MindMap Gallery International Business Negotiation Chapter 7
Chapter 7 Risks in International Business Negotiations summarizes risk analysis, prediction and control, and avoidance methods. These risks may originate from many aspects and have a significant impact on the smooth progress and final results of negotiations.
Edited at 2024-10-10 10:45:12Dive into the world of the Chinese animated film Nezha 2: The Devil's Birth! This knowledge map, created with EdrawMind, provides a detailed analysis of main characters, symbolic elements, and their cultural significance, offering deep insights into the film's storytelling and design.
This is a mindmap about Nezha 2, exploring its political metaphors and cultural references. The diagram highlights the symbolism behind the Dragon Clan’s suppression, drawing parallels to modern geopolitical conflicts and propaganda manipulation. It also details Chinese historical and cultural elements embedded in the film, such as the Jade Void Palace, Ao Bing’s armor, Taiyi Zhenren’s magic weapon, and Nezha’s hairstyle.
This is a mindmap about the main characters of Nezha 2, detailing their backgrounds, conflicts, and symbolic meanings. It explores the personal struggles and transformations of Nezha, Ao Bing, Shen Gongbao, and Li Jing as they navigate themes of rebellion, duty, ambition, and sacrifice.
Dive into the world of the Chinese animated film Nezha 2: The Devil's Birth! This knowledge map, created with EdrawMind, provides a detailed analysis of main characters, symbolic elements, and their cultural significance, offering deep insights into the film's storytelling and design.
This is a mindmap about Nezha 2, exploring its political metaphors and cultural references. The diagram highlights the symbolism behind the Dragon Clan’s suppression, drawing parallels to modern geopolitical conflicts and propaganda manipulation. It also details Chinese historical and cultural elements embedded in the film, such as the Jade Void Palace, Ao Bing’s armor, Taiyi Zhenren’s magic weapon, and Nezha’s hairstyle.
This is a mindmap about the main characters of Nezha 2, detailing their backgrounds, conflicts, and symbolic meanings. It explores the personal struggles and transformations of Nezha, Ao Bing, Shen Gongbao, and Li Jing as they navigate themes of rebellion, duty, ambition, and sacrifice.
Seven risks
risk analysis
Non-personnel risks: uncontrollable and difficult to predict
political risk
natural risks
market risk
Exchange rate risk
Transaction settlement risk: The exchange rate between the signed contract and the actual transaction settlement is inconsistent
Foreign exchange trading risks: buying and selling foreign exchange domestic currency and foreign currency exchange
Accounting risks: different foreign currency bond recording and settlement exchange rates, book gains and losses
Interest rate risk: changes in commercial loan interest rates
Price risk: leaving aside the risk of exchange rates as foreign exchange prices and interest rates as funding prices
Contract risk
quality quantity risk
Delivery risks: including international cargo transportation and insurance
payment risk
Personnel risk
quality risk
Eager for success, impatient
Don't dare to take responsibility, don't know what to do
Willful and expressive
Lack of knowledge and lack of research
technology risk
Too much technology
Poor choice of partnership
obsessive demands
Communicate risks
Factors affecting the forward price of engineering equipment
raw material price
salary
Exchange rates and interest rates
Other political and economic changes at home and abroad
Anticipate and control
The connotation of risk control: does not mean the complete elimination of risks
Reduce the incidence and take control measures in advance
Reduce the degree of loss, control in advance and remedy afterward
Distinguish the nature of risk
Pure risk: only losses and no gains
Speculative risk: the possibility of profit and loss coexist
Risk avoidance measures
Complete avoidance: give up cooperation and stop business
Risk and loss control: reduce opportunities and losses
Transfer risk: transfer to a third party, insurance but not insurance
Retained risks: passive, active, unintentional or intentional, special funds
circumvention
Ask an expert
Insurance and credit guarantees: bid bonds, performance bonds, advance payment guarantees
Various technical means
Dealing with foreign exchange risks
Make foreign exchange risk disappear
balancing act
Single balance: specific transaction currency balance, consistent borrowing or borrowing consistent currency selection
Comprehensive Balance: A series of trading currency balances, multiple trades linked together to select currencies
RMB pricing method
barter law
Sharing foreign exchange risks: Currency hedging provisions
risk gain method
Correctly apply the time difference for foreign exchange settlement
Correct application of different denomination currencies
Prevent foreign exchange risks, cost interest rate, price increase range, foreign exchange settlement time, payment method
Dealing with interest rate risk
Utilize the interest rate futures market: futures contracts based on bond securities to avoid price changes due to bank interest rate fluctuations
Utilize forward transactions: a contract in which both parties agree to trade in accordance with the agreement for a certain period in the future
Using options trading: purchasing the right to sell a certain financial instrument at a fixed price within a specified time in the future at a small price in advance Buy options are also called call options
Dealing with price risk
Non-fixed price (live price): to be determined, tentative, partially fixed
price adjustment clause
Hedging
Selling period hedging: first establish a short trading position, and then close the long position
Buy period to maintain value
Improve the quality of negotiators
Well-informed, humble and eager to learn
In-depth and meticulous, strong insight, and multiple information channels create competition and choose the best.
Adhere to reasonable requirements and do not impose excessive conditions
Have a deep and clear understanding of the dialectical relationship between politics and economics
Factors to Consider in Obtaining Risk-Return
Analysis of exchange rate trends
position in negotiations
market competition
Four categories of options and futures
Commodity futures trading
Gold futures trading
Financial Instruments Futures Trading
Forex futures trading