I would have just gave him my best price and moved on. A lot of the foreigners (I know from plenty of experience) are only going to pay so much anyways, and they are not going to be sucked into buying based on value vs price.
I deal with a lot of foreigners, many from my church. The rest of the world for the most part has their minds tuned a different way then ours in terms of paying for an item or service. I just give them a price, I don't break down parts or labor. If they like it fine, if they don't, oh well. You may have to knock a few bucks here and there to make the sale, but if a few bucks is going to make or break your business then there are more issues at hand.
They are in a pain in the neck to deal with, but they do seem big on referrals and send their family and friends. BTW most of the foreigners I deal with are Macedonians or Serbians. It doesn't matter Macedonian, Serbian, Arab or Indian, they all purchase the same and like to chip away at the price to feel like they are getting a deal. They are generally decent customers once you get a relationship they feel comfortable with going. A lot of them have more cash at hand to spend then you can imagine. They rarely finance anything, pay cash, and work a lot of deals so they are normally sitting on a good cushion of cash.