Answer Key

Negotiation Vocabulary

1. When both sides/parties benefit in a deal/agreement, is a    WIN-WIN

2. Another word for an agreement, is    DEAL
3. When two companies reach an agreement by making concessions, they make a
COMPROMISE
4. When you get less of one thing in order to get more of another, it is called a TRADE-
OFF
5. The name of a negotiation strategy where both sides make compromises/concessions, is
GIVE AND TAKE
6. A very formal word to call the 'groups' and 'sides' in a negotiation, is PARTIES
7. Another way to say 'convince', is PERSUADE
8. When one side benefits a lot more than the other in a deal, is a negotiation strategy called 
ZERO-SUM GAME

Negotiation Approaches
1. Integrative
2. Integrative
3. Distributive
4. Integrative
5. Distributive

Negotiation Scenarios

1. Flexibility on the initial setting-up fee in exchange for slightly higher monthly fees. In other
words, she is accepting the principle of flexibility, without mentioning specific details.
2. Because the franchisor’s agreement (I think that’s fair enough) is rather vague. If in doubt, get
clarification.
3. The franchisee is worried about being able to make a living if the franchise fails. The
franchisor is worried about giving away all his secrets and then watching her set up in
competition over the road.
4. The franchisee uses phrases like ‘possibly slightly more’ and ‘say’ to show that the figures are
just examples. The franchisor also uses the word ‘say’, and the expression “We might be able to
show some flexibility …, but I was thinking more in terms of …”
5. He says “I’m afraid 1km is totally out of the question”.
6. She thinks it has already been fixed.
7. The franchisor, who first hints at the possibility of the negotiation failing, but tries to make it
seem as if the franchisee is considering walking away. In fact, the franchisee is simply stating
what she cannot accept.
8. By taking a time-out to think about it.
9. I’ve given it some thought. I was wondering whether we could do something like this …
10. We might be able to work out something like that; Sounds good.
11. He wants to get confirmation of all the details first.
12. To make her feel positive about her performance, and therefore the negotiation as a whole.
This will help build their long term relationship.

Negotiation Process
1-b   2-c   3-a   4-e 5-f   6-d

Grammar: If Clauses

1. Unless you accept the price, we will not sign the contract.
2. I’d consider giving you a discount if you paid in advance.
3. If you provided us with some leverage, we’d reconsider the deal.
4. If you suggested an alternative I would be pleased to consider it.
5. Providing that you increase your order by 10%, we’ll give you a discount.