Trade trade is international trade, the various methods used. With the development of international trade, trade has become more diversified. In addition to using transaction-sale in the manner, there are underwriting, agency, consignment, auction, tender and bidding, futures trading, counter trade and so on. Underwriting (exclusive sales) is accustomed to international trade is one way. China’s export business, according to the characteristics of certain goods and expanding exports needs at the right market, selecting the appropriate customer, but also can be underwritten. Underwriting (exclusive sales) refers to the exporter (principal) by agreement to a commodity or a commodity in one region and period to give the right to operate a foreign customer or the company’s trade practices. While underwriting is sold is, but with the usual underwriting unilateral transaction-export different. In addition to the parties that it has signed contract for the sale, they also need underwriting agreement signed in advance. Underwriting method used, the rights and obligations of buyers and sellers with the Underwriting Agreement is determined. Signed two contracts for the sale must also comply with the provisions of the Underwriting Agreement. Underwriting Agreement, including the following main elements:
First, the name of the underwriting agreement, contract dates and locations.
Second, the underwriting agreement before, usually in terms of the previous text, clear — the principal underwriter is the relationship between myself and my relationships (principal to principal) that the buyer-seller relationship.
Third, the principal underwriting the range of goods (the exporter) operating a wide range of goods, even with the same class or kind of goods, of which there are different grades and specifications. Thus, in the Underwriting Agreement, the parties have agreed to underwrite the range of goods.
Fourth, regional underwriting underwriting underwriters exercise area is the geographical scope of sales. Methods usually have the following conventions:
1, to determine a country or several countries;
2, determine a country in several cities;
3, to determine a city and so on.
Determine the size of the underwriting area, should consider the following factors:
1, the size and underwriting capacity;
2, underwriters can control sales network;
3, underwriting the nature and type of goods;
4, the difference of the market;
5, underwriting topography of the area location.
Fifth, underwriting underwriting period can be long term can also be short. In China’s export business, often in the underwriting agreement entered into clearly defined period, usually one year. Market practices in other countries, the provisions of the Underwriting Agreement does not limit, but the terms of the stay or renewal terms.
Sixth, the franchise is the franchise monopoly and the exercise of the underwriters specifically to buy the rights, which is an important part of the underwriting agreement. Franchise, including Monopoly and specifically the right to buy. The former is the principal (exporter) shall mean the provision of goods in the region and within the time limit to give underwriters the right to exclusive sales. Exporter to the region bears no direct sales to customers within the obligation. The latter is a commitment to the underwriters to purchase items the export of goods, and not to a third party to purchase obligations.
Seven, the number or amount of underwriting underwriting agreement, in addition to the provisions of the above, should also provide the number or amount. The number and amount of the agreement both parties equally binding. Sometimes the provisions in the agreement, the number and amount, must bear the Underwriters to purchase the required number of export and the amount of the obligation, the exporter must bear the Underwriters the number and amount of export duty.
Eight, underwriting price means the sale price of goods means there are different approaches. One measure is within the prescribed time limit, a price. Underwriting agreement, regardless of whether commodity prices, falling or not, subject to the agreement price. Another approach is within the period specified in batches underwriting price. As the changing international commodity market prices, so price is more commonly used in batches.
9, advertising, promotion, market reports and trademark protection of the parties to the Underwriting Agreement is trading relationship, the principal (exporter) is not actually involved in underwriting the sale of the business district, but he is very concerned about the overseas markets. To promote their products with the trademark, often requires the underwriters responsible for the goods he published some ads. For example, some underwriting agreement provides that: “the buyer is responsible for underwriting and funding in their region as the seller of the machinery and equipment exhibition, soliciting orders, published advertisements in the local press.” Some of the agreement: should this issue underwriters access to promising deal underwriting requirements of the customer or the seller as to provide market reports. Proxy agent is an agent (agent) in accordance with I (principal) license (Authorigation) on behalf of my contract with third parties or other legal acts. The resulting rights and obligations of a direct effect on my place.
