Impact of Customs Duty on International Trade

In the context of international trade, customs duty plays a crucial role in protecting each country's residents, employment conditions, and local companies. The duty is calculated based on the custom value of goods, which includes item cost, shipping cost, and insurance cost. Moreover, non-tariff barriers such as quotas, embargoes, and export subsidies can also impact international trade. Additionally, C-TPAT (Customs Trade Partnership Against Terrorism) is a voluntary partnership that aims to enhance security at the border by providing protection to private companies' supply chains from terrorism.

GLOBAL LOGISTIC

TABLE OF CONTENTS
CHAPTER 1: INTERNATIONAL TRADE...................................................................................1
1. Meaning of primary logistic function in supply chain and how they are interconnected with
each other.....................................................................................................................................1
2. Identifying different additional complexities that are being introduced in the international
supply chain.................................................................................................................................1
3. Assessing different current issues affecting the international logistic.....................................2
4. Identifying different leading theories of international trade....................................................2
5. Assessing the country that account for share and growth of world trade................................3
6. Identifying political, technological and economic development that has played effective role
in the overall growth of international trade.................................................................................4
7. What are the drivers that lead the firm with regard to start operation in international market?
.....................................................................................................................................................4
8. Is there is a significance of culture in global business.............................................................5
CHAPTER 2 AND 3: INTERNATIONAL SUPPLY CHAIN MANAGEMENT.........................6
9. Assessing key elements, touchpoints, risks and partners in international supply chain..........6
10. What things are required with an aim to build infrastructure for global trade......................6
11. Assessing additional risks faced in international trade in comparison to domestic trade.....7
12. Assessing the issues that need to be considered by the logistic manager and what tactic
should be used with an aim to mitigate the risk...........................................................................7
CHAPTER 4 – INTERNATIONAL METHODS OF ENTRY.......................................................8
13 Ways to get an entry in the international market....................................................................8
14. Factors that affect a firm’s choice of international market entry as well as go to market
strategy and a major element of successful market entry strategy..............................................9
15. Assessing benefits and risks associated with international market entry and go to market
strategy.........................................................................................................................................9

CHAPTER 5 – INTERNATIONAL CONTRACTS.....................................................................10
16. Complexities in international contract vs. domestic contract..............................................10
17. The typical element related to a foreign distribution contract.............................................11
18. Ways in which country engaged in foreign sales activity...................................................12
CHAPTER 6 – TERMS OF TRADE OR INCOTERMS RULES................................................12
19. Terms for the sale for international orders..........................................................................12
20. Meaning of Incoterms and how responsibilities of exporter and importer can be addressed
...................................................................................................................................................13
CHAPTER 7 – TERMS OF PAYMENT......................................................................................13
21. The typical form of international payment..........................................................................13
Dharmadhikari, S., & Krishnamoorthy, G. (2019). U.S. Patent Application No. 10/198,766......14
22. Risk related to international payment process.....................................................................14
Lynch, H. F., Gelinas, L., & Largent, E. A. (2018). Mutual obligations in research and
withholding payment from deceptive participants. The American Journal of Bioethics, 18(4), 85-
87. 15
23. How export documentary collection and letter of credit transaction are completed?.........15
Soto, G., Tamblay, S., Herrera, J. C., & Guimpert, I. (2018). Social Cost Benefit Analysis for
Pre-Payment Bus Stops: An Application in Transantiago (No. 18-05500)...................................15
24. How the choice of payment terms offers a competitive advantage to the seller?................15
Beck, T., Pamuk, H., Ramrattan, R., & Uras, B. R. (2018). Payment instruments, finance and
development. Journal of Development Economics, 133, 162-186................................................16
CHAPTER 8 - MANAGING TRANSACTIONS RISK...............................................................16
25. How do countries operate with different currency pose risk in the international transaction?
...................................................................................................................................................16
Hopkin, P. (2018). Fundamentals of risk management: understanding, evaluating and
implementing effective risk management. Kogan Page Publishers................................................16
26. Working process of currency exchange rate........................................................................16

Pereira, P., Silva, E. S., & Pereira, A. (2018). Operational risk management: the basel II. The
International Journal of Business Management and Technology, 2.............................................17
27. Ways to mitigate currency risk in the international transaction..........................................17
Srinivasan, S., & Kamalakannan, T. (2018). Multi criteria decision making in financial risk
management with a multi-objective genetic algorithm. Computational Economics, 52(2), 443-
457. 18
CHAPTERS 9 AND 10 – INTERNATIONAL COMMERCIAL
DOCUMENTS/INTERNATIONAL INSURANCE.....................................................................18
28. Paperwork in international transaction vs. domestic transaction.........................................18
29. Documents needed in export and import transaction..........................................................18
30. Purpose of US Export administration Regulation and unique requirement it contains.......19
31. Why international insurance is complex?............................................................................19
32. Risk related to international transaction and strategies to mitigate them............................20
CHAPTERS 11 AND 12 – INTERNATIONAL OCEAN TRANSPORT/INTERNATIONAL
AIR TRANSPORT........................................................................................................................21
33. When logistic manager ships goods by ocean.....................................................................21
34. Additional consideration related to ocean shipping.............................................................21
35. Role of the International Maritime Organization................................................................22
36. Types of international air services.......................................................................................22
37. Advantages and disadvantage of air shipments...................................................................23
38. Purpose of the International Air Transport Association......................................................24
39. International regulation for air freight.................................................................................24
CHAPTERS 13 AND 14 – INTERMODAL LAND AND MULTIMODAL
TRANSPORT/PACKAGING FOR EXPORT..............................................................................25
40. Types of transportation arrangement apart from ocean and air...........................................25
41. Things to be considered by the international logistic manager when using all these means
of transportation.........................................................................................................................26

42. Why export packaging is a consideration for international transportation?........................26
43. Different type of packaging.................................................................................................27
44. Commercial risk of sloppy packaging.................................................................................27
CHAPTERS 15, 16, AND 17 – INTERNATIONAL WAREHOUSES AND DISTRIBUTION
CENTERS/INTERNATIONAL LOGISTICS SECURITY/CUSTOMS CLEARANCE.............28
45. Purpose of country’s custom authority................................................................................28
46. Role of world’s custom organization...................................................................................29
47. Meaning of duty and how it is calculated............................................................................29
48. Customs clearance process for the goods imported into the US.........................................30
49. Non-tariff international trade barriers..................................................................................31
50. What is C-TPAT?................................................................................................................31

