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Research On Export Risk Analysis And Control For FAW Group Import & Export Corporation

Posted on:2010-01-02Degree:MasterType:Thesis
Country:ChinaCandidate:B LiuFull Text:PDF
GTID:2189360302966179Subject:Business Administration
Abstract/Summary:PDF Full Text Request
One important symbol for one to act as world top automobile manufacturing nation is the concept of Mass Automobiles Production Exportation. Basing on current situation, it is a compulsory tendency for China's domestic vehicles to break into international market. Automobile Exportation is far more than signing and executing one common Contract, it is also involved in the establishment and improvement of oversea sales and after-sales service. Therefore the compulsory subject we have to face is how to effectively analysis and avoid various risks from contracts, L/C letters, trade terms and exchange settlement etc. Basing on automobile export enterprises'own risk and the global economic crisis background, this thesis with CHINA FAW GROUP IMPORT & EXPORT CORPORATION as analyzing subject will be engaged in analysis and research of its export business risks.Exportation Risks contain 3 aspects: First the economic recession and market demands decrease result in the risk of exportation orders lessening, sales embarrasment, profits decends even losses, capacity utilization rate reduction, and even production halts and broke. Second the economic recession of importation conturies result in the decrease of enterprises or individual's payment capacity and credit, hard payment clearness, and late receive or even no receive of goods payment after products arrive in importation countries. Therefore enterprises should strictly execute following 3 processes to avoid risks of exporting goods payment receiving: (1) Collect and evaluate the importers'account of credit. (2) Regard exportation credit insurance. (3) Improve and perfect enterprises'financial system and risk-control system. Third the exchange rate risk. To avoid risk of exchange rate fluctuation, We need to make reasonable forecast to the tendency of fluctuating rate as the first step. In the international trade business, there is always a time-difference from signing contract to receiving goods payment, therefore two elements , forcasing the exchange rate fluctuation tendency and choosing right currency to clear balance, are compulsory to avoid rate decend and improve export benefit. The second to avoid fluctuation risk is to deal the payment in strong currency to avoid foreign currency devaluation loss, and last to insure the foreign currency value. For example Chinese RMB can fluctuates greatly to USD and EUR, and high possibility of value increase, so the Chinese exporter can according to the Pre-Contract and Signed Contract ,anticipate to lock the future receiving foreign currency with Chinese RMB in China's exchange rate. When locked exchange rate is higher than the one of receiving goods payment, the foreign currency value is insured. Furthermore deal forward foreign exchange is also common to insure value in international trade payment.Through analyzing the two typical markets situations of Vietnam and Russia, we find following four enhancements needed for China Automobile Export Industry: 1-Implement interior coordinates and industry direction.2- Avoid to recommit the same history erro: (a)Enhance strict quality control (b)Perfect after sales service system, (c)improve products core competitive power and establish brand image. 3-Avoid evil price competition and mutual slaughter. 4- Learn and utilize other counties'experience of establishing manufacturing and assembling planets in Russia. The current phenomena of China automobile export industry are : First China automobile exporting subjects are highly dispersed, in particular great amounts of vehicles exporting destinations and exporting enterprises , but narrow scape of exporting units. Second China automobile products range for exportation is not varified broad, only focusing on middle and low level products, so different exporters can easily compete with each other in the similar model areas. The above facts reflect the core problems of China Automobile Industry: China Complete Vehicle Manufactures usually choose"Knowck-Down"parts exportation mode as oversea market strategie. Now it is still impossible to establish completely oversea manufacturing planets or carry out local production, and Automobile manufactures'oversea investment and planet establishments can neither form the complete automobile industry chain. The main reasons why choose this mode as China Automobile exporters oversea strategy are : China Automobile Enterptise can not achieve complete technology output, and coresponding spare parts manufacturers can not follow up neither because of capital and technology problems. Under the pressure of global economic recession, the current China automobile export development stands in one embarrassing position. Since July 2009 China automobile export have climbed gradually. Although in short future China automobile export industry is lack of driving power, it will be greatly potential in the long term view.Although there still exist some problem in China Automobile Exportation Industry, international automotive products has much wilder space and more layers, and the Chinese government and enterprises are trying to seek the strategies of enlarge exportation units. Currently the commercial department of China already formulate 10 policies to support automobile export, which are consulting international experience, establishing public R&D platform for exporting enterprise especially for small and medium scale spare parts companies; Increase the importance of export credit insurance and make it to promote automotive products exportation; improving the Loan Credit Support in the automobile export of buyers and sellers; activating China self brand made products exportation; promoting the strategic union of auto exportation and logistics; impulsing the mutual certificating work of high exporting potential auto products; enlarging information services; stemming oversea technical trade barrier; creating international exchanging platform of China automobile spare parts; enforce the corresponding communication of China automobile industry and oversea industry; establishing honest and reliability evaluation system; protecting intelligence property; improving entry barrier of automobile exportation and regulating exporting rules.Also from a business point of view we have proposed to improve the export competitiveness of vehicle response is as follows:(1)To improve product quality and brand strategy, establish a perfect sales and service system. Company's core technical strength determines the quality of automotive products good or bad, China's auto industry in order to build its own brand, we must first grasp the core technology, and then through continuous technological innovation, in order to make China's automobile industry brands increasingly louder. Automotive products before they enter foreign markets need to do after-sale service system construction, the creation of a sound sales network and service system and do the pre-sale, sale, after sale of the service is placed in front of an automobile export enterprises important task.(2) Do fine maritime logistics market, reduce transportation costs. China's auto manufacturing enterprises should actively explore the maritime logistics market, and China's maritime enterprises to establish a mutually beneficial win-win partnership to reduce vehicle exports transport costs, the other hand, China's shipping companies should be active in the international automobile transportation business, the increase in vehicle ro-ro The number to resolve the transport problems of China's auto exports.(3) The precise positioning target market, achieve economies of scale effectiveness of exports. Therefore, in order in the domestic auto brands in the international market advantages, we must identify the advantages of its own products and accurate target markets, to avoid blind export, the export of the formation of an orderly situation, achieve economies of scale effectiveness of exports.(4) Increase investment in technology and talent. The twenty-first century, talent is the key. Regardless of the technical personnel and commercial talents are essential to our export front, we need to step up its training efforts, and from abroad, mature Automotive Group Careers and accelerate the pace we go out. Business internationalization is a car manufacturer to any success and long-term stable development of the inevitable trend is the ultimate way out for their own brands in particular.
Keywords/Search Tags:automobile export, risk, analysis, control
PDF Full Text Request
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