1, the relationship between the agent and principal trading relationships are commissioned. Agents in the agency business, but on behalf of client behavior, such as to attract customers, soliciting orders, sales contracts signed on behalf of clients, dealing with the client’s goods, receiving payments, and his party to the contract itself is not as involved in the transaction.
2, agents are usually commissioned by the use of funds for business activities.
3, the agency generally does not name their own contracts with third parties.
4, the agent is paid commissions earned. Agent types in the capitalist market, usually are the following agents:
1, the agent (general agency) agent in the client’s sole agency designated areas. In addition to the right agent for his client signed a contract for the sale, handling of cargo and other business activities, but also some non-commercial activities. His right to appoint sub-agents, and agents share the commission.
2, the sole agent (theexclusive agency or soleagency)
3, commission agents (commission agency) commission agent, also known as general agent, is the agent in the same region, time and period, while there are several agents act on behalf of the principal agent. Commission agents to sell products based on the actual amount and the method according to the agreement and percentage of total income to the client a commission, the client directly with buyers in the area of the actual transaction, there is no need to commission agent commissions. Consignment consignment (consignment) is a consignment of the trade commission, the international trade practice in the habit of using one. Import and export business in China, the use of consignment is not common, but in some commodities, in order to facilitate the transaction, the need to expand exports, but also the proper use of consignment may be flexible. “Consignment” is a different way of trade sales agent. It is commissioned by the (owner) shipped the first consignment of goods, the consignment entrusted to a foreign person (the trustee), in accordance with the conditions of consignment agreement, consignment were replaced by the owner of the goods sold, the owner of the consignment were settled payment of a trade practices.
Used in international trade, consignment, and sold off the normal way of comparison, it has the following characteristics:
1, the first consignment of goods were transported to the destination market (consignment to), then people in the consignment by consignment to local buyers sales. Therefore, it is typical of the kind carried out with the sale of spot trading.
2, the consignor and the consignment consignment relationship between the commission, rather than the buyer-seller relationship. Consignment consignment based only on people who dispose of the goods instructions. Title to the goods before the sale is still in the consignment to consignment people.
3, before the consignment sale of goods, including transit and consignment to arrive after all the costs and risks borne by the consignor. Shipment after the export consignment, the consignment to arrive before the goods can also use the road ways to sell, sell first one, that is when the goods are still in transit, if the conditions that the sale transaction, not a sale is still transported to their intended destination. Tendering and bidding tender (invitation to tender) is the tender in time, place, issue a single tender notice or tender made ready to buy the variety of goods, quantity and conditions of the sale, the seller invited bids behavior. Tender (tosubmit tender) is one of the bidders should be invited to tender, tender notice or tender according to one of the specified conditions, the tender within the prescribed time the behavior of human Bid. Actually bidding is a trade of two aspects.
Currently, the international use of the tender summed up in three, four ways, namely
1, competitive bidding (intenational competitive bidding, ICB) is a tender and even a few dozens of people to invite bidders to participate in the tender, bidders compete by the majority, choose one of the most advantageous tender bidders into a transaction, it is against the selling approach. International competitive bidding, there are two approaches: a, open tender (open bidding). Open tender is a competitive bidding infinite (unlimited competitive). With this approach, the tender to be published in major domestic and foreign newspapers advertising the tender, the tender for the content of any interested person has the opportunity to tender for purchase of tender information. b, selective tendering (selected bidding). Invitation to tender, also known as selective bidding, which is limited competitive bidding (limited competitive bidding). The use of a practice, the tender is not advertised on the newspapers, but according to their specific business relationship and intelligence information by the tender invitation for customers to conduct pre-qualification, and then by their tender.
2, the negotiations tender (negotiated bidding) negotiations, called the proposed standard bidding, it is non-public, is a non-competitive bidding. This tender by the tender figure full color directly with several clients negotiate successfully negotiated deal reached.