CHAPTER 1: INTERNATIONAL TRADE
1. Meaning of primary logistic function in supply chain and how they are interconnected with
each other.
The primary logistics in the supply chain are order processing, inventory management,
warehousing, and transportation etc. These all given functions are interrelated with each other.
For example, in the order processing function, the manager of the firm will get an order in
relation to the specific material. However, with the help of inventory management, the manager
will get an idea that whether it will have sufficient material with an aim to meet the needs and
demands of its respective buyers. On the other hand, with the help of the transportation facility,
the ordered material can be delivered by the firm to its respective customers. Thus, it is through
this way only firm will enhance the satisfaction level of its respective buyers by using its supply
chain operation (Kwak and et.al., 2018). In addition to this, these primary functions interface in
the overall business strategy of the corporation. For example, if a firm has the strategy to meet
the demands of its buyers and maintain their satisfaction level. Thus, the given thing can be
accomplished with the help of these all functions. This is because by using these functions
manager of a firm can track its material and it can assure that it will deliver the order within a
specific time.
Kwak, D. W., Rodrigues, V. S., Mason, R., Pettit, S., & Beresford, A. (2018). Risk interaction
identification in international supply chain logistics: Developing a holistic
model. International Journal of Operations & Production Management, 38(2), 372-389.
2. Identifying different additional complexities that are being introduced in the international
supply chain
The international supply chain is more complex than the domestic supply chain
operation. This is because; the international supply chain has greater time and distance difference
in comparison to the domestic supply chain. Herein, it is examined that additional costs that are
associated with transportation, inventory and local taxes are being regarded as one of the most
major complexity that is being related to the international supply chain operation. This is because
the given thing will tend to increase the overall cost of the offered product. Further, this thing
will also have an impact on the pricing strategy that is being set by the company in the
international market (Fernie & Sparks, 2018). In addition to this, cultural difference and foreign
1

government regulations are another complexity that is being related to the international supply
chain. These factors affect a company’s decision of taking orders, organizing warehouse and
plans distribution. Thus, due to this firm overall time of delivering the good at the specific place
in the international market will be increased. The given thing will also increase the cost of the
firm. It is because of given reason only it is required by the manager of a firm that it should make
efforts in terms of managing these complexities in its international supply chain.
Fernie, J., & Sparks, L. (Eds.). (2018). Logistics and retail management: emerging issues and
new challenges in the retail supply chain. Kogan page publishers.
3. Assessing different current issues affecting the international logistic
These are all depicted below:
 Rising fuel cost: The rising fuel price all over the world is causing a direct impact on
transportation cost. For example, rising fuel prices are escalating the surcharge rates that
will be later added on to freight rate. The given thing is also affecting the pricing decision
of the company and forcing them to charge high prices on the offered product.
 Environmental issues: At present, there are many nations that are making efforts in terms
of protecting their environment with the use of eco-friendly emission. Thus, the given
thing is affecting the whole transportation facility of the company in the international
market (Kshetri, 2018). However, if the firm will not make changes then in this situation
it will become very difficult for it with regard to run its operation in the specific market.
 Driver shortages: Due to lower pay rates and a high level of stress it is very difficult to
find the drivers for the international supply chain operation.
Kshetri, N. (2018). 1 Blockchain’s roles in meeting key supply chain management
objectives. International Journal of Information Management, 39, 80-89.
4. Identifying different leading theories of international trade
These all are depicted below:
 Theory of absolute advantage: It is the type of advantage that is being gained by one
country from another. For example, here one country possesses the ability to produce
goods with the specific resources at limited cost. Similarly, if the same resources will be
given to another country then in this situation they will not be able to produce goods at a
2

limited cost. Thus, if some kind of trade will happen in such a country then in this
condition the country that is in fault can gain absolute advantage from another country.
 Heckcher-Ohlin model theory: It is basically a type of mathematical model. Here, the
given theory states that a country will always have a competitive advantage in those
goods that are easily available in the nation (Perry, Fernie & Woods, 2018). For example,
some country will have a sufficient amount of land and capital but does not possess
enough labor. Then in this situation, such a nation should not opt for labor-intensive
production. This is because, if they will do then the given thing will prove as a very
costly affair for them. Thus, these theories guide in the decision-making process of the
company.
Perry, P., Fernie, J., & Woods, S. (2018). The international fashion supply chain and corporate
social responsibility.
5. Assessing the country that account for share and growth of world trade
International trade is being regarded as the practices of selling the goods and services of
the company across the national border. Herein, there are some countries identified that are
working very well in the international market (Kraude and et.al., 2018). European Union
possesses the first position in terms of international trade. In accordance with the given context,
on the basis of the analysis, it is identified that the country has around 42065 billion USD of total
international trade of goods and services. On the other hand, the United States comes under the
second position and it has around 5200 billion USD of total international trade of goods and
services. In a similar way, with the 4921 billion USD of total international trade of goods and
services, the country China resides in the third position. Thus, the given thing will also give an
indication of the power or the presence of the respective country in the international platform in
an effectual way.
Kraude, R., Narayanan, S., Talluri, S., Singh, P., & Kajiwara, T. (2018). Cultural Challenges in
Mitigating International Supply Chain Disruptions. IEEE Engineering Management
Review, 46(1), 98-105.
3

6. Identifying political, technological and economic development that has played effective role in
the overall growth of international trade
The political, economic and technological development has effectively contributed to the
growth of world trade. The political development in the form of FDI (Foreign Direct Investment)
policy has effectively contributed to the growth of world trade. In this regard, it is identified that
there are many countries that are making efforts in terms of making their FDI policies more
lenient for the foreign investor. Thus, the given thing will tend to attract foreign investors with
regard to making an investment in a specific country. Thus, as a result of this, the growth of the
firm in the international market will be assured in an effectual manner.
In addition to this, economic development has seen in the form of giving concession on
taxes and providing land for production function to the foreign investor for free. The given type
of efforts from the side of political government tends to build a positive image of the nation in
the eyes of an international investor (Davé, Dotson & Stoddard, 2018). Thus, as a result of this,
they will not feel hesitate in the process of opening their production facility in the global market.
In a similar way, the development of e-commerce has also given support to the concept of world
trade. Here, it is because of the given technological development only it has become very easier
for firms with regard to sell its goods and services on the international platform. Further, it is
because of the given development only whole world has become one single market.
Davé, D. S., Dotson, M. J., & Stoddard, J. E. (2018). Consumer awareness of supply chain flows
in relation to consumer perceptions of value-added by supply chain
management. International Journal of Logistics Systems and Management, 31(3), 387-
401.
7. What are the drivers that lead the firm with regard to start operation in international market?
There are some drivers that lead a firm with respect to expanding its business in the
international market. These are all depicted below:
 To improve the overall sales of the firm: It is being regarded as one of the most
significant elements that force a firm with respect to starting its function in the
international market. This is because; each and every company main aim is to expand its
sales. However, this can be achieved if the firm will have a huge market for the purpose
4

