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Lesson One  Overview of foreign trade and business letter writing
Correspondence in a written form is more reliable. 
Scenario: Golden Apple Trading Company – export-oriented 
Business scope: shoes and clothes (USA office, Japan office, South Asia 
Scope of business: electronic products, including electronic dictionaries, mobile phones, electronic watches, pens, digital cameras, MP3/4 players, computer
cars, toys and bikes, earth-ware for daily life, home appliances/white goods, electronic devices … 
Target countries/regions: USA, Japan, South Korea, North Korea, 
Start from scratches 
How to find potential clients?
Business portal sites, eg, Alibaba
Consulates of foreign countries in China
Industry Associations 
Advertisements
Industry conferences 
Overseas travels
Websites, including alibaba.com; ebay.com 
Foreign newspapers online, classified ads
A bottle of juice is sold at Yuan 6 in Chinese shops. 
Possible costs: 
Export duties, Extra freight, extra insurance, Customs-related fees
(Yuan 6*[1-VAT rebate]+ Export duties, Extra freight, extra insurance, 
Customs-related fees)/6.78 (exchange rate) = $1.85/bottle
A bottle of juice is sold at $2/bottle in American shops.
Offer: $1.95/bottle
VAT rebates
Import duties, extra freight, extra insurance, Customs-related fees, 
($1.85*[1+VAT rate]+ Import duties, extra freight, extra insurance, 
Customs-related fees) = $2.05/bottle * exchange rate (6.78) = Yuan 13.9/bottle
Value-added tax (VAT)
Negotiations: price talks
Happy Sino makes an offer: $2.05/bottle 
US Globe makes a counter-offer: $1.90/bottle
Happy Sino and US Globe make a deal at $1.98/bottle. 
Contracts/orders
US Globe pays a down payment to Happy Sino. 
Bill of lading (B/L) 
I. Business letter writing: 
1. Components: 
Letter head （sender’s address）
Date 
Receiver’s name
Inside address (receiver’s address)
称呼salutation
内容body/message
Complimentary close
署名signature 
cc: all students of Class 10 of Grade 2008
to be continued 
continued
II Format p 6-8
1. traditional with indentation
2. block format
3. modified block format
Addressing of an envelope 
Receiver’s address in the lower middle part. 
Sender’s address in the top left hand part. 
Room 123, Dormitory Building No. 7
East Campus of Huaihua College
Hecheng District, Huaihua City
Hunan Province
P. R. China 418008
                        Room xxx, XXX Building
                        1515 West Nanjing Road
                        Huangpu District, Shanghai
                        P. R. China 200000
Gossip stops with wise people. 
Lesson Two Establishment of business relations
Basic means to contact potential business partners? 
-	email
-	snail mail
-	telephone calls
-	fax
-	instant messages
-	personal visits
Business portal sites, eg, Alibaba, Ebay. 

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