How to build a foreign trade knowledge pyramid and understand the importance of document transactions

In the foreign trade industry, it is crucial to build a solid knowledge system. This system not only includes the learning of basic knowledge, but also includes the understanding of specific aspects such as document transactions.

Construction of foreign trade knowledge pyramid

When learning new knowledge, it must be based on existing knowledge. There is a hierarchical relationship between knowledge, just like a pyramid, with the knowledge at the bottom supporting the knowledge at the top. In the field of foreign trade, this hierarchical relationship is particularly obvious. Behind each specific skill is a series of basic theories as support. For example, if you want to master customer search skills, you need to first be familiar with the relevant basic theories. In addition, there are complex network connections between various knowledge points, which together constitute the knowledge field of the foreign trade industry.

Division of knowledge areas

Foreign trade work includes multiple areas of knowledge, such as foreign trade email skills, foreign trade negotiation skills, customer development skills, etc. Each area consists of a specific set of skills, such as:

• Foreign trade email skills: including email title skills, body writing skills, and wording skills;
• Foreign trade negotiation skills: Involving quotation skills, customer psychological analysis skills, time management skills, and value presentation skills;
• Customer development skills: Covers customer search skills, search command application skills, customs data analysis skills, and social customer acquisition skills.

How to quickly build a knowledge pyramid

If novices want to quickly establish their own knowledge system, they should start by mastering “yang knowledge”. “Yang knowledge” refers to information that can be obtained through public channels, such as textbooks. These materials can help individuals build the basic framework of a field and understand the basic logic of industry operations. When selecting textbooks, you should pay attention to the reputation of the publisher and the professional background of the author, and give priority to works with a good reputation.

Secrets of document transactions

The core of foreign trade document transactions is to represent actual goods through a series of documents. This means that the person who possesses these documents takes ownership of the goods. The main documents include:

• Bill of Loading;
• Invoice;
• Packing List;
• Other relevant documents, such as quality inspection certificate, certificate of origin, etc.

Among them, the bill of lading is particularly important because it is a legally binding proof of ownership of the goods. In addition to the bill of lading, other documents such as packing lists are usually prepared by the exporter, while documents such as commodity inspection certificates need to be issued by a third party.

In actual operations, foreign trade personnel may never see the goods with their own eyes, but they must ensure that the documents they hold are accurate. Because once there is a problem with the documents, the transaction may fail even if the goods themselves are intact. On the contrary, even if there is a problem with the goods, the transaction can continue as long as the documents are complete.

In short, “foreign trade is actually the sale and purchase of a set of documents.” This concept is crucial to understanding the special operations in international trade.