Foreign Trade

Foreign Trade

1. Advantages

   • Competitive
     • Concept
       • A competitive advantage is any characteristic or attribute of a company, country or person that differentiates it from others by placing it in a superior relative position to compete..
     • Types
       • Cost leadership
         • There is competition for lower costs.
       • Product differentiation
         • The selling price of the product will be higher, competing with a higher quality product.
       • Market segmentation
         • It uses one of the other two competitive advantages but in a smaller scope of the market, industry or country.
   • Comparativa
     • Concept
       • Comparative advantage is the ability of a person, firm, or country to produce one good using relatively fewer resources than another.

2. Processes

   • Dumpling
     • Concept
       • Dumping is the continued practice of selling products and services below their cost price.
     • Types
       • Social
         • When by law it is required to have low prices on some products, such as basic subsistence products.
       • Exchange rate
         • Motivated by variations in rates, so that in some countries the exchange rate causes products to be sold well below their competitors and below national costs.
       • Official
         • When the products have subsidies and tax exemptions to be able to sell at a low price.
       • Predatory
         • It consists of selling conscientiously and manifestly at prices below cost, either to enter a market or to formalize monopolies.
   • Packaging/Packaging
     • Concept
       • Packaging is the material used to cover and protect a product or set of products that will be transported.
   • Kinds of transport
     • Types
       • Air Transport
       • Ground transportation
       • Marine transport

3. Legal aspects

   • Trade agreements
     • Concept
       • A trade or trade agreement is an agreement established by two or more countries under the protection of international law and with the aim of improving their relations in economic terms and trade.
     • Types
       • International cooperation
       • Partial Scope Agreement
       • Free trade agreement
       • Customs union
       • Economic Union
   • Agreement
     • Concept
       • An agreement is a determination made by two or more States, persons or companies.
   • Incoterms
     • Concept
       • The International Commercial Terms, better known as Incoterms, are general rules that define the way of operating between suppliers and clients in contracts for the export or import of goods.
     • Terms
       • EXW (Ex Works), 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), DAT (Delivered At Terminal), DAP (Delivered At Place), DDP (Delivered Duty Paid).
   • Sure
     • Concept
       • Insurance is a contract that allows you to cover a contingency by paying a premium to the insurance or reinsurance company.
     • Types
       • People insurance
       • Damage insurance

4. Market

   • International markets
     • Concept
       • The set of commercial activities carried out between companies from different countries and crossing their borders is known as an international market.
   • Opportunity cost
     • Concept
       • The opportunity cost is the cost of the alternative that we give up when we make a certain decision, including the benefits that we could have obtained from having chosen the alternative option.
   • Balance of trade
     • Concept
       • The trade balance or merchandise balance is the economic record of a country where imports and exports of merchandise are collected.

5. Import/Export

   • Port
     • Concept
       • The port refers to the site located on the coast or on the bank of a river where ships carry out loading and unloading and loading and unloading operations.
   • Customs
     • Concept
       • A Customs is a physical space located, generally, in strategic areas such as cross-border spaces, port spaces, airports and railway terminals.
   • Customs clearance
     • Concept
       • Customs clearance is the set of acts and formalities related to the entry of goods into the national territory and its exit from it.

6. Tariff

   • Concept
     • The tariff is a tribute that is imposed on a good or service when it crosses the border of a country.
   • Tariff barrier
     • Concept
       • Tariff barriers with restrictions on foreign trade in a country, through taxes that must be paid in order to import or export.
   • Types of Tariff
     • Ad valorem tariff
     • Specific Tariff
     • Mixed Tariffs