Case 1

European Company A went to China as an agent for Engineering Company B to negotiate with Chinese Company C for the export of engineering equipment. China made criticism based on its quotation. It is recommended that the other party consider the competitiveness of the Chinese market and the company's first entry into the market. Seriously consider improving the price. After some explanations, the agent still refused to lower the price and said how reasonable his client's price was. The Chinese side analyzed the conditions again, and the agent explained them again, all morning long. Nothing came of it. The Chinese side thinks that it is too arrogant and stubborn, and the agent thinks that the Chinese side has no sincerity in purchasing and lacks understanding. After both sides complained to each other, the negotiations broke up.

Questions:

1. What type of negotiations are conducted by European agents?

1. What are the factors that constitute its negotiation?

3. Is it possible that the negotiations will continue? How should European agents negotiate if breakup is possible?

Analysis:

1. European agents negotiate agency status.

2． The factors that constitute the negotiation are: the subject - engineering equipment; the parties - European company A, European engineering company B and Chinese company c; background - Chinese market competition and company A's first entry into China Market - microeconomic environment.

3. It is possible that the negotiations will not break up, or at least an "unhappy breakup" can be avoided.

Company A should comply with the requirement of being judged as an agent: "Be detached and have a positive attitude, and be a "good person".

Case 2

Tianjin A semiconductor factory wants to renovate its production line and needs to purchase equipment, spare parts and technology.

More than two suppliers suitable for the factory can be found in the United States and Japan. At this time, a certain company in Hong Kong. A salesperson from a semiconductor company visited Tianjin and found the factory's purchasing staff who offered to assist the factory in purchasing the required equipment and technology.

Since the Hong Kong merchants spoke Chinese and were Chinese, they quickly established a good relationship. The factory agreed to do the purchasing on its behalf. Since the factory did not have foreign trade rights and had to entrust a company with foreign trade rights to act as its agent, Company A immediately inquired with American and Japanese manufacturers after receiving the entrustment. As a result, some American and Japanese manufacturers did not offer quotations. But he wrote back and asked: What is the relationship between Company A and Hong Kong Company B? Some bids were very high.

The inquiry results obtained by Company A did not meet the expected goals. The specific personnel discussed with the workers and finally got the answer. reached a consistent conclusion.

Questions:

1. Is Company A’s inquiry successful? Why?

2 What adjustments should be made to the Tianjin factory? Why ?

3. What adjustments should be made to the Tianjin company's inquiry? Why'

Analysis:

1. The inquiry of the Tianjin Hong Kong company failed . Some of Tianwei’s foreign businessmen did not quote, and the inquiries were fruitless. When there were results, the conditions were too harsh and the quotations were not made in good faith.

2 The order given by the Tianjin factory must be adjusted. For import contracts, direct inquiries to Hong Kong may speed up the progress, but there are issues with signing and adjustments to the content that will affect subsequent work; let the Hong Kong company's external investigators be included in the Tianjin company's external inquiry, and focus on the Tianjin company to avoid confusion in the inquiry .

3. The Tianjin company should agree on the content and strategy with the factory and the Hong Kong company, and organize the inquiry areas and objects in a unified manner to avoid causing any confusion for foreign investors. The illusion of multiple inquiries for the same project

Case 3

In 1983, a Japanese motor company exported its complete production line of high-voltage silicon reactors, and the technology transfer fee was quoted at 2.4. 1.25 billion yen, including spare parts and technical service (training and technical guidance) costs of 0.09 billion yen.

After the negotiation started, Mr. Matsumoto, the sales manager, explained: The technical fee is calculated based on the profit commission after the Chinese factory obtains the technology. The calculation is based on the production of 30 million products. The production commission is 10% for 10 years. The average sales price of each product is s yuan. The equipment fee is based on the process. The quoted price is 190 million yen for the cleaning process; 350 million yen for the sintering process; 370 million yen for the cutting and sorting process; 210 million yen for the packaging process; 800 million yen for the printing and packaging process; The training fee for technical services is 2.5 million yen for 12 people per month; the cost for technical instructors is 6.5 million yen for 10 people per month.

Background introduction

(1) Japanese company technology has unique characteristics. But it is not the only company that is an active promoter. This company has entered the Chinese market for the first time. It also suits China’s needs.

(2) The cleaning process mainly involves items such as plastic troughs and exhaust fans. The sintering process mainly includes sintering furnace and auxiliary equipment, cutting and sorting process, mainly cutting machines, and testing and sorting equipment. The packaging process mainly includes sealing equipment and control instruments for the tube core and packaging shell. The printing and packaging process mainly includes printers and equipment for packaging finished products. In addition, there are some auxiliary tooling fixtures.