to perform its business operation. It is the reason why a firm will take the decision to
expand its operation.
 Increase innovation: Another most effective driver for international expansion is related
to innovation. There are some firms that want to get an idea about the type of innovative
techniques that are being used by another country with an aim to manufacture the specific
product. Thus, due to the given aspect only they tend to expand their business in the
international market in an effectual way (Kumar and et.al., 2019).
 Economies of scale: For example, the developed country always likes to outsource its
business function in the developing country like India and China. This is done with an
aim to earn economies of scale. Economies of scale are the practice of performing the
specific operation in a cost-effective manner.
Kumar, V., Kumar, V., Rao, Y. V., & Veeramalla, S. (2019). Supply Chain Performance
influencer in construction domain: A Key factor analysis. International Journal of Supply
Chain Management, 4(1), 1-7.
8. Is there is a significance of culture in global business
Yes, culture matter a lot in international business. This is because; it is by having the
knowledge about the culture of the specific country the only manager of a firm is able to make
their efforts in terms of molding their products and services as per the specific needs and
demands of the respective buyers. For example, the people of India do not eat beef meat. This is
because, as per their culture they worship cow as a god and thus they cannot eat the meat of the
same (Gerchak & Schwartz, 2018). However, while entering the Indian market McDonald has
completely ignored the given aspect. Thus, due to this, it has to stop its operation in the given
market. The given incident gives a clear indication that for the company it is very important that
they should gain good information about the international market. If not done then in this
condition the direct impact of the same will be seen on the sales and profitability related
condition of the enterprise.
Gerchak, Y., & Schwartz, G. (2018). Supply chain coordination with multiple retailers and
nonlinear production costs. International Journal of Operational Research, 32(2), 251-
265.
5

CHAPTER 2 AND 3: INTERNATIONAL SUPPLY CHAIN
MANAGEMENT
9. Assessing key elements, touchpoints, risks and partners in international supply chain
Integration, operation, purchasing, and distribution are being regarded as the key
elements that are related to the international supply chain. Among all integration is the main
element. This is because it assures coordination between all other elements. It is through this way
only international supply chain function can be accomplished in a successful way. On the other
hand, supplier, wholesaler, and retailer are being regarded as the key partners in the supply
chain. They assure that all the activities in the supply chain should be performed smoothly. Their
main aim is to attain the goals and objectives of the corporation (Fontes & Freires, 2018). In
addition to this, excessive lead time in the production and distribution function can be regarded
as one of the touch points of international supply chain operation. The given thing will tend to
raise the overall cost of supplying good from one place to another. Thus, for the manager of firm,
it is very important that it should manage the same. Government collapses and interstate conflict
can be regarded as major risks that are related to the supply chain function. The given things will
have a direct impact on the type of plans that are being made by the firm.
Fontes, C. H. D. O., & Freires, F. G. M. (2018). Sustainable and renewable energy supply chain:
A system dynamics overview. Renewable and Sustainable Energy Reviews, 82, 247-259.
10. What things are required with an aim to build infrastructure for global trade
Transportation, communication and regulatory requirements are the major necessary
infrastructure for the global trade. In accordance with the given context, it can be said that with
the help of transportation the manager of a firm is able to supply the ordered goods within the
given specified time limit. However, apart from the effective transportation in supply chain
communication also have a very important role. This is due to the fact that with the help of
effective communication both sender and receiver of goods can get an idea about the
consignment (Kwak, Seo & Mason, 2018). In addition to this, communication also helps in the
process of resolving the different type of problems that arise in front of the international supply
chain manager in an effectual manner. Here, it is through given way only the supply chain
manager can attain its goals and objectives. Besides this, it is also important for the supply chain
6

manager that it should follow rules and regulations of the specific country that are related to
supply chain function. If not followed then the survival of the firm in the specific market will
become quite difficult.
Kwak, D. W., Seo, Y. J., & Mason, R. (2018). Investigating the relationship between supply chain
innovation, risk management capabilities and competitive advantage in global supply
chains. International Journal of Operations & Production Management, 38(1), 2-21.
11. Assessing additional risks faced in international trade in comparison to domestic trade
There are different additional risks being faced by the firm in international trade in
comparison to domestic trade. In international trade, the firm will face commercial risk. It is the
type of risk in which the firm will not have any idea about the foreign market. In this situation
chances of getting a failure in the international platform will be increased. But, the respective
risk is not present in domestic trade. This is because a manager tends to have full knowledge of
its market (Watson IV and et.al., 2018). In addition to this, in international trade, the risk of
cargo is also present. This type of risk occurs when the manager of the firm sends it’s good to
another country via ships. Herein, it can be said that firm should have thorough knowledge about
the marine insurance as well as it should also have good information about the type of legislative
things being followed by respective country in relation to marine shipment. However, in
domestic trade, a firm will not have to worry about these all given things. This is due to the fact
that here with an aim to transfer goods from one place to another place many cheap options are
available to them. Further, they also get support from the side of the government.
Watson IV, G. F., Weaven, S., Perkins, H., Sardana, D., & Palmatier, R. W. (2018). International
market entry strategies: Relational, digital, and hybrid approaches. Journal of
International Marketing, 26(1), 30-60.
12. Assessing the issues that need to be considered by the logistic manager and what tactic
should be used with an aim to mitigate the risk
Among all the assessed risks, it is recommended to the logistics manager that it should
give major importance to the commercial and political risk of international trade. Here, both
assessed risks are given importance because these both can affect the operation of the firm in the
international market at the initial phase only (Surdu, Mellahi & Glaister, 2018). It is because of
7

the given reason only it is very significant for the firm that it should manage the same. In
accordance with the given context, the commercial risk can be managed by getting or collecting
thorough information about the international market. In this regard, before entering in the
specific market it is very important for the manager that it should gather the data in relation to
the specific market. The data could be in the form of getting information about the tastes and
preference of buyers. It is by complying with a given type of activity only given risk can be
managed. However, political risk can be managed by making an appointment of coordinator who
tends to have good relationships with the political government of the country where the firm is
planning for expansion. Here, it is through this way only firm can get some political support.
Surdu, I., Mellahi, K., & Glaister, K. (2018). Emerging market multinationals’ international
equity-based entry mode strategies: Review of theoretical foundations and future
directions. International Marketing Review, 35(2), 342-359.
CHAPTER 4 – INTERNATIONAL METHODS OF ENTRY
13 Ways to get an entry in the international market
These are all depicted below:
 Direct exporting: It is the type of situation in which the manufacture of goods tends to
sell its good directly to the respective customers. Here, with an aim to perform the same it
makes use of different intermediaries and foreign retailer etc. However, here firm is not
bound to use intermediaries in its operation (Schellenberg, Harker & Jafari, 2018).
 Indirect exporting: Here, the company will make use of intermediaries with an aim to sell
its good to the other country. Here, in the process of delivering services, intermediaries
change some commission from the firm. Thus, the given form of market entry sometime
proves as a very costly affair.
 Marketing subsidiaries: In the given form of market entry, the firm makes a decision with
regard to starting its operation in the international market. This option is very risky but
the given thing will allow firm in terms of establishing its full control over its operation
in an effectual manner.
 Franchising: It is another way to get an entry in the international market. Here, in this
firm tend to franchise its operation to some local firm in the international market. Thus,
in the given option firm will lose its control over its own operation.
8

