采购与供应 PART2.docx

international purchasing and supply chaincourse name: international purchasing and supply chainoutcome: 2tutor: liang junclass: gt&b 4student name: xuyangyuanstudent id: 20125590content1. introduction2.1 culture, language and communication affect overseas purchasing2.2 the factors affecting foreign exchange rates2.3 currency exchange rates result in financial risk2.4 counter-trade2.5 forward buying2.6 the need for an ipd to achieve continuity and security of supply requirements3. conclusion1. introductionthis report mainly talked about the major challenges of overseas purchases, including six parts: how culture, language and communication affect overseas purchasing, the factors affecting the exchange rate, and how the results of the financial risk of currency exchange, the impact of anti-trade overseas purchases, looking to buy interests of the company, as well as ipd needed to achieve continuity and security of supply.2.1 culture, language and communication affect overseas purchasingcultural is more often a source of conflict than of synergy. cultural differences are causing a nuisance, and often a disaster. we generally do not know the culture of other countries, we tend to reduce cultural differences. this leads to people from different countries between misunderstanding and misinterpretations. culture affects consumer behavior, local needs, purchasing decisions and brand image. management style and cultural influence management decisions. cultural impact nature of the business negotiations. therefore, the complexity of the cultural influence overseas purchasing. ipd need to consider the product in different cultural backgrounds. because in different regions in different languages, it is a communication failure. language is the main factor of communication, negotiating contract terms may be very difficult.2.2 the factors affecting foreign exchange ratesthe exchange rate is the rate at which one currency can be exchanged for another. this is another countrys currency relative to your own values. here are the factors affecting foreign exchange rates:the difference between interest rates: interest rates, inflation and exchange rates are highly correlated. interest rates seen as the cost of capital. in other words, smart investors usually want to invest their money where they can get to pay higher prices. return often have higher interest rates high in these countries. when the low default risk of divergence between countries, investment will flow to the nation-state, which will increase the demand for money, and cause the currency to appreciate.political stability, economic performance: most investors do not like risk, and therefore more willing to invest their money in a stable economy. they tend to avoid investing in political turmoil and economic stagnation countries. government and economic stability of the country will attract more buyers (and vice versa), which created more demand for money in the country.2.3 currency exchange rates result in financial riskforeign currency risk is the existence of financial transactions denominated financial risk than outside the companys base currency of the currency of the time. foreign exchange risk also exists when a company other than a foreign subsidiary in the consolidated entity to maintain functional currency financial statements currency. the risk is that there may be before the date of the denomination of currency exchange rates relative to the adverse movement of the base currency, when the transaction is completed. when buying overseas is always a risk that the currency will fluctuate, the buyer can pay more than expected. as the company with the negotiated contract price and delivery date in the volatility of the foreign exchange market, the face of constant exchange rate fluctuations, the company faces change, exchange rate risk foreign and domestic currencies. investors and companies to export or import of goods and services, or foreign investment which will have serious economic consequences of exchange rate risk; but you can take steps to manage the risks.2.4 counter-tradecompensation trade is an umbrella term that covers a wide range of commercial mechanism of mutual trade. it can be manifested in several forms, but always involves the payment made, at least in part, in goods or services rather than money. it usually occurs in multinational companies sold to foreign multinational clients and customers to provide goods to pay. in some countries, compensation trade procurement organizations goods imported from elsewhere conditions. help save foreign exchange, which is a major consideration for cash-strapped countries. it increased employment, higher sales, better capacity utilization and easy access to the challenging market. compensation trade can range from a simple barter trade between the two countries to finally meet all the needs of the countries concerned to communicate complex networks.2.5 forward buying the company is exposed to foreign exchange risk and may use some of the foreign exchange hedging strategies to reduce exchange rate risks. involves buying long-term money market instruments or currencies buying price increases expected future demand growth or investment strategy. when there are expectations or increase securities prices or increase the level of demand for a currency is expected, buying forward contracts allow investors can take advantage of potential future profits by buying at present, at a lower price and selling when prices rise. forward buying flexibility and mobility. the fund can easily be converted into cash. most importantly, it makes the economy the lowest risk, to make more profits.2.6 ipd realize the need for a power supply continuity and safety requirementskey role in the supply chain is to assist in the production, consumption, and distribution of goods and services. this means that the goods must be produced and market quality in the delivery of the correct quantity required (or client), and a competitive price. for example, in order to meet the changing needs of global security, government and voluntary sectors to embrace wal-marts supply chain security program. we will continue to improve our understanding of the global supply chain threats at all points of vulnerability mitigation and management of capa