Ⅰ. T / F 10% UNIT 1-7T 1. Preparation for negotiations can never be too complete.T 2. Information can be treated as a kind of invisible asset with which negotiators can create more value.F 3. Interest refers to what one wants, while position means why one wants to have it.F 4. It is right for a seller to give an extremely high offer so that he can make more profits.T 5. The purpose of prioritizing one's goals is to know the order of trade-offs when it is time to compromise.F 6. The zone among one's ideal target, realistic target and minimum target is called zone of possible agreement.F 7. Win-Win concept simply means that each party gets an equal share out of the negotiation.F 8. To discuss a hard issue, it is better to put it at the top of the agenda.T 9. It is advantageous to hold a negotiation on one's own turf.F 10. After making a negotiation plan, the next step is to carry it out no matter under what condition.T 11. The size of the group depends on the type of negotiation.T 12. The team should focus on identifying experts.F 13. The leader should have the senior position in the country.T 14. The leader should choose the team member.F 15. The leader shares responsibility for the negotiation with all team member.F 16. Team members should be exclusively male or female.T 17. Team members must share a unified goal.F 18. The good cop makes the opposition uncomfortable.F 19. Hardiness should always disagree with the opposition.F 20. The sweeper should sit next to the leader.F 21. Maslow’s need theory can be achieved from higher to lower order.T 22.It’s Gerard I. Nierenberg who, based on Maslow’s need theory, pointed out the needs and satisfaction…..F 23. Sometimes individuals’ interests can be out of line with that of a company, and that of the state.T 24. Principled negotiation is regarded as a higher level of strategies and tactics which can be applied to any kind of negotiation.T 25. Although positional bargaining is widely used, agreement reached through this manner is inefficient, a waste of time, and unwise.F 26. If any party wants to realize its substantive interest, it has to trade off its relationahip interests.F 27. During a negotiation, if one party says much attention to the price of the goods, the payment terms, its interests falls into process category.F 28. Whenever any disputes arise, the person responsible for it first should be signed out, and then criticized by the two sides. T 29. Different interests can also help to reach an agreement to mutual benefits.T 30. To produce more alternatives, it ias better to seprate the process of inventing new choices from assessing them.F 31. Time is always a strength on the side of the seller.T 32. Never act as though you have to have something while bargaining.T 33. It is not okay to pretend to be an expert.F 34. Sellers tend to give better deals in shorter negotiations.F 35. Product endorsements usually lead to decreased sales.T 36. What if tactics are non-threatening because they are hypothetical.T 37. Asking for help may make you look weak and gullible.T 38. Negative hesitancy should only be used when the two parties are close to agreement.F 39. Laughing simply lightens the mood in a bargainning session.T 40. Flinching makes the other party feel uncomfortable.F 41. Closing negotiations are the last chance to reopen previously settled clauses.F 42. Closing negotiations are the chance to introduce new offers.T 43. Closing negotiations permit accepting open offers.F 44. There are no risks in speeding up closing negotiation.F 45. There are no risks in delaying closing negotiation.F 46. Closing negotiations are the signal that the seller can start production.F 47. If there is a miscalculation during closing negotiations, it does not matter because the other side will be ready to continue negotiations.F 48. No concessions should be made during closing negotiations.F 49. Never ask whether closing the contract is possible now.T 50. Intuition is an essential quality needed during closing negotiations.F 51. Price negotiations will be successful if they always satisfy short-term profit objectives of both parties.F. 52. Price negotiations will always take place under conditions where both parties are of equal negotiating strength.T 53. Price negotiations can hide other objectives.F 54. Price negotiation strategies are only about pricing.T 55.Price negotiation team leaders must be prepared to allow the other side to make mistakes which are obviously not in their self-interest.F 56. Price negotiations should never consider gut feel.T 57. Price negotiation teams do not need strategic direction from senior management.F 58. Price negotiation teams pursuing the achievement of long-term objectives are in a stronger position