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Practical Solutions to Global Business Negotiations by Claude Cellich

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Chapter 7

Price Negotiations

As I hurtled through space, there was only one thought on my mind—that every part of the capsule was supplied by the lowest bidder.

—John Glenn

Firms entering new markets, particularly small- and medium-sized firms, often face problems in initial negotiations with importers, agents, and buyers in the target markets. These difficulties generally center on pricing questions, particularly that their prices may be too high. Although price is only one of many issues that must be discussed during business negotiations, too frequently it tends to influence the entire negotiation process. New exporters may be inclined to compromise on price at the beginning of the discussions, thereby bypassing other negotiating strengths ...

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