Schellenberg, M., Harker, M. J., & Jafari, A. (2018). International market entry mode–a
systematic literature review. Journal of Strategic Marketing, 26(7), 601-627.
14. Factors that affect a firm’s choice of international market entry as well as go to market
strategy and a major element of successful market entry strategy
Following are the factors that affect a firm’s choice of international market entry.
 Market size: Here, the firm is always interested with regard to getting an entry in that
specific international market whose market size is very huge. This is because; the given
thing will tend to raise the firm’s chances of earning more money (Uner, Çavuşgil &
Çavuşgil, 2018).
 Level of competition: For example, the country where the firm is planning for expansion
possesses huge competition than in this situation the firm will try to avoid the given
market. This is because; a high amount of competition means low sales of the firm.
However, there is some factor examined that influence go to market strategy of the
corporation. This strategy is affected by changing tastes and preference of buyers. For example,
the firm has made the decision to enter a specific market with some particular product. The given
decision of a firm will be affected if the tastes of customers will changes. This thing will affect
the action plan of the firm. Further, the taxation or the political condition of the firm also has an
impact on the go to market strategy. Key elements of a successful market entry strategy are cost-
effective, do not involve much investment and should be aligned with the tactical goal of the
firm.
Uner, M. M., Çavuşgil, E., & Çavuşgil, S. T. (2018). Build-operate-transfer projects as a hybrid
mode of market entry: The case of Yavuz Sultan Selim Bridge in Istanbul. International
Business Review, 27(4), 797-802.
15. Assessing benefits and risks associated with international market entry and go to market
strategy
Elements Benefits Risks
International market entry  Opportunity to earn
more money.
 The firm will be able
to enhance its existing
 Not getting the idea
about the tastes and
preference of specific
country buyers and due
9

customer base. This
will raise the overall
market share of the
corporation.
to this not able to raise
the sales
 Changes in the
political environment
of the firm
Go to market strategy  It provides blueprint to
the firm regarding the
things that it wants to
accomplish (Boso,
Debrah, and
Amankwah-Amoah,
2018).
 Assist firm in the task
of attaining goal within
a limited time frame.
 Very difficult to
implement when the
market condition of the
nation is changing
constantly.
 If one step is skipped
then in this situation
the manager of the
firm will have to start
the plan from starting.
Boso, N., Debrah, Y. A., & Amankwah-Amoah, J. (2018). International marketing strategies of
emerging market firms: Nature, boundary conditions, antecedents, and
outcomes. International Marketing Review, 35(2), 202-214.
CHAPTER 5 – INTERNATIONAL CONTRACTS
16. Complexities in international contract vs. domestic contract
There are some added complexities are there in the international contract in comparison
to domestic contract. Herein, it is examined that international contract is basically the result of
different economic, technical and social development that has happened from last many years.
Here, international contract is more complex than a domestic contract because the given type of
contract is basically made between two countries or two multinational countries who work at
different locations (Jaradt & Rehman, 2018). In addition to this, international contract is
basically associated with the specific problems about which domestic contract do not provide
any kind of answer. Here, in international contract different type of problems are addressed and
10

these are related with the delay in project, disturbance related to the execution of project and
clause regarding the involvement of different parties in the contract.
However, these things are also present in the domestic contract but these are not that
much complicated. On the other hand, international contracts are created after considering the
laws and regulations of two states. It is because of the given reason only complexities are added
in the international contract. This happens because each country has their own way with an aim
to resolve the problem of the nation. Thus, involvements of two nations in the same contract will
complex the specific task.
Jaradt, N. M., & Rehman, I. U. (2018). Legal considerations to international contracts in the
recent Greece financial crisis. International Journal of Law and Management, 60(3), 814-
823.
17. The typical element related to a foreign distribution contract
There are some typical elements examined that are being related to the foreign
distribution contract. The very first element is of the time period in which contract is in the
effect. In the contract, it is very important for the parties that they should give a description of
the time required with an aim to complete the specific contract. This is because the given thing
indicate about the deadline and thus on the basis of a given aspect only both parties in contract
perform their work effectively. In addition to this, terms and condition that are related to the
supply of good are also being considered as another most significant element of the foreign
distribution contract (Wollner, 2018). The given thing will tend to entail about the things that
need to be followed by the firm while the process of supplying the goods to another country.
Here, the firm will have to mention in-depth specification regarding the supplied product.
However, any kind of difference in the same will breach the contract between parties and
significant action will be taken against the party that is in the fault. Furthermore, the parties also
have to give a description regarding the type of contract. Here, they will have to mention that
whether the contract will be exclusive or nonexclusive.
Wollner, G. (2018). Morally bankrupt: international financial governance and the ethics of
sovereign default. Journal of Political Philosophy, 26(3), 344-367.
11

18. Ways in which country engaged in foreign sales activity
There are some ways examined that country uses with an aim to engage in foreign sales
activity. One of a way could be exporting. In this regard, the effort is being made by the manager
of a firm in terms of exporting the product to the other nation. Here, with the help of given
activity, the company of a specific nation will not start its operation in another country
physically. Here, it will just export its product and in a foreign country, it will have coordinators
who will distribute the product (Feng, Gao & Jiang, 2018). Here, the given thing will help in the
task of protecting the national interest of the nation. This is due to the reason that national
interest of the nation will be affected if the firm will physically establish its presence in the
international platform. In the given type of activity, there are chances that some important things
about the country will be shared with another country. Thus, the given thing could be proved as a
threat to the company in an effectual manner. On the other hand, franchising can also be
considered as another way that the country can use with an aim to engage in foreign sales
activity.
Feng, Y., Gao, Z., & Jiang, W. (2018). What attracts China’s contracts to Latin America and the
Caribbean? An empirical study of the determinants of Chinese contracts. Economic and
Political Studies, 6(1), 91-117.
CHAPTER 6 – TERMS OF TRADE OR INCOTERMS RULES
19. Terms for the sale for international orders
A term of sales is the rights and obligations that need to be fulfilled by both buyers and
sellers while performing the international transaction. There are different terms of sale for
international order examined. It consists of delivery, arrival, carrier, freight forwarder and to get
clearance for export etc. In this regard, it can be said that while performing international
transaction it is important for the parties that they should clearly define both things. If not done
then, given thing could affect the transaction.
In international order, two main parties are buyers and seller. There are some benefits and
risks being bear by both goods selling and buying parties. Herein, it can be said that buying party
will have a risk of not getting ordered goods from a seller on time (Schmitt‐Grohé & Uribe,
2018). Thus, the given thing could affect its relationship with another party to which it had made
a commitment. However, the buyer will have a benefit to taking action against the seller in case
12

