Reborn Industrial Tycoon

Chapter 589 Entrepreneurs must be moral

Naravani is worthy of being an Indian. He does not consider integrity when doing business. Even if he has signed a contract, he has no intention of abiding by it.

After Nanzhou Heavy Industry agreed to the quotation of US$60 million, Naravani had no intention of actually fulfilling the contract, but wanted to make a profit by asking for prices from both parties.

This is how doing business with Indians is. Just signing a contract is not safe. If you don't get the money, there will always be variables.

That afternoon, Li Weidong received a call from Naravani.

"Then Lavanni invites us over." Li Weidong put down the phone and said with a gloomy face.

Ding Youliang noticed that Li Weidong was in a bad mood and asked: "Are there any changes to this order? Probably not, after all, the contract has been signed."

"Remember what I told you before, you have to be more careful when doing business with Indians. To be honest, I wouldn't be surprised if the Indians don't follow the contract."

Li Weidong sighed softly and continued: "The soldiers are coming to cover up the water and the soil. Let's go and see what is going on. I hope it is just this Nalavanni who wants to have a meal with us and connect us."

Li Weidong and Ding Youliang came to the hotel where Naravani lived, and then met Naravani.

After a brief exchange of pleasantries, Naravani said: "Mr. Li, I think the content of our previous contract should be slightly changed."

"Sure enough, there is something wrong with the order again." Li Weidong snorted coldly in his heart, and asked: "Mr. Lawani, how do you want to change it?"

"I think the current price is not suitable and should be changed again," Naravani said.

"Naravani thinks that the price of 70 million is still too expensive?" Li Weidong smiled slightly and continued; "I think Nalavani should have done market research before we signed the contract.

For products of the same specifications and quantity, other companies' quotations should not be less than 100 million US dollars. Our price is already the lowest, otherwise Mr. Naravani would not sign a contract with us, right?"

"The low price does not mean that I am satisfied with the price. I think there is still room for price reduction." Naravani said shamelessly.

Li Weidong shook his head and refused directly: "Mr. Nalawani, I don't agree with your view. US$70 million is already our bottom line, so I don't plan to lower the price any more."

"In this case, I am very sorry to tell you that this order has been cancelled! Anyway, I haven't paid yet, so there is no loss for us by canceling the order." Naravani said, picking up the coffee cup and leisurely

He took a sip and looked indifferent.

Li Weidong also knew that Naravani was just pretending, so he said: "Mr. Naravani, I want to remind you that we have signed a contract. Although you have not paid the deposit or payment, according to the contract

According to the regulations, if either party unilaterally cancels the contract, it will need to pay 10% of the transaction amount as liquidated damages, which is US$7 million!"

This order originally required full payment before shipment. The risks borne by Fukang Engineering were much lower, and the liquidated damages were not very high.

If Naravani breaches the contract, Li Weidong will receive the liquidated damages for free, so 10% of the liquidated damages can be considered a more reasonable figure.

Mentioning the liquidated damages of US$7 million, Naravani curled his lips and said: "Liquidated damages? Hahaha, what is that! There is no such word liquidated damages in my dictionary.

Mr. Li, you don’t naively think that if I violate the contract, I can get liquidated damages, right? I know, you may say that we can take legal action after we signed the contract.

So the question is, which country’s law is it? Is it our Indian law? Or is it your Chinese law? Or is it the law of the United Arab Emirates?

The latter two are like waste paper to me. I am an Indian, and the laws of China and the United Arab Emirates have no control over me! Even if your Chinese court pronounces a judgment and asks me to pay liquidated damages, what ability do you have to enforce it?

As for the laws in India, haha, you don’t think you can win against me in a lawsuit in India, do you? So don’t mention any contract to me, and don’t tell me any liquidated damages! Even if I breach the contract, you won’t get a penny.

Can’t get it!”

Naravani made it clear that he wanted to default on the debt, but Li Weidong really had nothing to do with this trick he resorted to.