(3) The technology has certain advancedness and stability. Japan’s yield can reach 85%, while China’s is only about 40%.

Questions:

1. How well did the seller explain it? What type of explanation is it?

2． What do buyers say?

Analysis:

1. The seller did a good job in explaining, explaining the quotation calculation method and number, and provided a basis for the buyer's comments to satisfy the buyer. Because there is roughness in the details, it still leaves room for negotiation, which meets the requirements of explanation. The seller adopts the method of itemized quotation and explanation item by item.

2． When faced with the seller's itemized quotations and itemized explanations, the buyer should use a "comb-over" approach to comment, that is, make comments based on the three categories of technology, equipment, and technical services.

There are many comments:

First, the technical price. Comment on the reasonableness of the seller’s figures—annual output, product unit price, commission rate, and number of years;

Second, equipment price. Comment on the equipment composition of each process based on the total value of the process or a single machine for the process, such as the value of equipment for the cleaning process;

Third, technical services. It can be divided into two categories: technical guidance and technical training. Each category can be commented on time, unit price, personnel level, auxiliary conditions (food, housing, transportation) and other points.

Case 4

A Japanese company purchased calcium carbide from a Chinese company. at this time. This is the fifth year of the transaction between them. When negotiating prices last year, Japan pressed China for US$300,000/ton, and this year it will press US$20/ton, that is, from US$410 to US$390/ton. According to the Japanese side, he has received multiple quotations, including US$430/ton, US$370/ton, and US$390/ton. According to the Chinese side, US$370/ton is the price quoted by self-employed individuals, and US$430/ton is the price quoted by factories with smaller production capabilities. The director of the supplying factory and representatives of the Chinese company formed a negotiation group consisting of four people. The negotiation will be conducted by a representative of the Chinese company. Before the negotiation, the factory director and the Chinese company representative reached a price agreement. The factory could close the deal at US$390 because the factory needed to place orders for continuous production. The company representative said that he cannot tell the outside world, but I will control the price level. The company representative then reported to his supervisor to analyze the price situation; the supervisor believed that the price should not be the lowest because we are a large company that emphasizes quality and service. You can be flexible in negotiations, but take small steps. If the price is above US$400, the transaction can be concluded. If the price cannot be obtained, the price should be set between US$405 and US$410, and then the supervisor will come out for an interview. Please cooperate with the factory.

The representative of Zhongli Company conveyed this opinion to the factory director, and reached a consensus to work with the factory director at the negotiation table to strive for this condition. Representatives from the Chinese company led the talks. After the confrontation, the price only dropped by 10 US dollars/ton, and the transaction was at 400 US dollars, which was 10 US dollars/ton higher than the factory director's transaction price. The factory representative was very satisfied. The Japanese side is also satisfied.

Questions:

1. How to evaluate the result of the negotiation?

2. What experience does China have in organizing and hosting this negotiation?

Analysis:

1. The result of the negotiation should basically be positive, because the price is still at a mid-to-high level.

2. The Chinese side is basically successful in organization. The main reasons are: the towel field survey is better - quantitative and specific; the division of labor is clear - the price is negotiated by the company representative; the preparation plan is in place - wired, reviewed, Be on guard.

Case 5

A factory in Jiangsu, a factory in Guizhou, a factory in Northeast China, and a factory in Beijing want to introduce ring light production technology. The output of each company is different. Beijing Import and Export The company is the agent of one of the factories. After learning about the plans of the other three companies, he took the initiative to unite with these three companies and held a meeting in Beijing to propose joint foreign affairs and unified negotiations. These three companies felt that it was meaningful and agreed to the alliance. Representatives of the company brought the four companies together to prepare for negotiations.

According to market research, there are two ring light manufacturers in Japan, one in Europe, and some have been to China. Some have also conducted technical exchanges with factories. After the first round of negotiations organized by the import and export company with foreign businessmen, the negotiations were suspended. Foreign businessmen take the initiative to find factories with which they are familiar and negotiate directly. The factories feel happy and are more direct. Moreover, the conditions for foreign businessmen to negotiate with the factory are more flexible and more favorable than those negotiated by the company. Some factories saw little benefit from joining the alliance, so they proposed to withdraw from the partnership. Some foreign businessmen deliberately did not quote a unified price, but also directly contacted the factory they wanted to make a deal, invited factory representatives to dinner, arranged separate meetings, etc. The factory believed that This is good for yourself. No one will be turned away. The representative of the import and export company found out and tried to persuade the factory, but the factory refused to listen. So in the end, the four companies went their separate ways, and joint external negotiations failed.

