English for

Business

Videoconferencia 12
Agenda:
 International Trade
operations

Miss Clara García

 Achievement of this videoconference:

By the end of the videoconference,

the student understands how
international trade operations can
help to increase production and
raise the living standards of the
people through practical examples.
Miss Clara García
 International Trade Operations

If you can walk into a

supermarket and find Costa
Rican bananas, Brazilian
coffee, and a bottle of South
African wine, you're
experiencing the impacts of
international trade.

Miss Clara García

PRIOR KNOWLEDGE
 International Trade Operations

What are International

Trade Operations?

International trade is defined as the exchange of

products and services from one country to another; in
other words, imports and exports. It consists of goods
and services moving in two directions: first, imports
(flowing into a country from abroad) and second,
exports (flowing out of a country and sold abroad).

Miss Clara García

International Trade Operations

What is International Trade Operations?

International trade allows countries to expand their markets and access

goods and services that otherwise may not have been available
domestically. As a result of international trade, the market is more
competitive. This ultimately results in more competitive pricing and brings a
cheaper product home to the consumer.

 International trade is the exchange of goods and services between countries.

 Trading globally gives consumers and countries the opportunity to be exposed
to goods and services not available in their own countries, or more expensive
domestically.
 Still, some argue that international trade can actually be bad for smaller
nations, putting them at a greater disadvantage on the world stage.

Miss Clara García

International Trade Operations
IMPORTANCE

International trade between different

countries is an important factor in
raising living standards, providing
employment and enabling consumers
to enjoy a greater variety of goods.
International trade has occurred since
the earliest civilizations began trading,
but in recent years international trade
has become increasingly important
with a larger share of GDP devoted to
exports and imports.

Miss Clara García

International Trade Operations

Importance:

1. Make use of abundant raw materials

2. Comparative advantage
3. Greater choice for consumers
4. Specialization and economies of scale –
greater efficiency
5. Service sector trade
6. Global growth and economic
development
Miss Clara García
What does Peru import and export?

Miss Clara García

 INTERNATIONAL TRADE OPERATIONS

IMPORTATION EXPORTATION

The word 'importation' commonly The act of sending something

refers to the bringing of goods into to another country for sale.
a customs territory.

Miss Clara García

 International Trade Operations

INCOTERMS

• To facilitate commerce around the world, the

International Chamber of Commerce (ICC) publishes a
set of Incoterms, officially known as international
commercial terms.
• Globally recognized, Incoterms prevent confusion
in foreign trade contracts by clarifying the obligations of
buyers and sellers.
• Parties involved in domestic and international
trade commonly use them as a kind of shorthand to
help understand one another and the exact terms of
their business arrangements.
• Some Incoterms apply to any means of transportation;
others apply strictly to transportation across water.
Miss Clara García
Miss Clara García
 International Trade Operations
TYPES OF INCOTERMS

The seven Incoterms® 2020 rules for any mode(s) of transport are:
EXW - Ex Works (insert place of delivery)
FCA - Free Carrier (Insert named place of delivery)
CPT - Carriage Paid to (insert place of destination)
CIP - Carriage and Insurance Paid To (insert place of destination)
DAP - Delivered at Place (insert named place of destination)
DPU - Delivered at Place Unloaded (insert of place of destination)
DDP - Delivered Duty Paid (Insert place of destination).
Note: the DPU Incoterms replaces the old DAT, with additional requirement
for the seller to unload the goods from the arriving means of transport.
The four Incoterms® 2020 rules for Sea and Inland Waterway Transport
are:
FAS - Free Alongside Ship (insert name of port of loading)
FOB - Free on Board (insert named port of loading)
CFR - Cost and Freight (insert named port of destination)
CIF - Cost Insurance and Freight (insert named port of destination)

Miss Clara García

International Trade Operations

Miss Clara García

 International Trade Operations

CONCLUSION

What did you

learn today?

https://padlet.com/claraivgarcia/lk5ng2ebyzbtthy1
Miss Clara García
 International Trade Operations

Conclusion: • International trade is the exchange of products and services from

one country to another.
• Import occurs when a country buys a product from other countries.
Its purpose is to make products available because they are not
found in the domestic country.
• Export occurs when a country sells its products in foreign countries.
Its purpose is to increase global presence by selling their products
to another country.
• Incoterms is an abbreviation for International Commercial Terms.
Each incoterm sets the tasks, costs and risks for transactions, so it
is necessary to familiarize with them. They are: EXW (Ex-Works or
Ex-Warehouse), FCA (Free Carrier), FAS (Free Alongside Ship),
FOB (Free On Board), CFR (Cost and Freight), CIF (Cost,
Insurance and Freight), CPT (Carriage Paid To), CIP (Carriage and
Insurance Paid To), DAP (Delivered At Place), DPU (Delivered At
Place Unloaded), and DDP (Delivered Duty Paid).
Miss Clara García
 Achievement of this videoconference:

By the end of the videoconference,

the student understands how
international trade operations can
help to increase production and
raise the living standards of the
people through practical examples.
Miss Clara García
HOMEWORK:

Let´s watch!

• https://www.youtube.com/watch?v=o3BN
XCKGBpg
• https://www.youtube.com/watch?v=7g7IC
4IzjDM

Miss Clara García

HOMEWORK:

Let´s
play!
https://wordwall.net/play/17917/
186/654

Miss Clara García

 “We need to remember that trade is a great
peacemaker that enriches people and increases
international understanding and ties between
nations”
- Dan Quayle

Miss Clara García

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