商务英语谈判课本

Chapter Four Content of Negotiation (I)

Anyone engaged in foreign trade knows that negotiation is a very

important component in international business activities. As far as

international investment, import and export of products, machinery and

equipment are concerned, negotiation on international business and

economy is a consultative process between governments, trade

organizations, multinational enterprises or private firms. In short, it is a

process between the buyers and the sellers, so negotiation is one of the

important steps taken toward completing import and export trade

agreements.

4.1 Inquiry and Reply

In international business activities, making inquiry is the initial stage

of business negotiation between the buyers and sellers, the purpose of

which is to seek a supply of products, service or relative information.

Usually, the buyers make inquiries without any engagement to get

information about the goods to be ordered. The sellers, however, can also

make inquiries to get information about the goods to sold, without any

engagement, too.

The information wanted by the buyers or the sellers usually includes

the following elements:

The supply of commodities;

The price; The catalogue;

The packaging;

The delivery date;

Terms of payment and other terms concerned.

Inquiry can be made orally or in written form.

If the written form is adopted, the person who makes inquiries

should remember to consider carefully to which the inquiries are to be

sent and how many supplies or purchases are to be approached in one and

the same region. Failure to take into consideration the relevant situation

would lead to adverse effect on future transactions.

When writing enquiry letters to your counterpart, there is on need to

choose words and phrases carefully to draw the readers’ attention. A

request for a price list or catalogue can be made in a single sentence. A

request for a quotation of price and other trade terms may need a little

longer description, which should be clear and exact. But remember there

is no need for long, over-polite phrases and still less humbleness.

If it is the first transaction between the parties concerned, the first

enquiry letter should begin by telling the receiver how his name and

address is known. Then, some generally information about your own

business, such as the kind of goods handled, quantities needed or to be

sold, usual terms of trade and any information likely to enable the

suppliers or the buyers to decide what they can do for you, should be given.

Having received the enquiry letter, the receiver should study it with

caution and reply the enquiry letter as soon as possible, telling them

whether you could sell or buy.

If in oral form, especially when the business relations have been

established between the buyers and sellers, the inquiries and replies will

be very easy and simple. What should be paid attention to is that both of

them may have a friendly and cordial discussion according to what has

been mentioned.

4.2 Offer and Counter-offer

In many types of business, it has always been the practice for the

supplier to make an offer directly to his regular customers and to others

who may be interested in his goods, without waiting for an enquiry. But

when the supplier has received an enquiry from the buyer and decide to

sell the goods, he should make an offer to him.

It should be pointed out that offer is different from quotation.

Quotation is just an indication of price without contractual obligation, and

it is subject to change without previous notice. We have learned that a

proposal for concluding a contract addressed to one or more specific

persons constitutes an offer if it is sufficiently definite and indicates the

intention of the offerer to be bound in case of acceptance. So offer is a

definite commitment on the part of the supplier. In business activities, when making an offer, orally or in written

form, the following elements are usually included:

The name, price, quality and quantity of the goods;

The date of delivery and/or time of shipment;

The terms of payment;

The validity of the offer;

Other terms concerned, such as packing, discount, insurance, etc.

When a supplier promises to sell the goods at a stated price within a

stated period of time, the offer made by him is called a firm offer. In

making a firm offer, mention should be made of the time of shipment and

the date of delivery, the mode of payment desired and the period for

which the offer is valid. In addition, an exact description of the goods

should be given. If possible, pattern or sample should be shown or sent.