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Foreign economic activity. The main functional divisions of a foreign trade company (the most important)

Lecture notes, cheat sheets

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17. The main functional divisions of a foreign trade company

The main purpose of establishing foreign trade firms is the implementation of foreign trade operations.

К the main stages of a foreign trade operation include:

▪ Conducting market research;

▪ search for a foreign partner;

▪ establishing contacts with a foreign company;

▪ analysis and development of competitive materials:

▪ preparation of a competitive sheet;

▪ calculation of export prices;

▪ development of terms of payment and delivery;

▪ preparation of a draft contract;

▪ Negotiating and agreeing on a draft contract;

▪ signing a contract;

▪ fulfillment of contractual obligations;

▪ supply of goods;

▪ settlement and payment transactions;

▪ control over the fulfillment of contractual obligations;

▪ consideration of possible claims.

Based on the target features of the company and the content of the main stages of a foreign trade operation, the main functional divisions of a foreign trade company are marketing и operational commercial service, as well as departments that provide services for the foreign trade activities of the company: planning and economic calculations, monetary and financial and credit operations, accounting and reporting, legal and engineering issues.

В marketing service competence each foreign trade firm includes:

▪ studying opportunities and sales markets, providing advertising and product promotion, preparing competitive materials and a competitive sheet necessary for the formation of the basic terms of the contract;

▪ forecasting the situation on commodity markets and price dynamics, monitoring and participating in the calculations and justification of contract prices, analyzing the effectiveness of export-import operations and individual transactions, providing the necessary information on the market and prices to foreign companies;

▪ methodological support for studying foreign markets and studying its requirements for the quality of products similar to those exported, as well as ensuring the company’s participation in fairs and exhibitions.

The functions of the operational and commercial service of a single foreign trade company include:

▪ conducting negotiations with foreign companies, preparing commercial calculations to determine the basic and monetary and financial terms of the contract (price, terms and methods of calculation, choice of price and payment currency, delivery time and delivery methods) and concluding contracts;

▪ organizing deliveries (transportation and insurance of foreign trade cargo) under signed contracts and monitoring their implementation, providing technical and warranty services for exported and imported technical products;

▪ consideration of export complaints and presentation of those for import;

▪ conducting commercial correspondence with foreign and Russian counterparties and other companies;

▪ organization and analysis of credit and settlement transactions, acceptance of invoices and processing of foreign trade documents, payment of invoices and control over the implementation of these operations.

Organizational-legal and contractual support of the work of a foreign trade company and its services: preparation of documents for claims, conduct of arbitration cases within the framework of international and national legislation is assigned to the legal service.

As a foreign trade firm develops, the technical and preparatory operations carried out at the first stage by commercial and auxiliary divisions can be centralized by creating specialized services, for example, a copying and copying bureau, a translation agency, an automated data processing department of a commercial settlement group. The content of the latter involves the separation of accounting work, the processing of acceptance of accounts, the printing of bank and financial accounts and other payment, settlement and shipping documents.

Author: Bobkova O.V.

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