Business relationships

Commerce

Commercial relationships are those productive activities that occur between two or more economic agents (buyers and sellers). The purpose of these is to keep the product on the market, as well as to satisfy their respective needs.

Commercial relations, therefore, bring together all those deals that occur between individuals, companies or countries. Which, have as objective the sale of merchandise between them. Although business transactions often integrate goods and services, business relationships also promote political, cultural, and technological exchanges.

These commercial relationships are of great importance to the economy. We are talking about the fact that thanks to these relationships, globalization has allowed companies to continually innovate and learn about the changes that occur in an increasingly global market.

Types of business relationships

Depending on the relationships that each company, country or individual maintains with its partners, commercial relationships may be the following:

  • Multilateral: One in which a large number of individuals are involved, especially countries. We are talking about relationships such as those maintained by the economic blocs.
  • Bilateral: One in which two agents intervene. In this both parties benefit.
  • Interior: Those commercial relationships that occur in the same territory.
  • Exterior: Those relationships that occur between people from different territories.
  • International: That which occurs between all the countries of the world. This gives rise to a phenomenon known as international trade, where all countries carry out transactions with each other.

Thus, these are the main types of business relationships. Depending on the economic agents we choose, some will be more frequent than others.

Other economists classify relationships based on the setting in which the relationships occur. As well as, on the other hand, the number of agents involved in the active buying and selling process.

The economist Philip Kotler, a world expert on issues related to marketing, emphasized a relationship made up of five concepts that, in a way, show the types of business relationships present in business practice.

For Kotler, the classification of commercial relationships is carried out based on the behavior of economic agents, as well as the interaction that occurs between them.

Among these mentioned types are the following:

  • In society: It is a commercial relationship very oriented to attract the customer's attention. There is a link, via advertising, between the consumer and the seller.
  • Proactive: It is the company that is in charge of proactively searching for the client. Very common among companies such as telecommunications companies.
  • Responsible: There is a relationship between both agents, since the sale is monitored.
  • Reactive: The customer is the one who demands the product or service, when he needs it.
  • Minimum: It is limited to the offer of the product or service, by the offeror.

The importance of business relationships

Openness to international trade and foreign trade has become one of the best engines for development.

In fact, the World Trade Organization (WTO) carried out a study in which the importance of the commercial opening of the countries was determined, thus achieving a greater development of their economies. A theory that was confirmed by said body, after putting it into practice in a large number of emerging economies.

Trade relationships are of the utmost importance to economies. From Mexico to China, all economies try to strengthen and gain weight in global trade. Trade is a great source of wealth, which is why some leaders even generate conflicts related to trade that occurs between countries. Conflicts that arise from a phenomenon such as trade.

The expense of one is the income of another. In this sense, the concept shows that trade is vital for national economic income. The foreign sector and exports generate great benefits for the countries, as well as for the companies that comprise them. Throughout history, numerous trade agreements have been signed; all of them, favoring free trade from which the entire territory benefits.

Commercial relations in the political sphere

Within the political sphere there are also commercial relations. Customs union agreements, trade relations, as well as any exchange of goods and services between countries, are the product of the fact that trade relations are also fundamental within the political field. And the fact is that the trade balance, which shows imports and exports, is made up thanks to those commercial relations, so precise in a globalized economy.

Thus, we can classify trade agreements between countries into three types:

  • Agreements: Outside the legal scope. It is the will of two countries to trade with each other.
  • Treaties: It is a formal agreement that is established between two or more countries to trade with each other. This is regulated.
  • Commercial agreements: Like the treaty, it is formally established. However, this must be between physical or moral figures, not specifying that countries establish the agreement, as is the case in the treaty.

How to maintain business relationships?

In order to ensure the smooth running of our company, it is vital that business relationships become a fundamental pillar for the company.

With a good customer service policy, our relationships can become strong and productive. Along these lines, we have compiled a series of tips that could strengthen commercial relations between two socio-economic agents.

  • Generate a strong and close relationship with the client.
  • Offer good customer service.
  • Keep the consumer informed.
  • Provide information to our consumers.
  • Guarantee answers to problems that may arise.
  • Be honest in the actions that occur.
  • Maintain mutual respect.
  • Identify the values ​​and what adds value to our product or service for the client.
  • Establish a friendly relationship.

These are some of the recommendations that, from Economipedia, we consider fundamental for the maintenance of commercial relations. However, this is an example, as new ways of establishing business relationships with our customers can always be devised.

Thus, with the birth of the Internet and e-commerce, customer relationships have become more impersonal, from the purchase point of view, but where the attention is more intense and fluid, by offering online portals that they offer information every day of the year, 24 hours a day.

Ultimately, the key is to treat our customers well, take care of them, and be honest.

Importance of foreign trade Difference between international trade and foreign trade Trade policy

Tags:  USA markets Commerce 

Interesting Articles

add