As Naravani said, even if he breaches the contract, there is no means to sanction him. In international trade, this kind of default is inherently difficult to deal with, and basically only civil litigation can be relied upon.

However, litigation may not necessarily solve the problem. If the contract is signed in the host country, the situation is better.

For example, if you sell goods to a Japanese businessman and sign a contract in Japan, the transaction will take place in Japan. Once the Japanese businessman breaches the contract, Japanese law should protect the legitimate rights and interests of both parties to the transaction. At this time, it is appropriate to initiate a civil lawsuit in Japan.

It can have an enforcement effect on Japanese businessmen who breach the contract.

But if the transaction is concluded in a third country, it will be more difficult to take legal channels.

For example, in the matter of Naravani defaulting on his debt, if you initiate a lawsuit in India, you will definitely not win. How can the Indian court ask Naravani to pay money? Maybe in the end, Naravani will have to pay compensation.

.

If you initiate a lawsuit in the UAE where the transaction is located, even if you win, the UAE has no enforcement power. This is not a criminal case and the suspect can be extradited for trial.

If you initiate a lawsuit in China, you can win, but you will also face the problem of being unable to enforce it. The Chinese court can at most freeze Naravani's assets to pay off debts, but Naravani has no assets in China, so filing a lawsuit in China

A lawsuit is pointless.

In this kind of international trade, it is impossible to hold the state accountable, because whether it is purchasing or selling, the state does not directly come forward, but through intermediaries and agents.

For example, although this US$120 million purchase case is a budget approved by the Indian Congress and paid by the Indian state, the real person in charge is Naravani. If a dispute arises in the transaction, Naravani can only be held accountable.

At this level, it is impossible to cause trouble with the Indian Congress.

So as Naravani said, even if he really defaults on his debt, Li Weidong will not get a penny of liquidated damages.

In international trade, there are probably only Indians who are rogues like Naravani.

Looking around the world, businessmen in Germany and the United Kingdom have relatively good credit. People in these two countries are relatively old-fashioned, but they are indeed very rigorous in doing things. People with rigorous personalities are often more trustworthy.

Although Americans are overbearing, their reputation in business is still trustworthy. American buyers are generous with their money and very punctual. The only requirement is a discount.

Although Japan's reflection on World War II is not sincere, its business reputation is still quite good. At least in Asia, it is the country that sticks to its business reputation the most and will basically not default on its debts.

Nordic and Western European countries have a relatively long business tradition. They are characterized by strong legal awareness. Although they are more particular about details when signing contracts, they will still strictly abide by business commitments.

Although the tycoons in the Middle East are rich, they are also very smart. Businessmen in these countries like to inquire about prices everywhere and lower prices. Fortunately, they are never ambiguous when giving money.

Businessmen from Russia and Eastern Europe are relatively easy to deal with. After a few bottles of vodka, they are all "harrassed". The disadvantage is that they tend to be careless.

The situation in Africa is quite special. Some businessmen are just like Indians, cheating on samples and often defaulting on debts. However, some African businessmen are as trustworthy as Western Europeans.

This is mainly because Africa has been war-torn and uncertain for a long time, so there are large differences. Therefore, when Chinese businessmen go to Africa, some make a lot of money in Africa, while others lose all their money in Africa.

Return.

Within Asia, Southeast Asian businessmen are slightly better than Indian businessmen, but not much better. Debt debts, repudiations, fraud and other things often happen. You have to be careful when doing business with them.

Indian businessmen are of course the worst. They often cheat when doing business. They will pay honestly only when they can't be deceived.

It's just that this kind of business method is a one-shot deal. If you are deceived once, you will not join the party. So at the beginning when they didn't understand each other, Indians could still deceive customers. Later, everyone knew about it and began to have

If you are on guard, it will be difficult to deceive people.

For example, in the past few years, many Yiwu businessmen did not understand the tricks of Indians, and many were deceived. Now, if they are deceived by Indians again, they will only be stupid.

