A Research On Credit Risk Management Of Export Industries

Today, both the developed and developing countries are carrying out strategies that are fit for themselves in the field of international trade one after another. At the same time L/C, the traditional style of international settlement, has been confronted with challenges because the international market has turned into the buyer's market. That is to say, the exporters will have to shoulder much bigger and more complicated risks with the use of non-credit settlement tools, such as O/A and Documentary Collection. Under these circumstances, every country has set up her own Export Credit Insurance (ECI) to guard her foreign trade activities. Credit insurance, life insurance, property insurance and reinsurance all together are called the four majors of insurance. But with a view of development, ECI is only an up-and-coming youngster in the international insurance market. At present, ECI develops very fast in Europe, and it stands a good chance to move forward quickly in the U.S.A and Asia. Once Asia is mentioned, nobody could neglect China. In China ECI, almost a newborn, is only at its early stage. After China's entry of WTO, her international trade will pass off the sham as the genuine. China faces more tempting opportunities, and more hidden risks as well, especially all kinds of credit risks. Then how to know exactly the nature of ECI and its good effect on international trade? How to get a sound idea of the characteristics of ECI and its operation in international trade? How to learn from the developed countries of their advanced skills in ECI in China? To solve the above mentioned problems are of more and more significance. The following article base on these problems is trying to give an analytic view in theory. It introduces the popular method of ECI in other countries of the world and the developing steps of ECI in our country. And typical examples in international business are added.