Establishing business relation is the first step in a transaction in international trade. No transactions can be conducted until contacts have been made between two or more companies. To establish business relations with prospective dealers is one of the vitally important measures both for a newly established firm and for an old one that wishes to enlarge its business scope and turnover. Merchants abroad may be approached through some of the following channels:
Communication in writing;
Attendance at the export commodities fairs;
Contact at exhibitions held at home and abroad;
Mutual visits by trade delegations and groups;
Calling on customers;
Overseas investigation.
Establishing business relations is realized mostly in writing and verbally. In order to come to an agreement during a business communication, people should know several terms are, such as the description of the goods, their quality, packing, price, shipment, insurance, payment, inspection, claims, disputes and arbitration.