WELCOME TO OUR PRESENTATION
Jan 05, 2016
WELCOME
TO OUR
PRESENTATION
1. Meaning of international trade and its type
2.Reason of conducting international trade
3. Common advantage and barriers of international trade
4. Description modes of entries into international trade
5. Definition of import, export and its procedures
Our group topic is International trade:
The Name of member’s topics is.
Trade between two or more countries is called
foreign trade or international trade. This involves
the exchange of goods and services between the
citizens of two countries. 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.
Meaning of international trade and its type:
Import TradeExport TradeEntrepot Trade
Types of international trade: International Trade can be divided into following three groups:
Primary Reason: The primary reason for engaging in international trade is the unequal distribution of resources among nations. International trade offers some advantages to a nation.
Major Reason: There are at least two major reasons for countries to engage in international trade.
First one, a country may be able to benefit from buying products from a foreign country.
Second one, a country may be able to benefit from exporting goods.
Reason of Conducting International Trade:
1.EFFICIENT RESOURCE ALLOCATION 2. WIDEN THE RANGE 3. TRANSFER OF KNOWLEDGE 4. INCREASES STANDARD OF LIVING 5. EFFICIENT AND EFFECTIVE
PRODUCTION PROCESS 6. RESEARCH AND DEVELOPMENT
Common Advantage of International Trade:
1.Efficient resource allocation: Leads to more efficient resource allocation and lower cost
per unit of output as the market bigger and broader to exercise economies of scale, etc.
2. Widen the range: It helps to widen the range of choice of goods or products.
3. Transfer of knowledge: It allows the transfer of knowledge, technologies and
information between trading partners.
4. Increases standard of living: It enables the countries to specialization which increases
the world output and standard of living.
5. Efficient and effective production process: It increases the need to become efficient and effective in
the production process because of competition.
6. Research and development: It stimulate research and development policies and more
rapid adoption of new technology to reduce cost of production.
1. Tariifs2. Subsidies3. Quotas4. Political barriers
Barriers to international trade:
Tariffs: A tariff is a tax levied on imports or exports. Tariffs fall into two categories- 1. Specific tariffs 2. Ad valorem tariffs Specific tariffs: Specific tariffs are levied as a fixed charge for each unit of a
good imported. Ad valorem tariffs: Ad valorem tariffs are levied as a proportion of the value of
the imported good.
Subsidies: A subsidy is a government payment to a domestic
producer. Subsidies take many forms including cash grants, low-interest loan, tax breaks and government equity participation.
Quotas: An import quota is a direct restriction on the quantity
of some good that may be imported into a country. For example: The united states has a quota on cheese
imports. Under a tariff rate quota, a lower tariff rate is applied
to imports within the quota than those over the quota.
Political Barriers: Administrative trade policies rules designed
to make it difficult for imports to enter a country.
In the context of international trade dumping is variously defined as selling goods in a foreign market at below their costs of production or as selling goods in a foreign market.
Exporting
Licensing
Contract manufacturing
Management contracts
FDI without alliances
FDI with alliances
Different Modes of Entry into International Trade:
patents
trademarks
copyrights
technical
technology
specific
The property licensed may include:
Licensor leases the
rights to use
intellectual property
Licensee uses the intellectual property to create product
Contract manufacturing:
Contract manufacturing is outsourcing entire or part of manufacturing operations.
Pharmaceuticals, personal care products etc.
Management contract Turnkey project FDI without alliances FDI with strategic alliances
International trade is mainly three types:
1. Import trade2.Export trade
3.Entrepot trade
Definition of import, export,entrepot and its procedures
IMPORT TRADE: An import is a good brought into a
jurisdiction, especially across a national border, from an
external source. The party bringing in the good is called an
importer. Imports" consist of transactions in goods and
services to a resident of a jurisdiction (such as a
nation) from non-residents.
IMPORT PROCEDURE OF BANGLADESH: : Import of goods
from outside Bangladesh is regulated by the Ministry of
Commerce in accordance with Import & Export (Control) Act,
1950 and the notification issued there under
IMPORT TRADE
There are two basic types of import:1. Industrial and consumer goods2. Intermediate goods and services ADVANTAGE: Comparative advantage means lower-priced
goods New Markets Importing can mean higher-quality products Various benefits stemming from trade
agreements Improved Return on Investments
Types of import:
EXPORT TRADE: The term export means shipping the goods and services out of the port of a country. The sale of such goods adds to the producing nation's gross output.
Export procedure of Bangladesh: Four copies of commercial invoice. Four copies of packing list. Certificate of origin.
Export trade:
1. Increasing sales2. Increasing profits3. Reducing risk and balancing
growth
Advantage:
An entrepot is a port, city, or trading post where merchandise may be imported, stored and/or traded, typically to be exported again. Trade in which imported Goods are re-exported with or without any additional processing or repackageing.
Entrepot trade:
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