Introduction
Foreign Trade is the exchange of goods and service between one country and another country. There are some intermediaries between the trade partners such as; insurance firms, freight forwarders firms, customs firms and Banks. In this paper functions of these intermediares will be explained.
Finance in Foreign Trade
Banks play a critical role in facilitating international trade by guaranteeing international payments and thereby reducing the risk of trade transactions.; the most critical aspects of trade is getting paid. Because getting paid in full and on time is the ultimate goal for each export sale, an appropriate payment method must be chosen carefully to minimize the payment risk while also accommodating
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Pros
• giving security to both the seller and the buyer.
• A variety of payment, financing and risk mitigation options available
Cons
• Relatively expensive method in terms of transaction costs
Cash in advance
Cash in advance is the risk free payment methods except the potential consequences about non delivery of the goods by the seller. Exporter can avoid the risk of non payment since payment is recieved prior to shipment. This payment method is not favorable for buyer because buyer is concerned about the non delivery of goods when the payments made in advance. Accordingly it is not an competitive option for if customer has other vendors who offer more attractive payment methods.
Pros
• Payment before shipment
• Eliminates risk of nonpayment
Cons
• May lose customers to competitors over payment terms
• No additional earnings through financing operations “
The most commonly used cash in advance options are wire transfers and credit cards. Wire transfer is secure and preffered cash in advance method and has the advantage of of being almost immediate. Seller must provide clear routing instructions for wire transfers when using this method. These intructions includes; name and adress, telephone, type of bank account , and account number of the sellers. Credit card is the viable cash in advanced
One of the major advantages of trading is that it allows producers to concentrate or specialize their work in the type of goods they produce best. When people decide to specialized in a specific profession an become doctors, farmers, teachers, or any other profession within an economy, they will be able to produce goods and offers different services that can be trade for any goods or services they may need. In this same way countries can become specialized in the production of specify products and/or services and trade those with other countries. However, trading and importing products and services from other countries also has its disadvantages. As a result of the different products imported governments impose certain restrictions and limitations to protect the domestic production and market of every country involve in any kind of trading transactions. Governments have imposed taxes on trading transactions adding them to the cost of importation, and have the purpose of restricting and/or limiting the imports of goods and services into a country. These government
When studying trade and commodities of Empires in any period of time, it is important to look at the changes that the trade created within the involved nations. What crops were popular enough to grow commercially in the empire, what the increase of trade did to the population demographics, and how the global system influenced the interactions of the countries involved can be found through close reading primary sources. Through sources like Trade and Travel in the Far East by G.F. Davidson and Tearful Conversation over the Mulberry Fields and the Sea by Nguyen Thuong Hien, scholars can determine the impact these factors had on the lives of those who experienced empirical trade. In comparing these two documents, the most prominent focus is on
Analyze the role of slavery and Triangular trade in the Colonial mercantile structure and for the primitive accumulation of Capital that allowed the take off of Capitalism?
Begging the question is a type of logical fallacy that “avoids the argumentative process” (McInerny 109). An example of a begging the question fallacy is when my friend argued for his point that Panera Bread is the healthiest fast food alternative restaurant. My friend, Tim, stated that “Salads and fruit smoothies are the healthiest types of food. Since, Panera Bread serves several types of salads and fruit smoothies this makes Panera Bread the healthiest fast food alternative.” Tim’s statement exemplifies begging the question fallacy because the conclusion, “Panera Bread is the healthiest fast food alternative”, does not have logical premise and reasoning behind the argument. Tim did not provide any factual information proving the fact that salads and fruit smoothies are the healthiest food option. Also, Tim did not compare the actual calories in the food at Panera compared to a typical fast food restaurant, such as McDonalds. In summation, Tim completely ignored the reasoning that backed up his conclusion, which was Panera is the healthiest fast food alternative, thus making the conclusion a begging the question fallacy.
