（1）Negotiation on Price 1Mr. Lee: Good morning, Mr. Smith. My name is Jack Lee. Here is my name card.Mr. Smith: Thank you! Nice to see you, Mr. Lee! My name is Tony Smith. And this is my card.Mr. Lee: Thanks! Mr. Smith, it is very nice to have you in our company. I do hope you will have a fruitful stay here. By the way, this is Tina, myassistant.Tina: Nice to meet you! (Handshakes)Mr. Smith: Nice to meet you, too! And this is my secretary, Lucy.Lucy: Nice to meet you! (Handshakes)Mr. Lee: Well, Mr. Smith, I am wondering if you have already got our offer? Mr. Smith: Yes, we did. It reached us three days ago.Mr. Lee: what do you think of it? Is it satisfactory?Mr. Smith: To tell the truth, we are greatly surprised at the prices you offered us. Mr. Lee: This year’s prices are higher than last year. But they are still lower than the quotations you can get elsewhere.Mr. Smith: I’m afraid I can’t agree with you there.Mr. Lee: Well, in order to get the business, I’m willing to make some concessions.Mr. Smith: The size of our order depends greatly on the prices. Let’s settle that matter first.Mr. Lee: Well, if you order more than 5,000 pieces, I will reduce my price by 3 percent.Mr. Smith: It will be rather difficult for us to push any sales if we buy them at the price.Mr. Lee: What is your proposal?Mr. Smith: You need to reduce your price at least by 10-15 percent?Mr. Lee: What about 8 percent? Those will be our rock bottom prices, Mr. Black.No further concession I can make in this respect.Mr. Smith: I’m sorry, but your price is not acceptable. Your price has gone up so rapidly. It would be impossible for us to push any sales at such a price. Mr. Lee: I’m a little surprised to hear you say that. The price we offer compares favorably with quotations you can get elsewhere.Mr. Smith: I’m afraid I can’t agree with you there.Mr. Lee: But you must take the quality into consideration.Mr. Smith: I agree that yours are of better quality. But we’ll still have a lot of difficulties in persuading our clients to buy at this price.Mr. Lee: Well, then, what’s your idea of a competitive price?Mr. Smith: I suggest somewhere around $30 per set CIF Beijing.Mr. Lee: I’m sorry the difference between our price and your counter offer is significant. It’s impossible for us to entertain your counter-offer, I’mafraid.Mr. Smith: What about meeting each other half way? Let’s say USD 30.5.Mr. Lee: Ok, Let’s make a deal.Mr. Smith: Thank you! Mr. Lee.Mr. Lee: You’re welcome.（2）Negotiation on Price 2Mr. Smith: I was wondering if you would give us a response to our email inquiry?Mr. Lee: Certainly. We are pleased to offer you 120,000 cotton poplin blouses at USD 16.8 each, FOB Shanghai. The blouse will be packed in plasticbags, each four dozens in a corrugated cardboard box. They will bedelivered in two consignments of 60,000 each, the first by August 20thand the second by September 10th. The terms of payment will be thesame as those in the previous contract, that is, sight letter of credit. Mr. Smith: Thank you very much for your offer, and we will give it serious consideration. As it’ll take us some time to calculate, may I suggest thatwe take a 20-minute break? Then we’ll give you an answer.Mr. Lee: Fine. (After the break)Mr. Smith: Well, Mr. Lee. I’ve discussed your offer with our manager, and I’m afraid we found it rather on the high side.Mr. Lee: I wonder why you think so.Mr. Smith: To be honest with you, just before we left for China, we were approached by a Filipino garment manufacturer. His offer was USD13.50 each blouse. So, we don’t see why we should pay more for yourblouse.Mr. Lee: USD 13.50 each blouse? Really?Mr. Smith: That’s right, USD 13.50.Mr. Lee: that’s really cheap. I guess you must have bought a lot from him.Mr. Smith: We bought 1,000 pieces.Mr. Lee: Only 1,000 pieces?Mr. Smith: Well, as we don’t know much about that firm so we just place a trial order.Mr. Lee: Right, it takes time to find out whether a business partner is trustworthy. Mr. Smith: This is why we sent our inquiry to you. I believe you are not only trustworthy but also competitive in price.Mr. Lee: You bet!Mr. Smith: but your offer is obviously far from competitive.Mr. Lee: Then what do you think would be a competitive price?Mr. Smith: USD 13.50, the price we paid the Filipino firm.Mr. Lee: Oh, come on, our blouses certainly deserve more than that.Mr. Smith: Oh, why?Mr. Lee: Because our quality is high, and high quality goods deserve high price.Mr. Smith, you wouldn’t disagree on that, would you?Mr. Smith: You may have a point here. But, how can you prove your blouses are better than the Filipino ones?Mr. Lee: Our blouses are one hundred percent natural, they are pure cotton. Mr. Smith: Well, that’s certainly a plus for you.Mr. Lee: This year, we have also won a gold medal from the Best Commodity Expo sponsored by the General Association of Textiles. Here is thecertificate from the association.Mr. Smith: I take off my hat to you, Mr. Lee.Mr. Lee: Thank you, but I think the best evidence is this: the orders we have received from overseas customers have doubled in the last three years.This is our sales report.