商务英语视听-Cross-culturalNegotiation.ppt

Chapter Five,Types of Business Negotiation,Structure,Sales of Goods Investment Technology Transfer,On Sales of Goods,What Should Be Negotiated Quality Quantity Packing Payments Shipment Insurance Claim and Arbitration Tips for sales negotiation,What Should Be Negotiated,All terms concerning the transactionSpecific clauses in a contract,Quality,Sale by sample;Sale by description and illustration;Sale by trademark or brand;Sale by place of origin;Sale by specification,grade or standard.,Methods of Stipulating Quality of Commodity,Methods,Sale by Description（凭说明买卖）Sale by Sample（凭样品买卖）Sale as it is(看货成交),Sale by Description,Sale by Specification,Grade or Standard（凭规格，等级，标准）Sale by Brand Name or Trade Mark（凭品牌或商标）Sale by Name of Origin（凭产地名称）Sale by Description and Illustration（凭说明书和图样）,Grade,Quality negotiation tips,Order a sample before committing to a purchase order Use Pre-Shipment Inspection Services.Packing In case failure to ensure that the quality of the goods delivered is in accordance with the contract or sample.,Units of measurement for quantity,Weight:metric ton,kilogram,pound,ounce,gram,Numbers:piece,pair,set,dozen,grossLength:meter,foot,yard,mile,inch,Area:acre,square yard,square footVolume:cubic meter,cubic yardCapacity:liter,gallon,bushel,etc.,Packing,Importance of packingPreventing or minimizing the damage of shipment;Promoting product sales;Avoiding possible rejection of the shipment by the buyer.,Types of Packing,Three types of commodities Bulk CommoditiesNude Packed Commodities Packed CommoditiesThree types of packingTransport PackingSales Packing Neutral Packing,Transport Packing,Also called big packing or outer packingCharacteristics of Transport PackingBe solid and durable and adaptable to changing climates;Be uniformAs small and light as possible Types of Transport Packing,Types of Transport Packing,Bags/SackCartonCase Crate Drum,Bale CanCarboyContainerPallet,Types of Containers,干货集装箱（Dry Cargo Container）,罐式集装箱（Tank Container）,Sales Packing,Sales packing(inner packing,small packing or immediate packing)is mainly used for the purpose of promoting sales.A silent salesman Functions of sales packingFor Display and saleFor Identification of the commodityFor consumer convenience in use,For Display and Sale,Piling-up PatternHanging-up PatternSpreading-up Pattern,Pictures,For Identification of the commodity,Transparent pattern and windowed patternCustomary Packing Pattern,Pictures,For Consumer Convenience,Pattern for Carrying aboutPattern for Easy OpeningPattern for Spraying outPattern for Forming a Complete SetPattern for Showing off a Gift,Pictures,Packing,Avoid using unclear terms such as seaworthy packing and customary packing Special request for packingThe shipping marks Indicative marks,Shipping Marks,The importance of and consistency in using shipping marks Packing,invoice,insurance policy,certificate,bills of lading,etc.ISO standard shipping marks:Simple and clearProper position,durable colorNo advertising allowed,Components of Shipping Marks,Consignee or Consigners CodeAbbreviations:TEC,ITCReference Number Number of sales contract,L/C,etc.Port of Destination Package NumberThe total number of the whole lot of consignment and individual package number e.g.NO.28/800,Indicative Marks,Indicative Marks refer to the requirements and matters which need serious attention for the process of transporting,loading,unloading and storing goods.,Payments,Payment Terms How to Protect Yourself Against Payment Risk,Payment Terms,Amount of paymentTime of paymentConditions of paymentMethods of payment,Methods of payment,Remittance mail transfer(M/T)telegraphic transfer(T/T),remittance by bankers demand draft,D/DCollection Documents against payment(D/P)Documents against acceptance(D/A)Letter of credit(L/C),Beneficiary,Remitting Bank,Paying Bank,Remitter,1,2,3,Workflow of M/T,T/T,1 application and payment 2.telegraph or mail the order3.payment,1,4,3,Workflow of D/D,1.Application and payment2.Draw the Bankers Demand Draft3.Send the Draft4.Demand for payment of draft,2,Remitter,Remitting Bank,Paying Bank,Beneficiary,3,Documentary Collection,Documentary collection is a method of effecting payment for goods whereby the seller ships goods to the buyer,but instructs his bank to collect a certain sum from the buyer in exchange for the transfer of relevant documents.,Drawee/importer,Remitting bank,Collecting bank,1,2,3,Workflow：D/P,(1)shipment(2)present documents(3)send documents and Instructions(4)advise the importer,7,4,5,6,(5)make payment or acceptance and get documents(6)send funds(7)pay the exporter,Principal/exporter,Terms,Principal is