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INTERNATIONAL TRADE BASIC - Coggle Diagram
INTERNATIONAL TRADE BASIC
HUMAN SIDE INTERNATIONAL BUSINESS
Communication
Motivation
Leadership
METHOD PAYMENT IN INTERNATIONAL TRADE
Cash-in advance
Letter of credits
TYPE:
Irrevocable n revocable letter of credit
Confirmed n unconfirmed letter of credit
Transferable letter of credit
Standby letter of credit
Revolving letter of credit
Back-to-back letter of credit
Documentary collection
Document against payment
Exporter ship good to buyer n send draft (bill of exchange) w/ necessary export document through bank.
Exporter bank then send document to corresponding bank in buyer country
Document against acceptance
Exporter send document to buyer through bank. Buyer bank handover document to buyer upon:
Acceptance implies that he agree pay amount of draft
After expiry of period credit / usance period. Max usance period = 180 days
Disadvantage: Allow buyer take delivery of good before making payment
Open account
TIP NEGO PRICE
Never offer lowest price at first quotation
No buyer will consider price offered is cheap.
Never give buyer options u dont want them to select
Do not make assumption
BILL OF LADING
Legal document between shipper n carrier detailing type, quantity, destination of good being carried.
Serve as receipt of shipment when good delivered
Must signed by an authorized representative from carrier, shipper, receiver
Ocean Bill of Lading
Non-nego ocean bill allow buyer receive good upon showing identification, Allow shipper move goof across international water
Inland Bill of Lading
Good ship over land, allow material reach shore while ocean bill allow transport oversea
Master Bill of Lading
Issued by actual carrier, sign by carrier or agent
House Bill of Lading
Issued by forwarder, sign by forwarding company
SHIPPING TERM FOR INTERNATIONAL TRADE
FREE ALONGSIDE SHIP (FAS)
Seller deliver when good are place alongside buyer vessel at name port of shipment
FREE ON BOARD (FOB)
Seller bear all cost n risk up to point good loaded on board vessel
COST N FREIGHT (CFR)
Seller pay for carriage of good up to name port of destination
COST, INSURANCE, FREIGHT (CIF)
Seller obtain insurance for good while transit to name port of destination
PRO-FARMA INVOICE
Preliminary bill of sale sent to buyer in advance of shipment / good delivery
Give description purchase good n note the cost
Provide buyer with precise sale price
Send prior to shipment of any agreed upon deliverable / along w/ ship item
TIP INCREASE SALE
Attract customer profesionally
Make deal during site-visit by customer
Make customer think that business is profitable
Dont be afraid to start w/ small order
WHY NOT GETTING ANY ORDER?
Communication barrier
No urgency from buyer side
Cant get customer trust
Different purchasing style
Buyer are not satisfied w/ quality of product
No product standard
ORDER PROCESSING N SHIPMENT
Monitoring of production
Provide status report
Inspection n report service
Keep buyer updated
Arrange for shipment
Preparation of documentation
After sale service