Buy or Sell in Making Essay

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The buyer has a total of $115 worth of currency, $100 in dollars and $15 in local. The buyer is getting a deal no matter what, but will want to bring the price down a bit.

The seller is also getting a deal no matter what, since the cost of a jacket is $30 or 200,000 local. From the seller's perspective, a discount is required to sell in local currency, as hard currency has more stable value. The buyer likely also prefers to use hard currency, rather than losing on the currency exchange. There is room for both to find common, profitable ground. The seller will find other customers and would therefore not accept less than 300,000.

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The common ground for a deal is massive, there should be no problems.

Role Playing: Supplier Decision

The supplier wants the volume. You do not need the volume. There are holding costs associated with the inventory, not to mention having all that unsold inventory around. These costs must be weighed against the overtime incurred when the existing supplier is late. The BATNA is to stay with the existing supplier. The new supplier needs to come down on the volume, but retaining the discount. Do not buy anything on the seller's terms here, because the deal they are offering is poor. We don't know the….....

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