the one who draws the bill of exchange and authorizes his bank to effect the collection.Remitting bank is the bank authorized by the drawer of the draft to effect collection from the buyer.Usually at the sellers place.Collecting bank is the bank authorized by the remitting bank to collect the payment from the drawee.Usually in buyers country.Drawee is usually the buyer of the goods who should make payment of the goods in time.,D/P at sight,1.the seller hands the shipping documents with a draft to the remitting bank,which will present them to the buyer.The buyer upon sight makes the payment and get the documents.The collecting bank get the payment and notifies the remitting bank to pay the seller.The shipping documents to be delivered against payment only.,D/P after sight/date,The buyer will pay the draft amount on the specified time.XX days after sightXX days after date of B/LXX days after date of the draftThe documents will be released until the payment is made.The seller has to wait for a period of time to get the payment.,D/A,Under D/A,the buyer can get the documents from the collecting bank after he has duly accepted the draft.In some countries,D/P after sight/date is regarded as D/A.,The nature of L/C,The issuing bank has primary liability for payment.开证银行负第一付款责任。L/C is a self-sufficient instrument.信用证是一项自足文件。Documentary credit is a pure documentary transaction.信用证方式是纯单据业务,Workflow of L/C,A,A,A,A,Applicant,Advising bank,Beneficiary,Issuing bank,The general procedure of using a L/C,1.The buyer and seller conclude a sales contract specifying documentary credit as the method of payment.2.The buyer instructs his bank,the issuing bank to issue a credit in favor of the seller.3.The issuing bank opens the credit and sends it to the advising bank.4.The advising bank informs the seller that the credit has been issued.As soon as the seller receives the credit and is satisfied with the terms and conditions,he is in a position to load the goods and dispatch them.,5.the seller then send the documents evidencing the shipment to the negotiating bank and the bank will negotiate according to the terms of the credit.6.The bank sends the documents to the issuing bank.7.The bank effects payment in accordance with the credit if the documents meet the requirements.8.The issuing bank releases the documents to the buyer upon payment of the amount due,or upon other agreed terms between the buyer and the issuing bank.,How to Protect Yourself Against Payment Risk,Avoid open-account with new partner and a letter of credit is suggestedSufficient background checks If the seller seems more focused on payment than any other issue,or indicates that cash payment must be made urgently,more caution should be given to the transaction.To develop a long-term relationship with our customers based on mutual trust.,Shipment,Shipping documents compared to domestic onesthe name of the exporting carrier the latest allowed arrival date at the port of export.instructions for the inland carrier to notify the international freight forwarder on arrival.,各种运输方式一览表,运输方式,国际联运,航空运输,多式联运,多式联运经营人,民航公司或外运,铁路始发站,签发人,海运提单（B/L）,船长或船公司或其代理,外运公司,邮局,邮政运输,港、澳,海洋运输,送银行办理议付的运输凭证,货物收据（Cargo Receipt）,邮包收据（Parcel Post Receipt）,铁路运单副本,航空运单（MAWB或HAWB）,多式联运单据（MTD）或 集装箱联运提单（CTB/L）,铁路,Different transportation modes,Transportationmode,International combined,Air,InternationalMT,MTO,Airlines orFreight forwarder,DepartingRailway station,issuer,Ocean B/L,Shipping company,Sino-trans,Post office,Parcel post,HK,Macao,Marine,Shipping document for bank negotiation,Cargo Receipt,Parcel Post Receipt,Copy of railway bill,MAWB or HAWB,MTD,Railway,Points of consideration in shipment,A through bill of lading under a multimode contract Consult with a freight forwarder when determining the method of international shipping,Considering the cost of shipment,delivery schedule,and accessibility to the shipped product A free-trade zone or a free port,Agreement between seller and buyer,Who is responsible for delivering the goods Place of shipment and destinationThe date and time of deliveryWho is responsible if the goods are lost or damaged during delivery,or if the goods are delayed?Partial shipment and transshipment,Insurance,Export shipments are usually insured against loss,damage,and delay in transit by cargo insurance.For air shipment,air waybill serves as insurance certificate;for sea shipment,insurance certificate is issued as evidence of the existence of the marine insurance policy.The marine insurance policy is a contract between the insured and the insurer,and its principal purpose is to define the terms of the agreement between the insured and the