Risk Analysis And Countermeasure Study On International Trade Of Shanghai XD Import And Export Trade Limited Company (SXDIETLC)

Since joining the WTO, China’s foreign trade level hits new records with the accelerating of globalization of the world financial and trade system and China has become the world’s largest trading nation. Import and export trade has made tremendous contributions to China’s economic development, of which the main contributors are small and medium enterprises. There are international trade business risks in the links such as contracts signing, custom manufacturing, logistics and distribution and international settlement. Since the official license of Shanghai Free Trade Zone in the second half of last year, trends in the financial and investment liberalization also requires foreign trade enterprises to establish and improve the international trade business risk prevention system. The international trade risk management of small and medium foreign enterprises is the protection of the healthy development for foreign trade enterprises.In this study, we use qualitative methods such as literature research, case analysis qualitative methods, survey research, as well as quantitative methods such as multi-level approach (AHP). And investigated the international trade risk and countermeasure of SXDIETLC in detail. In this paper, the theory of international trade risk management is applied combined with combined with case studies and practical issues in the course of our business operations encounter risks encountered in the foreign trade companies. Multi-layered structure model is used to assess the importance of four risks. And the weight of indicators that influence various risks are analyzed. And on this basis, GM (1,1) model is combined to build early risk warning system. Finally, we obtained the foreign trade risk management strategies of our company on the basis of learning from foreign trade risk management strategies of international success. Various risk control strategy are as follows:national risk measures; Foreign exchange risk measures; contract risk measures; credit risk measures, this research has reference worth to other import and export enterprise.