goods are not delivered as per the specification of terms. Here, the seller will be at risk until the
goods do not reach on to the buyers. However, once goods are delivered and it is being received
by the buyer then the seller does not have any responsibility. It has the benefit of that it has
control over the whole process till goods will not be delivered to the buyers. Here, the seller has
a right to cancel the distribution of good to the buyer if he has not received payment.
Schmitt‐Grohé, S., & Uribe, M. (2018). How Important are Terms‐Of‐Trade
Shocks?. International Economic Review, 59(1), 85-111.
20. Meaning of Incoterms and how responsibilities of exporter and importer can be addressed
Incoterms are basically a series of pre-defined commercial terms that are being published
by the International Chamber of Commerce. These terms are widely used in the international
commercial transaction. On the other hand, given terms are basically related to the common
contractual sales practices. Thus, the given terms provide clear definition regarding the task,
risks, and costs etc (Adler, Magud & Werner, 2018).
Here, these terms have different rules regarding the mode of transport that helps in the
process of addressing the specific responsibility of both importer and exporter. For example, the
free carrier is one of a type of element. This gives a clear indication regarding the things that are
related to export and import of good. Here, if the buyer will receive the good then in this
situation seller will not have any responsibility if some damage is being identified in the good.
This is because in this situation the seller will transfer the possession of good to the buyer. In a
similar way, carriage paid to and place of delivery are some points that effectively address the
responsibility of both exporter and importer.
Adler, G., Magud, N. E., & Werner, A. (2018). Terms-of-trade cycles and external
adjustment. International Review of Economics & Finance, 54, 103-122.
CHAPTER 7 – TERMS OF PAYMENT
21. The typical form of international payment
The typical forms of international payment are depicted below:
 Payment in advance: This form will take place when the buyers of goods and services
will pay payment before getting goods and services from the seller. This form is
beneficial for the seller because in this case, it gets payment in advance and thus money
13

obtained by it can be used for some effective purpose. However, this method will prove
as a disadvantage when the buyer will not get good due to any reason. In this condition,
the seller will have to pay double payment to buyers. This method is a disadvantage for
the buyer (Dharmadhikari & Krishnamoorthy, 2019). This is because here buyer can only
purchase good if he will pay for it. However, it has the advantage that buyer need not
have to worry about making payment after receiving goods.
 Letter of credit: In the respective form of international payment direct transaction will not
be held between both buyers and seller. Here, buyers of good will send the payment to its
bank and then the bank will give money to the seller. It enables the buyer to safely
expand its business in the international platform. Here, the buyer cannot perform the
physical verification of goods. However, the seller of good will have a guarantee from the
buyer’s bank that he will get paid for its goods. Currency fluctuation is the major
disadvantage that is being faced by the seller of the good.
Dharmadhikari, S., & Krishnamoorthy, G. (2019). U.S. Patent Application No. 10/198,766.
22. Risk related to international payment process
There are some risks examined that are associated with the international payment
process. These are all enumerated below:
 Risk of not getting paid after delivering goods: This risk is high for the exporter. This is
because here exporter delivers goods to the importers. However, he will receive
payment only when importer receives the goods. Thus, the given thing raises the
chances that there is no guarantee that the exporter of good will receive payment in
relation to the good or not (Lynch, Gelinas & Largent, 2018).
 Cash in advance: In the respective situation, the importer of the good will tend to make
an advance payment in relation to the material. Hence, here it will not have a guarantee
that whether he/she will receive well from the side of the exporter or not. This is
because, on receiving payment, the seller could deny for sending goods to the buyer.
Hence, in the given situation the buyer of good cannot perform anything. Overall, it can
be depicted that these are some risks that are being related to international payment
process in an effectual manner.
14

Lynch, H. F., Gelinas, L., & Largent, E. A. (2018). Mutual obligations in research and
withholding payment from deceptive participants. The American Journal of Bioethics, 18(4), 85-
87.
23. How export documentary collection and letter of credit transaction are completed?
With an aim to complete the export documentary collection process, different steps need
to be followed. Here, at first exporter ships the goods to the importer. On performing the given
activity, exporter hand over the documents of shipping to his/her bank. However, this document
will be given to the importer of good when he/she will make a final payment of the goods and
services. Here, after getting payment from the importer, exporter delivers the payment to the
exporter. Thus, it is by complying with a given type of activity only the whole process of
documentary collection will be completed (Soto and et.al., 2018).
On the other hand, the letter of credit collection procedure is very much similar to the
letter of credit negotiation. In this context, here basically the nominated bank will hand over all
the export documents. Thus, these all documents are being presented by it to the issuing bank for
the purpose to make payment. Here, once payment is received then the respective letter is
revoked and thus it is through this way only whole transaction will be completed in an effectual
manner.
Soto, G., Tamblay, S., Herrera, J. C., & Guimpert, I. (2018). Social Cost Benefit Analysis for
Pre-Payment Bus Stops: An Application in Transantiago (No. 18-05500).
24. How the choice of payment terms offers a competitive advantage to the seller?
The choice of payment of terms offers a competitive advantage to the seller. For
example, the seller has chosen advance payment as the term of accepting the payment from the
buyers of goods and services. Then in the given situation seller of good will receive payment in
advance. Thus, the money that is being obtained by the seller can be used by it for some other
useful activities. On the other hand, on receiving advance payment seller can reduce the chances
of not getting payment from the buyer (Beck and et.al., 2018). This is because, in many
circumstances or in the open account type of payment term, there are chances that the seller will
not receive payment from the buyers. This happens because in open account buyer will give
payment to the seller only when he/she will receive goods. If the given thing will not happen
then in this situation seller will not get paid. Thus, by getting money for goods in advance seller
15

can play the game of business from the safe side. Thus, this thing will provide its a competitive
advantage over the buyer.
Beck, T., Pamuk, H., Ramrattan, R., & Uras, B. R. (2018). Payment instruments, finance and
development. Journal of Development Economics, 133, 162-186.
CHAPTER 8 - MANAGING TRANSACTIONS RISK
25. How do countries operate with different currency pose risk in the international transaction?
The countries operate with different currency pose the risk in the international
transaction. Here, the risk is basically related to the currency fluctuation. The given aspect could
affect the operation of the business in many ways. This is due to the fact that the price of a
foreign company totally depends on the exchange rate (Hopkin, 2018). On the other hand, it can
also be said that the transaction risk will further be enhanced when company sell its products and
services on credit and thus receive the payment of the same 90 or 120 days later. The given thing
is a risk because if during the period of selling and receiving the funds, any changes will occur in
the value of foreign currency then in the given situation firm will have to bear the loss. This
happens because the value of currency depreciates also. Hence, in the given situation loss will be
bear by that respective firm that is purchasing product in other country currency. It is because of
a given aspect, it is very important for the manager of a firm that it should take care of a given
type of risk while performing an international transaction in an effectual manner.
Hopkin, P. (2018). Fundamentals of risk management: understanding, evaluating and
implementing effective risk management. Kogan Page Publishers.
26. Working process of currency exchange rate
The exchange rate is the type of rate when one country’s exchange its currency to another
then it is being called by the exchange rate. Herein, it is identified that it is the foreign exchange
trader that makes the decision about the exchange rate of most of the currency. They perform
trading of currency 24 hours and 7 weeks. However, there are different factors that tend to
influence the working process of the exchange rate. In this regard, the interest rate that is being
paid by the central bank of the nation is being regarded as one of the types of factor. For
example, if the interest rate is high, then the currency of the nation will be considered as more
valuable (Pereira, Silva & Pereira, 2018). Further, the money supply that is being handled by the
central bank of the nation is another factor that regulates the working process of the currency
16

