International Trade / Import & Export

Grow your business by taking part in international trade

What you'll learn
International trade and import-export process
How to conduct market research, major functions of marketing, and distribution channels
The basic elements of a quotation and typical cost elements for import-export
Shipping terms/incoterms: EXW, FOB, CIF, and others
Choosing the right method of payment in an international transaction: open account, documentary collections, letter of credit, and payment in advance
Different methods of international transportation and choosing the best mode of transportation
Documents involved in import-export
The role of banks, customs brokers, and freight forwards in international trade

Requirements
No experience is necessary. However, some basic business information might be helpful. We have included various basic business information in the course program that we think will be useful in understanding international trade.

Description
The basic aim of this course is to provide essential information and build a foundation for international trade and import-export and from there on you will easily be able to explore further.We assume that you are going to work with customs brokers and freight forwards, which is quite a customary practice among importers-exporters and that's why the customs clearance formalities have not been included, and it is beyond the scope of this course.The course material is mostly based on text and audio with some additional graphics in a video lecture format. Very soon (within a month) we are going to add more graphics/illustrations in line with Udemy course standards to enhance learning experience, and this feature will be freely available through this platform to students who joined this course. We continuously develop this course. Any updates and additional information will be announced to you, and you will also be able to obtain them freely.An e-book version of this course (it also serves as a transcription of the video lectures) is also included, and we recommend studying it after first finishing the video lectures. This course consists of video lectures, articles, resources, and an e-book. You can find and download the e-book from resources at section 1 / lecture 1.Brief description of the topics covered in the course:- International trade is the exchange of goods and services across national boundaries and it is one of the most developing industries. Despite some of the restrictions and disruptions in international trade, this is not a new type of business opportunity, and it tends to grow steadily. Trade exists because one group or country has a supply of some merchandise that is in demand by another group or country. This demand creates a need for international trade, importers, and exporters.- Marketing is vital to the success of the import and export business. There must be enough market potential to justify undertaking the import and export business.There are many market opportunities for the products. You just must find it and see if there is enough market for you to make it worthwhile after buying the product and importing it and the same mindset applies to exporting goods as well.The major functions of marketing: product, price, place/distribution channels and promotion.- Quotation is the product information and the price for which you can buy the goods for the specified shipping and payment terms.The key elements of a quotation: Product description and specifications, price, quantity, shipping terms and method of payment.Typical cost elements for import/export: Manufacturing cost of product, packing for shipment, transportation (local and international), insurance, tariffs, bank and payment processing fees, and advertising. Each cost element for import and export needs to be detailed and evaluated.- Shipping terms/incoterms quite simply define the geographical point where the risks and costs of the exporter and importer begin and end.-There are four groups: E group for ex works, F group for FCA, FAS and FOB, C group for terms where the seller has to contract for carriage CFR, CIF, CPT and CIP, and D group for terms in which the seller has to bear all costs and risks to bring the goods to the place of destination DAP, DPU, and DDP.- Methods of payment: Inexpensive, secure payment is vital to any business. In international transactions, there is an extra element because money must cross international boundaries.In international trade, there are several means of payment, each of which has its costs, advantages, and risks. Both parties seek a term that is favorable to themselves but still acceptable to the other.The most important methods of payment are open-account, documentary collections, letter of credit and payment in advance.- International transportation is moving goods from one country to another. Importers and exporters are inevitably involved in transportation functions such as shipping, packing, and insurance.There are several different methods of shipping. The method chosen will depend on the cost and other factors. Mail and couriers can handle small items. You might use air freight for shipments and sea/ocean freight or land for larger ones, but the decision varies with such factors as the value and fragility of the cargo. You can also use different methods of shipping together which is called intermodal shipment.- International trade documents can be placed into the following categories. Commercial documents, transportation, and insurance documents (shipping documents), government formalities and banking documents.In general, the purposes of all of them are to facilitate control and keep track of international cargo movements.Typical ones are invoice, bill of lading, packing list, certificate of origin, inspection certificate, insurance certificate, and there are various others depending on the products and the regulations in the country where the products will be sent.- Banks, customs brokers, and freight forwarders are important parts of the import and export business.Bank is the primary industry that supports the financing of importing and exporting.A customs broker’s functions are to locate your goods, fill out an entry form and arrange for a customs inspector to clear your goods. The customs broker is an important asset to importers. It is their job to know the ins and outs of importing in intimate detail and to handle all the paperwork and details on your behalf.Freight forwarders handle the transportation and can assist by advising you of freight costs, port charges, consular fees, special documentation charges and insurance costs. They can recommend the proper type of packing to protect your merchandise in transit.