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International Business Negotiation Chapter5 Offer of international business negotiation Teaching Objectives After studying this module, you should be able to know: 1.What are inquiry and offer; 2. Forms and basic contents of offers 3. Strategies for making offers 4.Who should make the first offer and defence for the first offer Contents Introduction: distributive stage--Inquiry and Introduction: distributive offer 5.1 Inquiry Either buyers or sellers can make inquiry about terms of a business deal. Usually, the inquiry made by the buyer is also called bid, and the inquiry made by the seller is also called selling inquiry. It is usually made by buyers to get information, such as price, quality, volume, packing, shipment, insurance, terms of payment, delivery date ,inspection, arbitration and so on. 5. 2 Offer 5.2.1 The definition of the offer An offer or quotation is a proposal that is made to a certain individual or legal entity to enter into a contract, which is definite in its terms, and which indicates the offeror’s intent to be bound. 5.2.2 The basic conditions of an offer (1)The offer shall be made to one or more specific persons (2) Contents of the offer shall be sufficiently definite (3) Time of validity or duration of offer 5.2.3 Forms of offer (1)Oral offer (2)Written offer (3)Combination oral and written offer 5.3Strategies for making offers 5.3.1Getting your first offer ready For every negotiation you plan to enter, your initial offer should stand on its own merit within the prevailing context surrounding the discussions. Entering the negotiations under false pretences or unfounded premises can prove costly or result in deadlocks. Make your first offer competitive in the eyes of the other party and be ready to defend it with valid arguments. 5.3.2 Dont be afraid to be aggressiveHow extreme should your first offer be? A research suggests that first offers should be quite aggressive but not absurdly so. Many negotiator
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