Chapter Two Establishing Business Relations
2.1 Relevant Knowledge About Establishing Business Relations
2.1.1 Importance of establishing business relations with other companies
It is not easy to do business with customers in other countries.For importers they don’t know where the sellers are，and for exporters they don’t know where the buyers are.In doing international business a foreign-oriented firm needs extensive business connections to open up，maintain and expand its business activities.So to establish business relations with prospective dealers is the base of starting and developing business.It is very important for both new firms and old ones.For a newly established firm，it can serve as the basis for starting business，while for an old firm，it can help expand business and increase the turnover.In international business，owing to the geographic distance which separates the seller from his buyer，businessmen usually approach the foreign merchants through communication in writing.
2.1.2 Channels through which to get the information about prospective dealers
As we know，to establish business relations is the first step in international trade.Writing letters to new firms or customers to establish business relations is a common practice in foreign trade.To facilitate the establishment of business relations，a firm should first get to know the necessary information about the prospective dealers.He can obtain such information through the following channels or with the help of：
（1）The advertisements in traditional mass media.
（2）The introduction from its business connections.
（3）The introduction from its subsidiaries or branches，or agents abroad.
（4）The market investigations.
（5）Attendance at exhibitions and trade fairs.
（6）Visit abroad by trade delegations and groups.
（7）Self-introduction or enquires received from the merchants abroad.
（8）The banks.
（9）The Commercial Counselor’s Office.
（10）The Chambers of Commerce both at home and abroad.
（11）Commercial directories of various countries and regions.
（12）Internet.