International Business Risk Control & Management For Foreign Trade Enterprises

Foreign trade business has played an important role in our social economic development, especially since the implementation of Chinese Open Policy. The development in export business has been a pull engine in the social economic force. While we regret to find that with the soaring increase of Chinese export business, more and more payment overdue or bad-debt burden accumulated in Chinese foreign trade enterprises, and if this burden cannot be handled well, it will hurt the health of foreign trade business' development. Hence, how to manage and control business risk is now becoming overwhelmingly important and urgent.Foreign trade business partners usually locate far apart in different countries with different background, different culture, different economic environment, and all these differences make international trade face much greater risks. In this article, I would like to figure out the origination of these risks, and try to give some suggestions and take suitable measure to manage and control international business risks.The main brief and frame of this thesis are:Chapter 1. Assessment on the current status of the account receivables of Chinese export industry; Origination assessment for export business risks, pointing out the Importer's credit risk is the main source of exporter risks, analyzing the different risks under different payment term respectively, at the same time, addressing that the shortcoming in the management system of export enterprise should take responsibility for the accumulating overdue problem.Chapter 2. According to analysis of the risks origination, giving suggestions to manage and control of business risks, including: improve management system, strengthen credit system and its control power, upgrade export item line, customer and market selection, underwrite account receivable insurance, factoring, etc, and do take efficient action to push for collection of the overdue payment.