exchange rate. For example, if the government will print too much currency then the given thing
could create oversupply of currency. This leads to cause hyperinflation. Thus, it is through this
way only currency exchange rate works.
For the purpose to forecast currency exchange rate, both fundamental and technical
approaches are used. In a fundamental approach, the currency exchange rate depends on GDP,
unemployment rate and balance of trade etc. In a technical approach, exchange rate depends on
positioning survey and Forex dealer’s customer flow data.
Pereira, P., Silva, E. S., & Pereira, A. (2018). Operational risk management: the basel II. The
International Journal of Business Management and Technology, 2.
27. Ways to mitigate currency risk in the international transaction
There are some ways with the help of which currency risk in the international transaction
can be mitigated:
 By taking payment in the dollar: It is being considered as one of the easiest solution to
the above problem. Here, effort should be made by the manager of the firm in terms of
getting the payment from the customers in dollars. The given thing will enable firm with
regard to bear the risks that are related to currency fluctuation in an effectual manner
(Srinivasan & Kamalakannan, 2018).
 Using a forward contract: It is the type of agreement that is being held between two
parties. In this agreement parties make the decision to buy and sell the assets on a future
specific date and at a future price. The given type of contract is basically used for
hedging. The given thing will enable the investor to block the particular currency rate.
Further, here contractor has to deposit amount with the currency broker. Overall, it is
very correct to say that with the help of these two gives measures the currency risk
related to the international transaction can be avoided in an effectual way.
17

Srinivasan, S., & Kamalakannan, T. (2018). Multi criteria decision making in financial risk
management with a multi-objective genetic algorithm. Computational Economics, 52(2),
443-457.
CHAPTERS 9 AND 10 – INTERNATIONAL COMMERCIAL
DOCUMENTS/INTERNATIONAL INSURANCE
28. Paperwork in international transaction vs. domestic transaction
There is a huge difference exist in the process of performing business internationally and
domestically. In accordance with the given context, there is some paperwork examined that are
common in both given type of transaction. It consists of a commercial invoice or packing list etc.
However, while performing international transaction there are some additional documents
required. It comprises of schedule B or the harmonized system code for each product in the
shipment, certificate of origin, shipper letter of instruction, dangerous good form and bank draft
etc (Bachner & Hynes, 2018). This happens because performing business in the global market is
not an easy task. Here, the company that is planning to establish its business in the international
market has to comply with the rules and regulations of that specific country. On the other hand,
in the international market firm will have to get clearance of many things. This needs to be
present by them to the government of a specific country. However, such types of things are not
there in many of the domestic transaction. Thus, it is due to the presence of a given aspect only
there is more paperwork is required in the international transaction than the domestic transaction.
Bachner, H., & Hynes, P. (2018). The Development of a Framework to Capture a Body of
Knowledge for Commercial Spaceport Operations. New Space, 6(1), 20-27.
29. Documents needed in export and import transaction
There are different commercial, shipping and foreign trade documents required for the
export transaction. These are depicted as a bill of lading, certificate of the manufacturer,
certificate of origin, commercial invoice, consular invoice, dock receipt, inspection certificate,
insurance certificate, packing list, sales contract, quotation, insurance policy, product testing
certificate, health certificate, Phytosanitary Certificate, ATA carnet and Fumigation Certificate
etc (Koch, 2018). Thus, from the given thing the list of export transaction document is very wide.
Here, it is important for each and every company that it should have all these documents. This is
because, if anything will be found as absent among these then it will become very difficult for
18

the individual with regard to performing its export transaction. On the other hand, in the import
transaction, the information about the source of good, type of good and price will be reported.
The given thing will give clearance to the importing country about the type of good is being
taken from a foreign country.
Koch, J. S. (2018). Institutional Framework for the Province of all Mankind: Lessons from the
International Seabed Authority for the Governance of Commercial Space
Mining. Astropolitics, 16(1), 1-27.
30. Purpose of US Export administration Regulation and unique requirement it contains
The United States Department of commerce tends to administer the US Export
Administration Regulation. The main purpose of given regulation is to regulate the export of
dual use of items. In this regard, the item comprises of goods and related technologies along with
military-related appliances such as aircraft and computers etc. In other words, it can also be said
that here EAR basically ensures that whether a person is exporting thing from the US, it is
performing the operation of reexporting or it is transferring thing from own country to foreign
country. It applies to both physical thing (like commodities) and nonphysical thing (like
technology and software).
However, there are one specific unique requirements associated with the same. A person
who is exporting and re-exporting goods needs to submit a license to the BIS. This license
requirement depends on four important criteria such as technical feature, end use, end user and
destination etc (Lake, 2018). Here, if exporting firm will not fulfill the given thing then in this
situation significant action against it will be taken by the United States government officials in
an effectual way.
Lake, D. A. (2018). Power, protection, and free trade: International sources of US commercial
strategy, 1887–1939. Cornell University Press.
31. Why international insurance is complex?
International insurance is the type of insurance that cover people who travel abroad.
International insurance is complex because there is a number of risks are related to the same. In
this regard, general insurance is dedicated to some specific type of function. For example, it will
be related to medical insurance, travel insurance, and shipment insurance etc. However,
19

international insurance is the combination of all these things such as loss or damage to property,
travel cost, and medical expense etc. This given thing will tend to raise the complexities of
international insurance (Born & Rutledge, 2018). Here, in the given type of condition an
individual or the insurer will have to make a plans in relation to these all given things. On the
other hand, here plans and policies are decided as per the condition of thing that needs to be
insured. Thus, here lots of planning is required. It is due to the presence of a given aspect only
international insurance is considered as more complex in comparison to others in an effectual
way. Further, here insurance company has to prepare a plan after considering different
environmental condition. This aspect further raises the complexity of insurance.
Born, G. B., & Rutledge, P. B. (2018). International civil litigation in United States courts.
Wolters Kluwer Law & Business.
32. Risk related to international transaction and strategies to mitigate them
There are some risks examined that are associated with international transaction and
shipments. It is depicted in below-given table:
Risks in international transaction and
shipments
Strategies to mitigate the same
Credit risk: It is the type of risk in which the
buyer will not pay money to the seller after
receiving goods. This happens when the seller
will give its good to the buyer on credit (Yip,
2018).
This risk can be mitigating by taking advance
payment from the buyer of goods. On the other
hand, the letter of credit will also be considered
as one of the types of option. Here, the seller
will give goods to buyers on credit. Here, the
seller will not collect money directly from the
buyer. Here, the buyer’s bank will give money
to the seller. Thus, in case if the buyer is not
able to pay money then in this situation buyer’s
bank will pay money to the seller.
Carriage risk: For example, while transferring
good some bad happens and all transferred
material will get damaged. Then the given type
of risk will occur.
It can be managed by performing the insurance
of the transferred good. Thus, it is through this
way the only individual can perform an
international transaction in a safe way.
20

