Chapter 10 International Trade forms abstract This chapter mainly tells about the concept and characteristic of various trade forms main contents of various trade agreement and issues of using various trade forms Section 1: Distribution Section 2: Agency a Section 3: Consignment Section 4: Fairs and Sales Section 5: Invitation to tender and submission of Tenders Section 6: auction Section 7: Counter Trade section 8: Processing trade
Abstract: This chapter mainly tells about the concept and characteristic of various trade forms; main contents of various trade agreement; and issues of using various trade forms. ◼ Section 1: Distribution Section 2: Agency ◼ Section 3: Consignment Section 4: Fairs and Sales ◼ Section 5: Invitation to tender and Submission of Tenders Section 6: Auction ◼ Section 7: Counter Trade Section 8: Processing trade Chapter 10 International Trade Forms
Section 1: Distribution 1. Concept and nature of Distributⅰon The Concept of Distribution The Types of distribution Distribution Sole distribution or exclusive sales
Section 1: Distribution 1. Concept and nature of Distribution ◼ The Concept of Distribution ◼ The Types of Distribution • Distribution • Sole Distribution or Exclusive Sales
Advantages and disadvantages of sole distribution a Advantages: Exclusive sales helps to arouse the enthusiasm of exclusive distributor, use the distributor's marketing Channel, and consolidate and expand the market Exclusive sales can effectively reduce multi-channel's self competition Exclusive sales help to organize production and supply in a planned way. Disadvantages: The exclusive distributor may take advantage of its monopoly position to manipulate market. The exclusive distributor may still sale the goods of other export enterprises and not sale the appointed goods attentively
Advantages and disadvantages of sole distribution ◼ Advantages: ◼ Exclusive sales helps to arouse the enthusiasm of exclusive distributor, use the distributor's marketing. Channel, and consolidate and expand the market ◼ Exclusive sales can effectively reduce multi-channel’s self competition ◼ Exclusive sales help to organize production and supply in a planned way. ◼ Disadvantages: ◼ The exclusive distributor may take advantage of its monopoly position to manipulate market. ◼ The exclusive distributor may still sale the goods of other export enterprises and not sale the appointed goods attentively
Section 2: Agency 1. The nature and characteristics of agency The relationship between agent and principal is Principle-Agent relationship a Case analysis:
Section 2: Agency 1. The nature and characteristics of agency ◼ The relationship between agent and principal is Principle-Agent relationship. ◼ Case analysis:
2 Kinds of agency General agent Agent or Commission Agent Solo Agent or Exclusive agent Case analysis
2. Kinds of agency ◼ General Agent ◼ Agent or Commission Agent ◼ Solo Agent or Exclusive Agent Case analysis:
The comparison of Sole distribution and Solo Agent Similarities 1. They both have monopoly ability and the right of exclusive sales within appointed territory and time limit 2. They both help to arouse the enthusiasm of exclusive distributor and exclusive agent Differences 1. They have different relationships between involving parties 2. They have different risk. 3. They have different reward
The Comparison of Sole Distribution and Solo Agent ◼ Similarities: ◼ 1. They both have monopoly ability and the right of exclusive sales within appointed territory and time limit. ◼ 2. They both help to arouse the enthusiasm of exclusive distributor and exclusive agent. ◼ Differences: ◼ 1. They have different relationships between involving parties ◼ 2. They have different risk. ◼ 3. They have different reward
3. Agency agreement a Please notice the non-competition clause. (Restrain the agen a As to the sole agency, in order to safeguard the interests of export enterprise, the minimum purchase amount is usually stipulated. If the agent fails to reach or exceed the minimum amount the principle will adjust the agent's commission accordingly a As to the sole agency the exclusive agency agreement usually stipulates that the agent can still obtain commission when the principle sign the contract direct with client inside the territory
3. Agency agreement ◼ Please notice the non-competition clause. (Restrain the Agent) ◼ As to the sole agency, in order to safeguard the interests of export enterprise, the minimum purchase amount is usually stipulated. If the agent fails to reach or exceed the minimum amount, the principle will adjust the agent's commission accordingly. ◼ As to the sole agency, the exclusive agency agreement usually stipulates that the agent can still obtain commission when the principle sign the contract direct with client inside the territory
Section 3: Consignment 1. The concept and nature of consignment 2. The characteristics of consignment 3. The main contents of consignment agreement 4. The advantages and disadvantages of consignment
Section 3: Consignment 1. The concept and nature of consignment 2. The characteristics of consignment 3. The main contents of consignment agreement 4. The advantages and disadvantages of consignment
Section 4: Fairs and sales 1. The meaning and practice of Fairs and sales 2. Fairs and sales in our country ■ Internationa|fair Chinese export commodities fair 3. Issues of doing fairs and sales business
Section 4: Fairs and Sales ◼ 1． The meaning and practice of Fairs and Sales ◼ 2． Fairs and Sales in our country ◼ International fair ◼ Chinese Export Commodities Fair ◼ 3． Issues of doing Fairs and Sales business
Section 5: Invitation to tender and Submission of tenders 1. The meaning and characteristic of Invitation to tender and submission (1)The meaning of Invitation to tender and submission (2)The characteristic of Invitation to tender and submission 1. It's competed by numerous bidders in a fixed time and place 2. The trade is concluded without negotiation 3. The bidder can only bid once, no counter-offer
Section 5: Invitation to tender and Submission of Tenders 1. The meaning and characteristic of Invitation to tender and submission ◼ (1) The meaning of Invitation to tender and submission ◼ (2) The characteristic of Invitation to tender and submission • 1. It’s competed by numerous bidders in a fixed time and place • 2. The trade is concluded without negotiation • 3. The bidder can only bid once, no counter-offer