation? What kind of mistake should we avoid? Americans are a very diverse group of people. Their population includes people from virtually every cultural group in the world. Thus it is particularly risky to generalize about a specific American style of negotiating. There are some general points one might keep in mind: 1) People who are natives of the USA tend to be annoyed by people who give dishonest answers. There is an American saying: „If you cheat me once, shame on you. If you cheat me twice, shame on me.‟ 2) While many Americans can be very hard-nosed in their negotiation style, the concept of interest-based negotiation (often called win/win) is increasingly popular. 3) Like other people, Americans do not like to lose face. They do not enjoy being embarrassed in front of other people, either. 4) When an American asks a question, s/he wants a direct, honest answer. 2. What is the role of business culture in international negotiation? How important is it? Business culture is a central element in negotiation. Every company has its own corporate culture. Thus some companies are focused on short-term results while others look at the long term. Similarly, companies have varied cultures as regards treatment of employees from different backgrounds, dress codes, criteria for performance reviews, etc. Businesses based in different countries may well have corporate cultures that reflect cultural elements drawn from national cultural characteristics. This varies enormously particularly when more and more companies operate in the global marketplace with employees drawn from a widening variety of national, ethnic, religious, and gender backgrounds. In negotiation it is crucial to avoid getting trapped by prejudiced expectations of how a person from a certain background (corporate, national, ethnic, etc.) will behave. Focusing instead on the interests of both sides will help you overcome cultural barriers both real and perceived. Thus derive agreements that lead to mutually favorable outcomes.