What is foreign trade Please describe in detail two impedime

What is foreign trade? Please describe in detail two impediments and two facilitators to foreign trade?

( 2 paragraphs )

Solution

Foreign Trade is the trade between one country and another country. 1.0 Import trade means purchase of goods from one country from another country. 1.1 Export trade means, sale of goods from one country to another country. Impediments to Foreign Trade These are restricections induced by govt on international trade. Exampls: Import Licesnses Export Licenses Subsidies Before exporting or importing to other countries, firstly, they must be aware of restrictions that the government imposes on the trade. Subsequently they need to make sure that they are not violating the restrictions by checking related regulations on tax or duty, and finally they probably need a license in order to ensure a smooth export or import business and reduce the risk of penalty or violation 1.0 The most common barrier to trade is a TARIFF( a tax on imports) Tariff raise the price of imported goods relative to domestic goods(goods produces @ home) 1.1 Yet another barrier to trade is an embargo a blockade or political agreement that limits a foreign country\'s ability to export or import. Facilitators The primary goal of trade facilitation is to help make trade across borders (imports and exports) faster, and cheaper and more predictable, whilst ensuring its safety and security There are great potential gains from trade facilitation for both governments and the business community Implementing trade facilitation reform programs certainly has a cost, and facilitation measures need to be prioritized in order to maximize benefits. 1.0 A supply chain embraces all activities necessary for goods to be produced and delivered to the final consumer An international supply chain perspective should be adopted. 1.1 Simplification is the process of eliminating all unnecessary elements and duplications in trade formalities, processes and procedures. It should be based on an analysis of the current, “As-Is”, situation. 1.2 Harmonization is the alignment of national procedures, operations and documents with international conventions, standards and practices. Familiarize exporters-importers with legal requirements. Assist exporters in getting trade finances, export incentives and other benefits