Product Life Cycle And Enterprise Export Credit Risk Management

With China's entry to WTO, an increasing number of enterprises begin to engage in international trade and thus achieve surprisingly great exporting volume. However, tremendous bad debts behind keep bothering management staff and lead heat discussion about enterprise export credit risk and its management, among which"3+1"Scientific Credit Management Model, Life-Long Credit Management Model and Bi-Chain Credit Risk Control Program are quite typical.Based on the former outstanding academic research achievements, this paper aims at enterprise export credit risk management and takes a bold step to add something new. It starts from key factors involved in credit policy making, focusing on how product's life circle exert influence on credit policy, and then comes to a conclusion that enterprise should take different measures to reduce potential export credit risk when their products are in different stages of product life circle in order to better serve the export enterprises.Generally, this paper falls into four parts. The first part is the introduction which talks about essentials of credit and credit risk and then gives us an overview of the current status of credit risk management of Chinese export enterprises; the second part is the theoretical basis of export enterprise credit risk management, elaborating on the target, the modes, the flow of enterprise credit risk management; in the third part, it brings about Product Life Cycle Theory and dwells upon the influence on credit policy making by the stages of Product Life Cycle; and in the last part, based on three assumptions, we take a closer look at crucial variants of credit policies and bring forward countermeasures to manage the credit risk when products lies in any four stages of product life cycle.