International Trade

16708 Words Jan 11th, 2010 67 Pages
Export/Import Procedures and International Trade

Contents
1) Outline on International Trade
2) Problems and Barriers to Trade
3) International Trade Terms
4) Trade Financing & Payment
5) International Trading Pricing
6) Shipping Documents
7) Cargo Insurance
8) Shipping Organizations
9) Containerisation
10) Freight Market
11) Shipping Operation
12) International Organizations
13) Physical Distribution
14) Modes of Transportation

Chapter 1
Outline on International Trade
1. Introduction ‘No country is an island’, so goes the common saying. Whether it is a socialist or a democratic country, every nation needs to trade. Every country is dependent on each other for a variety of products that they cannot produce locally.
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If the buyer is unable to settle the full payment, he may apply for a Trust Receipt. The purpose of the Trust Receipt is to enable the buyer to collect the documents. Buyer will use the documents to clear the cargo first and then pay the bank at a later date. Such payment will often include the principal plus interest.
4. Reliability of the Buyer and Seller International trade is not without its problems. Any seller is naturally reluctant to part with the control of the goods without first receiving payment for it. Alternatively, he will release the goods only if there is a security for the payment. Vice versa, any buyer will be unwilling to pay for the goods before he has received them unless he can be given some kind of legal rights over them. Both the buyer and seller will not wish to have their money tied up in the goods while they are in transit. The reason is that the duration of the journey can take from a few days to a few weeks. In case of delay, it may even take months. The goods, while in transit, are often subjected to risk of being lost or damaged. Neither of the parties will want to bear responsibility for such loss or damage. In international trade, the buyer and seller are often from different countries and social backgrounds. The seller and the buyer may not even know each other well. The seller, while he is interested in ensuring that he is being paid, may not be familiar with the buyer’s
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