United States and China had been seemingly a stable economic partner since years ago. Trades were often made between these two big countries hence China became the third economic partner of US. And also became second in terms of exports to the US. On the other hand, exports were also given to Chin. It is simply stated that China and US were mutual in economic relations.
In the Case of Microwavable Frozen Foods that we wish to export to China. The goal is to have great trade by having great facilitation on the trade that will be occurring between China and US on the exports to be presented by China(Richelson). There is really the need of understanding the wellness of good trade facilitation as well as the neediness of the good for the target company.
A good must be considered really consumable for the consumers of the company. A good trade facilitation would lead efficiently to the smoothly flow of the transactions as well as simplifying the process, documentation and information to be held during the transactions. Smooth flow of transaction may lead to lessen burdens especially with the cost of business trade and great security and control. Being an international trade, during the transaction there must be some factors to be considered the contract to be made regarding the border and custom issues and transport services.
When dealing with international trade, awareness to the business transaction made is a great factor to have high performance in the business world(My Own Business). In the export of microwavable frozen foods, we should consider the type of product that we wish to present to our trade partner by ensuring a highly rated product to achieve mutual pleasures between your partner and the exporter yourself.
Contracts should be also one of the necessary materials in doing international transactions even only locally. A contract can ensure that your goods will be at good or it is naturally needed for the development on good partnership. Indeed, contacts are capable for the mistakes that would possibly do during the transaction and trade. With contracts, trade partner were both attain benefits especially during fault and blunder for the transactions. With contacts, both parties are well secured for the deal and companies as well be secured.
When dealing only with the company for the transaction to be made, there is also the need to understand and to be aware of the country’s laws for any exports to be received by the company within the country. It is the responsibility as a exporter to perceive all necessary transaction procedures to be made.
The exportation must be guided according to the Border and Customs ruling of China where our business partner was located(McIntyre). This method of knowing more about borders and custom rulings will improve the efficiency of the trade as well as run smoothly due to conformity to the rule. There was also sometimes that before making the transaction, there is a need for the presence of any business related offices as well as security offices for the importing country to manage the trade simultaneously and secured.
Regarding with this, the paper document as well as the good must be presented first to the clients together with their business lawyers for the preparation of good del and agreement to be held in the near future. With the help of each lawyers of both parties, deal and agreements will be efficiently be made and completed. Prior to the aid of lawyers, the risks of ignorance to the deal and agreement will be merely obliterated.
Financing the exportations of goods was truly beneficial as well as other requirements such as contract and agreement. Any financing requirement must be fulfilled eagerly for the progress for the progress of the transactions(Co.). Because making a great transaction is relevant for the payment of your exported Goods. Cost of good also should be considered, because the target company was not only making agreement with one exporting company.
Attractive and competitive pricing of Goods should be recognized as looking for the business as a competitive one. Because they were not only dealing with us, we must consider other rivals pricing or cost of good to be able to cope up with the competition in the world of business most likely in the world of exportations. As a response to other goods prices, we can offer credits and extend their payment dues and this will enable our transaction that would take place in place of other exporters.
Regarding with the international trade there still one important thing that should be discussed; this is the American Depository receipt or ADR. This is simply known to be non other than share of stocks acquired by non US companies for their trade with US Company(Kamlet and Regnery). This is an efficient way of handling trade of non US Company with us because they can acquire share of stocks that can be invested when any trade was made between our company and theirs. This is a great help to them if they wishes to stock trade in any US stock exchange.
Being an exporting company, these were truly considerable facts and details that we be looking upon when dealing with our clients especially in abroad. Having knowledge with these things would remarkably a great sense of competition that would further be accomplished. Paying attention to the client’s yearning and yearning would be capable for us to manifest a good business performance alongside with other big companies surrounding us. Preparing for these activities such as trading would not be as tough if we consider all the things of factors of a good and competitive business and also it will help lessen any risks for any transactions to be made.
Co., Unz &. “Financing Export Transactions.” 1999.
Kamlet, Art, and George Regnery. “Stocks – American Depositary Receipts.” (2002).
McIntyre, Doug. “Investing in China.” (2007).
My Own Business, Inc. “International Trade.” 2007.
Richelson, Jeffrey T. “China and the United States: From Hostility to Engagement, 1960-1998 ” (1999).