Foreign Trade Enterprises' Venture Management Of An International Settlement

With economic globalization and increasing interdependency in trade and economy, total volume of foreign imports and exports in China keeps growing and the volume of trade has been increasing and making history every year. Many foreign trade enterprises also face risks from foreign currency collection and the difficulties of exploring new market. Now, many foreign trade enterprises in China put priority on credit clearing in the international settlement which can help to reduce risk of earning foreign exchange through exports and weakens the exports businesses' competitiveness in the international market in certain cases, some foreign trade enterprises choose trade credit settlement which might lead to high rate of bad receivable accounts and blocks the prompt development of theirs. Compared with the situation in the developed countries, the reason of the comparably low level management in venture controlling of international settlement in foreign trade businesses in China and the comparably high rate of receivable bad account in foreign trade enterprises is partly due to the complexity of international settlement and chiefly due to insufficient study of the management of international settlement in the foreign trade enterprises which haven't formed a proper set of blue print for venture prevention.According to China's practical situation, it is very important for business to know how to minimize the risk of international settlement for the foreign trade enterprises and maximum the benefit of it while making the best of international trade to develop economy. Now, the study of the venture management of international settlement is mainly limited to the area of processing principal parts ininternational settlement------the risk management of business banks forinternational settlement; as to the study of acting principal parts in internationalsettlement------import & export enterprises, it is still quite weak. With the influenceof the worldwide technical development and economic competition to the foreign trade enterprises in China, esp. after the 2008 economic crisis, exporting environment changes a lot. Many export enterprises have to face high venture in international settlement because of the information asymmetry and struggle to survive in the conflict of risk, competitiveness, profit margin.Some personal suggestions for the risk management of international settlement for foreign trade enterprises: Have a macro environmental analysis of the venture management of the international settlement and early warning system so that they can have a better view of the international economy, financial condition and reduce financial risks. Appeal on government to establish a strong information network service system, strengthen the cooperation of the international information exchange with related country, maintain regular contact with representative offices, enhance the information exchange among domestic banks and big international enterprises and expand channels for the information resources. Establish an internal mechanism of the venture management of international settlement for the international enterprise, form management system of credit risk for foreign trade enterprises' exporting which includes the policies, rules, organization system and processes of the risk management of international settlement. Reasonably balance the venture of international settlement, the cost and business opportunities of venture management of international settlement. Choose different ways of international settlement for different clients. Take different measures according to its trade credit settlement and its venture character of bank credit settlement. Stick to systematic management principles of the international settlement. Constantly improve the quality of the international settlement stuff.The research guidance of this paper is: start with the system background of the international settlement in the foreign trade enterprises, analyze how the risks are formed in the international settlement, comprehensively apply economics, game theory, risk theory, theory of enterprise management, analyze the reason and representation of the international settlement in foreign trade enterprises. Guide the foreign trade enterprises to identify and assess the venture of the international settlement, try to avoid the venture of international settlement, regularly summarize the operation procedure of the venture management effect of the international settlement and form the system frame of the international settlement.The innovation of the paper lies in offering system frame for the risk management of international settlement in foreign trade enterprises. Use game theory to maintain the balance between the venture of the international settlement and the business opportunities, encourage the enterprises to have them have quantity evaluation with the help of the risk evaluation models. Suggestively put forward that the international enterprises in China can adopt currently business trade credit settlement properly under the condition that the venture management of the international settlement in the international enterprises has been strengthened in order to raise the export competitive force in the foreign trade enterprises. Put forward some concrete measures of avoiding the risk of the international settlement in the international export enterprises which can raise the competitiveness in the international market for the international enterprises and lower the lost caused by bad debts.