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Lesson One Overview of foreign trade and business letter writing
Correspondence in a written form is more reliable.
Scenario: Golden Apple pany – export-oriented
Business scope: shoes and clothes (USA office, Japan office, South Asia
Scope of business: electronic products, including electronic dictionaries, mobile phones, electronic watches, pens, digital cameras, MP3/4 players, computer
cars, toys and bikes, earth-ware for daily life, home appliances/white goods, electronic devices …
Target countries/regions: USA, Japan, South Korea, North Korea,
Start from scratches
How to find potential clients?
Business portal sites, eg, Alibaba
Consulates of foreign countries in China
Industry Associations
Advertisements
Industry conferences
Overseas travels
Websites, including ;
Foreign newspapers online, classified ads
A bottle of juice is sold at Yuan 6 in Chinese shops.
Possible costs:
Export duties, Extra freight, extra insurance, Customs-related fees
(Yuan 6*[1-VAT rebate]+ Export duties, Extra freight, extra insurance,
Customs-related fees)/ (exchange rate) = $
A bottle of juice is sold at $2/bottle in American shops.
Offer: $
VAT rebates
Import duties, extra freight, extra insurance, Customs-related fees,
($*[1+VAT rate]+ Import duties, extra freight, extra insurance,
Customs-related fees) = $ * exchange rate () = Yuan
Value-added tax (VAT)
Negotiations: price talks
Happy Sino makes an offer: $
US Globe makes a counter-offer: $
Happy Sino and US Globe make a deal at $.
Contracts/orders
US Globe pays a down payment to Happy Sino.
Bill of lading (B/L)
I. Business letter writing:
1. Components:
Letter head (sender’s address)
Date
Receiver’s name
Inside address (receiver’s address)
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