unit 4 Establishing Trade Relations.pptVIP

UNIT 4 Establishing Business Relations I. Introduction 1. Importance of Establishing Trade Relations The establishment of business relations is the first step for a company to start or expand its business, because transaction can only be made after the business connections have been set up. In fact, establishing business relations is determining the trade partner. The success of the trade depends on the correct choose of the trade partner. A company can secure the necessary information about a prospective trade partner through the following channels: (1) the introduction from its subsidiaries, branches, or agents abroad; (2) the recommendation from its business connections; (3) the advertisements or information from television, broadcasting, newspaper, magazine and the Internet; (4) the market survey; (5) self-introduction or enquiries received from the merchants abroad; (6) the banks; (7) the Commercial Counselor’s Offices in the embassies in various countries; (8) the Chambers of Commerce both at home and abroad; (9) visit abroad by trade delegations; (10) attendance at trade fairs and exhibitions held both at home and abroad. 3. Contents of Letters about Establishing Business Relations 3.1 Letters of Establishing Business Relations The writer usually informs his addressee of the following: (1) the source of his information; (2) his intention; (3) the business scope of his firm; (4) the reference as to his firm’s financial position and integrity. 3.2 Replies to Letters of Establishing Business Relations (1) Express thanks to the letter received; (2) If the writer accepts the other party’s request, provide the information to the other party required; if the writer refuses the other party’s request, express regret with courtesy, and state the reasons for refusal; (3) Express the hope of establishing business relations immediately or the desire of future cooperation. Letter 1 A Letter from