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AFrenchtradingcompanydecidestoimportthesensortap,fromChina.MrsunoftheChinaImportandExportCorporationholdsatalkwithMrHenriDurand,agentofaFrenchcompany.Sceneone:TelephoneInquiriesSun:Hello,Yocosscompany,what,scanIdoforyou?Duu:Hello,IfindyourcompanyinAlibaba,andIwanttobuyonesampleoftheSensortap,what’sthepriceofthemodelC721B?Sun:Ok,thepriceisUSD100ofthatmodel,andalsoI'dliketosendsomedetailsofthismodeltoyou,mayIhaveyouremail?Scenetwo:ArrangevisitscheduleSun:It’sapleasuretomeetyou,MrDuu.Duu:Gladtomeetyoutoo.Sun:WehavecometomakesurethatyourstayinBeijingisapleasantone..Duu:Why,thankyou.You’ergoingoutofyourwayforus,Ibelieve.Sun:Notatall.Afterall,itsyourfirsttriphereandwedlikeyoutofeelathome.Ifthere’sanythingspecialyoucanalwaystellus.Duu:Thankyou.Theroomserviehereisquitegoodandwelikethefood.Sun:I’mgladyoufindthehotelservicesatisfactory.Duu:Yes,Ido.Wereyouthinkingofanyparticularplaceyuwantedtotakeusto?Sun:Well,wehadtheSummerPalaceinmind.Duu:ThesummerresidenceoftheEmpressDowager?Thatwouldbenice.Eesveheardsomuchaboutit.Howaboutit.Sun:Well,solongasweknowwhateachothersrequirementsareandwedontgetboggeddownondetails.I’msurethetalkswillprogressasplanned.Duu:Well,forourpart,we’lldoourbesttomakeeverythingsmoothsailing.Sun:Thankyou.Ofallgoeswellwe’llbeabletowindupourtalksthedayaftertomorrow.Duu:Ihopeso.Anywaywe’lldoourbest.Scenethree:PricediscussionDuu:I’mgladtohavetheopportunityofwistingyourcorporation.Ihopewecandobusinesstogether.Sun:It’sagreatpleasuretomeetyou,MrDuu.Ibelieveyouhaveseenourexhibitsintheshowroom.Whatisitinparticularyou’reinterestedin?Duu:I’minterestedinthesensortapofthemodelC721B.I’veseentheexhibitsandstudiedyourcatalogues.IthinksomeoftheitemswillfindareadymarketinFrench.Here’salistofrequirements.]'dliketohaveyourlowestquotations.Sun:Thankyouforyourinquiry.Wouldyoutelluswhatquantityyourequiresothatwecanworkouttheoffers.Duu:I'lldothat.Meanwhile,couldyougivemeanindicationoftheprice.Sun:HereareourCIFprice.Allthepricesinthelistsaresubjecttoourconfirmation.Duu:Whataboutthecommission?FromEuropeansuppliersIusuallygeta3to5percentCommissionformyimports.It’sthegeneralpractice.Sun:Asarulewedonotallowanycommission.Butiftheorderisasizableone,we’llconsiderit.Duu:Yousee,Idobusinessonacommissionbasis.Acommissiononyourpricewouldmakeiteasierformetopromotesales.Even2or3percentwouldhelp.Sun:We’lldiscussthiswhenyouplaceyourorderwithus.WhenshallIhearfromyou?Duu:Ok.NextFriday.Duu:I’vecomeaboutyourofferforbristles.Weintendto1000dozensensortaps.Sun:IhavehereourpricesheetonanFOBbasis.Thepricesaregivenwithoutengagement.Duu:Good.Ifyou’llexcuseme,I’llgooverthesheetrightnow.Sun:Takeyourtime,please.Duu:Icantellyouataglancethatyourpricesaremuchtoohigh.Sun:Thisisourrock-bottomprice,MrDuu.Wecantmakeanyfurtherconcessions.Duu:Ifthat’sthecase,there’snotmuchpointinfurtherdiscussion.Wemightaswellcallthewholedealoff.Sun:WhatImeanisthatw’ellneverbeabletocomedowntoyourprice.Thegapistoogreat.Duu:Ithinkitunwiseforeitherofustoinsistonhisownprice.Howaboutmeetingeachotherhalfwayandeachmakesafurtherconcessionsothatbusinesscanbeconcleded?Sun:Whatisyourproposal?Duu:Yourunitpriceis100dollarshigherthanwecanaccept.WhenIsuggestedwemeeteachotherhalfway,Imiantitliterally.Sun:Doyoumeantosuggestthatwehavetomakeafurtherreductionof50dollarsinourprice?That’simpossible!Duu:Whatwouldyousuggest?Sun:Thebestwecandowillbeareductionofanother30dollars.That’lldefinitelyberockbottom.Duu:Thatstillleavesagapof20dollarstobecobered.Let’smeeteachotherhalfwayoncemore,thenthegapwillbeclosedandourbusinesscompleted.Sun:Youcertainlyhaveawayoftalkingmeintoit.Allright,Let’smeethalfwayagain.Ok,USD60perFOBDalian,1000dozenintotal.Duu:I’mgladwe’vecometoanagreementonprice.SceneFour:PaymentanddeliveryDuu:Well,we’vesettledthequestionofprice,qualityandquantity.Nowwhataboutthetermsofpayment?Sun:Weonlyacceptpaymentbyirrevocableletterofcreditpayableagainstshippingdocuments.Duu:Isee.CouldyoumakeanexceptionandacceptD/AorD/P?Sun:I’mafraidnot.Weinsistonaletterofcredit.Dun:Totellyoufrankly,aletterofcreditwouldincreasethecostofmyimport.Whenlopenaletterofcreditwithabank,Ihavetopayadeposit.That’lltieupmymoneyandaddtomycost.Sun;Consultyourbankandseeiftheywillreducetherequireddeposittoaminimum.Dun:Still,therewillbebankchargesinconnectionwiththecredit.ItwouldhelpmegreatlyifyouwouldacceptD/AorD/P.Youcandrawonmejustasoftherewerealetterofcredit.Itmakesnogreatdifferencetoyou,butitdoestome.Sun:Well,MrDuu,youmustbeawarethatanirrevocableletterofcreditgivestheexportertheadditionalprotectionofthebanker’sguarantee.WealwaysrequireL/Cforourexports.Andtheotherwayround,wepaybyL/Cforourimports.Duu:Tomeetyouhalf-wayy,whatdoyousayto50%byL/CandthebalancebyD/P.Snu:I’msorry,MrDuu.AsI’vesaid,werequirepaymentbyL/C.Duu:OK.Weaccepted.Duu:Well,MrSun,we’vesettledeverythinginconnectionwiththistransactionexceptthequestionofpaymentinRenminbi.Now,canyouexplaintomehowtomakepaymentinRenminbi?Sun:ManyofourfriendsinEngland,France,Switzerland,ItalyandGermanyarepayingforourexportsinChinesecurrency.Itisquiteeasy.Duu:Iknowsomeofthemaredoingthat.Butthisisnewtome.I’venevermadepaymentinRenminbibefore.Itisconvenienttomakepaymentinpoundssterling,butImayhavesomedifficultyinmakingpaymentinRenminbi.Sun:ManybanksinEuropenowcarryaccountsinRenminbiwiththeBankofChina,Beijing.TheyareinapositiontoopenlettersofcreditandeffectpaymentinRenminbi.Consultyourbanksandyou’llseethattheyarereadytoofferyouthisservice.Duu:DoyoumeantosaythatIcanopenaletterofcreditinRenminbiwithabankinParis.Sun:Sureyoucan.SeveralofthebanksinParis,suchastheBankofChina,theNationalWestminsterBankandsoon,areinapositiontoopenlettersofcreditinRenminbi.They’lldosoagainstoursalesconfirmationorcontract.Duu:Isee.I’llgladwehavesettledthetermsofpayment.Bytheway.whendoIhavetoopentheL/CifIwantthegoodstobedeliveredinSeptember.Sun:Amonthbeforethetimeyouwantthegoodstobedelivered.Duu:IsitpossibletoeffectshipmentduringSeptember?Sun:Idon’tthinkwecan.Duu:Thenwhenistheearliestwecanexpectshipment?Sun:BythemiddleofOctober,Ithink.Duu:That’stoolate.Yousee,Novemberistheseasonforthiscommodityinourmarket,andourCustomsformalitiesarerathercomplicated.Sun:Iunderstand.Duu:Besides,theflowthroughthemarketingchannelsandtheredtapeinvolvedtakeatleastacoupleofweeks.Thus,aftershipmentitwillbefourtofiveweeksaltogetherbeforethegoodscanreachourretailers.ThegoodsmustthereforebeshippedbeforeOctober,otherwisewewon’tbeintimeforthesellingseason.Sun:Butourfactoriesarefullycommittedforthethirdquarter.Infact,manyofourclientsareplacingordersfordeliveryinthefourthquarter.Duu:MrSun,youcertainlyrealizethatthetimeofdeliveryisamatterofgreatimportancetous.Ifweplaceourgoodsonthemarketatatimewhenallotherimportershavealreadysoldtheirgoodsat[rpfotab;eprices,weshallloseout.Sun:Iseeyourpoint.However,wehavedonemorebusinessthisyearthananyofthepreviousyears.I’mverysorrytosaythatwecannotadvancethetimeofdelivery.Duu:That’stoobad,butIdohopeyouwillgiveourrequestyourspeciaconsideration.Sun:Youmaytakeitfrommethatthelastthingwewanttodoistodisappointacustomer.Butthefactremainsthatourmanufacturershaveaheavybacklogontheirhands.Duu:Couldyoupossiblyeffectshipmentmorepromptly?Sun:Gettingthegoodsready,makingoutthedocumentsandbookingtheshippingspace—allthistakestime,youknow.Youcannotexpectustomakedeliveryinlessthanamonth.Duu:Verywell,MrSun.I’llnotreducemyorder.I’llnotreducemyorder.I’lltakethefullquantityyouoffer.AndI’llarrangefortheL/CtobeopenedinyourfavourassoonasIgethome.Sun:Whenwillthatbe?Duu:Earlynextmonth.Inthemeantime,Ishouldbeverypleasedifyouwouldgeteverythingready.IhopethatthegoodscanbedispatchedpromptlyafteyrougetmyL/C.What’syourlastwordastothedatethen?Sun:IsaidbythemiddleofOctober.Thisisthebestwecanpromise.Duu:Allright.I’lltakeyouatyourword.MayIsuggestthatyouputdowninthecontract”shipmentonOctober15orearlier?OurletterofvreditwillbeopenedearlyOctober.Sun:Good.Let’scallitadeal.We’lldoourbesttoadvancetheshipmenttoSeptember.Thechancesarethatsomeoftheotherordersmaybecancelled.Butofcourseyoucannotcountonthat.Inanycase,we’llletyouknowbycable.Duu:That’sveryconsiderateofyou.Sun:Youcanrestassuredofthat.We’llbookyourorderandinquirefortheshippingspacenowsothatshipmentcanbeeffectedwithintwoofthreeweeksofreceivingofyourL/C.Duu:That’llbefine.Iappreciateyourcooperation.Sun:Verygood.Well,thankstoyourcooperation.Ourdiscussionhasbeenverypleasantandfruitful.Isincerelyhopethatthevolumeoftradebetweenuswillbeevengreaterinthefuture.Duu:Naturally.Nowthateverythingissettled,letshaveacupoftea,andgetourmindsoffbusinessforachange.Scenefive:InsuranceDuu:Now,shallwediscusstheinsuranceterms?Sun:WegenerallyinsureW.A.onaCIFoffer.Specialrisks,suchasTPND,leakage,breakage,oil,freshwater,etc.,canalsobecovereduponrequest.Duu:Isupposetheadditionalpremiumforthespecialcoverageisforthebuyersaccount.Sun:Quiteright.Accordingtotheusualpracticeininternationaltrade,specialrisksarenotcoveredunlessthebuyerasksforthem.Duu:ThenwhataboutSRCC?Canwerequestyoutocoverthisforourimports?Sun:Yes,weacceptitnowafterithasbeensuspendedformanyyears.However,ifyouwanttohaveitcoveredforyourimportsatyourend,youmayarrangetheinsuranceasyoulike.Duu:ThenpleasecoverW.P.A.andTPNDforthistransaction.Sun:Allright.Scenesix:AcceptanceSun:PaymentbyL/C,tobeopenedbythebuyer15to20dayspriortothedateofdelivery.Tha

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