Questions:

1 Is this kind of union considered a union? Why?

2. Where did foreign businessmen succeed in hosting negotiations?

3. Where did Beijing Import and Export Company fail to host negotiations?

4. Is it possible to unite factories in different provinces and cities? How can we achieve the joint goal?

Analysis;

1. This does not count as joint external negotiations. Because it assumes that the basic conditions for joint negotiation are met.

2． The success of foreign businessmen in hosting negotiations lies in the use of the loose organization of Zhongli; the use of differences among manufacturers (transaction terms); and the use of emotions, thereby achieving the unity of the Chinese side.

3. The key to the failure of the Beijing Import and Export Corporation was that it failed to follow the norms of the unified-joint negotiations.

4. It's possible. First, an authoritative leadership team across provinces and cities should be established, and then other technical “unification” conditions should be realized.

Case 6

Italy negotiated with a Chinese company to sell a certain technology. Since the negotiations have been going on for a week. But the progress was still slow, so the Italian representative Mr. Roni told the Chinese representative Mr. Li after asking a question the day before: "He still has two days to negotiate and hopes that China will cooperate and come up with a new proposal the next day. "The next morning, Mr. Li from the Chinese side came up with a plan based on analysis that was 5% better than China's original request (Italian price reduction of 40%) (requiring Italian side to reduce price by 35%). Mr. Roni from Italy said: "Mr. Li, I have lowered the price twice, totaling 15%, and it is really difficult to lower it by another 35%." The two sides commented on each other and explained for a while. It is recommended that we adjourn the meeting and discuss it again at 2:00 pm.

After the meeting resumed in the afternoon, the Italian side first asked the Chinese side to report new conditions. Mr. Li explained the basis and reasons for the pricing to the Italian side and once again asked the Italian side to consider its request. Mr. Ronny once again talked about his efforts and said that China's requirements are too high. When the negotiation reached 4:00, Mr. Ronny said: "To show my sincerity, I offered the final price to the Chinese side. Please consider it and tell me whether you accept it by 12:00 tomorrow at the latest. If you don't accept it, I will wait until 2:00 p.m. 30 flight back to China." He took the ticket out of his bag and showed it in front of Mr. Li. After the Chinese side clarified the conditions of the Italian side (the Italian side reduced it by another 5%), it said that there are still difficulties, but it can be studied. The negotiation is over.

After studying the Italian price, the Chinese side believes that the price is still 15% lower, but can the price be lowered? How will the answer be tomorrow? On the one hand, Mr. Li reported to his leaders and discussed countermeasures with his assistants and project units. On the other hand, he sent someone to investigate whether there would be a 2:30 flight tomorrow afternoon.

As a result, there was no plane to Europe at 2:30 pm that day. Mr. Li thought that Italy’s last counter-offer and air ticket was an act. There may still be conditions for judging the Italian side. So I called the Italian side at 10 o'clock the next day and said: "China appreciates Italy's efforts, but the distance between the two sides still exists and requires further efforts from both sides. In response, China can lower the price based on Italy's improvement." 5%, that is, from 30% to 25%.”

The Italian side did not leave after hearing China’s suggestions for improvement. I just think China’s requirements are still too high.

Questions:

1. How did the Italian drama go? How effective is it? Are there other ways it can act?

2． How do you evaluate the Chinese side's performance of breaking the show?

3. How aggressive are the Italian and Chinese parties in negotiations?

Analysis:

1. Your play was not done well and the effect was not achieved.

2． If you still use the air ticket as a prop, you should change the time to a time when there is a confirmed flight back to Italy. At least there's time for a side flight.

If it is an "ultimatum", you can close the bag and leave the sentence: "Waiting for your reply." That means ending the negotiation, the effect will be better. Or still use the original words. But don't say "If you don't accept it, I will take the 2:30 pm flight back to China."

3. China breaks the show better.

4. Both sides negotiated aggressively. China is more aggressive in terms of mentality, approach and conditions.

Case 7

Company Y from the United States sold a color TV glass bulb production line to the Shijiazhuang factory in China. After installation, the debugging results were not ideal. In a blink of an eye, it was Christmas. American experts are going home for the holidays. Therefore, all equipment must be stopped, especially the glass furnace, which needs to be kept warm for maintenance. Although it is legal for Americans to celebrate the holidays, the suspension of Chinese production lines comes at a cost, and the two cannot be integrated.