than team pursuing short-term objectives.F 59. Price negotiations are an end to themselves and not a means to an end.T 60. Price negotiations should always be precise about the prices of goods, services or any other undertaking to be exchanged. T 61. Negotiations on joint ventures should always lead to a formal agreement.T 62. Negotiations on joint ventures can take many forms.T 63. Negotiations on joint ventures are all about partnerships.T 64. Negotiations on joint ventures should cover forms of capital contribution.T 65. Negotiations on joint ventures are always about dividing profits from operations.F 66. Negotiations on joint ventures require a tough uncompromising approach.T 67. Negotiations on joint ventures need to consider personnel policies.F 68. Negotiations on joint ventures are about going concern operations and need no exit strategy agreements.F 69. Negotiations on joint ventures are all about transfer of foreign investment capital in the form of foreign cash.T 70. Negotiations on joint ventures need to be specific on details.Ⅱ. Choices 10% 5题上课常提到的1. Negotiations are about two people, each of whom possesses something that the other wants, meeting to discuss an exchange so that both get what they want.2. A strategy is an overall policy designed to achieve a number of specific objectives,while tactics refer to detailed methods used to carry out a strategy.3. Size of the negotiation team : Smaller is better, suggested membership: about 5 ,Two Heads are better than One . small team : good cop/ bad coplarge team : Leader, good guy, bad guy, hardliner, sweeper4.Need Theory : five needsA need theory was put forward by Maslow in the 1950s.Based on it, Gerard I. Nierenberg then pointed out needs and satisfaction of the opponent’s needs serve as the basis of a negotiation.types of need theory：Distributive Negotiation (win-lose negotiation)Integrated Negotiation (win-win negotiation)5. Levels of Interests : Personal，Organizational，NationalThe interests of the individual, the organization and the state are in convergence.利益趋于一致6. 出价方式：target point: the point at which a negotiator would like to conclude negotiationsresistance point: the point beyond which a negotiator will not go and would rather break off negotiations. asking price:未超过resistance price: the initial price by the negotiator7. For a seller, resistance point is the smallest amount he/she will settle for. P63For a buyer, resistance point is the most he/she will payThe resistance point should be kept secret to the other party.8. Types of interests(1) Substantive interests: related to the interest with money(2) Process interests: related to the way a dispute is settled.(3) Relationship interests: One or both parties value their relationship with each other and donot want to take actions that will damage it.★9. The higher levels of negotiation strategies and tactics---Principled Negotiations P71 These ideas lay emphasis on four components: Focus on interestNot positionsSeparate the people from the problemMutual gains and using objective criteria ★10. Strategies : Offensive Tactics (Be used to take the initiative)Defensive Tactics（To observe and wait）Concession （Slight change in position）UNIT411. Three Critical Elements in Negotiation:Information (The one with the most information about the wants, needs, and desires of the other will have the advantage)Time (Never reveal a deadline)Power (A person always has power and willingness to use them will affect the outcome of the deal)12. Power of Demand : Never show something must be had;Never negotiate without options/alternatives;Be able to walk away ( For buyer)Power of Authority：Authority in the statement of experts;Authority in written documentsPower of Investment：Ratio between the size of an investment an the willingness to compromise( Time is a good investment, but no deal, it’s a waste) Power of Reward/Punishment ：Reward/Punishment from a deal allow the other party greatpower ( both are efficient)Power of Association：More identity, stronger bargaining position ( important people)13. Two styles of negotiation tactics : UNIT4Offensive –take the initiative in trying to redirect the discussion in one’s favorDefensive– take to defense in an adversary situationOffensive Tactics: what-if scenarios / the throw-in/help me / I don’t know / use leadingquestions/ issue a veiled threat / divide and conquer / ultimate Defensive Tactics : become emotional (the best way is to remain calm)/remain silent(the best way is to go get a drink of water)/laugh(the best way is to keep calm, it makes further concessions more difficult to achieve)/walk out(if the seller will not accept the final price, walk out in the free market)/learn to flinch(body language, a visible