International trade

Prepared by Eglė Kauliūtė LV21-2

2020-04-16
 Introduction
• Aim – represent what does it mean an
international trade and what is included in.
 Content
• What is international trade?
• What goods are circulating?
• International trading environment.
• International trade includes.
• Import and export.
• 8 Documents required for international shipping.
• Advantages of international trade.
• Disadvantages of International Trade.
 What is international trade?
• This process is characterized by two main
features:

1. It shall be enforced between two or more

States.

2. Different currencies are used with their

inherent exchange rate fluctuations.
 What goods are circulating?
• Raw materials; • Consumer goods;
• Additional materials; • Production (industrial,
• Intermediate goods; medical, scientific and
other) equipment.
 International trading environment
In international trading environment includes
four major categories :
• Geography;
• Culture and Society;
• Politics and Law;
• Economy.
 This environment can be seen as changing
over time, across different regions and across
different material commodities.
 Scheme of international logistical movement of
materials and goods

Purchase of materials from Warehousing and

Cross-border
manufacturers; stock forming in
transportation
providing the company with wholesale trade
resources

Storage of finished
Cross-border goods; stock forming of
finished goods Sale of goods to
transportation consumers; retail

Processing of materials into

Storage of materials; finished goods; manufacture
stock forming of finished goods
International trade includes
Globaliza
tion Insurance
Customs
Pricing

Export
Internatio
nal trade
Import

Tariff
Documen Freight
ts
 Import and export
• Typically, a country exports products for which
it has sufficient resources to produce.
• And Imports those products whose production
would be relatively more expensive for them
than in foreign countries.
 8 Documents required for international
shipping
• Bills of Lading;
• Proforma invoice;
• The commercial invoice; 
• Packing list;
• Certificate of origin;
• Bank draft.
 Advantages of international trade
1. Increased revenues;
2. Decreased competition;
3. Easier cash-flow management .
 Disadvantages of International Trade

1. Shipping Customs and Duties;

2. Language Barriers;
3. Cultural Differences.