A good understanding of all technical elements such as INCOTERMS 2010 ®, costing and pricing and the legal aspects of the international trade will facilitate the transactions and allow the enterprises to achieve better commercial results.
Whether we are aware of it or not, every piece of communication is a source of information that can influence the decision-making process. In this context, developing communication skills and the art of negotiation are essential to facilitating a win-win scenario in business to help two parties reach a mutually beneficial agreement.
The present module was developed to explain how communication affects international trade activities and how to elaborate and apply a negotiating strategy aligned with your specific business needs.
ITC has developed this learning course as part of its continuing mission to develop and improve world trade, especially for developing countries and women entrepreneurs. The specialist authors have drawn from their experience and from the learning gained from respected works used in their personal development to enable you to:
The module “Contracting and legal aspects” enable you to understand the basics of using contracts to negotiate and formalize transaction agreements, risks and advantages of model contracts; and to familiarize with ITC’s model contract. It is easier and safer if the process of negotiating a contract is recorded in some sort of writing or electronic means (such as an e-mail) as a way of proving the existence of the negotiations, the agreements reached on specific issues, or as a means of proving the existence of the contract.
It is very important for many women-owned SMEs in sub-Saharan Africa to know their cost very well in order to decide whether to take the order “and the price” or not depending on whether the order is going to give a positive margin contribution or not. Why is this topic so important?
Whether an enterprise makes a profit or a loss is largely determined by a correct calculation of costs and appropriate pricing methods. Costing and pricing are skills that are necessary to manage a business, and they determine its success, survival or failure.
Why is there so much paperwork involved in the export of goods?
What are all these documents for?
This module provide clarification to these questions and enable exporters to understand their responsibilities, what documents to be aware of and how to make your international trade documents work for you. The export documents are a means for ensuring that the international trade transaction is legitimate, compliant with any standards or regulations, and traceable. The information on these documents is used for statistical purposes, risk management and revenue generation. How well the documents are completed can be the difference between a customs clearance in the importing country being completed in hours rather than days. It is also one of the best means for combating corruption since errors and gaps bring opportunities for bribe requests...
Clearly defining buyer/seller roles and responsibilities is essential to any successful partnership between exporter and importer. To become a successful exporter, it is critical to establish clear and comprehensive communication with your buyer.
How else can you agree on contract terms and references and foster a trusting seller-buyer relationship?
Imagine trying to work with an importer who can only speak a language foreign to you. Not surprisingly, misunderstandings will occur since both parties are working with a different set of language rules. Incoterms® 2010 act as a common language or a standard set of rules for exporters and importers that enable them to communicate and understand each other.
Any company selling products must ensure that its’ goods arrive undamaged and on time to their final destination. When transporting goods locally, it may not be necessary to spend a lot of time deciding on transport methods. However, transport considerations for international transactions are much more complex. They can involve much larger distances and many more obstacles between exporter and importer. Furthermore, an erroneous choice in the transportation mode can have a huge effect on the company’s total cost and success in the international market. The following module emphasizes on how to export to other countries carefully and how to find the best possibilities for the transport of goods in order to remain competitive.
Customers are what drive business. Successful enterprises are those that attract future customers.
The module “Raising customer interest” emphasizes on the importance of communication and the promotion of products or services through confident correspondence. After this module, you should be able to make a decision on whether or not trade fair participation, in-market visit, or buyer-seller meeting within an international market would be advantageous to your organization and what you need to do to reach your objective.