Unit 1 Business Negotiation＆Export Contract 1
Text A 1
1.0 Preparation before Business Negotiation 1
1.1 Business Negotiation Itself 2
1.1.1 Inquiry 2
1.1.2 Offer 3
1.1.3 Counter-Offer 4
1.1.4 Acceptance 5
Exercises 1 6
1.2 The Form of a Sales Contract 7
1.2.1 Preparation for Shipment 8
1.2.2 Prepare Goods for Shipment 9
1.2.3 Make Overall Examination 9
1.2.4 Examine Individual Clauses 10
Exercises 2 11
1.3 Amendment of the L/C 12
1.4 Outward Notice and Insurance 13
1.5 Consignment Bill 13
1.6 Required Documents and Settlement of Payment 13
1.7 Methods of Payment 14
1.8 Financing Receivables 16
Exercises 3 17
Text B 19
Passage 1 Negotiating 19
Passage 2 Step-by-Step Guide to Exporting 22
Unit 2 Marketing＆Target Markets 27
Text A 27
2.0 Introduction 27
2.1 The Four Eras of Marketing 28
2.2 The Value of Marketing 29
Exercises 1 31
2.3 Marketing Environment 32
2.3.1 Controllable Factors 32
2.3.2 Factors Directed by Marketing 33
Exercises 2 35
2.3.3 Uncontrollable Factors 36
2.3.4 Political Environment 37
2.3.5 Cultural and Social Environment 38
Exercises 3 40
2.4 Target Market 42
2.4.1 What Consumers Prefer to Buy 43
2.4.2 A Market Is a Group of Customers 43
Exercises 4 47
2.5 Targeting the Market 49
2.5.1 Undifferentiated Marketing 49
2.5.2 Concentrated Marketing 50
2.5.3 Differentiated Marketing 51
2.6 Selecting Target Markets 51
2.6.1 Developing the Marketing Strategy 52
2.6.2 Sales Forecasting 53
2.6.3 Type of Opportunities to Pursue 54
Exercises 5 56
Text B 58
Passage 1 Common Marketing Mistakes 58
Passage 2 Common-Sense E-Mail Marketing Rules 62
Unit 3 Price Planning＆Marketing Planning 66
Text A 66
3.0 Introduction 66
3.1 Factors Affecting Pricing Decisions 67
3.1.1 Consumers 67
3.1.2 Costs 68
3.1.3 Government 69
3.1.4 Competition 71
3.2 Pricing by Wholesalers and Retailers 72
Exercises 1 73
3.3 Pricing by Producers 75
3.4 Pricing According to Demand 76
3.5 List Price Variations 80
3.6 A1lowance Off List Prices 81
Exercises 2 82
3.7 Marketing Planning 84
3.7.1 How Important Is Good Planning? 85
3.7.2 Tactical Marketing Planning 85
Exercises 3 87
3.7.3 Organization 89
3.8 Marketing Control 89
3.8.1 Sales Volume Analysis 90
3.8.2 Marketing Cost Analysis 91
3.8.3 The Marketing Audit 91
Exercises 4 92
Text B 95
Passage 1 Pricing 95
Passage 2 Determining a Product Price 97
Unit 4 Balance of Payments＆Trade 102
Text A 102
4.0 Introduction 102
4.1 Theories of Balance of Payments 103
4.1.1 Hume's Price-Specie Flow Mechanism 104
4.1.2 Elasticity Approach 105
4.1.3 Absorption Approach and Others 105
Exercises 1 106
4.2 Some Balance of Payments Concepts 108
4.2.1 Current Account 109
4.2.2 The Capital Account 110
4.2.3 Errors and Omissions 110
4.2.4 Official Reserve Transactions 110
4.3 Balance of Payments Equilibrium and Adjustment 111
4.3.1 Measures for Settlement 112
Exercises 2 113
4.4 Balance of Trade and Exchange Rates 115
4.4.1 American-Canadian Trade and Exchange Analysis 116
4.4.2 American-Mexican Trade and Exchange Analysis 118
Exercises 3 119
4.4.3 American-Japanese Trade and Exchange Analysis 121
4.4.4 American-Chinese Trade and Exchange Analysis 123
4.4.5 Further Explanation of US Trade Deficit 125
Exercises 4 127
Text B 129
Passage 1 US Trade Deficit with China Hits High 129
Passage 2 Causes of the US Trade Deficit 132
Unit 5 Efficiency＆Cost in Logistics 136
Text A 136
5.0 Understanding Logistics 136
5.1 The New Marketing Concept 137
5.2 The Last Frontier for Cost Economies 139
5.2.1 Physical Distribution Costs 139
5.2.2 The Total Cost of Performing the Physical Distribution 140
Exercises 1 141
5.3 Organizational Structure and Functional Decisions 143
5.4 The Function of Inventories 145
5.4.1 Service vs.Costs 145
5.4.2 Inventory Problems 145
5.4.3 Alternatives 146
Exercises 2 147
5.5 Tools to Facilitate Physical Distribution 149
5.5.1 Operation Research 149
5.5.2 Electronic Data Processing 150
5.5.3 Airfreight 151
5.6 The Raytheon Case 153
5.7 Implications 154
Exercises 3 155
Text B 157
Passage 1 Warehouse Replenishment Time 157
Passage 2 Distribution Ideas in a Changing Market 158
Passage 3 Transportation：A Part of the Distribution System 162
Unit 6 Changing Channels in Logistics 166
Text A 166
6.0 Introduction 166
6.1 Channel Classification 168
6.1.1 Channel Classification from Different Perspectives 168
