Research On International Trade Risk Management Of LS Energy Equipment International Engineering Company

Since the 1990’, the globalization and integration has become the trend and distinguishing features of world economy. More and more Chinese enterprises began to compete in international market due to the increasing heated domestic market competition. As one of the leading enterprises in the field of domestic oil well equipment manufacture, LS Group established LS Energy Equipment International Engineering Company(LSIEC) in 2014’ after experienced from enterprise transition and intense market competitions in order to improve its internationalization operation ability and improve the profession of international trade team.LSIEC is responsible for taking charge of the entire import and export business of LS Group.However, opportunities are always accompanied by challenges. Since international market never stop changing, the competitions among foreign trade enterprises are more and more serious, and in the meanwhile, the international trade risks become more and more. How to improve the enterprises’ abilities in finding and resisting risks and how to improve the enterprises’ international trade risk managing abilities become an important subject in development of international business for modern enterprises. So, make research on international trade risk management has important practical significance.The thesis firstly analyzed the status of LSIEC international trade business, and did deep research on several principal international trade risks happened in LSIEC by taking real cases as examples referred to related international risk management knowledge. As per the principal risks: Exchange rate risk, price risk, contract risk and transportation risks, this thesis separately analyzed the risk causes and put forward risk managing suggestions. Hoping help LSIEC to build up an effective risk management system to prevent the loss from risk and in the meanwhile provide reference to other foreign trade companies on their risk prevention and management which could improve the risk managing skills and international business safety.