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Unit 1 Business Negotiation＆Export Contract1

Text A1

1.0 Preparation before Business Negotiation1

1.1 Business Negotiation Itself2

1.1.1 Inquiry2

1.1.2 Offer3

1.1.3 Counter-Offer4

1.1.4 Acceptance5

Exercises 16

1.2 The Form of a Sales Contract7

1.2.1 Preparation for Shipment8

1.2.2 Prepare Goods for Shipment9

1.2.3 Make Overall Examination9

1.2.4 Examine Individual Clauses10

Exercises 211

1.3 Amendment of the L/C12

1.4 Outward Notice and Insurance13

1.5 Consignment Bill13

1.6 Required Documents and Settlement of Payment13

1.7 Methods of Payment14

1.8 Financing Receivables16

Exercises 317

Text B19

Passage 1 Negotiating19

Passage 2 Step-by-Step Guide to Exporting22

Unit 2 Marketing＆Target Markets27

Text A27

2.0 Introduction27

2.1 The Four Eras of Marketing28

2.2 The Value of Marketing29

Exercises 131

2.3 Marketing Environment32

2.3.1 Controllable Factors32

2.3.2 Factors Directed by Marketing33

Exercises 235

2.3.3 Uncontrollable Factors36

2.3.4 Political Environment37

2.3.5 Cultural and Social Environment38

Exercises 340

2.4 Target Market42

2.4.1 What Consumers Prefer to Buy43

2.4.2 A Market Is a Group of Customers43

Exercises 447

2.5 Targeting the Market49

2.5.1 Undifferentiated Marketing49

2.5.2 Concentrated Marketing50

2.5.3 Differentiated Marketing51

2.6 Selecting Target Markets51

2.6.1 Developing the Marketing Strategy52

2.6.2 Sales Forecasting53

2.6.3 Type of Opportunities to Pursue54

Exercises 556

Text B58

Passage 1 Common Marketing Mistakes58

Passage 2 Common-Sense E-Mail Marketing Rules62

Unit 3 Price Planning＆Marketing Planning66

Text A66

3.0 Introduction66

3.1 Factors Affecting Pricing Decisions67

3.1.1 Consumers67

3.1.2 Costs68

3.1.3 Government69

3.1.4 Competition71

3.2 Pricing by Wholesalers and Retailers72

Exercises 173

3.3 Pricing by Producers75

3.4 Pricing According to Demand76

3.5 List Price Variations80

3.6 A1lowance Off List Prices81

Exercises 282

3.7 Marketing Planning84

3.7.1 How Important Is Good Planning?85

3.7.2 Tactical Marketing Planning85

Exercises 387

3.7.3 Organization89

3.8 Marketing Control89

3.8.1 Sales Volume Analysis90

3.8.2 Marketing Cost Analysis91

3.8.3 The Marketing Audit91

Exercises 492

Text B95

Passage 1 Pricing95

Passage 2 Determining a Product Price97

Unit 4 Balance of Payments＆Trade102

Text A102

4.0 Introduction102

4.1 Theories of Balance of Payments103

4.1.1 Hume's Price-Specie Flow Mechanism104

4.1.2 Elasticity Approach105

4.1.3 Absorption Approach and Others105

Exercises 1106

4.2 Some Balance of Payments Concepts108

4.2.1 Current Account109

4.2.2 The Capital Account110

4.2.3 Errors and Omissions110

4.2.4 Official Reserve Transactions110

4.3 Balance of Payments Equilibrium and Adjustment111

4.3.1 Measures for Settlement112

Exercises 2113

4.4 Balance of Trade and Exchange Rates115

4.4.1 American-Canadian Trade and Exchange Analysis116

4.4.2 American-Mexican Trade and Exchange Analysis118

Exercises 3119

4.4.3 American-Japanese Trade and Exchange Analysis121

4.4.4 American-Chinese Trade and Exchange Analysis123

4.4.5 Further Explanation of US Trade Deficit125

Exercises 4127

Text B129

Passage 1 US Trade Deficit with China Hits High129

Passage 2 Causes of the US Trade Deficit132

Unit 5 Efficiency＆Cost in Logistics136

Text A136

5.0 Understanding Logistics136

5.1 The New Marketing Concept137

5.2 The Last Frontier for Cost Economies139

5.2.1 Physical Distribution Costs139

5.2.2 The Total Cost of Performing the Physical Distribution140

Exercises 1141

5.3 Organizational Structure and Functional Decisions143

5.4 The Function of Inventories145

5.4.1 Service vs.Costs145

5.4.2 Inventory Problems145

5.4.3 Alternatives146

Exercises 2147

5.5 Tools to Facilitate Physical Distribution149

5.5.1 Operation Research149

5.5.2 Electronic Data Processing150

5.5.3 Airfreight151

5.6 The Raytheon Case153

5.7 Implications154

Exercises 3155

Text B157

Passage 1 Warehouse Replenishment Time157

Passage 2 Distribution Ideas in a Changing Market158

Passage 3 Transportation：A Part of the Distribution System162

Unit 6 Changing Channels in Logistics166

Text A166

6.0 Introduction166

6.1 Channel Classification168

6.1.1 Channel Classification from Different Perspectives168

