International Business Management (Contract) -. .

International Business Management

(Contract)

-

.International Business Overview

International Economic Framework(Trade facilitation agencies, laws,

Regulations and Infrastructure )

Contract(Products

&Services)

Insurance&

Risk Mgmt

OthersCertifications etc.

Funds Transfer SystemP&S

Delivery System

Exporter Importer

1-3

EVALUATION CRITERIA:• Class attendance 10%

• Class participation 10%• Quizzes 10%• Assignment 10%• Mid term examination 20%• End term examination 40%

International Trade

Exporter

(India)

Importer

(USA)

Importer

(India)Exporter

(USA)

Goods & services

Money

Goods & services

Money

Contract ( Purchase/Sale)

ExporterImporter

Enquiry

Offer /Quotation

Purchase order

Contract

Confirmation

Contract ( Purchase/Sale)

ExporterImporter

Enquiry

Offer /Quotation

Purchase order

Contract

Confirmation

CONTRACT (Purchase/Sale)

Main Elements of a contract:

1-Name and address of buyer & seller

2- Place and date of contract

3- Product, Standards and specifications4-Quantity- No, Weight, Volume, unit (British/American/spanish)

5-Inspection of goods 6-Total Vale of contract( Fig &words, Currency, country)

CONTRACT (Purchase/Sale)

7-Terms of delivery e.g.( FOB,CIF,C&F)

8- Taxes, duties and charges9- Period of delivery & shipment Schedule

(where ,when, place &country-Promptly?))

10-Partial shipment / transshipment11-Packing,lebelling &marking-Language,colour,logo

12-Method and Terms of payment

13-Discounts & commissions

CONTRACT (Purchase/Sale)

14-Licences and permits15-Insurance16-Documents required (export,import,payment)

17-Gaurantees for quality etc.18-Force Majeure clause (What it means?)

19-Juridiction and disputes resolution20- Order Confirmation and amendments21- Other clauses as agreed

Brief Specimen Contract

Use of arbitration Clause in Business

• Arbitration and Conciliation Act 1996• The Indian Council of Arbitration- a National

Arbitration body set up by Govt. of India, FICCI,ASSOCHAM etc.

• International Chamber of Commerce, Paris- Arbitration process

Regulations Governing Contracts

• United Nations Commission on International trade Laws (UNCITRAL)- Vienna Sales Convention 1988; ratifies by 45 countries

• International Chamber of Commerce, Paris- INCOTERMS Set of standard terms of delivery

Reading References

• Export Manual and Documentation-by Nabhi- Chapter 15