reaction)Concessions: make tiny concession/ always get something in return/ look for elegant ones/ agonize where appropriate/ use your settlement range as maneuvering room/make the concession and move on14. Factors which affect negotiations to close a contract. unit5Factors to recognize when the negotiations have reached the closing stages.Some tactics by which closing can take place15.Verbal indications that closing is possible can take the form of :We seem to have reached an agreement…./ That seems to be that, then…We are satisfied, how about you? / Is there anything else that needs to be discussed?Sometimes non-verbal indications will mislead the other party.16. Tactics used in closing the deal for seller:Deadline strategy / Favorable terms attraction / Action strategy / Asking for detail strategy17 The key to closing is to ask, ask again and ask again.The last decision in any deal rests with a person and that person is as susceptible to pressures as any other. If no closing seems to be on hand, then it is advisable to keep on asking until a decision is made one way or the other.18. Closing negotiations is the last chance to make agreement and make changes.Once closed, the contract is in force and obligations accrue. unit519. Factors to be considered when negotiation( Factors which affect negotiations) unit6The political state/ The legal system/ Business convention/ Social customs/ Financial state/ Infrastructure and logistics system/ Climate factor/ Religious belief20. Which is the most important factor? Price consideration★price 是谈判中最重要的，position 比interest more importantPricing: Is the factor which establishes most of the company’s revenueMaybe establish product imageDetermines whether or not agreement is reaches on a saleDetermines possible future relationship & future sales with the buyerThe price of the seller’s willing to sell would normally not be below the costs of manufacturing the goods.Price range cane be narrowed or broadened depending on whether or not ancillary costs are included.( such as delivery of the goods)21. Sequence for Opening Negotiations: unit6 P117Two kinds of approaches:General enquiry (catalogues, price lists, quotations, and availability of goods)Specific enquiry (unit price ,payment terms, shipment time ,and insurance terms) 22. Tender call (the large project)招标have a deadline, all bids must be delivered at a precise place and time.Tender bid投标is an extensive description of what the supplier will sell(How the supplier will execute the contract, what qualification the supplier has to complete, the contract and a price)★23.Higher degree of trust is required in joint venture. 考trustworthy24.joint venture business including:Technology transfer、Technology licensing、Distribution and value added sales25.formsofjoint venture（Forms of Investment Cooperation）合资企业4个形式：1)Representative Office(办事处):优点provide a permanent base,缺点most employees from China2)Equity Joint Ventures: (股份式合资企业）：Capital Contributions资本投入(优点是many forms of investment, 如cash，technology)Management and operations（优点管理者由双方同意聘请，酒店管理方式属于此类）3)Cooperative Joint Ventures (协作式合营企业，no legal person,缺点it’s difficult to make the last decision)4)Alternative investment structures (另类投资，如工作多年，公司给你股权，优点tax free）26. Sequence for opening negotiations:1)Consideration for decision2)Examination for feasibility ：In-house research（内部研究5个）Possible locationsGovernment regulationsGovernment incentives & tax regulationsLabor conditionsAvailability of partners and foreign capitalvisiting foreign location3)Senior managers decision (在谈判中有主导权)27.strategies for attracting foreign investment:investment incentives UNIT728. What to Be Negotiated / major issues of foreign investment proposal/ remove possible obstacle:1)Share capital;2)Management of the company;3)Personnel strategies(Nationalities of employment.Personnel policies: salaries, benefits, promotion, training an employee rights.(Personnel costs should be identified and included in the negotiations.);4)Exit strategies.29.Production is the key to survival, technology is the key to production.Ⅲ. Discussion 50% 5题unit1-61. Indicate how you would prepare before a negotiation if you want to import some machines for your company from the United States. UNIT 1 P35(1) Information on Related Environmental Factors. For example, exchange rate.(2) Knowing the opponent. Such as features of its product, price levels and preferred payment terms.(3 ) Knowing competitors. For example, sales force.(4) Knowing oneself. Such as quality, production capacity and sales states.2 . List five kinds of negotiation strategies and state the features. UNIT 1 P35Avoidance, Competition, Accommodation, Compromise, and Collaboration•Avoidance is non-negotiation.