Section I Introduction

Establishing business relation is the first step in a transaction in international trade. No transaction can be concluded until contract has been made between two or more parties. Writing to new customers to establish relation is a common practice in business communication.

1．Importance of Business Relations

It is fairly true to say no customer, no business. Just as a factory requires a complete set of machinery to proceed with production, a foreign-trade firm needs extensive business connections to develop business for a newly-founded firm, to maintain or expand its business activities and to increase sales turnover for an established enterprise. Therefore, the establishment of business relations is one of the important undertakings in the field of foreign trade. In international trade, importer and exporter can contact and communicate by various correspondences; of course, they can get in touch through participating in trade fairs at home and abroad, or through exhibition or business visits.

2．Channels for Information of Potential Partners

If a new firm, or rather a certain corporation of ours, wishes to open up a market to sell something to or buy something from firms in foreign countries, the person in charge must first of all find out whom he is going to deal with. Usually, such information is obtainable through the following channels:

(1)banks;

(2)chambers of commerce in foreign countries;

(3)trade Directory;

(4)Chinese Commercial Counsellor's Office in foreign countries;

(5)business house of the same trade, etc.;

(6)advertisements in magazine, on internet, over radio, on TV and so on.

Among them, the first channel is the best option for its credit worthiness and reliability, and the last one will be the most convenient choice as the rapid development of advertising industry and popularity of internet.

3．Requirements for Writing

Having obtained the desired names and addresses of the firms from any of the above sources, you may start sending letters or circulars to the parties concerned. This type of letter is an outgoing letter and may be called a“First Enquiry”. It should be written as follows:

(1)Tell the addressed how his name is known;

(2)Introduce your business scope;

(3)Express your hope of establishment of business relation;

(4)If possible, offer reference as to its firm's financial position to the other party for credit standing investigation.

Any letter of this nature received must be answered in full without the least delay and with courtesy so as to create goodwill and leave a good impression on the reader. This is one of the most important functions of commercial correspondence.

To firms engaged in foreign trade, business connections are valuable. Therefore, traders must not only do everything possible to consolidate their established relations with firms having previous business but also develop and revitalize their trade by searching for new connections from time to time.