（3）Negotiation on quality and quantityMr. Lee: I’d like to discuss with you the quantity, quality and other details of the goods. By the way, have you received our samples?Mr. Smith: Yes. We examined your designs and catalogues carefully at the very moment we received them.Mr. Lee: Do you have any questions?Mr. Smith: Yes, we find that the colors and quality of the glove puppet monkeys, ducks and dogs are very nice, so we don’t have any comments on them.However, the quality and patterns of the dolls are not suitable at all. Iam sorry to say that none of our customers in the USA likes it.Mr. Lee: So far as I know, there is no problem with the quality of the dolls. In fact, it’s so popular abroad that we can not meet the demands from ourcustomers. But will you tell me in detail your problem with the patterns? Mr. Smith: The patterns with golden fish are not popular with the American people, and therefore they don’t sell well.Mr. Lee: Are you kidding? I’ve never heard of that. Anyway, it is easy to solve the problem. Here are some more catalogues of different designs for youto select from.Mr. Smith: These designs are so cute. I think they probably will sell well. I’d like to order these two in the following amounts. New material Dolls No.01,quantity 50,000, synthetic fibre dolls No.02, quantiy 20,000.Mr. Lee: Since New Material Doll No.01 can find such a ready market, and the production falls behind the demand, we can only supply you with30,000 pieces. It is said that synthetic fibre dolls are popular withAmerican people. Why don’t you order more?Mr. Smith: 30,000 New Material Dolls No.01 are far from enough. Can you supply us with another 10,000? As to the synthetic fibre dolls, the price is prettyhigh, as I see.Mr. Lee: We’ll try our best to satisfy your demand for the additional 10,000 of New Material Dolls No. 01. It seems you don’t realize that theprevailing price of synthetic fibre dolls on the international market hasgone up recently, and the price we offer is the lowest.Mr. Smith: Thank you! We’ll increase the size of the order for synthetic fibre dolls No.02 by 20,000 and leave the others as they are.(4) Negotiation on transshipmentMr. Smith: Can you make shipment in early November?Mr. Lee: We have the goods in stock. Therefore, we could effect prompt shipment if there were a steamer available. But unfortunately we can notget hold of any liner sailing for London in November, because theshipping space for sailing to London up to the end of November has allbeen booked up.Mr. Smith: You know the time of shipment is very important to us. Our customers are in urgent need of the goods.Mr. Lee: I see your point. However, I am very sorry that we can do nothing about it.Mr. Smith: But I am informed that tramps are still available.Mr. Lee: Yes, but tramps are scarce. And I’m not sure there would be enough tonnage to make a full cargo, even if a tramp could be obtained.Mr. Smith: Then, what if we allow transshipment?Mr. Lee: Transshipment adds to the expenses, risks of damage and may possibly delay arrival. But we’ll try if you insist and are willing to bear the extraexpenses.Mr. Smith: We prefer direct shipment, of course. But now that there is no directsteamer, we can do nothing but agree to tansship at Hong Kong.Mr. Lee: Then we’ll get all the necessary information about the connecting steamers right away.Mr. Smith: I guess if we start now, there’s still hope. To hedge our bets, how about adding Liverpool as an optional port of destination?Mr. Lee: Good. Then what would you say if we put it like this in the contract:”shipment: by first available steamer before the 30th of November. Port ofdestination: London or Liverpool. Transshipment at Hong Kongallowed.”?Mr. Smith: It seems I’ve no alternative. Thank you.(5) Negotiation on the amendment of an L/CMr. Lee: Mr. Smith, we’ve received your L/C, but find two points inconsistent with other documents, rendering us unable to get the payment.Mr. Smith: What are they?Mr. Lee: The first point. The credit calls for a clean bill of lading marked ”freight prepaid”, when it should call for a clean bill of lading marked ”fright tocollect”.Mr. Smith: I see.Mr. Lee: We’ve sold on FOB terms. We’re therefore not responsible for the freight charges and can only provide you with a bill of lading marked“fright to collect”. Obviously the bank won’t release the money againstsuch a document. Can we ask you to amend the latter of credit according?The vessel is loaded and waiting to depart, but we can’t let the vessel gountil we are assured of the payment.Mr. Smith: Yes, I am sorry this has happened. It must be an oversight on our part.We’ll amend the L/C at once. What’s the other problem, Mr. Lee?Mr. Lee: The other problem is: in your letter of credit there is no mention of tansshipment. But when we are talking about shipment we agreed ontransshipment via Hong Kong. This is clearly written in the contract andon other documents too. And the fact is, there is no direct steamersailing to your port, and we are actually sending the goods throughtansshipment.Mr. Smith: That’s true. I’m terribly sorry about such a mistake on our side. I must find out how this was caused and who made such a terrible mistake asthis.Mr. Lee: Can we ask you to amend the L/C by allowing transshipment via Hong Kong?Mr. Smith: Of course. I’ll inform the bank to make the relevant amendment immediately.。