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
An exporter wants to protect itself from currency fluctuation between contract signing and payment. Which negotiation strategy addresses this risk?
Answer: Include a currency adjustment clause or negotiate payment in USD
Including a currency adjustment clause or invoicing in a stable currency like USD protects the exporter from adverse exchange rate movements.
What is the 'good cop / bad cop' tactic in team negotiations, and what is the best counter?
Answer: One negotiator is friendly while another is demanding; counter by requesting to deal with only one representative
Recognizing the good cop/bad cop dynamic and insisting on a single consistent counterpart neutralizes the psychological pressure it creates.
A foreign buyer requests that the exporter agree to a most-favored-customer (MFC) clause. What does this mean for the exporter?
Answer: The exporter must offer this buyer pricing no worse than given to any other customer
An MFC clause requires the exporter to extend to this buyer any better terms or pricing offered to other customers, limiting pricing flexibility.
When an export negotiation involves a government buyer (public procurement), which factor most commonly differentiates success?
Answer: Compliance with local content requirements and thorough documentation of technical qualifications
Government procurement typically requires compliance with strict technical specifications, local content rules, and documentation requirements rather than purely the lowest bid.
Which closing technique creates urgency by highlighting that a price, availability, or term is only valid for a limited time?
Answer: Urgency or scarcity close
The urgency/scarcity close motivates the buyer to act quickly by emphasizing a genuine or perceived deadline or limited availability.
During closing, a buyer requests a warranty provision that the exporter considers too broad. The best negotiating response is to:
Answer: Counter with a narrowly defined warranty covering specific defects for a defined period
A narrowly defined warranty limits the exporter's liability exposure while demonstrating good faith and meeting the buyer's need for quality assurance.
What is the primary risk of making too many concessions too quickly during export price negotiations?
Answer: The buyer will assume the initial price was inflated and push for even larger discounts
Rapid concessions signal that your opening position had excessive margin, encouraging the buyer to keep pressing rather than closing the deal.