Preparation before foreign trade transactions

The main tasks to be completed during this phase are: market research and formulation.

(1) Market research

Market research in order to obtain a variety of information related to trade. Through the analysis of the information, the characteristics of the international market are derived, the feasibility of the trade is determined, and the trade plan is developed accordingly.

The scope and content of the market research include: economic research; market research; customer research.

1. Economic research

The purpose of economic research is to understand the overall economic situation, productivity development level, industrial structure characteristics, national macroeconomic policies, monetary system, economic laws and treaties, consumption levels and basic characteristics of a country or region. In short, it is a general understanding of the economic environment, estimating possible risks and benefits. Foreign trade must always be carried out between countries and regions with a good overall environment.

2. Market research

Market research is mainly aimed at a specific selected commodity, investigating its market supply and demand situation, domestic production capacity, technical level and cost of production, product performance, characteristics, consumption class and climax consumption period, and the product in the life cycle. Stage, competition in the product market and degree of monopoly. The purpose is to determine whether the trade in goods is feasible and beneficial.

3. Customer research

Customer research is about the basic situation of foreign manufacturers who want to establish trade relations with them. Including its history, fund size, business scope, organization, reputation level and other overall conditions, including its history and current status of foreign economic and trade relations with other customers around the world and with our customers. Only when you have a certain understanding of foreign manufacturers can you establish foreign trade relations with them. In the actual work of China's foreign trade, there are often incidents in which the other party's situation is unclear and the foreign trade transaction activities in a hurry have caused significant losses. Therefore, before the transaction negotiation, we must have full confidence in the funds and reputation of foreign customers, and we must not rush to seek success.

The main sources of research information are: (1) general information, such as the national economic aggregate data and information officially published by a country, including gross national product, international balance of payments, total foreign trade, inflation and unemployment. Wait. (2) Comprehensive publications at home and abroad. (3) Entrust a foreign consulting company to conduct a market survey. (4) Collecting data abroad through the branches of foreign trade companies and the Commercial Counselor of China. (5) Use the trade fair, various fairs and customers to come to China to do business opportunities to understand the relevant information. (6) Sending specialized export delegations, sales teams, etc. to conduct direct international market research and obtain information on the forehand.

(2) Formulating the plan

The formulation of the plan refers to the relevant import and export company making a business plan for the export commodities it operates according to the national policies and decrees. It is a prerequisite for a planned, well-going transaction. The export commodity management plan generally includes the following contents:

1. Domestic supply of goods

Such as the place of production, the main selling place, the main place of consumption; the characteristics, quality, specifications, packaging, price, output, and inventory of the goods.

2. Foreign market situation

Such as the market capacity, production, consumption, trade, the basic situation, the transaction situation of the main import and export countries, the trend of development and changes in the future, the requirements for product quality, specifications, packaging, performance, price, etc., the foreign market to operate the commodity Basic practices and sales channels.

3. Identify export areas and customers

Based on the research and information analysis of the former walking situation, choose the more favorable export areas and partners.

4. Operating history

For example, China's export commodities currently occupy a position in the international market, major sales regions and sales, major competitors, and major experiences and lessons in operating such commodities.

5. Business plan and measures

Such as sales quantity and amount, growth rate, trade method adopted, payment method, settlement method, sales channel, transportation mode, etc.

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