Technology preparation and conclusion of foreign trade turnover. Selection of the foreign partner..

Selection of a foreign partner Search and selection of partners, to conclude with him the sales transaction is the first very important and difficult stage of international trade.

Find a foreign partner and to conclude with them foreign sales contract in two ways.

 In one case, a potential foreign buyer or the seller himself goes to the domestic seller or buyer with specific proposals.  In the second - the initiative comes from the domestic buyer or seller who starts the search for a potential partner abroad.

 In this and in the other case it is important to find the most suitable in terms of the nature and subject of the transaction, the market, establish a relationship with a trusted partner, and then establish a stable business relationship.

 The main condition for effective work at this stage is the availability of reliable and comprehensive information on which to make the right choice and to enter into business relationship with a particular partner. First collected and analyzes information about market (country) alleged (предполагаемый) partner.

When this information is important for both economic, trade and political nature. Generalization of experience companies in the country to determine the factors that must be considered when choosing a partner.

 1 Purpose and nature of foreign trade cooperation. Targets can be different: a single transaction, a long commercial or industrial cooperation, the introduction of a new market with their products, the use of value chain partners to sell their products, and other joint activities. Necessary to determine and forms of cooperation. This can be counter trade in its various forms, purchase and sale, the organization of joint production, the use of mediation, and so on. Proceeding from the specific purpose and need to look for a partner. Thus it is necessary to calculate the profitability of cooperation and for a potential partner.

 2 Country partner. Selecting the partner country has a very significant meaning. That country shall determine the legal, economic and social conditions, which will take place foreign economic partnership, and, hence, the degree of uncertainty and risk trade agreements. In addition, the presence or absence of intergovernmental agreements in trade and trade-economic, scientific and technical cooperation, investment protection agreements, double taxation, and so on. Can significantly affect the efficiency of cooperation. Equally important is the duration of the trade and other economic relations and cooperation between the two countries.

 Is longer than they are, the more practice mutually beneficial solutions to many issues of trade, financial, legal and other measures. Be taken into account and in the country of tariff restrictions. The presence of those can seriously impede access to the market and require additional cost and time. All this testifies to the fact. that when choosing a foreign partner should be favored economically strong countries of friendly and non- conductive discriminatory policy towards domestic enterprises.

Organizational form of activity and business reputation of a foreign partner.  An important criterion for choosing a partner is its legal status and the organizational form of the company (corporation, limited liability company, general partnership or limited partnership, sole agency, and so on.), Management style, a firm in terms of capital, serving banks, the volume of activity in the domestic and foreign markets.

 The economic side of this reputation is its performance: the degree of solvency and creditworthiness of the company, its sales in the domestic and foreign markets, the level of profitability and efficiency, and others. This is also the technical capabilities and research and development firms, the technical level of production, production capacity, personnel qualification and management team. 4 The nature of the market. Choosing a reliable trade partner is largely determined by the nature of the market: the stage of its development (growth, maturity, decline); capacity, which is important for the domestic enterprise, especially on industrial products; firm and market structure; view competitive 'environment.

 These factors may contribute to or restrict or vat possibility of penetration for a particular market. It is also important to take into account the dynamics of the market conditions, and it is influenced by many factors. It had a profound impact, in particular, the factors of long duration. This economic crises, recessions. They can radically and for a relatively long period of market conditions change many sectors of the economy, or even a partner country "as a whole. The long-term factors, in some cases can be attributed, and inflation, which for many became chronic. They may be very limited purchasing power or drastically change it, generate price fluctuations and price competition.

 Despite the fact that recent decreases the profitability of sales because of the significant benefits to them as a reward, as international practice shows that in many cases it is more efficient. Defining factors of choice of the foreign partner and the criteria for beneficial cooperation with them for the enterprise, begin to search for and select a partner.

 5 The method of cooperation, direct or indirect. When looking for trade partner is paramount question selection methods yield on a foreign market - direct or indirect, that is. E. Independently or through an intermediary. Direct access makes it necessary to establish its own sales and customer service that requires large capital and time costs. This is advantageous, as a rule, regular supply of the market of large consignments. However, medium and small enterprises to create such a network is almost impossible and impractical, so they need to search for mediators.