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Developing Countries And The Import Export Trade

import export business admin — Wed, 16 May 2012 13:39:49 +0000

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Literature had often assumed that both the import demand of developing countries and the world’s export demands are more or less determined by nonmarket factors. Therefore, putting this assumption into effect, it can be concluded that a change in the prices will have no effect whatsoever to both the imported and the exported products of a country. The proof this sort of view has been shown in the models made by Chenery and Stout (1966) and by Maizels (1968) of the trading behavior of developing countries.

Comprehensive studies of individual countries, in some cases, have included price variables as detriminants of imports and exports, no matter how useful, can’t really hope to generalize their findings to encompass all of the developing countries. On a recent study conducted by Houthakker and Magee in 1969, had put into consideration the trading patterns of developing countries, and now serves as one of the basis for studying the developing countries comprehensively.

Essentially, this article aims to give an intelligent estimates of the 15 countries, which can be classified as ‘developing’, in terms of their import as well as export demand functions and to test the hypothesis of whether the abrupt changes in the market prices of both traded and nontraded products can produce a definitely significant impact on the trade flows of the countries categorized earlier. In addition, an attempt has been made to further demonstrate the important role of certain quantitative restrictions on trade can be approximated and ultimately incorporated into the estimates made. It is highly necessary to take into consideration the things stated above for the reason that: on the import side of the trading accounts, control has often been considered as commonplace in developing countries. As for the export side, its attention is mainly focused on the imposition of quotas and other pertinent subjects that would affect it.

Import-Export is the Way to Make Money

import export business admin — Sat, 15 Nov 2008 11:07:56 +0000

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A really interesting career field, which many people don’t talk about, is that of the import-export business. If you are wondering whether import-export is as glamorous as it sounds, then I’m here to answer your question. Don’t worry! It is! What other career is going to let you jet off to another country several times a year, meet tons of other people, and see the way other cultures live. Import- export is a very lucrative, exciting and wonderful business, but one where there are many risks too.

Lots of people work in import-export trade, or work as trade agents, but there are ecological, and cultural factors that you need to deal with which you don’t have to in other types of business.
Of course, how well you do, will also depend on what the product you are selling is , who you are dealing with, and what your financial capabilities in the country you trade with are.

Your Marketing Strategies
Marketing will depend on the country you are selling in. Every country has different marketing strategies that revolve around a country’s beliefs, products, and the purchasing power of its consumer. It depends on factors, like bank financing, credit card availability, and whether or not the country you deal with is a consuming country,or not.

Government Policy
When you deal in import-export, you also need to deal with the country’s export trade policy, so you need to find out what those are, and whether you qualify to meet those policies or not. You can learn about these from their federal trade commission. Most countries have websites, or you can visit their offices in the federal capital.

You also need to know about the import policies of the country you are importing to. These will differ depending on the country, on agricultural or product regulations. You can find out about these requirements online or from the country’s trade commission. Meeting these requirements is not really complicated, often all that you need to do is fill out the right form and pay a small import fee.

Transport
When you are in the import- export business you will learn about all types of transportation. You will know which is the cheapest, but the slowest, which is the fastest but the most expensive. You may even get creative with transportation at times. I remember, once because of weather conditions, I had to contract a Cab to transport some material from one place to another, to get it on the barge on time.

Import-export is just like any other business, just a little more exciting, and you need to be a little more communicative (that may include using hand and sign language) and just being a little more creative in every way possible. It is a pretty exciting field!

A Guide to Importing From China

import export business admin — Sun, 26 Oct 2008 03:27:13 +0000

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Once the difficult task of identifying a supplier in China has been accomplished, the import procedure into the United Kingdom is relatively straightforward.

While the price of the goods that the supplier is offering is important, it is also essential to invest in a quality assurance agency. A quality assurance agency will conduct investigations of the supplier, covering factors like physical location and premises. The agency will also confirm that the sample is truly representative of the bulk goods that the supplier will send.

Importing into the UK from China requires a tentative time line of approximately 3 to 4 months. This covers the entire process, from inquiry to shipping. After an initial inquiry is made, preliminary quotations are given. This entire process will take about two weeks of negotiations, depending on the individual supplier. During this time, there will be a lot of communications back and forth including price negotiations, details of the product and so on.

Sampling is the next logical step forward, and this can also be a red flag if the supplier refuses to provide samples. It is not advisable to transact with a supplier who is not willing to provide samples, also this factor considerably lowers credibility. However, once a reliable supplier is found, sampling should take about 4 weeks in the overall process.

The next stage is production which should cover the next 4 weeks of this process. This is an important step, as getting consistent and good quality from Chinese manufacturing companies can be difficult.

In the past, there have been instances of a few UK businesses that have received imported goods of substandard quality. Some businesses prefer to have someone posted in the country to oversee the manufacturing process, and ensure that the standards of quality are met at all times. An ISO certification is not a very reliable indicator, as these can be bought to suit the needs of the Chinese business.

The actual shipping is a rather complicated process, and this is perhaps best handled by a good broker or shipping agent. Most Chinese manufacturers do not have their own export licences and employ a broker to handle this aspect for them. These handlers typically charge 2% to 5% of the total value of the shipped goods. The Chinese companies also offer FOB (Free on Board) shipping, which covers all shipping expenses right up to the port of destination. This will include collection costs, loading and delivery fees from shipper to port, documents related to exports, storage and consolidation as well as terminal handling charges.

The importer will also need to consider costs such as the terminal handling, destination port charges, customs clearance charges, import duty and value added tax (VAT) and transport.

Bob writes about Freight UK to China and for the Bristol freight company.

Export Finance – How Export Financing Can Help Your International Sales Grow

import export business admin — Thu, 23 Oct 2008 17:40:10 +0000

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Selling your products or services in export markets can be a very profitable and a true engine for growth for your company. Manufacturers, service providers and traders can all benefit from adding foreign markets to their portfolio of customers. However, selling into export markets can also deplete your cash flow. Large companies that have a cushion of funds in the bank, usually have no problems. However, smaller and emerging firms can run into cash flow issues very quickly.

The biggest issue for exporting firms is waiting 30, 60 or even 90 days to get paid for their goods or services. Slow paying customers can really affect your company’s cash flow. This can challenges your ability to pay suppliers, employees or even rent.

One solution to this common problem is to go to the bank. If you can provide them with a few years worth of audited financial statements, have a good track record and have good personal credit, then the bank should be able to help you obtain business financing. However, obtaining bank financing can be very difficult for small and medium sized firms.

A better alternative is to use export factoring, a form of export finance. Export factoring allows you to accelerate the payment of your foreign export invoices, providing you with the necessary funds to meet your obligations and grow your company. With export factoring you can get your invoices paid in as little as 2 days. And, as opposed to most conventional financing tools, factoring is easy to obtain and quick to set up.

Invoice factoring can also be very easy to use. It works as follows:

1. You sell and deliver your goods/services to your customer

2. You invoice your customer

3. The factoring company provides you with an advance on your invoice of up to 85% of its net value. This is the 1st installment

4. You get immediate funds to operate your business

5. Once your client pays, the transaction is settled and the factoring company rebates the remaining 15% as a 2nd installment, less a small fee

The most important requirement to qualify for factoring financing is to do business with reputable foreign customers, such as multinational corporations. If you do business with reputable clients you’ll have a good chance of obtaining financing.

Commercial Capital LLC
Looking for export financing? We can provide you with export finance and import export financing at affordable rates. Please call (866) 730 1922.