CES Negotiation & Closing Techniques 3

Question 1

What is 'logrolling' in the context of export negotiations?

Accepted Answer

Trading concessions on issues where each party has different priorities

Answer

Logrolling involves trading items of different priority, allowing both parties to gain on what matters most to each.

Question 2

A foreign buyer insists on a price reduction citing a lower competing quote. What is the most effective counter-strategy?

Accepted Answer

Differentiate on value — quality, delivery reliability, after-sales support — rather than lowering price

Answer

Competing on value avoids a race to the bottom and preserves margin by demonstrating superior total cost of ownership.

Question 3

Which Incoterms® 2020 rule places the maximum responsibility and cost on the seller, making it least favorable in price negotiations?

Accepted Answer

DDP (Delivered Duty Paid)

Answer

Under DDP, the seller bears all costs including import duties and delivery to the buyer's premises, representing maximum seller obligation.

Question 4

When should an exporter use a 'trial close' during negotiations?

Accepted Answer

Periodically throughout negotiations to gauge the buyer's readiness

Answer

Trial closes test the buyer's position at various stages, providing feedback on whether to proceed or address remaining concerns.

Question 5

An exporter negotiating a large contract in Brazil should account for which unique local factor?

Accepted Answer

Import financing through BNDES may affect the buyer's preferred payment structure

Answer

BNDES (Brazil's development bank) offers financing for certain imports, which can influence how buyers prefer to structure payment terms.

(CES) Certified Export Specialist Practice Test