I Introduction
International trade has a timeline that dates back to the 19th century BC where the Assyrian merchant colony existed. Ever since, international trade has evolved more elaborate, more important, and has proved to become an essential cog to modern day business. It is for this reason that integral shipping agreements have been placed to mediate the responsibilities and liabilities between exporters and importers. There are different types of agreements that can be made that are preferred by the exporter/importer, but all with the purpose of reducing transactional confusion.
This essay discusses the attractiveness of cost, insurance and freight (CIF) and free on board (FOB) contracts by comparing and contrasting their pros and
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In the classic FOB framework, it is still the importer who nominates the shipping vessel, but then it is the exporter who remains a party to the contract of carriage until up until the moment s/he take out the bill of lading in the name of the importer. The additional services FOB framework, in essence is the reverse of the strict FOB framework. The exporter assumes responsibility for the nomination of vessel and contract of carriage and may take out the bill of lading in his/her name. The variations of FOB make it a more flexible option that some exporters may be inclined to choose. However there is more that needs to be discussed before one can come to conclusion.
II Passing of Ownership and Risk for CIF and FOB Contracts
Lord Wright stated that a CIF contract is “a type of contract which is more widely and more frequently in use than any other contract used for the purposes of sea-borne commerce." The exporter is obliged to obtain a bill of lading and insurance policy and send it to the importer along with an invoice for payment, where the buyer will pay upon receiving the documentation. In the case of Diamond Alkali v Bourgeois, McCardie affirmed that the only form of a correct transaction was if there was an on board bill of lading. His opinion stems from the Lickbarrow v Mason case where the on board bill of lading was aligned with the trade custom and so considered the bill of lading as a document of title at common law. However, if proved via
Rolls Royce, established in 1906, is now a globally recognised company. Although originally they focused on car manufacture they are now one of the leaders in power and propulsion technology. Rolls Royce’s technology is very efficient and their manufactured products are used in many sectors such as aerospace, marine, energy and nuclear energy. Investment in research is key to their success; they are innovative, creating new and improved systems to help achieve a strengthened market position. The jet engine has been improved constantly since it was developed in the early 1930s and Rolls-Royce’s new Trent XWB EP civil aircraft engine offers a fuel consumption improvement of 1% compared with other manufactures, making it the most efficient technology currently in the world. Rolls-Royce are a state-of-the-art company who continue to innovate and produce new products and services that benefit society. The Rolls Royce brand is key, without it they would not be able to make the sales and revenue they make. Its brand provides a symbol of quality and a good reputation. This reputation helps build customer relations and trust for the company. The brand also creates a strong attraction to engineers, which they offer many apprenticeships to enhance their skills base. There are currently over 50,000 employees working for Rolls Royce. It is one of the top
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
The Trans-Atlantic Trade has diversified the economy more in the North than in the South. While Southern farmers were able to acquire more lands and so more slaves; Northern farmers had to look for other opportunities. The economic development in the eighteenth century combined with the population growth changes the way people saw themselves, but also the way people understand the authority that surrounded them. Economic growth in America also led to the development of social life with the diversification of the society. While the market economy created those with wealth and those who seemed to be permanently poor, social hierarchy became challenged by the social stratification of the society. Blackburn, Robin (1997) highlights in his article
· 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.
How many other formal economic relationships does the country have at present and with which other countries (i.e. trade agreements or other forms of economic integration)? Are there any others being negotiated? Note that you may include your answer to Question C if you wish.
Modern day importing and exporting was inspired by the trade of the ancient empires. Trade also helped to boost economies just like it does in present day. Trade wouldn’t have been so beneficial had it not been for the development of ships and roads to expand travel. Besides trade technology also played a important part in the growth of an empire.
When understanding our present through the ancient past, it is paramount to recognize the importance trade has had on the development and structure of modern-day society. Trade’s influence is not merely comprised of commerce, but also dwells into the intermingling of societies with differing religious and cultural views. This evolution of trade over hundreds of years has resulted in a present-day world, encompassed with trade in all reaches of the globe. Trade has generally benefitted those who have taken part in it since its conception, only strengthening the concept of establishing a market where individuals can receive goods and services that they would otherwise be unable to produce themselves. From the exchange of flint and obsidian in
Mercantilism was a sixteenth-century economic philosophy that maintained that a country's wealth was measured by its holdings of gold and silver (Mahoney, Trigg, Griffin, & Pustay, 1998). This recquired the countries to maximise the difference between its exports and imports by promoting exports and discouraging imports. The logic was transparent to sixteenth-century policy makers-if foreigners buy more goods from you than you buy from them, then the foreigners have to pay you the difference in gold and silver, enabling you to amass more treasure. With the treasure acquired the realm could build greater armies and navies and hence expand the nation’s global influence.
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
1. Shipping and airfreight services and determine the most appropriate transport method and route and protection/security options
Being an assignment submitted to the Department of Economics, School of Business, University of Strathclyde in partial fulfillment of the requirement of International Trade and Policy (EC 925) for the award of M.Sc. in Applied Economics (2014/2015). November 2014.
The International Trade Concepts simulation helps one to learn the advantages and limitations of international trade. One can also take what is learned from the simulation and relate it to the U.S. economy and the effects international trade has on it. Learning about how fiscal and monetary policies affect the exchange rate is important as well. Not only can one apply what was learned in the simulation to the U.S. economy but they can also apply it to their workplace. The Concept Summary of the simulation helps to make these applications.
An important part of international business is, obviously, importing and exporting. An increment in the level of exports and imports is, all things considered, one of the manifestations of a straightening world. In a level world, goods and services can stream smoothly starting with one part of the globe then onto the next
“If soldiers are not to cross international boundaries, goods must do so. Unless shackles can be dropped from trade, bombs will be dropped from the sky.”
The European Union is a major player when it comes to international trade. Accounting for 16.5% of the world’s imports and exports, the EU is founded on principles of free trade and fair trade. The organization negotiates agreements around the world in hopes of creating growth and jobs for Europeans. Furthermore, through trade policy, the EU aims to reduce child labor, forced labor, and environmental destruction which can contribute to price volatility. Every day, the countries of the EU export hundreds of millions of goods and services. In 2016, The EU’s top trading partners were the United States at 17.8 % of total trade, China