Global Journal of Economic and Finance Research

Effective communication is essential in international trade, especially on important documents like proforma invoices and order confirmation emails. This paper examines communication mistakes in a simulated trade scenario, involving a Chinese exporter and Bangladeshi importer. Based on the 7C principle of business communication, cross cultural communication theory and Business Document Standardization theory, this study identifies major problems including missing Incoterms, unclear and inconsistent pricing, informal language style, vague delivery terms and lack of essential commercial information. The findings show that these errors will often lead to delays, misunderstandings and contractual disputes that can significantly harm new or inexperienced trading companies. Optimized versions of the emails were recreated to illustrate how well formed, complete and culturally relevant communications increases clarity, lowers risks and smoothens trade. The research provides some practical advice for SMEs and new comers to international business in terms of understanding the importance of communication skills as well as adherence to international documentation standards. The findings have important implications for improving trade communication practices and of smooth cross-border transactions.

International Business Correspondence, Proforma Invoice, Order Confirmation, Communication Errors, 7C Framework, Incoterms 2020

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