Foreign Trade

"Foreign trade" is a form of cooperation relating to the sale and purchase between two or more countries. Foreign Trade conducted among residents of a country with a population of another country or it could be between the government of a country with individuals from other countries. Overseas Trade, better known as import-export activities.

With the foreign trade helped to encourage industrialization, transportation advances, globalization and the presence of multinational companies. In many countries, foreign trade is a driving factor to increase the GDP of a country.

When compared to domestic trade, foreign trade is more complicated and complex. The complexity is due to different policies of a country to another. In addition, the complexity of foreign trade is also caused by differences in customs, import quotas, culture, language and currency of a country to another. So to conduct foreign trade activities, a country or individuals must be able to adapt to these differences.

In general, the main obstacle of the most fundamental in the transaction lies in the differences in language. Most of the foreign trade carried out using the international language is English. Now the question, whether all the entrepreneurs to master English? Of course not. So to overcome the language barrier, usually between two parties using the services of an interpreter or use the services of a guide to facilitate the transaction.

In conducting foreign trade, a country has its own strategy to maintain its presence. As contonya Japan is a country, as we know the Japanese state has a strategy known as dumping politics. In its development, politics of dumping is widely used by countries around the world. Politics dumping is a marketing strategy that is done by setting the selling price abroad is cheaper than the selling price in the country. The main purpose of politics is to control the dumping of foreign market share according to which has been targeted.

As for things that need to be considered in conducting foreign trade is technically payment. Technical errors in determining the payment may result in bankruptcy or loss in business. So, in conducting foreign trade, an exporter must determine whether the technical payment on the basis of mutual agreement between both parties. There are many technical options in determining the payment in foreign trade. Some of them are:
1. Cash in advance
2. L / C
3. Draft
4. Consignment
5. Open Account

Foreign Trade can provide many benefits to a country. One is to expand the marketing area. So a country does not have to worry about excess production of an item that can lead to decline in the price of a product. The products produced by a country that do foreign trade will be absorbed by the global or international markets.

Hopefully useful and thank you for your visit...

About The Author

Chandra, that's my name. Im just an ordinary blogger.Ea eam labores imperdiet, apeirian democritum ei nam, doming neglegentur ad vis. Ne malorum ceteros feugait quo, ius ea liber offendit placerat, est habemus aliquyam legendos id. Eam no corpora maluisset definitiones.

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