Yip, M. (2018). Navigating Singapore’s private international rules in the age of innovative cross-
border commercial litigation framework. In China's One Belt One Road Initiative and
Private International Law (pp. 75-90). Routledge.
CHAPTERS 11 AND 12 – INTERNATIONAL OCEAN
TRANSPORT/INTERNATIONAL AIR TRANSPORT
33. When logistic manager ships goods by ocean
There are some reasons examined that give a clear explanation that when logistic
manager choose to ship its goods via ocean in the place of any other means of transportation. In
accordance with the given context, it is examined that the manager will choose to ship its product
via the ocean when its consignment is very big. Herein, it is identified that one container of the
ship can hold around 10000 bottles of beer. So when a manager has a very high quantity of good
then in the respective circumstance it will take a decision with regard to transfer its good by the
ocean (Wensveen, 2018). In addition to this, when a company is very much concerned about the
about the natural environment of the nation then in this situation also they will prefer to ship
their good by ships. This is because there are very fewer carbon footprints are available in the
process of transferring goods by the ocean. Overall, it can be said that these are two main reasons
behind sending goods by the ocean. However, with the aim to transport good from one place to
another there are other options are also available. These are by air and by road etc.
Wensveen, J. (2018). Air transportation: A management perspective. Routledge.
34. Additional consideration related to ocean shipping
There is some consideration examined that are associated with ocean shipping. The first
thing is related to the cost. While selecting ocean as the means of transportation, it is required by
the manager of a firm that it should always company the cost of transferring product by air and
by the ocean. This thing can be accomplished by taking opinion of the individual who has
expertise in the same. This is because; such type of efforts from the side of the firm will enable it
with regard to saving some cost in the process of transferring goods from one place to another in
an effectual way (Spasojevic, Lohmann & Scott, 2018).
On the other hand, speed is being regarded as another most important consideration
related to ocean shipment. Here, lots of time is required when an individual will transfer its good
21

via ocean. Thus, if the manager of a firm will not have much time then in the given situation it
should go for air transportation. However, if it will have sufficient time then in this situation it
should not think about others and should choose an ocean for goods transportation. Hence, these
are some things that need to be given importance by the manager of the firm.
Spasojevic, B., Lohmann, G., & Scott, N. (2018). Air transport and tourism–a systematic
literature review (2000–2014). Current Issues in Tourism, 21(9), 975-997.
35. Role of the International Maritime Organization
International Maritime Organization is basically a United Nation based specialized
agency that sets the global standard for the safety, security and the environmental performance of
the global shipments. In this regard, the respective organization main role is to frame the
regulatory framework for the shipping industry. However, the framework that is being framed by
it should be fair and effective (Tsui and et.al., 2018). Here, it will also have to ensure that the
framework that it is framing should be universally accepted. In addition to this, it is also
identified that the International Maritime Organization also plays the role of creator. Herein, it
will have to create a level playing field. This thing will restrict the ship operator with regard to
addressing their financial issue by cutting different corners and making comprises on safety and
security. The given type of approach from the side of the International Maritime Organization
encourages efficiency and innovation. Further, it also helps in building corporation between
governments in relation to the regulations that are related to a shipment of goods in the
international market. Overall, it is very correct to say that the respective agency tends to have a
very effectual role in the international trading process.
Tsui, K. W. H., Yuen, A. C. L., & Fung, M. K. Y. (2018). Maintaining competitiveness of
aviation hub: Empirical evidence of visitors to China via Hong Kong by air
transport. Current Issues in Tourism, 21(11), 1260-1284.
36. Types of international air services
There is two basic types of international air services are available. The detail about the
same depicted below:
 Airline cargo as a sideline: In the given type of airline services, the airline firm will not
be dedicated in the fully cargo operation. Here, it is the combination of both passenger as
22

well as cargo airline (Graham & Dobruszkes, 2019). With the help of given services, the
firm can send its small quantity goods at a different location. On the other hand, fare
charges in the given form of airline services are comparatively lower than the air cargo
services. However, in the given airline services firm cannot send a bulk quantity of goods
from one place to another in an effectual manner.
 Dedicated air cargo carrier: The given airline services is completely dedicated to the
shipment of the good. Here, it tends to enable the company with regard to sending its
goods from one place to another within a short period of time. Thus, if a firm will have
time limitation in relation to the good shipment and quantity of a good is huge then the
respective option will be considered as very much effective.
Graham, A., & Dobruszkes, F. (Eds.). (2019). Air Transport–A Tourism Perspective. Elsevier.
37. Advantages and disadvantage of air shipments
Advantages of shipping goods internationally by air are depicted below:
 High speed: Air shipment is being regarded as one of the most effective approaches when
the manager of the firm will have to transfer goods in another country within a limited
period of time. Through this mean, the firm can meet the demand of international
customers on the specified time period.
 It does not require any kind of infrastructure investment: In air transport, the company
needs to not make an investment like the construction of ports etc. Thus, the money saved
by the firm in the given activity can be used for some other productive mean in an
effectual way (Park, Kazaz & Webster, 2018).
The disadvantage of shipping goods internationally by air is depicted below:
 Very costly: In comparison to other means of transport, air shipment is very much costly
in nature. Here, air freight is so high that the given mean cannot be used for the low-
value product in an effectual way.
 Smaller carrying capacity: For the international transaction, firms always prefer that
mean that is able to carry good in bulk. But, the given thing is not possible with air
transport. It is because of the given reason only company prefers to transport their goods
via rail and ship etc.
23