After the US side left, Chinese experts studied the technology themselves and started to solve the problem. After a week of hard work day and night, they debugged the molding machine with the biggest problem, which was also the key to full cooperation. After this machine can produce qualified glass bulbs, other equipment can operate according to its rhythm.

It was three weeks after the American personnel returned to the Chinese factory after celebrating the holidays. When they saw the glass shell in the factory warehouse, they were very surprised and asked, "What's going on?" When the Chinese factory told the American side, After adjusting the production line themselves, the American personnel became furious and believed: "Chinese personnel should not touch the equipment and should be responsible for this." They also made stern representations to the foreign trade agency of the Chinese factory: "In the future, the factory's production equipment will be We will not be held responsible, and we will have to make a claim if it affects the loan recovery."

Questions:

1. What do you think of the US statement?

2． How do you view the behavior of Chinese people in adjusting equipment?

3. How will the Chinese foreign trade agent respond to the US argument?

4. What should be the final result?

Analysis:

1. The U.S. side’s argument falls into the category of sophistry, and it mainly uses: parallel arguments (the reasons for China’s actions and the reasons for the U.S. side’s actions are proven separately) and substituting phenomena for essence (China’s superficial behavior replaces the effect of its execution of the contract).

2． China's own equipment adjustment involves certain risks and may cause problems according to the contract. If you are not sure, you must not act rashly. at this time. You can exercise your right to claim compensation from the United States, here. The emphasis is on judgment. When you are sure, deciding to take action through the comparison of "wait and do" is a normal result of reasoning, and it essentially has a positive effect on both China and the United States.

3. The Chinese agent first starts with the concept of personnel - who has the fault according to the contract? Then based on the experience, we can calculate who has suffered the most losses (should be responsible for the fault), and then deduce what attitude the US should take.

4. The final result: The United States should thank China for reducing its burden. Well shall continue to perform its outstanding contractual obligations.

Case 8

Australian Company A, German Company D and Chinese Company C negotiated for cooperative investment in talc mines in China. Chinese Company C wanted to control the source of export goods. However, we cannot invest cash in this cooperation, we only want to invest in manpower and intangible assets.

Representatives of Company A and Company B came to China to visit and inspect the mines. Company C actively sent people to cooperate and accompany them, and the entire schedule was carefully arranged. The preparation was effective and the requirements of Company A and Company B for this visit were met within a limited time'

The two parties discussed the cooperative investment method at the preparatory meeting and summary meeting.

Company A: Our company is a large professional company in talc products, and its products occupy a considerable share in the international market, especially in fine talc products. o

Company B: They are in China They have invested, but failed, and are currently in disputes, but they believe that China is rich in resources and has a large potential market, and they would like to find a partner to start again.

Company c: Your company has found the right person. Thank you for placing so much emphasis on our company. How do you want to cooperate with our company?

Company A: Our company’s plan is to find a reputable and capable large company in China and invest in Chinese mines together.

Company c: Our company is a company that exports talc. If you want to invest, you need approval from the group. According to our group’s recent development plan, this industry is not a focus of investment.

Company B: We understand your company's situation, but Company A intends to invest in China. Due to the failure of the first time, it is very hesitant to invest this time.

C Company: Indeed, China is a place with an unbalanced investment environment.

Some areas are developed and some areas are underdeveloped. When you ask for money, you say it well, but it will not be the case after the money is transferred. Especially mining investment has a lot to do with geological conditions, and when the mineral deposits span different villages and towns , issues of ownership also arise. In the past, we have encountered such problems that as foreign investors need to solve: geological exploration, mining partner selection, national policy, humanities, business law, market and other issues. These all affect investment costs and success or failure.

Company A: What your company said is exactly what we are worried about, and we hope that companies like yours can solve these problems.

Company c: Our company is an international company and works according to international norms. Although we are Chinese, we believe that enabling Chinese enterprises to cooperate with foreign investors on an international scale is the key to China's economic development. Important conditions.

Company B: It would be meaningful if your company could participate in the cooperation.

C Company: We have just talked about the problems with your investment in this way, but we very much appreciate your company’s courage to invest in China. As a Chinese company, we are very willing to provide help. However, we will Instead of investing in cash, we can invest our goodwill and our obligation to help solve the above problems.

Company A: Your investment is also meaningful.

C Company: If you think it is valuable, then I suggest you list it and price it. When you negotiate a joint venture with a Chinese mine, we can negotiate with you as one of the parties. Our share in the joint venture will be allocated from your share.

