Study On International Trade Strategy Of AD Electrical Appliances Company

At present, China has become one of the biggest international import and export trade countries. Both mechanical and electrical products in recent20years have become the top major types of export commodities in China, while the exports of small household appliances in mechanical and electrical products has remained in rapid growth. However, since the world’s financial crisis and European debt crisis out broke one after another, the economy of every country has run into recession, global trade demand has sharply reduced, and the export growth of small household appliances has also declined accordingly. Therefore, research on the export trade issues and proposals on solution and strategy for the household appliances enterprises has great important significance and meanings.Choosing AD Electrical Appliances Company as the research object on basis of the current export home appliances industry in China, the thesis analyzes the household appliances export industry which is facing large scale but low profits, the rise in trade barriers and the appreciation of RMB, etc., and states AD Electric Appliances Company’s current export trade situation, including the export business of the company and the distribution of export market. Then, the thesis probes the problems existing in the export trade AD Electrical Appliances, including the low technology products, the concentration of the export market, pressure on costs and capital chain tension, etc., and points out the causes result from the lack of autonomous brand, trade barriers, and the appreciation of the RMB that weakens the company’s competitiveness. By the international trade and financial theory and enterprise strategic management theory, the thesis proposes the export trade strategy for AD Electrical Appliances from the promotion and sales strategy, technology upgrade, exchange rate risk mitigation plan respectively, suggesting that AD should increase the product added value, diversify the business management, foster the exchange rate risk management talents, broaden the financing channels, and effectively use the financial products to avoid exchange rate risk, etc. This will help AD Electrical Appliance Company with its future development in healthy, sustaining and robust situation to win its strong competitive strength.