The Chinese Foreign Trade Enterprise Credit Risk Management And Research

With the continuous deepening of China’s policy of reform and opening up andbenefiting a lot from foreign trade, China’s economic aggregate has been risingincreasingly and there is no doubt that China has become one of the biggest tradingcountries in the world. However, with the rapid development of the world economyand the fierce competition of international trade, the foreign trade enterprises have toface the increasingly multi-elementary competition methods as well as the deeper anddeeper competition levels in exportation. The glory of the credit transactions basedupon bank credit has been gradually declined while the commercial credit has beenrising steadily. As one of the WTO member countries, China bears the increasinglyclose relationship with the other countries and China’s foreign trade is becomingincreasingly frequent, and the commercial credit accepted internationally has becomea popular payment way. Due to the farther distance, the longer duration of deliveryand payment and the huge cultural obstacles in foreign trade, however, China’sforeign trade enterprises are met with new requirements in the managing competenceof credit venture.With the purpose of effectively bettering China’s foreign trade enterprises’managing competence of credit venture, this thesis, firstly, based upon the conceptsand theories on credit venture, makes an analysis of the present situation of China’sforeign enterprises, which can be characterized as smaller scale but higher risk, andsomewhat unreasonable structure in the overdue funds abroad.The summings-up of the experiences abroad in the credit venture managementshows that in the developed countries it bears such common trends asfunctionalization and specialization in management, advancement in technology.Secondly, from such aspects as environments, industries and enterprises, this thesisanalyzes the elements of credit ventures in China’s foreign trade enterprises,demonstrates the relationship between venture factors and credit ventures through theindex of credit venture management from five industries out of20, and structures anindex system of evaluating China’s foreign trade enterprises’ credit venture. Theresearch results in the thesis believe that in China’s foreign enterprises themanagement proficiency in credit venture is closely related with the managementlevels, namely, positive management effectively reduces the credit ventures. Setting up a functional structure of credit venture management, however, has no obviousinfluence upon the enterprises’ credit venture management, that is, such a structuredoes not function expectedly in decreasing the foreign trade enterprises’ creditventures. Lastly, this thesis puts forward a whole venture management model fromsuch three aspects as Feed forward Control, Due-management and Post-treatment.With the management model mentioned above put into practical cases, this thesis alsoexpounds and proves the feasibility and the possible effects of the whole venturemanagement model.