It is worth mentioning that Korean businessmen are definitely the most difficult customers in the world.

Korean businessmen are stingy, fickle, and only interested in profit. They are as good as women if they have breasts, and they don’t pay much attention to credibility, at least that’s how they treat China.

Anyone who does business with Koreans must have had the experience of being cheated. Moreover, the methods used by Koreans to deceive people are different from those of Indians. Indian businessmen cheat openly, while Korean businessmen cheat secretly when doing business with Koreans.

It's easy to fall into a trap if you're not careful.

It is said that it is easy to hide from open guns but hard to guard against hidden arrows. To deal with Indians, an anti-fraud guide is enough. To deal with Koreans, you have to be even more careful after downloading an anti-fraud APP.

…

Naravani's confident posture made Li Weidong doubtful, and he immediately fell into thinking.

"Something's wrong. I know that Indian businessmen don't care about credibility, but Lavanni probably doesn't want this business to go bad, right? After all, this transaction involves US$50 million in benefits!

If we don't accept this order, and he goes to Europeans, Americans or Japanese, the consulting fee will be at most 10 million US dollars, 10 million or 50 million US dollars, so Lavanni should know how to choose, right?

Unless there are other companies that can give him the same benefit, or give him more benefits, that’s why he dares to ask me to lower my price so confidently! It seems like I need to test him again.”

Thinking of this, Li Weidong pretended to give in and said, "Mr. Lavanni, since you think 70 million US dollars is too much, how much do you think is appropriate?"

"I think US$55 million is a relatively good price." Naravani said with a smile.

"Mr. Lavanni, don't waste our time. It doesn't make much sense to bargain now. You'd better give a sincere number!" Li Weidong spread his hands.

"Okay, 58 million US dollars, if you are willing to accept the order, then this order will be yours." Naravani put on a calm expression.

Li Weidong replied immediately without thinking: "I can't accept this price. Not only can I not accept it, but no company in the world can accept it. I believe no one will do business at a loss."

The reason why Li Weidong refused so simply was because he wanted to increase the pace of negotiations, making it easier to force out Naravani's trump card.

As expected, Naravani immediately said: "Mr. Li, don't be so absolute. Some companies have already given quotations of less than 60 million US dollars. If you want to get this order, you have to be better than them."

It’s cheaper! Otherwise, why should I choose you?”

Li Weidong knew that Naravani's words were half-truth and half-false. It was unlikely that a quotation lower than US$60,000 to 70,000 was possible, but it might be true that there were other companies grabbing orders at low prices.

In an instant, Li Weidong felt that his thinking was much clearer, and he had already made a judgment.

So Li Weidong said, "Mr. Naravani, the price of 58 million is too low. I need to go back and discuss it before I can give you an answer."

"No problem, I'm waiting for your good news!" Naravani showed a proud smile.

After sending Li Weidong to the elevator entrance again, and waiting for the elevator door to close, Naravani finally couldn't hide her joy and couldn't help but start dancing.

"I have known for a long time that this trick will work! When Fukang Engineering agreed to the price of 58 million, I immediately went to Nanzhou Heavy Industry to lower the price to 57 million, or even 56 million! Unknowingly, I made more money

I got four million dollars, I’m so smart!”

…

Before he even stepped out of the elevator, Ding Youliang couldn't help but said: "This Nalawani is really too much. He really dares to say 58 million US dollars. Why doesn't he grab it?"

"This is much easier than robbing. It used to be 70 million US dollars, but now it has dropped to 58 million. This is a price difference of 12 million. I can guarantee that if 12 million US dollars is presented to you, you may not be able to handle it.

"Li Weidong said.

Ding Youliang continued: "I think this Naravani is simply bluffing, and he is probably bluffing us. I don't believe there will be a bid lower than 60 million US dollars, which is not enough at all!

I have calculated before that for the products on the list, the price quoted by foreign companies must exceed 100 million U.S. dollars. If it is any lower, there will be no profit. For 60 million U.S. dollars, you can’t even buy half of the products on the list!"