6.1.2 Examples 169
6.1.3 Significance of the Classification 170
Exercises 1 171
6.2 Channel Functions of Exchange 173
6.3 The Exchange Network 176
6.4 Objective of Exchange Channels 178
Exercises 2 179
6.5 Distribution Channel Structure 181
6.5.1 Postponement 181
6.5.1.1 Postponement Principle 181
6.5.1.2 Postponement and the Shifting of Risk 181
6.5.2 Speculation 182
6.5.3 The Combined Principle 183
6.6 Conclusion 184
Exercises 3 185
Text B 186
Passage 1 The Concept of Substitutability 186
Passage 2 Distribution Channels in China 188
Passage 3 192
Unit 7 International Business Diplomacy 196
Text A 196
7.0 Overview 196
7.1 Needs and Alternatives for Fulfillment 197
7.1.1 Nature of Assets 197
7.1.2 Strengths of the Parties 198
7.1.3 Other External Pressure 198
7.2 Negotiations in International Business 199
7.2.1 Acceptance Zones 199
7.2.2 Provisions 201
Exercises 1 202
7.3 Home-Country Involvement in Asset Protection 204
7.3.1 The Historical Background 204
7.3.2 The Use of Bilateral Agreements 205
7.3.3 Home-Country Aid as a Weapon 206
7.4 Multilateral Settlements 207
7.5 Consortium Approaches 209
7.5.1 Arab Boycott 209
7.5.2 Codes of Control 211
Exercises 2 211
7.6 External Relations Approaches 215
7.6.1 The Need by Countries 215
7.6.2 Company Approaches 216
7.6.3 Allies through Participation 218
7.7 Protection of Intellectual Property Rights 220
7.7.1 Patents 221
7.7.2 Trademarks 222
Exercises 3 223
Text B 226
Passage 1 Company Bargaining Strength 226
Passage 2 Behavioral Characteristic Affecting Outcome 229
Unit 8 Export Strategy 233
Text A 233
8.0 Introduction 233
8.1 Factors Favoring Exportation 234
8.2 Building an Export Strategy 234
8.2.1 Potential Pitfalls 234
8.2.2 Strategy Design 235
Exercises 1 236
8.3 Export Functions and Facilitating Intermediaries 241
8.3.1 Direct Selling 241
8.3.2 Indirect Selling 242
8.3.3 Export Trading Companies 243
Exercises 2 244
8.3.4 Japanese Trading Companies 247
8.3.5 Foreign Freight Forwarders 250
8.4 Governmental Role in Exporting 251
8.4.1 Eximbank 251
Exercises 3 252
Text B 255
Passage 1 Pepsi Co In India 255
Passage 2 Black＆Decker 259
Unit 9 Human Resource Management 263
Text A 263
9.0 Overview 263
9.1 Foreign Managerial Transfers 264
9.1.1 Mobility 265
9.1.2 Technical Competence 265
9.1.3 Adaptiveness 266
9.1.4 Local Acceptance 267
Exercises 1 268
9.2 Management Recruitment and Selection 273
9.2.1 Adaptability Assessment 273
9.2.2 The Help of Local Companies 274
9.3 Labor Market Differences 274
9.3.1 Appropriate Technology 275
9.3.2 International Labor Mobility 276
9.3.3 Work-Force Stability Problem 276
9.3.4 Employment Adjustments 276
Exercises 2 277
9.4 Comparative Labor Relations 280
9.4.1 Sociopolitical Environment 281
9.4.2 Union Structure 282
9.4.3 Protection from Closures and Redundancy 282
9.4.4 Codetermination 283
Exercises 3 284
Text B 288
Passage 1 Dow's International Management Development 288
Passage 2 The Office Equipment Company 292
Unit 10 The American Business System 297
Text A 297
10.0 Introduction 297
10.1 Elements of American Business Enterprise System 297
10.1.1 Business：A Key Social Institution 298
10.1.2 Constitutional Democracy 299
Exercises 1 301
10.1.3 American Capitalism 302
Exercises 2 307
10.2 Economic Theories of Capitalism 308
10.2.1 Classical Theory 309
10.2.2 Keynesian Theory 310
Exercises 3 312
10.3 Basic American Values 314
10.3.1 Traditional Man 314
10.3.2 Economic Man 315
10.3.3 Social Man 315
Exercises 4 316
Text B 318
Passage 1 Business Responsibility 318
Passage 2 Forms of Business Ownership 322
Unit 11 Business＆You 327
Text A 327
11.0 Introduction 327
11.1 Factors to Consider in Career Planning 328
11.2 Aids to Occupational Selection 330
Exercises 1 331
11.3 Planning a Job Campaign 333
11.3.1 Sources of Information on Job Opportunities 333
11.3.2 Sources of Information on Prospective Employers 333
11.3.3 Writing the Letter of Application 334
Exercises 2 335
11.3.4 Preparing a Resume 336
11.3.5 Preparing for an Interview 337
Exercises 3 339
11.4 Distinctions between Small Businesses and Large Businesses 341
11.4.1 Differences in Marketing 341
11.4.2 Differences in Personnel 342
11.4.3 Differences in Production 343
11.4.4 Differences in Finance 344
Exercises 4 345
Text B 347
Passage 1 Franchising 347
Passage 2 Employment Opportunity 350