Negotiation & Closing Techniques Flashcards
7 cards from real CES practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Negotiation & Closing Techniques flashcards as text
When negotiating with a buyer in a high-context culture (e.g., Japan or China), what is the most appropriate approach?
Answer: Invest in relationship-building and indirect communication before discussing terms
High-context cultures value relationships and indirect communication; rushing to terms without building trust undermines negotiations.
Which closing technique involves summarizing all agreed points before asking for the buyer's final commitment?
Answer: Summary close
The summary close recaps all agreed terms and benefits, reinforcing value before requesting final commitment.
An exporter discovers mid-negotiation that the foreign buyer has authority to commit only up to $500,000 but the deal is $750,000. What is the best next step?
Answer: Request that a decision-maker with appropriate authority join the negotiations
Identifying the correct decision-maker and requesting their involvement ensures negotiations can proceed with someone authorized to approve the full amount.
What does BATNA stand for in negotiation strategy?
Answer: Best Alternative To a Negotiated Agreement
BATNA (Best Alternative To a Negotiated Agreement) defines your walk-away position and strengthens your negotiating leverage.
A buyer requests a 90-day payment term, but the exporter's standard is 30 days. Which trade finance tool best bridges this gap while protecting the exporter's cash flow?
Answer: Export factoring
Export factoring allows the exporter to sell receivables to a factor, receiving immediate cash while the buyer enjoys extended payment terms.
During price negotiations, a foreign buyer uses 'nibbling' — asking for small additional concessions after the main deal is struck. What is the recommended counter-strategy?
Answer: Link any new concession to a reciprocal concession from the buyer
Linking concessions ensures that giving something additional receives equivalent value in return, preventing incremental erosion of profit.
Which document is typically negotiated during the closing stage to define the rights and obligations between an exporter and a foreign distributor?
Answer: Distribution agreement
A distribution agreement formalizes the commercial relationship, including territory, pricing, performance targets, and termination clauses.