•Competition is also known as distributive or win-lose strategy.•Accommodation is “I lose, you win” policy.•Compromise is a combination of competition and accommodation, two distributive strategies.•Collaboration is also called integrative, or win-win strategy.3.List the Negotiating team member. UNIT2 P551) Team leader 主谈人-with the most expertise& experience2) Good guy 红脸-sympathize with the other party3) Bad guy 白脸-make the negotiation difficult for the other party4) Hardliner 顽固派-use stall tactics to delay progress5) Sweeper 总结陈词者-tie together viewpoints into a logical wholeseating location: Bad guy Good guy Leader Hardliner Sweeper4.What are the higher levels of negotiation strategies and tactics ? UNIT3 P74Principled negotiations represent a higher level of negotiation strategy and tactics.These ideas lay emphasis on four components: Focus on interestNot positionsSeparate the people from the problemMutual gains and using objective criteria5.What are the theories of negotiation? UNIT3 P74A need theory was put forward by Maslow in the 1950s.Based on it, Gerard I. Nierenberg then pointed out needs and satisfaction of the opponent’s needs serve as the basis of a negotiation.6.Give one example to show what is position and interest. UNIT3 P74Position : A company will buy a set of production line from another company.Interest : A company wants to increase productivity is the interest of the company.7.Wha are the signs to indicate that closing is not yet possible? UNIT5 P106verbal indications non-verbal indications8.Identify the factors which establish the pricing of a product that a company might sell. costs of production, terms of delivery, market prices, profit considerations.（delivery terms, non-performance cost, inspections, warranties etc.）9.Discuss under what considerations a company might be prepared to reduce its price or the buyer accept higher prices.competitiveness, market penetration, and a desire to complete a successful negotiation.Buyer’s Accept ance of a Higher Price ：Sole supplier of specified goodsSpecified qualityPrevious supplier with recognition10.Identify the means to persuade a foreign company to accept the prices at which your company is prepared to negotiate a contract.quality of product / favorable financing terms / favorable terms of deliverypromise of future contracts / warranty inspection / long-term relationship.Ⅳ. Case study 30% 3小题1-7UNIT 1 Sino- Japanese negotiations P351.What factor played an important role in concluding the deal at the figure given by the Chinese side ?Preparation played an important role in concluding the deal at the figure given by the Chinese side.Before the negotiation, the Chinese side devoted much energy to preparation including doing market research, gathering information. During the negotiation, they still kept a close look at the changing market, therefore they had a card up their sleeve from the beginning to the end of the negotiations that laid a foundation for further discussions, during which, a series of tactics were wisely used.2.What tactics did the Japanese side use in the first round of negotiation?The Japanese side used a tactic of ballondessai 试探by making an offer at 10 million Japanese yen.Their purposes are two fold: if the Chinese side did not know the international market, they can take it as a basis,a starting point for their bargaining, then they can surely make large profits. If the Chinese side won't accept it,they can justify themselves.3. Why did the Japanese side turn to introduction of their products?By talking about performance, and high quality of their products, they wanted to justify their first offer in a round about way.4. What tactics did the Chinese side use in responding to their introduction of the product ? Ask while knowing the answer.They meant to show that the Chinese side know quite clearly about the market, that the Japanese are not the only supplier, and that the Chinese side has the right to make a choice.5. How do you look at the result of the negotiation to both parties?To both parties the result of the negotiation is a win-win negotiation. The success of this negotiation reflects both cooperation and competition between the two sides.The Chinese side reached the goal of importing quality equipment with limited foreign exchange only after two rounds of talks. The Japanese side apparently sold goods at a price lower than the price of sales sold to other countries. But their profits were not reduced because of the short transportation distance, and their costs of transportation and risks were reduced.They adjusted their objective in good time, and chose to conclude the deal rather than leave this opportunity to rivals.UNIT 3 Driving a bargain1.Why did both the German and