1、The Procedure of Intl Trade,Market research Biz connection Enquiry/Inquiry firm offer Offer /Quotation non-firm offer Counter-offer,Market research + Business connections,offer,accept,Counter,Contract,Goods ready Shipment Inspection Declaration Covering Insurance Payment And others,No,pre-contract,N
2、egotiating and contract signing,Contract-implementing,The process and procedure of intl trade,Mkt research: Feasibility Study,An enterprise which decides to go into export will first engage in an exploration of the opportunities which its products have in the markets to which it wishes to export. He
3、 may visit the overseas markets himself or send representatives to make marketing surveys He may receive direct enquires from importing companies abroad and may also be contacted by overseas customers who may have obtained the name and address from advertisements in the newspapers or by other means,
4、1)the exporter should have free access to various sources of trade information. 2) the exporter should learn the cultural and social background of his target markets. 3) the exporter should know the relevant government regulations and political risks.,Letter Writing (biz connection),“To make a deal”
5、 is considered most important principle in doing business and only through deals can the businessmen have the chance to make profits. Sellers and buyers have to keep close contact with each other in order to succeed in making deals. Just as a factory requires a complete set of machinery to proceed w
6、ith production, so does a foreign trade firm need extensive business connections to maintain or expand its biz activities. Therefore, the establishment of biz relations is one of the important undertakings in the field of foreign trade.,Structure/pattern of the letters of this kind Three Steps,1. St
7、atements informing the addressee how his title and address is known . If a new firm wishes to open up a mkt to sell sth or to buy sth from firms in foreign countries, the person in charge must first of all find out whom he is going to deal with. The following information sources may be available to
8、him: e.g., Banks, Chamber of Commerce, Internet, etc. Having obtained the desired names and addresses of the firms of any of the above sources, he may try to make correspondence to the people concerned by writing fax, email, letters or make phone calls.,Introduce to him the writers business scope, e
9、mphasizing the excellent position the writer is in and inviting the addressee to share these advantages and cooperate for the mutual benefits. Make a proposal for future cooperation.,Specimen letters,Sample study p.18, p.19, pp.26-27,An up-to-date sample letter for biz connection,Our mkt survey info
10、rms us that you are interested in the import of - commodity. As it happens this commodity exactly falls in our biz scope and we are in an excellent position to furnish you with commodities of this kind, we hereby take the liberty to contact you with a hope to establish biz connection with your estee
11、med co.For more information, pls visit our website at http:/,3 Cs principles, p.1,How to write properly and correctly BNC http:/www.collins.co.uk/Corpus/CorpusSearch.aspx,Where to locate the potential customers?, Users Name: Intltrade07 Code: 070707,Homework,Read Unit 2 Establishing biz relations Se
12、t up your own company with you as its head and write a letter to introduce your company briefly to the businessman appointed.,Unit 3 Status Enquiries,Written communications in which traders request information concerning the financial position, credit, reputation, and biz methods of other firm. Such
13、 information is normally obtained via a third party (bank, chamber of commerce,friends, etc.),Unit 4 Enquiries and Replies,Term Study Enquiry/Inquiry Bid Offer /Quotationfirm offer vs non-firm offer Counter-offer,In foreign trade, enquiries are usually made by the buyers without engagement to get in
14、formation about the goods to be ordered，such as quality，quantity，price，delivery date and other terms.The enquiry made by the buyer is also called invitation to make an offer. For example，a foreign customer may make an enquiry by fax or email to our company.,1. Enquiry,Enquiry,Example: http:/ http:/
