Foreign economic activity. Powers of employees of a foreign trade company (the most important)

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Foreign economic activity. Powers of employees of a foreign trade company (the most important)

Lecture notes, cheat sheets

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18. Powers of employees of a foreign trade company

The success of a foreign trade company is largely ensured not only by the performance of commercial, but also by managerial functions, the competence and powers of its manager.

Foreign trade company director is appointed by the general director of an export-oriented enterprise (association) and is a member of its board, makes decisions on concluding export-import transactions, signs contracts and agreements, determining and agreeing with the management of the enterprise the amounts and types of transactions, volumes and conditions of supplies. To fulfill his duties, the head of a foreign trade company has certain powers.

Authority is the limited right to use the organization's resources and direct the efforts of employees to perform certain tasks. Powers are delegated to a specific position, and not to the person who currently occupies it.

The scope of powers vested in the head of a foreign trade company is determined in accordance with:

▪ the nature of the problems being solved;

▪ the principle of development of the communication system;

▪ taking into account the personal characteristics of the performer;

▪ moral and psychological climate of the organization.

Types of managerial powers:

▪ binding administrative powers;

▪ functional;

▪ recommendations;

▪ representative;

▪ conciliatory.

Distribution of powers happens depending on:

▪ authority must be sufficient to resolve emerging issues;

▪ authorities must be clearly defined for interacting positions;

▪ performers are obliged to independently make appropriate decisions and bear responsibility for them within the framework of their powers.

The competence of deputies and other management employees of the company is established by the director of the WTF.

Delegation of authority - transfer of the right to make management decisions and carry out certain actions to their subordinates. Delegation of authority allows a manager to make the most efficient use of his time. All work entrusted to subordinates is divided into three groups:

▪ preparatory work, where information is collected;

▪ routine work, it does not require special skills, but a lot of time is spent on it. While performing such work, the performer does not make serious decisions;

▪ specialized work requiring special skills. All powers related to the performance of this work are delegated, because One person is not able to perform many types of activities well, such as legal support for the operation of an enterprise, marketing research and accounting.

Each firm usually has senior experts in charge of duties which include: assessing the compliance of the quality of products produced for export with international standards, coordinating the assortment, determining the feasibility of import purchases, negotiating, supervising the work of operational experts (commercial activities) and quality and price experts, who in turn work in contact with commodity experts for acceptance and the purchase of products, as well as with commodity experts and claims specialists involved in filing complaints with foreign companies.

The expediency of creating a foreign trade company as part of an exporting enterprise should be determined by comparing the costs of the enterprise in the absence of its own company (commission paid for export-import operations and other costs for the intermediary activities of specialized firms and organizations) and the costs associated with its maintenance. It should be taken into account that the effect will be visible only after one or two years of the company’s operation.

In addition, the creation of a foreign trade company is supported by sufficient volumes of export products and the high frequency of their deliveries to the foreign market.

Author: Bobkova O.V.

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