· What happens when there is a surplus of imports brought into the U.S.? Cite a specific example of a product with an import surplus, and the impact that has on the U.S. businesses and consumers involved. When there is a surplus of imports brought into the U.S. it means that the price of the product(s) will drop. U.S. companies that are competing with the Chinese made products will suffer from price drops of the goods. With consumers it will benefits the consumer with the lower price on goods. Large screen LCD/HDTV is a good example. Since the recession there has been a surplus of large screen HDTV. Not many people can afford or buy them since the prices were high. Now large screen LCD/HDTV is much cheaper than what it was 4 years ago.
There is no doubt that increasing in international trade is supporting the economic growth across the world, raising incomes and creating jobs. However, international trade can also some create economic obstacles, such as the international context and the market policy and regulations of each country, and consequently it can be said that the effects would have positive and negative sides, and it is useful to mention all of them and to take them into consideration.
In this I am going to assess the methods to increase trade between countries and the methods to restrict trade between countries. When asses the methods of encouraging and restricting trade I will talk about the purpose for the methods of promoting and restricting international trade, identify how and why they might be used and I will decide how useful each method is giving appropriate reasons for it. International trade is the exchange of goods and services between countries.
In the Bible many characters overcame problems while playing a big role in history, one of them was Moses. He was an important person who had many feats, but also suffered in the Bible. While being the man who led the Israelites out of slavery, he was hurt and disliked by many people for a purpose; to spread his religion.
Your first cash advance has already been transferred to your account. Now you can withdraw cash in the cash machine and spend money like you wish. Generally, cash loan providers do not require the information, concerning the way you want to spend money. This is a real benefit, because as a rule no one can foresee the contingency costs.
Organized Trading Facilities, Multilateral Trading facilities and Regulated markets are all multilateral system, trading venues under the Markets in Financial Instrument Directive II (MiFID II) a European Union Law that replaced Markets in Financial Instrument directive (MIFID).
In the recent years, business become more larger due to the advancement of technology, a renewed enthusiasm for entrepreneurship and a global sentiment that favors international trade to connect people, business and market. The economist emphasize about the international trade can increase the production of goods and service, increase the demand from the consumer in local or international, the diversification of goods and services and the stability in the supply and prices of goods and services. As a result, it becomes the main part of the international business and motivated countries to trade with borders. The United States implied the government intervention since the great depression through the financial sector rescue
Capital flow involves concentration on the aspects of how the deal can be settled in an efficient and effective way. It is realised in term of customer service in settlement especially Alipay, the third-party online payment platform which provides assurance to buyers in settlement in the event of scams, delivery failures or transaction disruptions.
International business contains all business transactions private and governmental, sales, investments, logistics, and transportation that happen between two or more regions, nations and countries beyond their political limits. Generally, private companies undertake such transactions for profit governments undertake them for profit and for political reasons. It refers to all those business activities which involve cross border transactions of goods, services, resources between two or more nations. Transaction of economic resources includes capital, skills, and people. for international production of physical goods and services such as finance, banking, insurance, and construction.
Since it’s discovery, HIV has spread relentlessly, bringing about the most devastating pandemic in recorded human history. This pandemic is obliterating the lives and livelihoods of millions of individuals worldwide, with more than 39 million people having died due to AIDS-related causes, 35 million people living with HIV and 2.1 million individuals being newly infected each year. Thus, each day an estimated 15,000 individuals are newly infected and this alarming rate is set to increase. In Swaziland, where gender inequality is pervasive, public services are weak and poverty is extensive, the situation is far worse.
Trade credit, as defined by (Paul and Boden, 2008) allows customers to delay payments for goods or services to a supplier for a specified period of time. Alternatively, Laffer (1970) defines trade credit as “a means through which money is transferred from economic entities possessing idle money balances to entities in need of additional money balances” (Laffer, 1970, pp. 242). Globally, the scale of trade credit is significant such that in most developed countries it exceeds short-term bank credit (Blasio, 2003) and is an important way of financing firms’ working capital (Peel and Wilson, 1996; Paul and Boden, 2008).