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1、Chapter Three Basic Links of International Business Negotiations,Section 1 Introduction Section 2 Inquiries Section 3 Offers Section 4 Counter-offers Section 5 Acceptance Section 6 Conclusion of a Business Contract Section 7 Case Study: Shopping Tote Bag Negotiations,返回,Section 1 Introduction,After
2、China joined WTO in 2001, the volume of international trade in China has increased substantially.When a cross鄄border transaction is conducted, the international business negotiation plays a significant role in bridging the buyers and sellers to reach a fair deal of mutual satisfaction.A successful n
3、egotiation means serving both parties common and conflicting interests in terms of price, payment, quality, quantity and so on.Hence it will lead to the signing of a contract. International economic transactions are conducted both verbally and by writing.In either case international business negotia
4、tion is an indispensable process.When the communication between traders is carried out orally, they either negotiate or through telephone.,下一页,返回,Section 1 Introduction,The foreign trader may take the opportunity to participate in a trade fair to visit the domestic trader.Therefore, lots of business
5、 negotiations take place in the international exhibition.Additionally, exporters can also travel overseas to meet their trade partners.In some cases both parties will arrange business negotiations in a third country.When the traders communicate by writing, business negotiations can take the form of
6、the e-mail, fax or letter.In most cases e-mails are the most popular means that explains why a dynamic businessman always has a full e-mail inbox.,上一页,下一页,返回,Section 1 Introduction,In order to enter into a contract both parties may go through a difficult and lengthy negotiation due to the complexity
7、 of the contract . Every single term in the international trade contract should be negotiated carefully and thoroughly, such as the description of the commodity, quantity, quality, package, price, shipping, payment, insurance, etc. Owing to the fact that the international business negotiation is con
8、ducted between different business cultures and different countries, whose people have different views about the links of negotiations . Some claim roughly three links are enough, including inquiry, offer and acceptance . According to some articles of law in some countries, merely offer and acceptanc
9、e can conclude a legitimate contract.,上一页,下一页,返回,Section 1 Introduction,In this book we synthesize various ideas and conclude five links of negotiations, including the enquiry,offer, counter-offer, acceptance and conclusion of a contract.,上一页,返回,Section 2 Inquiries,2.1 General inquiries A general in
10、quiry is for the importer to get general information of a product, such as a catalogue, a price list, samples, brochures, etc.This kind of inquiry does not mean to do business quickly. Case One: A Specimen Letter Dear Sirs, We learn from the American Chamber of Commerce that you are a leading produc
11、er specialized in mens shirts exportation At these times we are looking for some high-end products of this type, especially in the bright colors.Our sales are not high, but a good price can be obtained for fashionable designs,下一页,返回,Section 2 Inquiries,Will you please send us some detailed informati
12、on about your export prices and terms of payment? A latest catalog is also necessary We look forward to hearing from you soon Yours faithfully 2.2 Specific enquiries A specific enquiry is for the importer to get detailed information of a target product, such as the specification, quality, price, shi
13、pment, terms of payment, delivery date,etc.In this case the inquirer has a purpose to establish business relations.,上一页,下一页,返回,Section 2 Inquiries,Case Two: A Specimen Letter Dear Sir, We are one of the leading importers specialized in men蒺s shirts in America.We have encountered your company at the
14、Canton Fair. We are in the market for your shirts, Item No.8975.Would you please give us the lowest quotation FOB Guangzhou, inclusive of our 3% commission, stating the earliest date of shipment and terms of payment? We would like to know what discount you offer on bulk purchase.,上一页,下一页,返回,Section
15、2 Inquiries,Should your price be in line and the delivery date acceptable, we intend to place a large order with you. We trust you will give us an early reply. Yours truly 2.3 Oral inquiries: a case Case Three: Inquiry for Handbags At Canton Fair, a Spanish buyer Lisa is inquiring prices at a handba
16、g stand. Buyer: Morning, Im Henry from Spain.Im interested in your handbag.We need to import a large quantity of this product.Your exhibits and catalogues are attractive.Would you please give your lowest quotation CIF Barcelona, Spain?,上一页,下一页,返回,Section 2 Inquiries,Seller: Welcome and thank you for your inquiry.Would you please give your expected quantity? Large orders will get a lower price. Buyer: OK, could you give me an indication of the price list? Seller: Here are our latest FOB
