inernational trade the process of buying and selling goods and services between countries countries...
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INERNATIONAL TRADEThe process of buying and selling
goods and services between countries
Countries can import or export: a) visible goods: the ones you can
see (e.g. clothes; cars)b) invisible goods: services
(banking, tourism, insurance)
Balance of trade andbalance of payments (p 33)Balance: difference between the
amount a country spends on IMPORTS and the amount it receives from EXPORTS
Balance of trade (ONLY visible goods)
Balance of payments => visible & invisible goods
BoP: SURPLUS = EXPORTS >IMPORTS
BoP: DEFICIT = EXPORTS <IMPORTS
Foreign trade controlsGovernments implement protection
policies through:Tariffs on imports =CUSTOMS DUTIES=
taxes on imported goods)Quotas = limit on the quantity of
foreign goods coming into a countrySubsidies: money given to domestic
producers to make them more competitive
Embargoes: ban on the export/import of certain goods
MULTINATIONAL TRADING BLOCKS
Groups of contiguous countries that agree to adopt common trading/protectionist policies for the rest of the world, but have preferential treatment towards one another
THE EU (1992 - 1957:ECC)NAFTA (North American Free Trade
Agreement – 1994)MERCOSUR (southern Cone free trade area -
Argentina, Brazil, Paraguay, Uruguay 1991)
Asean (Association of South East Asian Nations – 1967)
PROMOTING INTERNATIONAL TRADE
WTO World Trade Organisation
IMF International Monetary Fund
The World Bank
Listening p. 35 tr 7
Documents in international tradeWithin the EU (since 1993)= goods
exempt of VAT
VIES /vaiz/ = VAT Information Exchange System (companies can get confirmation of VAT numbers (partita IVA) and administrations
VIMA (VIES Intrastate and Mutual Assistance) = office where exporters send a VIES statement (monthly or every 3 months)
Documents in international tradeOutside the EU
SAD = Single Administrative Document used to declare imports and exports and to remove goods from customs procedures (sdoganare)
CERTIFICATE OF ORIGIN signed by the exporter’s Chamber of Commerce = necessary because the rate of customs duties on imports varies depending on the origin of the goods
(e.g p. 39)
TRANSPORT DOCUMENTS - 1The DELIVERY NOTE ……contains the details of the goods
(NO prices) …is signed on arrival by the
importer to state that he accepts the goods
…the carrier keeps a copy as proof of delivery
TRANSPORT DOCUMENTS - 1The COMMERCIAL INVOICE= a document that
the exporter sends to the importer with information about
importer/exporter detailsinvoice numberplace/date of issueorder numberdescription of the goodsunit amount/total amountTerms (INCOTERMS)PROFORMA INVOICE = statements of costs to
be paid before the goods are delivered
INCOTERMS = International Commercial Term pp.42-4313 standard terms established by the ICC (International Chamber of Commerce) they define the respective
responsibilites of exporter/importer as to:
-Transport costs-Risks/insurance-Customs duties and formalities-Loading/unloading
INCOTERMSE- TERMS (EXW= ex works) goods are placed on
the seller’s premises at the diposal of the buyer, and become his responsibility from then on
F-TERMS (FCA, FAS,FOB = free…) the buyer is responsible for the cost and risk of international carriage
C-TERMS (CFR, CIF, CPT, CIP = freight/carriage paid to…) the seller pays for international carriage, but does not bear the risks…
D-TERMS (DAF, DES,DEQ, DDU, DDP= delivered….) the seller bears all costs up to the delivery point…
TRANSPORTBY ROAD = - couriers on motorbikes- Road haulage firms carriers (small
areas)- TIR (Transport International Routier)
lorry
BY RAIL= freight service, esp. for bulk materials
(chemicals, petrol cement)
TRANSPORTSEA TRANSPORT- Freighter = large ship (or plane)
carrying goods- It can transport almost unlimited
weight
BY AIR= Goods of limited size/weight
PIPELINES = Liquids, gas, oil (to oil refineries or ports)
TRANSPORTForwarding agents = experts in the transportation
of goods/freight shipment; they arrange:insurancepackaging, storing, transportingDocumentationAccidents/damagesCustoms formalities
Logistics = the process of planning, implementing, and controlling the effective and efficient flow of goods and services from the point of origin to the point of consumption.
INSURANCEProtection of people and goods against accidents,
risks, lossKey terms:- The Insurer/underwriter =company providing the
insurance- The insured = company/person requiring the
insurance- Policy = document specifying the terms…- Premium = amount of money paid by the business- Claim = formal request of payment in case of
accident/loss
E.g of early insurance company :Lloyd’s London, coffee houses, 18th century
PACKING/packagingDRUM (barile)BARREL (botte)CASE (cassa in legno/chiusa)CRATE (cassseta /aperta) BAG/SACK saccoCARTON scatola in cartoneBALE balla
CONTAINERS (CONTAINERISATION) = steel boxes of standard size ; loaded as sealed units
TRANSPORT DOCUMENTS - 2INTERNATIONAL ROAD CONSIGNMENT
NOTE(CMR) = lettera di vettura THE AIR WAYBILL = lettera di vettura
aereaBoth contain: NAMES AND ADDRESSES OF
CONSIGNOR/SENDER, CONSIGNEE, CARRIER DESCRIPTION OF GOODS, DATE/PLACE OF DEPARTURECARRIAGE CHARGES
THE BILL OF LADING= polizza di carico (sea tr.)
TRANSPORT DOCUMENTS - 2
Do ex pp 58-59