International Trade

INTERNATIONAL TRADE

Each country makes its own goods and services, but also in short supply of some inputs and assets (human, natural, financial and industrial). Precisely exchange between two nations to export (to sell), and import (buy) their products is what we call "international trade". Not even the richest countries are self-sufficient by themselves, therefore, the idea is that each can offer the other what he does not possess or that what it lacks, and vice versa, in turn generating well-being and survival population.
Marketing between countries is achieved by promoting cooperation agreements between the parties, holding frequent meetings between diplomats regions, exchanging mutual knowledge. The companies in each country should promote trade relations and sign projects under the good of the community.

International trade is the exchange of goods and services between countries. This type of trade gives rise to a world economy, in which prices, or supply and demand, affect and are affected by global events. Political change in Asia, for example, could result in an increase in the cost of labor, thereby increasing the manufacturing costs for an American sneaker company based in Malaysia, which would then result in an increase in the price that you have to pay to buy the tennis shoes at your local mall. A decrease in the cost of labor, on the other hand, would result in you having to pay less for your new shoes.
Trading globally gives consumers and countries the opportunity to be exposed to goods and services not available in their own countries. Almost every kind of product can be found on the international market: food, clothes, spare parts, oil, jewelry, wine, stocks, currencies and water. Services are also traded: tourism, banking, consulting and transportation. A product that is sold to the global market is an export, and a product that is bought from the global market is an import. Imports and exports are accounted for in a country's current account in the balance of payments.

When two or more nations exchange their goods and services produced countless advantages. Some of these are:

EXPORT:

Export is any good or service sent to another part of the world, for commercial purposes; is the legitimate traffic of domestic goods and services of an intended for use or consumption in the foreign country. Exports may be any product shipped outside the borders of a State. Exports are generally carried out under specific conditions.
It is a customs procedure applicable to goods in free marketing leaving the customs territory for final use or consumption abroad which are not affected to any tax on the local market.

ADVANTAGES OF EXPORT

IMPORT:

An import is any good (eg raw materials) or service brought from a foreign country in a legitimate way usually for commercial use. Goods or import services are provided to domestic consumers by foreign producers. An import in the host country is an export country.
Imports, along with exports, are the basis of international trade. The importation of goods normally requires the involvement of customs, both in the country of import and export in the country and are often subject to import quotas, tariffs and trade agreements. The macroeconomic variables referred to as "imports" normally represent the economic value of all imported goods and services as a whole for a certain period of time, usually one year.

INCOTERMS

Incoterms are a set of international rules, governed by the International Chamber of Commerce, which determine the scope of the commercial clauses included in the international sales contract.
Incoterms also called price clauses, as each term to determine the elements that compose it. Incoterm selection influences the cost of the contract.
The purpose of Incoterms is to provide a set of international rules for the interpretation of the terms used in international trade.

INCOTERMS DETERMINE:

scope of the price.
When and where the transfer of risk on the merchandise from the seller to the buyer occurs.
The delievering place of the market.
Who hires and pays transportation
Who hires and pays the insurance
What documents are handled each part and its cost.

¿WHAT IS TRADE AGREEMENT?

A trade agreement is a pact or negotiation between two or more countries in order to harmonize interests in trade and increase exchanges between the signatory parties. The trade agreement may be more or less complex, depending on whether the signatory countries decide or not to delegate some of their sovereignty to a supranational body and subject to its control of economic policy, including trade policy. In case there is any transfer of sovereignty speak of economic integration
International trade agreements are treaties by which a country agrees to apply less protectionist policies against exports from other countries and, in return, other countries also commit to do the same with exports from this country.

International Trade

sábado, 25 de junio de 2016