International trade A topic of international financial management

1. Presentation Topic
International trade

2. Table of content
Introduction
Classification of international trade
Types of international trade
Characteristics of international trade
Role & importance of international trade
Benefit of international trade
Barriers of international trade
Reason of international trade
problem & challenge of international trade
Advantage of international trade
Disadvantage of international trade
conclusion

3. Introductions
The aim of international trade is to increase production and to
raise the standard of living of the people. International trade
help citizens of one nation to consume and enjoy the
possession of goods produced in some other nation”

4. Definitions of international trade
According to Author
International trade is a set of actions that aim to exchange
capital, goods, and services between foreign countries across
their international borders.
According to own word
It is a exchange of good & services between one country with
other country.

5. Classification of international trade
International trade must be classified into three
ways
Import trade
Export trade
Entrepot trade

6. Import trade
The inflow of goods in a country is
called import trade

7. Export trade
The outflow of goods from a country is
called export trade

8. Entrepot trade
Many time goods are imported for the
purpose of re-export after some processing
operations. This is called entreport trade.

9. Types of international trade
Direct business
Consignment business
Indent firm
Merchant shippers

10. Direct business
In direct business the importer places
order with manufacturer of the
exporting country.

11. Consignment business
Under consignment business the exporter
sends the goods to an agent in the importing
country.

12. Indent firm
The indent firm charge a commission for
their services .The indent firm also called a
commission agent.

13. Merchant shippers
This is a class of businessmen who buy
goods on their own account and sell them in
a foreign country at a profit.

14. Characteristics of international trade
Territorial specialization
International competition
Separation of sellers from buyers
Long chain of middlemen
Mutually acceptable currency
International rules and regulations
Government control
Several documents

15. Role & importance of international trade
Division of labor
Utilization of resource
Raise standard of living of people
Employment opportunity
Equality of price
Increase quality of goods
Economic development

16. Benefit of international trade
Increased revenues.
Decreased competition.
Longer product lifespan.
Easier cash-flow management.
Better risk management.
Benefiting from currency exchange.
 Access to export financing.
Disposal of surplus goods.

17. Barriers of international trade
Culture and social barriers
Political
Tariff and trade restrictions
Standers
Boycotts
Anti dumping
Monetary barriers

18. Reason of international trade
Reduced dependence on your local market
Increased chances of success
 Increased efficiency
Increased productivity
Economic advantage
Innovation
Growth

19. problem & challenge of international trade
Distance
Diversity of language
Transport and communication
Risk and uncertainty
Lack of information
Difficulties in payment
Various document used
Import export restriction

20. Advantage of international trade
Increased revenues.
Decreased competition.
Longer product lifespan.
Easier cash-flow management.
Better risk management.
Benefiting from currency exchange.
Access to export financing.
Disposal of surplus goods.

21. Disadvantage of international trade
Shipping Customs and Duties. International shipping
companies like FedEx, UPS and DHL make it easy to ship
packages almost anywhere in the world. ...
Language Barriers. ...
Cultural Differences. ...
Servicing Customers. ...
Returning Products. ...
Intellectual Property Theft.

22. conclusion
International trade and investment is constituted by economic
relation. ... The protectionism concept is effectively being used
by the countries in order to avoid exploitation and also ensures
smooth going in trade.