1、Unit 9 A Basic Export-Import Transaction,(I) Steps of a Business Negotiation,Unit Goal,In this unit, students are expected to -develop a knowledge and understanding of :I. Forms of business negotiations;II. Preparations for business negotiations;III. Steps of a business negotiation;IV. Conclusion of
2、 a contract. -master key language points; -conduct a series of reading and research related to the topic of this unit,Background information,1. How to establish business relations?,Two methods,A. By mutual visits,B. By communicating in writing,By sending a trade representative abroad,by attending an
3、 export Commodity fair,By sending out ads,By writing letters,By sending out circulars,2. Channels through which information is obtainable,A. banks E.g. 1. Bank of America(美洲银行 ) 2. Citibank (花旗银行） 3. The Chase Manhattan Bank （大通曼哈顿银行）,4. First Union National Bank Carolina（北卡罗莱州第一联合银行 ） 5. Wells Farg
4、o Bank （美商富国银行 在美国加州旧金山 (San Francisco, California, USA),6. HSBC Bank (香港上海汇丰银行 ) 7. Bank Boston 8. The Bank of New York 9. Bank One 10. U.S. Bank,E.g. banks in China Industrial and Commercial Bank of China Bank of China Construction Bank of China Agricultural Bank of China China Citi Bank China Mer
5、chants Bank China Minsheng Banking Corp. LTD. Huaxia Bank,B. Chambers of Commerce (商会）in foreign countries,E.g. 1.美国中国总商会（China General Chamber of Commerce in USA） 2. 美国中国商会（China Chamber of Commerce in USA 3美国华商会（US Chinese Chamber of Commerce）,4. 美国纽约华人总商会（The New York Chinese Businessmens Associa
6、tion 5. 美中工商协会（Chinese CEO Organization） 6. 中美华商联合会（Chinese American Business Professional Association (CABPA),c. Trade Directory (贸易行行名录),European business directory export import tradeleads, suppliers, importers, distributors, business resources and contacts,D. Chinese Commercial Counsellors offic
7、e in foreign countries (中国驻国外商务参赞处),Commercial Counsellor of Chinese Embassy in Canada Commercial Counsellor of the Chinese Embassy in the U.K. Commercial Counsellor of the Chinese Embassy in Australia,Chinese Embassy in Australia,E. Business house of the same trade(同业商行）,F. Advertisements,From vari
8、ous channels: newspaper, magazine, radio, TV, neon board, billboard,3. Contents of a letter as to the establishment of business relations (first enquiry),1. Source of your information e.g. We have obtained your name and address from the Commercial Counsellors Office of the Chinese Embassy in Thailan
9、d.,Through the courtesy of Sb., we come to know your name. (old-style but widely used) On the recommendation of Sb., we come to know your name. (old-style but widely used),2. Your intention of writing the letter (desire to establish business relations with the receiver) E.g. We shall be pleased to e
10、nter into trade relations with you. We are willing to establish business relations with you. We like very much to enter into direct relations with you.,3. Reference as to the scope of your business, your branches and liaison office (let the receiver know sth. about your company) E.g. Our firm, locat
11、ed in Ningbo, has had many years experience in molding, and has extensive connections with many corporations in different parts of the world.,4. Reference as to the financial and credit standing (feel assured to do business with you)(tell the receiver through what channels he can know your financial
12、 conditions),5. To close your letter, you should express your expectation,E.g. We are looking forward to your early reply(favorable reply) (good news). (If the writer is an importer, he can ask for some price list, catalogue, samples for his reference),I. Forms of business negotiations,correspondenc
13、e,Face to face talk,Paperless trade Electronic data interchange,behavior,II. Preparations for business negotiations,Establish business relations Use various trade statistics and publications to get the information Learn social and cultural background of target market Know relevant government policie
14、s and political risks,enquiry,acceptance,III. Steps of a Business Negotiation,offer,Counter-offer,1. Enquiries （询盘）,made by the buyers without engagement (promise) to get information about the goods to be ordered, such as price,discounts, catalogue , delivery date and other terms,First enquiry (第一次询