Company B: Your suggestions can be considered.

C Company: If you agree with our method of cooperation, then please provide an agreement plan to determine the relationship between the two parties to facilitate future work.

Company C: I will give you a written reply after I report back to China.

Three weeks after the representatives of companies A and B returned to China, they called company c and agreed that company c would become a shareholder with its goodwill and services. Company c successfully negotiated a plan to ensure the supply of export goods and not have cashier shares.

Questions:

1. What strategies does company c use in negotiations?

2． What about the negotiations of companies A and B?

3. A, B, C: How do you evaluate the results of company negotiations?

Analysis:

1 Company C is in Strategies such as satisfaction, head-to-head meetings, and training methods were used in negotiations. For example, if you accompany and entertain them, make them satisfied; talk frankly in a small area - meet head to head; talk about policies and practical difficulties - a training general.

2． Companies A and D used strategies such as head-to-head, shielding, and step-by-step strategies. For example, small-scale talks; request for instructions and reports; insist on investment from company C first, and then discuss the issue of serving individual shares o

3. The results of the negotiations between A, B, and C all reached the expected minimum goals. Companies A and B asked Company C to participate in the investment, and Company C agreed. Company C did not want to use cash, but hoped to invest in services, which was basically realized. ’

Case 9

A Chinese company negotiated an investment project with an American company. During this period, the two parties disagreed on the total value of the original assets reflected in the financial accounts of the original factory.

The United States: There are ambiguities in China’s financial statements.

China: The United States can verify.

US: Verification is also difficult because the basis for verification is relatively reliable.

China: The United States should not make empty remarks, but should have evidence to prove that the basis for auditing the accounts is unreliable.

The United States: All financial certificates are made by Chinese factories. As a Chinese, I cannot verify them one by one.

China: Then you can ask a trustworthy Chinese institution to assist in verification.

The United States: It has not yet found a trustworthy Chinese institution to help with verification.

China: Your assertion can only be subjective and unconvincing.

US side: Although we have no legal evidence to prove that Guili’s book figures are unreasonable, we have experience that your existing assets are not worth their book value.

China: Dear Sir, I admit that experience is valuable, but financial data is not experience, but facts. If you cooperate sincerely, I am willing to cooperate with you in auditing your accounts and go to the site to check the items and accounts one by one. .

The United States: It is not necessary for you to do so much work. Please correct it yourself before we can talk. China: You don’t want to be reasonable? I’ll accompany you!

US: It’s not that we don’t want to be reasonable, but that we can’t reason with you.

China: What do you mean? I don’t understand. What does “small yes, don’t want to; but, no way” mean?

The United States: Please pardon our bluntness. We feel that you want to use the book value to expand your shares.

China: Thank you for finally speaking your truth and pointing out the direction of my thinking.

The United States: You should understand the concerns of an investor. Especially if our company cooperates with you sincerely, if we feel that your accounts are suspected of falsely occupying shares, it will really be a problem. It makes us hesitate and also creates a pleasant feeling.

China: I understand your concerns. But in the face of your fear, we cannot just argue that this is not a "tiger camp" or that it "does not eat meat." I'd love to hear what you have for "calming the nerves".

The United States: Through negotiations with you, I am deeply aware of the character of your representative. Since the book value is daunting, I have to ask you to consider revising the issue, which may bring you trouble. .

China: For the sake of cooperation and for your peace of mind, we can consider the issue of total book value. How to make accounts is our business. If I understand correctly, we will negotiate on the pricing of China's existing assets.

US: Yes.

(The above is the price negotiation of China’s existing assets)

Questions:

1. What languages ??did both parties use in the above negotiations?

2. What is wrong with the language used by both parties?

3. What would you say as a representative of the United States or China?

Analysis:

1. Commercial legal language, diplomatic language, military language and literary language.

2． What the US said: "Foreigners cannot inspect them one by one." “We have not yet found a trustworthy Chinese institution to help with the verification” and “please correct it yourself and talk again.” It is not appropriate to cultivate evenly. China: "You don't want to be reasonable? I will accompany you!" This is not appropriate. If there are already problems with your own accounting, it would be especially polite to say this again. ,

3. Because it is a cooperative negotiation, both parties can use literary terms to adjust the atmosphere and reduce confrontation. Then use the language of commercial law to talk about the facts, and talk about the problems if there are problems. The US can point out any inadequacies or make corresponding demands. You can also adjust the account again and then talk about it. Use a little diplomacy and it goes even better.