＂ＢＥＣ高级全方位训练＂(2)

port or import transaction. From the very beginning to the end of the transaction, the whole operation generally undergoes four stages: preparing for exporting or importing, business negotiation, implementing the contract, and settlement of disputes(if any). Each stage covers some specific steps. Since the export and import trades are two sides of the same coin, and one country’s export is another country’s import, hence, we will take the procedures of export transaction in the following diagram to illustrate the general procedures of export and import transaction. Before proceeding to the following units, we’d better keep this general picture in mind. <?XML:NAMESPACE PREFIX = O />

The most difficult part of exporting is taking the first step. Any exporter who wants to sell his products in a foreign country or countries must first conduct a lot of market research. Market research is a process of conducting research into a specific market for a particular product. Export market research, in particular, is a study of a given market abroad to determine the needs of that market and the methods by which the products can be supplied. The exporter needs to know which foreign companies are likely to use his products or might be interested in marketing and distributing the products in their country. He must think whether there is a potential for making a profit. He must examine the market structures and general economic conditions in those places. If the economy is in a recession, the demand for all products is usually decreased. So the exporter’s products might not sell well at such times. Market research mainly covers:

1) Research on the countries or regions

Countries or regions with different political and economic systems hold quite different attitude toward foreign trade business. The exporter should investigate their political, financial and economic conditions; their policies, laws and regulations governing foreign trade, foreign exchange control. Customs tariffs and commercial practices; their foreign trade situation (the structure, quantity, volume of exporting and importing commodities, trading partners and trade restrictions,etc.)

2) Research on the market

A research should also be conducted about the production, consumption, price and its trend, the major importing or exporting countries of a particular commodity in order to fix the right price of exporting commodities and properly handle other business terms.

3) Research on the customer

In international trade, credit information is of greater importance than in home trade. The exporter should know what kind of reputation the buyer or importer has, the approximate size of his business, how he pays his accounts and information about his trade activities. Obviously, customers with sound reputation and good financial standing will facilitate the export trade. The exporter can obtain this information from various sources such as references given by the buyer, his bank, various trade associations and enquiry agencies. In this way, the potential customers can be identified.

In addition to conducting market research to collect information or data from external sources, the exporter can also take the initiative in marketing and promoting his products in the overseas market. The frequently adopted strategies are sales literature, point of sale advertising, packaging, sponsorship, showrooms, trade fair and exhibition, publicity, public relations,etc.

2. Business negotiationIf a foreign company is interested in buying the exporter’s products, negotiation should be organized. Business negotiation plays a very important role in the conclusion and implementation of a sale contract. It has a great bearing on the economic interest of the parties concerned.

No matter what way the negotiations are held, in general, they consist of the following links: enquiry, offer, counter-offer, acceptance and conclusion of sales contract. Among which offer and acceptance are two indispensable links for reaching an agreement and concluding a contract.

Enquiry

An enquiry is request for business information, such as price lists, catalogue, samples, and details about the goods or trade terms. It can be made by either the importer or the exporter. On receiving the enquiry, it is a regular practice that the exporter should reply to it without delay.

1) Offer and counter-offer

An offer is a proposal made by sellers to buyers in order to enter into a contract. In other words, it refers to trading terms put forward by offerers to offerees, on which the offerers are willing to conclude business with the offerers. There are two kinds of offers; one is the firm offer, the other, non-firm offer. A reply to an offer which purports to be an acceptance but contains additions, limitations or other modifications is a rejection of the offer and constitutes a counter offer.