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International trade is a social discipline and based on three fundamental sources: philosophy(development of society as a whole), economics & law. It basically concerns with the mutual foreign trade activities among the states. It is a term of wider comprehension than foreign trade. International trade can be defined as the buying and selling of goods & services across national borders/territories, allowing both the buyer & seller to expand their markets for goods & services that otherwise cannot be made available to them. International trade is the exchange of money, goods & services across international borders or territories. It basically refers to the exports of goods & services by a firm to a foreign-based buyer or importer. In most countries, it represents a significant share of gross domestic product. While international trade(IT) has been present throughout much of history, its economic, social & political importance has been on the rise in recent centuries. International trade is not different from domestic trade as the motivation & the behavior of parties involved in a trade cannot change regardless of whether the trade is across a border or not. The difference is that international trade is more costly than domestic trade. The reason is that a border imposes additional costs such as tariffs, time costs due to border delays & costs associated with country differences such as language, the legal system /culture.
RISK IN INTERNATIONAL TRADE
Companies doing business across the international borders face risk such as:Buyer insolvency (purchaser cannot pay) ,War &other uncontrollable events ,Non-acceptance (buyer rejects goods as different from the agreed upon specifications)
Credit risk (allowing a buyer to take possession of goods prior to the payment) ,Regulatory risk (a change in rules which prevents the transaction)
Intervention (governmental action to prevent a transaction being completed) ,Political risk (change in leadership interfering with transactions/prices),unfavorable exchange rate movement
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International Trade, Ph.D. (Econ)
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Sources of information
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Pricing your product
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Indirect & direct importing & exporting
Appointing and managing agents & distributors
Modes of transport
Risks in international trade
Letters of Credit
Presentation and communication skills
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International law and finance
International marketing and business analysis