15、http:/ What are the essential components in an enquiry?,Sample letters pp.43-44,2. Offer,defined as “an expression of willingness to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed“ In international trade
16、 practices，there are two kinds of offers:firm offer non-firm offer,A firm offer is a promise to sell goods at a stated price，usually within a stated period of time. A non-firm offer is an offer without engagement. In most cases，the contents of a non-firm offer are not clear and definite，the main ter
17、ms and conditions are not complete.,Non-firm Offer,subject to our final confirmation以我方最后确认为准We are now making you an offer subject to our final confirmation.,Common Expressions,现报盘如下，以我方确认为有效。,Non-firm Offer,without engagement 此报盘无约束力We are now making you the following offer without engagement.,现报盘
18、如下，此报盘无约束力。,Non-firm Offer,subject to the goods being unsold 以货物未被售出为准We are now making you a special offer subject to the goods being unsold.,我方向你方报特惠盘，以货物未被售出为准。,Non-firm Offer,subject to prior sale 以先售为准We are now making an offer for air-conditioners as follows, subject to prior sale.,我方现报空调盘如下，以
19、先售为准。,Return,Firm offer,1. We are now making you a firm offer for 10 metric tons of rice.2. We are now offering you firm as follows,现为你方报10公吨大米实盘。,现为你方报实盘如下。,Return,Firm offers validity,1.We make you the following offer subject to your reply within 10 days.,现报盘如下，以你方在10日之内回复为有效。,Firm offers validity
20、,2. We make you an offer, subject to your reply reaching us not later than noon time October 21 Beijing time.,现报盘如下，以你方在北京时间10月21日中午前回复为有效。,Firm offers validity,3. The offer is valid for 3 days.4. The offer is valid till March 15.,此报盘有效期为三天。,此报盘在3月15日以前有效。,Return,Translation drills,现报1000打毛巾(towel)如
21、下,以我方最后确认为准. 上述报盘以我方最后确认为有效。,We make the following offer for 1000 dozen towels subject to our final confirmation.,The above offer is subject to our final confirmation.,The content of an offer,Study offer samples (p.113,138) and find out what components are essential in offer?,An Offer Sample,Re: Off
22、er 120MT Silicon Carbide Dear Sir, Thank you for your kind enquiry dated Nov.8,2008, and in accordance with your request, we hereby make an offer as follows: Commodity: China-made Silicon Carbide Specs: Sic: 90% min Fe: 0.8% maxMoisture: 10% max,Packing: in p.p. bags of about one metric ton each, gr
23、oss for nett. Quantity: About120MT Price: USD500 per metric ton CFR Yokohoma on the 20 FCL basis Payment: by L/C at sight Shipment: within two weeks after the receipt of the L/C. This offer is subject to our final confirmation.It is sincerely hoped that you will take our offer into kind consideratio
24、n. Sincerely Yours,Price Terms （Trade Terms）,- used to divide the liabilities and costs between the sellers and the buyers. -A price term is invaluable and a cost-saving tool. The exporter and the importer need not undergo a lengthy negotiation about the conditions of each transaction. Once they hav
25、e agreed on a commercial term like FOB, they can sell and buy at FOB without discussing who will be responsible for the freight, cargo insurance, and other costs and risks.,The INCOTERMS 2000 (International Commercial Terms),国际贸易术语解释通则 The INCOTERMS is a universally recognized set of definitions of
26、international trade terms, such as FOB, CFR and CIF, developed by the International Chamber of Commerce (ICC) in Paris, France.,A History of The Incoterms,The INCOTERMS was first published in 1936-INCOTERMS 1936-and it is revised periodically to keep up with changes in the international trade needs.
27、 The complete definition of each term is available from the current publication-INCOTERMS 2000. Many importers and exporters worldwide are accustomed to and may still use the INCOTERMS 1980, the predecessor of INCOTERMS 1990 and INCOTERMS 2000.,Quotations, Offers n Counter-offers,Review Sample lette
28、rs Proforma Invoice,Review,Translate some terms we have learned: 询盘、报盘、递盘 This offer is subject to our final confirmation. Six key components of the foreign trade? Trade/Price terms: FOB CFR CIF TOTAL VALUE：US8000(SAY US DOLLARS EIGHT THOUSAND ONLY),PP.112-115,Response made by Abdullah Samih & Co. to China National I/E Corp. (p.113)New words or phrases: *margin of profit = profit margin *to conclude transactions with sb *to make some allowance/discount *to have no alternative but to do.,Proforma Invoice,Definition n features: p.52 Sample p.53,
