内容正文:
Chapter Three Basic Links of International Business Negotiations
Section 1 Introduction
Section 2 Inquiries
Section 3 Offers
Section 4 Counter-offers
Section 5 Acceptance
Section 6 Conclusion of a Business Contract
Section 7 Case Study: Shopping Tote Bag Negotiations
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Section 7 Case Study: Shopping Tote Bag Negotiations
7.1 Parties involved in the case
Party A: Company L, a US trading company
Party B: Company P, a bag supplier which was located in Xiamen, China
Party C: Company X, a local supermarket in LA, the US
7.2 Issue
Company X, a supermarket, placed a purchased order of 50, 000 pieces of non-woven shopping tote bags ( 手提包, 手提袋) to Company L, a trading company . According to Company P, the supplier, the material MOQ (minimum order quantity) for this order was at least 300, 000 pieces . Company P was one of the most important suppliers for company L
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Section 7 Case Study: Shopping Tote Bag Negotiations
It provided high quality bags at a reasonable price.The shopping tote bag was a non鄄popular item.Company L didn’t want to carry any stock, but they would like to accept the order as it was a nice order with good profit margin, and also the company needed a client like company X.
7.3 Background
The international oil price was skyrocketing.Meanwhile the continuous RMB exchange rate reform and increasing labor cost had been pushing the production cost higher and higher.Therefore, Chinese manufacturers continued increasing price.In some extreme cases the supplier requested a 5% - 10% of price increase just on the next week.
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Section 7 Case Study: Shopping Tote Bag Negotiations
7.4 Phase 1 (quotation)
After receiving the 50,000 pieces shopping tote order from X, company L sent the enquiry to some of the bag suppliers.They found that P provided the best price.The major problem was that almost every supplier provided with the same -MOQ—3,000,000pieces, too large for this order
The reason was that the non-woven shopping tote material was fr