What are some of the reasons that a good analysis of the major trading partners with a company`s home country might be advantageous?

What are some of the reasons that a good analysis of the major trading partners with a company ‘s home country might be advantageous

Checking trading partner background is essential for many reasons . For example the first issue is to find the right partner . It is critical that companies make it sure that the trading partner is trustworthy and reliable . Especially if the trade agreement is taking place overseas . It is essential to check the local law regarding the partnership issues Another issue is to check the partner financial background and be fully [banner_entry_middle]

br confident , if a partner can really fulfill the promises made according to the local law . One ideal way to do a background check is to ask a commercial information provider or research company to provide the information about the potential partner A more concrete measure will be to make a trip to the country and check the reality on the ground either through company officials or through third party to ensure the claims made by a trading partner and then verify it with the documents earlier provided

The next issue is to align the communication , especially if the partner is an overseas company . For example a company wishing to commit in a Chinese company have to take the issue of language before any taking the venture . Successful companies also use independent distributors or branches of companies that provide geographical support such strategy can lessen the burden on the parent company . When entering into a contract with a trading partner , it is vital not to enter in an agreement without the legal advice . A company must have its own legal counsel that can specify the terms of payment and performance to clarify the details of the agreement . If the agreement is with an overseas company , it is must to check the local law and enter the provision which can safe guard the company interests

Reference

Vivek Arora , Athanasios Vamvakidis (2005 .How Much Do Trading Partners Matter for Economic Growth . IMF Staff Report

World Trade Orgnization , Principles of the trading system . Retrieved January 25 , 2007 , Web site : HYPERLINK “http /www .wto .org /English /thewto_e /whatis_e /tif_e /fact2_e .htm http /www .wto .org /English /thewto_e /whatis_e /tif_e /fact2_e .htm

Henri L . Beenhakker (1996 . Investment Decision Making in the Private and Public Sectors . Quorum Books

Lyuba Zarsky (1999 . International Investment Rules and the Environment . Foreign Policy in Focus… [banner_entry_footer]