Li Weidong nodded: "At a price of US$60 million, it is indeed impossible for those well-known leading companies to accept orders, but that does not mean that others will not accept orders."

"This is impossible. Even the second-tier construction machinery companies in Europe and Japan cannot accept this price. No one in the world can do such a low price except our Chinese companies!" Ding Youliang said firmly.

Li Weidong smiled slightly, did not speak, but gave Ding Youliang a meaningful look.

Ding Youliang realized something instantly, and he immediately asked: "You mean, it is our Chinese company that takes the order?"

"Have you finally guessed it?" Li Weidong continued: "When I heard the quotations from other companies, I guessed that it was probably one of our own who grabbed the order!"

"If that's the case, that's too unkind! Isn't it clear that the price is lowered to grab orders? At a price of 60 million U.S. dollars, there is no profit. At most, it is just a reduction in production, but it has caused us to lose a year.

Tens of millions of dollars! Which grandson did it?" Ding Youliang yelled angrily.

Li Weidong said: "It is meaningless to find out who did it now. If people dare to come to grab the order, it means they don't care about us at all! Furthermore, in business matters, interests come first, how can there be no kindness?

Kind."

"But this is our order! They are all Chinese companies. It's just that they can't get the order themselves. Instead, they come to grab ours and lower the price to get the order. How is this different from traitors and traitors!" Ding Youliang said with a look on his face.

Said angrily.

"They just sold us, not to the point of betraying the country." Li Weidong continued; "Old Ding, don't be angry. You didn't do much international trade before. You haven't seen much of this kind of thing. I have no less experience."

This kind of thing.

I made my fortune by selling goods at the Canton Fair. You must have heard of this, right? The first product I got at the Canton Fair that year was a car seat cushion. This product was also successfully sold to the United States.

As a result, in the second year, dozens of people selling car seat cushions popped up, not only from other provinces, but also from companies in our own province, and they severely lowered the prices of each other. In the end, in order to make an order

Business, even selling goods at a loss, gave those foreigners an advantage in vain.

So don’t feel aggrieved when encountering this kind of thing, it’s just because we are not good enough and can’t come up with unique products. Since the product can be replaced, it gives other companies the opportunity to grab orders.”

Ding Youliang pondered for a moment and then said: "Chairman, let's go to Director Zhou for help! If we lose a thousand dollars in foreign exchange at once, the foreign trade side will definitely not be indifferent. Let Zhou Qianjie take the lead, which should prevent others from grabbing orders.

."

Li Weidong shook his head: "Let's not mention that we don't know who is grabbing the order. Just talking about this matter, they used commercial means such as price reduction. Since it is a commercial means, it should be solved by commercial means.

If we use administrative means, we will not follow martial ethics, and we will win without force. If word spreads, we will become the destroyers of order and the party that has lost morality."

"Didn't you say before that there is no such thing as kindness in business?" Ding Youliang asked rhetorically.

Li Weidong answered: "Business behavior is based on interests. Enterprises do not need to be moral, but entrepreneurs must be moral. As an entrepreneur, I can formulate systems, but I can never break the order!"

"

"You can make a system, but you can't break the order?" Ding Youliang repeated this sentence, and then he sighed: "When I was at the heavy machinery factory, I lost to you every time. Now it seems that I lost unjustly!

"

"Okay, no need to put a high hat on me. Our first task now is to get back every penny of this 70 million US dollar order." Li Weidong said.

"So you have already thought of a way?" Ding Youliang continued; "I saw that you were not angry at all, so I guessed that you must have an idea to deal with the person who lowered the price to grab the order!"

Li Weidong chuckled and said, "There is a saying that there is strength in numbers, even rogues are afraid!"

Ding Youliang blinked his eyes inexplicably: "The next sentence is that more people are more powerful, isn't it more firewood and more flames? I shouted this slogan every day when I was young."

Li Weidong responded: "What we have to deal with now is a rogue enterprise."

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