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Business to business- negotiation

Business to Business- Negotiation

Marketing generally means the trading of products and services from one place or company to another. The marketing can be further divided into two categories, consumer and industrial. Business to business marketing is industrial marketing. A company which is setting up a new factory will accept business proposals from appropriate construction units, after carefully appraising each one’s worth it will make a deal with that particular construction firm which accordingly offers greatest value in terms of money.

This is an example of B2B Negotiation. The import and exportprice index of the U.S. keeps fluctuating with changes in the price of products and services that are either exported or imported. Now even monthly reports are submitted by labor bureau to the government.

Any goods or services that are supplied by a resident U.S. citizen or are purchased from other countries by them affects the import- export price indices of the country. Art works or paintings are generally excluded from the category. The United States Ex-Im Bank is the chief authority for independent credit agencies like the ‘export credit agency’. It enables the customers to take viable risks by financing any purchases done by them with other countries. Opportunities for work are thus created by finance of sales of exports to global buyers. The bank comes under the U.S. government congress segment. The government has full authority over the Export-Import Bank and its rules and regulations. Other private banks and money lenders have no fear of competition from the Ex-Im Bank. It rather helps these private sectors by funding for transactions that are associated with great political and business risks.

The bank provides help and support to small scale business to business for export purpose of country-made goods and services. It has funded almost 3 billion dollars to finance minor export units. There are various Insurance schemes and policies under the Ex-Im Bank for independent organizations, B2B and other banks to alleviate risk factors like failure of collection of dues from international buyers. Also there can be many defaults due to insolvent buyers and money-oriented difficulties.

There can be risk also of a political nature like sudden war and civilian agitations and restrictions in the smooth flow of cash. Insurances are made to organizations directly dealing with exporting formalities, independent private banks who lend funds to global buyers also avail Insurance facility. Some small-scale business sectors, B2B transactions are free of premium payments and can keep paying as per their cash-inflow.

But this convenient Insurance program is only for minor industries and exporters. Guarantees on loans are also provided for those banks who credit money to export units and companies. But the Export-Import Bank has faced several criticisms of supporting and favoring particular sections or companies more than the normal Tax paying individuals or firms. They include corporations who have connections with other international governing bodies and foreign nationals among others. But the bank is indeed a boon to all small scale companies who rely on them heavily.

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