15、价）,an enquiry sent to a supplier whom you have not previously dealt with Simple enquiry: A. how you obtained his name and address B. details of your own business C. ask for information,2. Quotation (non-firm offer) 报价（虚盘）,In response to an enquiry Main contents in a satisfactory quotation A. thanks
16、for the enquiry B. details of prices, discounts and terms of payment C. a statement or clear indication of what the price cover (e.g. freight and insurance),D. an undertaking as to date of delivery or time of shipment E. the period for which the quotation is valid F. expectation that the quotation w
17、ill be accepted,. A promise to supply goods on the terms stated and within the stated period of time. Once the firm-offer has been accepted, it cannot be withdrawn by the seller within its validity. (not a contractual obligation),Firm offer,. E.g. In reply to your enquiry, we take pleasure in making
18、 you an offer as follows provided your reply reaches us within 7 days from today.,When making a firm-offer, mention should be made of the time of shipment, the mode of payment desired. An exact description of the goods should be given. Pattern and samples be sent if possible.,an offer made without p
19、romise, which usually contains: E.g. This quotation is subject to our final confirmation. Subject to the goods being unsold.以商品未售出为准,Non-firm offer,3. Counter-offer,Virtually a partial rejection of the original offer ( not agree on some of the transaction terms) It can continue until the business is
20、 done.,Contents of a counter-offer A. thank the seller for his offer; B. express the regret at inability to accept; C. make a counter-offer, in the circumstances, it is appropriate; D. state the reasons why; E. Suggest other opportunities to do business together.,Specimen counter-offer,感谢你方3月26日关于30
21、0箱红茶每公斤30英镑CIF利物浦的报价。很抱歉，我们不能按你方的价格进行交易，你们可能已经了解到，有些印度商人正在削价销售，无疑，市场竞争十分激烈。我们承认，中国的茶叶质量好，在香味与色泽方面任何其它牌号的红茶很难与之相比，但是价格的差距不应高达8%。,为了成交，我们现还价如下， 300箱红茶2007年收成的大陆货每公斤25英镑CIF利物浦，其它条件按你方3月26日的信办理。 由于市场看跌，我们建议你们早日接受此还盘。,Thank you for your offer of Mar 26 for 300 cases of black tea at 30 per kilogram CIF Li
22、verpool. We regret to inform you that we cant do the business on (according to) the price you quote (on your quotation). You may learn that some Indian dealers are reducing (lowering ) their price.,Needless to say (Undoubtedly) (No doubt), there is a keen competition in the market.We admit that the
23、quality of Chinese tea is better and no other tea can compare with yours either in flavor or in color, but the difference in price cannot be as big as 8%.,To close the transaction/business,we make counter-offer as follows, 300 cases of black tea, FAQ 2007 crops at 25 per kilogram CIF Liverpool, othe
24、r terms as per your letter of Mar. 26.As the market is declining, we suggest that you accept our counter-offer at an early date.,4. Acceptance,A valid acceptance possesses 3 conditions: A. Made by a specific offeree (有特定的受盘人作出） B. Declared in certain ways（必须表示出来） (orally or in a written form) c. Rea
25、ch the offeror (发盘人） within validity,IV. Conclusion of a contract,Significance: Evidence for the conclusion of the contract A necessary condition for the effectiveness of the contract Foundation for the performance of the contract,2. Two forms of contracts,A. Sales contract: contents should be compl
26、ete, detailed, including main trade terms and conditions,B. Sales confirmation: a simplified contract, but having the legal effect as a contract,3. Contents of a sales contract,A. Names of the buyer and the seller B. Names of commodity and specifications C. Quantity D. Unit price E. Total value F. P
27、acking G.Terms of payment,H. Insurance I. Time of shipment J. Port of loading and port of destination K. Shipping marks (唛头） L. Supplementary conditions M. Arbitration,Sales contract,V. Assignment,Dialogue Presentation: You present a small business which manufactures a safety handbag for women. In a
28、n emergency, this kind of bag can release a red smoke which can dye thief into “a red skinned guy” so the police could easily identify the thief later. So its really a very good self-defense weapon for women. Your price is $79 FOB Ningbo, But an American businessman from New York counteroffers $70. You want to make a deal with him, so you begin to negotiate. Have Exercise 9 (1).,