insurer.,Items of negotiation,Who buys insurance a buyer should strive to sign a contract in FOB and CFR terms and a seller should strive to sign a contract in CIF terms.What kind of insurance The amount to be insured.,我国海运货物保险险别,基本险别Basic Risks,附加险别Additional Risks,一切险（AR）,平安险（FPA）,水渍险（WPA/WA）,一般附加险General additional risks,特殊附加险Special additional risks,General Additional Risks,Theft,Pilferage,and Non-Delivery(T.P.N.D)(偷窃，提货不着)Fresh water and/or rain damage;（淡水雨淋险）Shortage（短量险）Intermixture and contamination（混杂、玷污险）Leakage（渗漏险）Clash and breakage（碰损、破碎险）Taint of odor（串味险）Hook damage（钩损险）Breakage of packing（包装破裂险）Rust（锈损险）Heating and sweating（受潮、受热险）,Claim and Arbitration,Breach of a contract arises where any party does not abide by the stipulations of the contract.Claim（索赔）refers to that in international trade,one party breaks the contract and causes losses or damages to the other party directly or indirectly,the injured party may ask for compensation for the losses or damages.,Making claim,Make clear what the claim isDo not let anger show and avoid sarcasmGive the facts calmly,specifically and thoroughlyRequest action:a replacement,repair,refund or compensation.,Disputes settlement,协商 Consultation(two parties)调解 Mediation(a third party as mediator)仲裁 Arbitration 诉讼 Litigation,Arbitration,Arbitration is a means of settling a dispute between two parties through the medium of a third party whose decision on the dispute is final and binding.The place of arbitrationOrganization of arbitrationApplicable rules of arbitrationThe binding force of arbitration,Tips for sales negotiations,Reduce the buyers power with differentiation Take a strategic view-from both sides Manage Power with a SWOT(strengths,weaknesses,opportunities and threats)analysis.Evaluate the priorities Trade;dont make unilateral concessions,Group Work,Discussion Simulated Negotiation On Arbitration Do you think it necessary to add arbitration clause to the contract?What are the specific elements that need to be negotiated in this clause?What are the other resorts to solve disputes?What are the advantages of arbitration over the other solutions?,Investment,Joint venture Advantages To expand resources,export experience and market knowledge while spreading the risk and laying a distribution framework.Tax advantages or waivers offered by foreign countries for joint ventures.Negotiation problemsJoint venture contract has much more potential for causing difficulties and disputes Joint venture involves more resources commitment and higher mutual dependence.,Investment,Total investment and registered capital Labor management Land use Foreign exchange controls Term and Termination,Total investment and registered capital,Registered capital Total investment Ratio of capital distribution:the foreign party holds no less than 25%of the registered capital of the joint venture with no maximum.The capital contributions may take a variety of forms.The composition of the board of directors is to be determined by discussion between the parties.The distribution of seats is to be fixed by reference to the ratio of capital contribution.,Labor management,Provisions regarding employment terms,dismissal and resignation,wages,working hours,labor insurance,discipline and other matters.,Land use,Methods The Chinese party to a joint venture may supply the land The joint venture may lease a site from the local department in charge of land Right to the landThe joint venture obtains only a leasehold interest in the site and not ownership,Foreign exchange controls,Methods to resolve foreign exchange imbalance 1)Exports;2)Domestic sales under certain conditions;3)Exports of others products under certain conditions;4)the transfer of foreign exchange between joint ventures subject to approval by the state foreign exchange authorities and both parties to the joint venture;5)The reinvestment of earnings in local currency in other joint ventures that would generate foreign exchange.,Term and Termination,The duration of the venture(The Implementation Act)In principle the average term should be between ten and thirty years,although longer terms may be permitted.The maximum term may now be extended to fifty years or more in certain circumstances.The duration of the venture is left to negotiation between the parties,taking into account the nature of the project,and the attitude of the Chinese government.,Termination,The early dissolution of a joint venture A breach of contract by one of the parties:the breaching party is liable to compensate the venture for the losses incurred thereby.Upon the occurrence of other events stipulated in the joint venture contract.,