the Chinese sides emphasize their own advantages? Because each of them adopted the tactic of forestalling their opponent by a show of strength.The German side wanted to use its experience to influence the Chinese side psychologically, hoping that the Chinese side would defer to them. The Chinese side pushed the advantages of a host country in order to gain an equal position from which to negotiate with the opponent.2.Why did the Chinese side oppose the name of the joint venture given by the German side?Because the name firstly suggested denied the equal entity position of the two parties, instead Chike became a subsidiary of Baier.3. On the whole, in what spirit or with what principle did the negotiations come to a successful agreement to mutual benefits?The principles used are seeking common points while reserving differences and friendly negotiations.4.What are the experiences reflected through the negotiations?First, the two parties prepared well, reflected by their understanding of a feasibility study, and by forming a capable negotiation team. During the opening stages, they dealt well with the degree of competition and cooperation, conducting the negotiations on an equal footing. During the bargaining stages, both parties competed and compromised, finding satisfactory solutions whenever they came across issues related with each other's interests. Finally at the closing stage, they did well in drafting the contract, preventing further disputes from arising.UNIT4 A last minute decision P92If the negotiator arrives to make one final offer when your flight us due to board, what would you do?If the deal sounds interesting you should suggest that you continue to negotiate. Do not give into his threat or ultimatum. His tactic is designed to make you panic and not think carefully about your decision. If he refuses to give you more time to examine the details of the offer you should get on the plane and leave. He would not present the offer in such a way unless it gave him a big benefit to do so.UNIT4 Is that your best offer P93A great way to practice our negotiation skills is to simply get in the habit of asking salespeople, “Is That Your Best Offer?”We would be amazed how many times they will lower their price or throw in an extra benefit in response to this simple question.UNIT 5 Air Canada P1071. Should this have been under negotiation in the closing stages of reaching an agreement?The key phrase in the case study which informs the students that the negotiations were in the closing stages presented is: “to walk away if unions did not agree to more concessions”.2. What should Air Canada have done?The requirement that the unions make more concessions suggests that unions have to agree to take some action, but the unions are not part of the negotiations. Any concessions that the unions have to make are a matter for negotiation between the unions and Air Canada. Labor Unions in most western countries including Canada, have contractual agreements with companies under which they will provide labor. There is no obligation on the part of the Unions to change those signed agreements, although faced with possible liquidation of the company, the unions might have been more accommodating. It is possible, but the case does not show that the unions had already made concessions but were not prepared to go any further. Given this situation, there was little Air Canada could do at this point.3. What are the strengths and weaknesses of the negotiating parties ?Air Canada's negotiating position was weak because failure of these talks meant either the company would have to close, or the company would have to find another investor. A new investor might offer to invest in the company under conditions less favourable than Trinity Time. Again, students should be encouraged to search the internet to find out what happened. Air Canada did find a new investor.Air Canada's position was further weakened because they were faced with negotiations on two sides. On the one side, they wanted the investment from Trinity Time, but the conditions Trinity Time require meant that Air Canada also had to get agreement from its labor unions, and the labor unions were not agreeable to further concessions.Trinity Time's position was strong. Their only weakness was that they might, in the end, not be able to invest.The case, as shown, does not give details of the investment proposal, so we do not know whether or not Trinity Time had more lucrative investment opportunities open.UNIT6 Unreasonable discount P133 或考其他形式The foreign buyer asks you for an unreasonable discount, what should you response?1.do calculation once more and let them know the real value.2.keep silent3.give them the real market price。
