International Trade

International Trade is a process of buying and selling goods and services between different countries.

There are more risky trading abroad respect to trading at home:

-language difficulties because the costumer and the supplier speak different languages and cultures.

-exchange rates can make it difficult for exporter to "price" their that competitively in international markets.

-legal system: national legal system can be very different

-political or economic instability

Governments can central international trade by mens of protections which of restrictions to trade:

• To protect industries
• To safeguard employment
• To raise revenues  through tariffs
• To remove a balance of payments deficit
• To restrict dumping

The more methods of protectionism are:

TARIFFS

QUOTAS

SUBSIDIES

EMBARGO is usually used for political reasons.

Duties are tariffs which an importing country imposes on certain foreign goods. When goods are imported, they are said tobe bought at duty-free price, for example at airport.

The establishment in 1993 of the European Single Market opened up free trade between member UE. The EU single market's four basic freedoms are

For                               free circulation of.............. have been:

• The elimination of border controls on goods
• The harmonisation of taxation
• The abolition of VAT
• The harmonisation of standards and certification system
• The creation of a tariff union so as to abolish all customs duties on trade between the member states.

Import/Export document used in global trade:

• COMMERCIAL INVOICE: this is a document that the exporter sends to the containing:
• Name and address of importer and exporter
• The order number
• The place, date issue and number of the document
• A description of the goods
• The unit and the total amount
• Details of shipment, freight and isurance
• consular invoice when goods enter a country, duties and tariffs must be paid as a percentage of the prices shown on the commercial invoice. This document certifies that the prices are the real market prices.
• Certificate of origin This states the country of the origin of the goods being exported, and is signed by the exporter. This documents is necessary because the rate of duty on imports.
• Delivery note This document accompanies the goods to their destination. It gives details of the goods, but does not specify the prices.
• Packing list this is issued by the exporter and gives precise details of:
• number of packages 
• type of packages 
• weight (gross and net), size and cubic metres of packages 
• marks on the packages. 

It also contains the invoice number, the date, and the names and addresses of the importer and exporter.