Research On Hunan XX Pigment Company's Export Risks Governance

The export risk of industries'means the risks which existing in the problems of contract fulfillment caused by the incomplete contract in export activities. A suitable administration structure can avoid the export risks effectively and safeguard the exporter and importer's mutual profits. According to Oliver Williamson's theories of transaction cost, this article puts forward several reasonable contract governance measures for export trade by analyzing the risks in Hunan XX Pigment Company's export trade.In Williamson Oliver's theories of transaction cost, Williamson advanced that some suitable protective measures, such as mortgage, guarantee, mutual transaction and long-term fame system, should be taken in a transaction if there are investments of assets specificity in the transaction to make the transaction contract become a reliable promise so that to avoid the loss risks of the dealer who invest the assets specificity caused by the counterparty breaking the agreement. Now, in Hunan XX Pigment Company's export trade, there are risks of assets specificity for products, risks of customers highly concentrated, and risks of waving raw materials price and exchange ratio. But the company did not take any effectual measurements to keep away the bad influence on the export trade caused by the above the risks. The article puts forward some suggestions of measurements on export risks governance combining Oliver Williamson's theories of bilateral contract governance with the design of Hunan XX Pigment Company's risk administration structure on export risks, including taking mortgage in the contract to guarantee the fulfillment of the assets specificity transaction when meeting the risks of assets specificity for products and risks of customers highly concentrated; taking mutual transaction to make the export contract as a reliable promise and avoid the transaction dealers'opportunistic behaviors. The pigment industries also can evade the export risks by seeking credit insurance. To the risks of waving raw materials price and exchange ratio, industries can take time bargain and hedge in exchange market. To strengthen the cooperation between the transaction dealers and call on to set up a long-term fame system in the business line are also useful for export risks governance.