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Business negotiation The process during which two or more sides negotiate with each other in order to reach a mutually acceptable agreement. Each of the parties has his own goal in trade operations: the seller vs. the buyer Negotiating means taking action in order to achieve a situation acceptable to both parties. A negotiation is a meeting between two parties, and the objective is to reach an agreement over issues which: are important in both parties’ views may involve conflict between the parties need both parties to work together to achieve their objective I. Preparation before the negotiation 1. Target 2. Business Partner 3. Qualified Negotiators 4. Proper Plan II. General Procedures for Trade Negotiation 1. Inquiry 2. Offer 3. Counter Offer 4. Acceptance Dear Sir or Madam, We were impressed by the selection of sweaters that were displayed on your stand at the Menswear Exhibition that was held in Chicago last month. We are a large chain of retailers and looking for a manufacturer who could supply us with a wide range of sweaters for the teenage market. As we usually place very large orders, we would expect a quantity discount in addition to a 20% trade discount off net list prices, and our terms of payment are normally 30 days bill of exchange, documents against payment. If these conditions interest you, and you can meet orders of over 1000 garments at one time, please send us your current catalogue and price-list. We hope to hear from you soon. Yours faithfully, Fred Johns China Trade Manager The expression of the wishes of the seller / buyer to sell / buy particular goods under stated terms (including quantity, price, time of shipment, terms of paym
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