ChapterElevenAgency讲述.ppt

Chapter Eleven: Agency Case analysis: ●You: from MaoFeng Tea Company ●Company development: The company try to export the tea to Thailand for the first time ●Problem: we have no knowledge of the conditions and markets in Thailand. —Do they like drinking tea ? —Do they like green tea or black tea ? —What prices can they bear ? ●How to solve the problem ? What can we do? Suggestion: ● We can resort to the agent —familiar with the local conditions and markets. ●In fact, many transactions are through agencies. Contents Agencies: ■ Introduction ■ Types of agent ■ Sample letters ■ Sentence patters ■ Exercises ■1. Introduction ● Agency can simply indicate such a relation that the exporter empowers a foreign businessman to conduct business performance abroad. The former is called principal, the letter agent. ●Important factors for appointing an agent: knowledge of local conditions and of the markets in which they will operate — What goods are best suited to the area — What prices the market will bear ※ Their reliability and financial soundness; ※ Their market connections and the effectiveness of their sales organization; ※ Their technical ability to handle the goods to be marketed; ※ The nature and extent of other agencies they may hold, and in particular, whether these are connected with the sale of competing products. ● Purposes of letters about agencies ※ Agent — Asking for agency ※Principal — Looking for/appointing an agency — Acceptance or refusal ■2. Types of agent ※ A general agent — A firm who acts under instructions from his principal to sell or buyer on the