3, two tenders (two-stagebidding) is an infinite two tender and competitive bidding and limited competitive bidding integrated approach, the use of such a mode, it is an open tender, and then choose two to the tender points. Government procurement of goods, most of the use of competitive open tender approach. Auction (auction) is accepted by the franchise owner of the auction house commission, in a certain place and time fixed in accordance with the constitution and rules, to the open outcry method of bidding, the final goods to the auctioneer to the highest bidder as a cash transaction. Trading of goods by auction are some great easy to standardized quality, or difficult to go far, or is customary way of auction for the goods. Such as tea, tobacco, fur, fur, wood, etc. Some commodities, such as water mink, Australian wool, most of the transactions are conducted through international auction. Auctions are carried out by specialized organizations in the auction business, auction centers in certain markets, in a certain period of time in accordance with local laws and regulations specific procedures. Unlike most of the auction process **** easy to go through the transaction process generally prepared to see the goods, delivery of bid and payment transactions in four stages.
Bid auction method has the following three:
1, by Auction, also known as the buyer’s bid auction. This is the most common kind of auction. Auction, the auctioneer (auctioner) put forward a number of goods, announced a predetermined minimum price, the valuation by the bidders after the (bidder) have been bid, competing to increase, and sometimes the amount of each increase the amount of provisions, until the auctioneer that no people and then a higher one.
2, reduction auction, also known as the Dutch auction (dutchauction), this method first by a call for the highest auction prices, and then gradually reduce the asking price until a bidder that has been accepted to a low price, buy that .
3, sealed bids auction, sealed bids (sealed bids; closes bids), also known as auction bidding auction. Using this method, first the auctioneer announced the specific circumstances of each batch of goods and auction conditions, then by learning side within the specified time to submit their sealed bid auctions were for auction than to pay people to review decision sold the goods to which the bidder. This method is not an open bidding, the auctioneer and sometimes have to consider factors other than price. Some governments or customs in dealing with inventory or confiscation of goods, often using the auction method. Futures Exchange (futurestransaction) is one of many buyers and sellers within the major commodity exchanges in accordance with certain rules, with shouting and with the gesture to bargain a deal through a highly competitive trade. Unlike commodity futures trading in spot trading. As we all know, in the case of spot transactions, buyers and sellers in any way, at any place and time to reach a physical transaction. The seller must deliver real goods, the buyer must pay the purchase price. The futures are at a certain time in a particular futures market, for that commodity exchanges, the exchange pre-established in accordance with the “standard futures contract” in futures trading. Buyers and sellers after the transaction does not transfer the ownership of goods.
Because futures have the following characteristics:
1, Exchange does not require both parties to provide or accept the real goods;
2, the transaction is not the result of the transfer of physical goods, but the payment or the date of taking the contract and the date of the contract price differential;
3, the futures contract is a standard developed by the Exchange of futures contracts and exchange only in accordance with the provisions of commodity standards and types of transactions;
4, the futures exchange in accordance with the provisions of the delivery lead time is determined. Different products, different delivery;
5, the futures contract must be established in each exchange registration and settlement of the clearing. Types of futures trading futures, traders according to the purpose, there are two different types of nature: one is the use of futures contracts as gambling chips, buying and selling, the difference between the price fluctuations in the pure pursuit of speculative profits ; one is the real deal in the kind of people to do hedging. Former business practices known as the “fictitious”, it is the speculators on the market prospects based on their judgments and conduct of gambling speculation. The so-called “buy space”, also known as “bull” refers to the estimated price to rise speculators to buy futures; period once the goods prices, then sell futures, pocketing the difference. The latter is customary in the business known as “hedging”, also known as “sea piano.” Counter trade, counter trade (counter trade) in China has translated as “reverse trade”, “netting trading”, “reciprocal trade”, it was also generally referred to as “barter” or “big barter. We can counter trade generally understood to include barter, trade account, each purchase, the product repurchase, resale and trade is the sale of goods context, and out of combination of exports to offset the import trade for the same characteristics of a variety of ways in general.