Keys to the exercisesChapter 1 Fundamentals of International Business NegotiationCommunication Exercises1. 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 negotiate4. Fill in the blankshuman, negotiable, interest, giving, trust5. Answer the following questions1) Physical or survival needs; Security and safety needs; Social needs; Ego oresteem needs; Self-realization needs2) Exploration, bidding, bargaining, settling and ratifying.6. Put the following into English1) 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 false1) T 2) T 3) T 4) F (Everything is negotiable.)5) F (bargaining stage)6) F ( Do not often. Sometimes they will follow the sequence n one aspect of thedeal and then start all over again on a second aspect.)7) T8) F (May not. Because either side may be wiling to say what it thinks or take aposition and stick to it )9) T 10)Negotiation skills1. (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 objectivesc.An understanding of the choices available if the parties cannot reachagreement, often called their BATNA -- Best Alternative To a Negotiated Agreementd.Creativity which will expand the bargaining choices among which the partiescan choose to reach agreemente.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 agreementf.Whether commitment has been reached. Will the parties each feel committedto 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 knowseverything 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 Skills1. 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 alsopsychologically throws the speaker off the balance when he or she sees younodding 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:①Cause attention.②Get information.③Give information.④Start thinking.⑤Bring to conclusion.(4) There are two ways to assure a high degree of reliability for a nswers to yourquestions. 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 thisperson is glad to meet you.3. Choose the best answer.(1) D (2) C (3) B (4) A (5) (6) D (7) B (8) C (9) A (10)A4. 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 placesubstantial orders with you.(5) It‟s unwise for both of us to insist on his own price. Can we each make someconcession?(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 flexibleways 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 otherterms 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 Skills1. 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. V ery 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 usEffective 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 TeamCommunication Exercises1. 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.Y our 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 president2) Assistant Manager, Europe3) Purchasing Clerk4) Personnel Assistant5) Vice-President, Administration3. (omitted)4. (omitted)5. Fill in the blanks1）maximum2) observers; advisers; speaking; training6. Translate the following into English1）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 maintainsthe morale under all conditions.4) The team members must learn that the opponent and its representatives areadversaries 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 false1). 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 skills1. What do you think are the personal qualities of a good negotiator?A good negotiator needs to be:1) A good listener2)Open-minded3)Willing to do the homework to determine her/his interests, objectives,and alternatives4)Well-prepared5)Creative6)Able to merge what he knows about his own interests and resourceswith the interests and resources of his negotiation partner7)Someone who is always learning from experience, from other peopleand from history2. 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 Negotiation1. 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. Y es, we once worked together in.4) I‟m terribly sorry. I‟ve forgotten your name.5) Y es, 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 begoing now.2. Make these sentences more concise1) 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 possible1) 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 andwho is going to ask questions and so on.6. Put the following into English1）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, afterwhich our price would probably be raised.8）I‟ll do my best; and please, try your best too.9）Y our 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 false1) T 2) F 3) F 4) T 5) T 6) F (unwise) 7) T 8) T9) F (fluid) 10) T 11) F（round table）12) FNegotiation Skills1. 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 ProcessCommunication Exercises1. 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) a2. 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 companyexcursion?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 thecompany.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 aquantity 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 blanks1). Assess，differences，strengths，next round；2). Fluid，escape routes，time breaks3).Bargaining to our advantage, the skilled negotiator will:a) outsetb) situationc) roundd) satisfactione) Bluff, brinkmanshipf) parallelg) impassesh) written, equal satisfaction7. Put the following into English1) 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 prices8) 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 false1). F 2) T 3) F (positive tone) 4) T 5) T6) F (without comment)7) T 8) F (more ) 9) F (high) 10) TNegotiation Skills1. Y ou 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 bargainingphilosophy 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 NegotiationCommunication Exercises1. 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) a3. 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 pricesb. a bargaining zonec. contingency pland. a tough negotiatore. room to manoeuvref. knock us downg. drives a hard bargainh. fall-back position6. 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 isneeded2) Follow-up action---delegate responsibility for follow-up action and set time-scale---minute or document decisions3) Departing---confirm arrangements for next meeting (if there is to be one)---chairperson thanks participants for coming8．Fill in the blanksunsuccessful, close, maximum, enough, agenda .9. Put the following sentences into English1)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 false1) 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 Skills1. 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.。
