Summary International
trade
Luna Leyman
Artevelde University College
2017-2018
,Contents
Chapter 1: A look at international trade ....................................................................................................... 3
Why international trade? .......................................................................................................................... 3
World trade ............................................................................................................................................... 3
Belgium and international trade ............................................................................................................... 3
Export plan as starting point ..................................................................................................................... 4
Chapter 2: International trade policies – Cases ............................................................................................ 5
Why international trade ............................................................................................................................ 5
Brexit ......................................................................................................................................................... 5
CETA........................................................................................................................................................... 5
Fair trade ................................................................................................................................................... 5
Trade market access databank .................................................................................................................. 6
Trade promotion ....................................................................................................................................... 6
Chapter 2: International trade policy ............................................................................................................ 7
Key concepts.............................................................................................................................................. 7
Types of trade agreements ....................................................................................................................... 8
Other forms of international cooperation ................................................................................................ 9
Chapter 3: Modes of transport.................................................................................................................... 10
Modes of transport ................................................................................................................................. 10
Intermodal transport ............................................................................................................................... 11
Containers (ISO)....................................................................................................................................... 12
Other uniform dimensions ...................................................................................................................... 12
Chapter 4: International sales ..................................................................................................................... 13
Market approach ..................................................................................................................................... 13
Intermediaries in international trade ...................................................................................................... 15
Incoterms................................................................................................................................................. 18
Chapter 5: Trade promotion........................................................................................................................ 21
Trade promotion ..................................................................................................................................... 21
Government agencies ............................................................................................................................. 21
Private institutions .................................................................................................................................. 21
Chapter 6: Risk management ...................................................................................................................... 22
Credit risk or debtor risk.......................................................................................................................... 22
Pre-delivery risk ....................................................................................................................................... 23
1
, Political risk – country risk ....................................................................................................................... 23
Foreign exchange risk .............................................................................................................................. 24
Transport and logistic risk ....................................................................................................................... 25
Delivery risk ............................................................................................................................................. 26
Economic risk........................................................................................................................................... 26
Treasury risk ............................................................................................................................................ 26
Operational risk ....................................................................................................................................... 27
Reputation risk ........................................................................................................................................ 27
Compliance or legal risk .......................................................................................................................... 28
Concentration risk ................................................................................................................................... 28
Interest rate risk ...................................................................................................................................... 28
Stock market risk ..................................................................................................................................... 28
Product launch risk .................................................................................................................................. 29
Other risks ............................................................................................................................................... 29
Chapter 7: Transport documents ................................................................................................................ 30
Introduction............................................................................................................................................. 30
Bill of lading ............................................................................................................................................. 30
Inland waterway bill of lading ................................................................................................................. 32
CMR – Consignment note........................................................................................................................ 33
Air way bill ............................................................................................................................................... 33
Exercises .................................................................................................................................................. 34
2
, Chapter 1: A look at international trade
Why international trade?
• Relation
❖ Growth international trade
❖ Growth GDP
World trade
• Global trade heavily concentrated few countries
• Leaders often Western industrialised countries
• Growing importance China
• South America only Mexico and Brazil in top
• No countries from Africa in top
• Importance US very high in comparison with other countries
➔ Leading exporters = leading importers
Belgium and international trade
Importance of international trade
• 2,5% of world trade
❖ 0,2% of world population
❖ 0,02% of world surface
Open economy
• Central location
• High population density
• Scarcity of natural resources
• Centre Belgian economy
❖ Processing foreign goods
❖ Export them
3
trade
Luna Leyman
Artevelde University College
2017-2018
,Contents
Chapter 1: A look at international trade ....................................................................................................... 3
Why international trade? .......................................................................................................................... 3
World trade ............................................................................................................................................... 3
Belgium and international trade ............................................................................................................... 3
Export plan as starting point ..................................................................................................................... 4
Chapter 2: International trade policies – Cases ............................................................................................ 5
Why international trade ............................................................................................................................ 5
Brexit ......................................................................................................................................................... 5
CETA........................................................................................................................................................... 5
Fair trade ................................................................................................................................................... 5
Trade market access databank .................................................................................................................. 6
Trade promotion ....................................................................................................................................... 6
Chapter 2: International trade policy ............................................................................................................ 7
Key concepts.............................................................................................................................................. 7
Types of trade agreements ....................................................................................................................... 8
Other forms of international cooperation ................................................................................................ 9
Chapter 3: Modes of transport.................................................................................................................... 10
Modes of transport ................................................................................................................................. 10
Intermodal transport ............................................................................................................................... 11
Containers (ISO)....................................................................................................................................... 12
Other uniform dimensions ...................................................................................................................... 12
Chapter 4: International sales ..................................................................................................................... 13
Market approach ..................................................................................................................................... 13
Intermediaries in international trade ...................................................................................................... 15
Incoterms................................................................................................................................................. 18
Chapter 5: Trade promotion........................................................................................................................ 21
Trade promotion ..................................................................................................................................... 21
Government agencies ............................................................................................................................. 21
Private institutions .................................................................................................................................. 21
Chapter 6: Risk management ...................................................................................................................... 22
Credit risk or debtor risk.......................................................................................................................... 22
Pre-delivery risk ....................................................................................................................................... 23
1
, Political risk – country risk ....................................................................................................................... 23
Foreign exchange risk .............................................................................................................................. 24
Transport and logistic risk ....................................................................................................................... 25
Delivery risk ............................................................................................................................................. 26
Economic risk........................................................................................................................................... 26
Treasury risk ............................................................................................................................................ 26
Operational risk ....................................................................................................................................... 27
Reputation risk ........................................................................................................................................ 27
Compliance or legal risk .......................................................................................................................... 28
Concentration risk ................................................................................................................................... 28
Interest rate risk ...................................................................................................................................... 28
Stock market risk ..................................................................................................................................... 28
Product launch risk .................................................................................................................................. 29
Other risks ............................................................................................................................................... 29
Chapter 7: Transport documents ................................................................................................................ 30
Introduction............................................................................................................................................. 30
Bill of lading ............................................................................................................................................. 30
Inland waterway bill of lading ................................................................................................................. 32
CMR – Consignment note........................................................................................................................ 33
Air way bill ............................................................................................................................................... 33
Exercises .................................................................................................................................................. 34
2
, Chapter 1: A look at international trade
Why international trade?
• Relation
❖ Growth international trade
❖ Growth GDP
World trade
• Global trade heavily concentrated few countries
• Leaders often Western industrialised countries
• Growing importance China
• South America only Mexico and Brazil in top
• No countries from Africa in top
• Importance US very high in comparison with other countries
➔ Leading exporters = leading importers
Belgium and international trade
Importance of international trade
• 2,5% of world trade
❖ 0,2% of world population
❖ 0,02% of world surface
Open economy
• Central location
• High population density
• Scarcity of natural resources
• Centre Belgian economy
❖ Processing foreign goods
❖ Export them
3