6.1.2 Examples169

6.1.3 Significance of the Classification170

Exercises 1171

6.2 Channel Functions of Exchange173

6.3 The Exchange Network176

6.4 Objective of Exchange Channels178

Exercises 2179

6.5 Distribution Channel Structure181

6.5.1 Postponement181

6.5.1.1 Postponement Principle181

6.5.1.2 Postponement and the Shifting of Risk181

6.5.2 Speculation182

6.5.3 The Combined Principle183

6.6 Conclusion184

Exercises 3185

Text B186

Passage 1 The Concept of Substitutability186

Passage 2 Distribution Channels in China188

Passage 3192

Unit 7 International Business Diplomacy196

Text A196

7.0 Overview196

7.1 Needs and Alternatives for Fulfillment197

7.1.1 Nature of Assets197

7.1.2 Strengths of the Parties198

7.1.3 Other External Pressure198

7.2 Negotiations in International Business199

7.2.1 Acceptance Zones199

7.2.2 Provisions201

Exercises 1202

7.3 Home-Country Involvement in Asset Protection204

7.3.1 The Historical Background204

7.3.2 The Use of Bilateral Agreements205

7.3.3 Home-Country Aid as a Weapon206

7.4 Multilateral Settlements207

7.5 Consortium Approaches209

7.5.1 Arab Boycott209

7.5.2 Codes of Control211

Exercises 2211

7.6 External Relations Approaches215

7.6.1 The Need by Countries215

7.6.2 Company Approaches216

7.6.3 Allies through Participation218

7.7 Protection of Intellectual Property Rights220

7.7.1 Patents221

7.7.2 Trademarks222

Exercises 3223

Text B226

Passage 1 Company Bargaining Strength226

Passage 2 Behavioral Characteristic Affecting Outcome229

Unit 8 Export Strategy233

Text A233

8.0 Introduction233

8.1 Factors Favoring Exportation234

8.2 Building an Export Strategy234

8.2.1 Potential Pitfalls234

8.2.2 Strategy Design235

Exercises 1236

8.3 Export Functions and Facilitating Intermediaries241

8.3.1 Direct Selling241

8.3.2 Indirect Selling242

8.3.3 Export Trading Companies243

Exercises 2244

8.3.4 Japanese Trading Companies247

8.3.5 Foreign Freight Forwarders250

8.4 Governmental Role in Exporting251

8.4.1 Eximbank251

Exercises 3252

Text B255

Passage 1 Pepsi Co In India255

Passage 2 Black＆Decker259

Unit 9 Human Resource Management263

Text A263

9.0 Overview263

9.1 Foreign Managerial Transfers264

9.1.1 Mobility265

9.1.2 Technical Competence265

9.1.3 Adaptiveness266

9.1.4 Local Acceptance267

Exercises 1268

9.2 Management Recruitment and Selection273

9.2.1 Adaptability Assessment273

9.2.2 The Help of Local Companies274

9.3 Labor Market Differences274

9.3.1 Appropriate Technology275

9.3.2 International Labor Mobility276

9.3.3 Work-Force Stability Problem276

9.3.4 Employment Adjustments276

Exercises 2277

9.4 Comparative Labor Relations280

9.4.1 Sociopolitical Environment281

9.4.2 Union Structure282

9.4.3 Protection from Closures and Redundancy282

9.4.4 Codetermination283

Exercises 3284

Text B288

Passage 1 Dow's International Management Development288

Passage 2 The Office Equipment Company292

Unit 10 The American Business System297

Text A297

10.0 Introduction297

10.1 Elements of American Business Enterprise System297

10.1.1 Business：A Key Social Institution298

10.1.2 Constitutional Democracy299

Exercises 1301

10.1.3 American Capitalism302

Exercises 2307

10.2 Economic Theories of Capitalism308

10.2.1 Classical Theory309

10.2.2 Keynesian Theory310

Exercises 3312

10.3 Basic American Values314

10.3.1 Traditional Man314

10.3.2 Economic Man315

10.3.3 Social Man315

Exercises 4316

Text B318

Passage 1 Business Responsibility318

Passage 2 Forms of Business Ownership322

Unit 11 Business＆You327

Text A327

11.0 Introduction327

11.1 Factors to Consider in Career Planning328

11.2 Aids to Occupational Selection330

Exercises 1331

11.3 Planning a Job Campaign333

11.3.1 Sources of Information on Job Opportunities333

11.3.2 Sources of Information on Prospective Employers333

11.3.3 Writing the Letter of Application334

Exercises 2335

11.3.4 Preparing a Resume336

11.3.5 Preparing for an Interview337

Exercises 3339

11.4 Distinctions between Small Businesses and Large Businesses341

11.4.1 Differences in Marketing341

11.4.2 Differences in Personnel342

11.4.3 Differences in Production343

11.4.4 Differences in Finance344

Exercises 4345

Text B347

Passage 1 Franchising347

Passage 2 Employment Opportunity350