Park, J. H., Kazaz, B., & Webster, S. (2018). Surface vs. Air Shipment of Humanitarian Goods
under Demand Uncertainty. Production and Operations Management, 27(5), 928-948.
38. Purpose of the International Air Transport Association
International Air Transport Association is basically traded association of the world’s
airline. It possesses 290 airlines and covers 117 countries. Its main purpose is to promote safe,
economical and regular air transport that tends to provide benefit to people all over the world. It
also aims to foster air commerce. The given aim is achieved by it by establishing networks with
different countries. Here, it gives suggestion and instructions to all the airlines that come under it
in an effectual manner (Kulak, Genç & Taner, 2018). In addition to this, it also has a purpose to
collaborate with different air transport enterprises that are directly and indirectly engaged with
international air transport services in an effectual way. It also aims to promote international
tourism. Here, with an aim to attain all purposes the International Air Transport Association puts
a major focus on the type of services that are being given by the airline companies. Here, it will
basically evaluate the activities that are being performed by the airline companies. Thus, on the
basis of given evaluation only, it gives suggestions with an aim to improve their services in an
effectual way.
Kulak, O., Genç, A., & Taner, M. E. (2018). A decision making tool considering risk
assessment of sub-contracting agents for an air cargo shipment planning
problem. Journal of Air Transport Management, 69, 123-136.
39. International regulation for air freight
There are different types of international regulations examined that deals with air freight.
These are all given below:
 Chicago Convention on International Civil Aviation: It is being regarded as one of the
international regulation that is related to air freight. The given regulation is established by
the international civil aviation organization. It is the specialized agency of the UN that
basically coordinates and regulates international air travel. The main aim of the given
convention is to prepare the rules for air space, air safety, and air registration etc.
 Air Cargo Tariffs and Rules: The given rules tend to provide comprehensive information
to air cargo professionals. The given information will enable them with regard to
performing air transport operation worldwide. The given rules comprise of industry,
24

country, and carriage related regulations (Pelletier and et.al., 2018). Thus, with the help
of given regulation manager of a firm can plan their air activity and thus can make efforts
in terms of performing their operation in an effectual manner. In addition to this, Air
Cargo Tariffs and Rules also give information about the current rates in the industry and
country in relation to air transport. This helps in the planning process.
Pelletier, W., Chau, K. V., Bucklin, R. A., Brecht, J. K., Hahn, D. W., & Émond, J. P. (2018).
Analysis of Air Cargo Temperature Variations During Transport Operations.
CHAPTERS 13 AND 14 – INTERMODAL LAND AND MULTIMODAL
TRANSPORT/PACKAGING FOR EXPORT
40. Types of transportation arrangement apart from ocean and air
There are a different type of transportation facilities are available for the company apart
from air and ocean. These are all depicted below:
 Road transport: It is being regarded as one of the most major means of international
transport. In the given type of transport, a vehicle such as a truck is being used. It is
considered as one of the most efficient and quick means of transportation for
international shipment. Further, in comparison to the air and ocean transportation, the
given mean is considered as quite effective.
 Rail transport: It is also considered as one of the most cost-effective and efficient ways to
transport good from one nation to another. By using the given mean, manager of a firm
can ship a bulk quantity of goods (Pakdel & von Blume, 2018).
 Intermodal: It is also regarded as one of the types of transportation. The given model
makes use of all such as air, water and land means of transportation. The given method
reduces the task of handling cargo and thus it improves security and reduces the chances
of goods damage.
 Barges: It is the flat bottomed ship that basically used to transport good from one place to
another. It basically uses the river and canal ways with an aim to transport good.
 Pipelines: This is used when a country has to transport good like gas and some liquid
material.
25

Pakdel, M., & von Blume, J. (2018). Exploring new routes for secretory protein export from the
trans-Golgi network. Molecular biology of the cell, 29(3), 235-240.
41. Things to be considered by the international logistic manager when using all these means of
transportation
In this regard, it is recommended to the international logistic manager that it should
always get an idea about the quantity of goods while selecting any of the above-mentioned
means of transportation. This is because supposing the firm has to deliver a very large quantity
of good from one place to another then in this situation, it can opt for either rail or ship ( Bronn
and et.al., 2018). This is due to the reason these both means are very effective in the process of
getting a bulky product. In addition to this, the international logistics manager should also
concern about different paperwork that is being related to all means of transportation. For
example, when transporting goods via ship, the company will have to get a clearance from the
cargo authority. In a similar way, when option air as the mean of transportation it will have to get
some other document. Likewise, for pipeline transport, it will have to get permission from both
national and international government. Thus, these are some things that the international logistic
manager should be aware of.
Bronn, N. T., Adiga, V. P., Olivadese, S. B., Wu, X., Chow, J. M., & Pappas, D. P. (2018).
High coherence plane breaking packaging for superconducting qubits. Quantum science
and technology, 3(2), 024007.
42. Why export packaging is a consideration for international transportation?
Export packaging is the process of packing goods in such a manner that it will not get
damaged during transportation. Herein, it can be said that export packaging is a consideration for
international transportation. This is because there are different risks associated with the same. In
this context, it is examined that while transporting goods from one place to another, logistics
manager will come across with a different type of hazards. The hazards are in the form of rough
road, barriers and ineffective weather condition. These all given hazards tend to affect goods
during the small journey also (Tripathi and et.al., 2018). Thus, if a firm is transferring goods in
the international market then in this situation it should have to give more consideration to the
export packaging in an effective manner. If a given thing is not done then in this situation firm
goods can be damaged. Thus, due to this the contract that is being held between both importing
26

and exporting party will be breached. Thus, due to this the firm that is exporting goods to another
country will have to bear the loss. Thus, it is due to the presence of a given aspect only export
packaging is a consideration for international transportation.
Tripathi, R. M., Pudake, R. N., Shrivastav, B. R., & Shrivastav, A. (2018). Antibacterial activity
of poly (vinyl alcohol)—biogenic silver nanocomposite film for food packaging
material. Advances in Natural Sciences: Nanoscience and Nanotechnology, 9(2), 025020.
43. Different type of packaging
Details about a different type of packaging are depicted below:
 FCL: It is depicted as a full container load. This container is around 20 or 40 foot wide.
In the given form of packaging, a listing of all the goods in the container is performed in
a single bill of lading. On the other hand, here payment is made on the basis of a full
container.
 LCL: It is the type of packaging in which two companies will form an agreement and
together they both send their goods at a specific destination in one container only. Thus,
in the given form of packaging the payment of good shipment is being divided into two
parties in an effectual manner (Zheng and et.al., 2018).
 Bulk: It is the type of packaging that is other than barge and vessel. In the given type of
packaging, hazardous material is loaded. It has the capacity of around 450 liters. On the
other hand, its net mass is more than 400 kg.
 Breakbulk: It is also called by the name of general cargo. It is completely different from
bulk shipping. This cargo is transported individually. Herein, it is used with an aim to
transport goods like construction equipment, oversized vehicle, and cars etc.
Zheng, Q., Wang, Q., Gao, L., Wang, Y., Shi, J., & Zuo, J. (2018). Progress in packaging
technologies for vegetables. Shipin Kexue/Food Science, 39(3), 317-323.
44. Commercial risk of sloppy packaging
 Risk of damaging the good: It is being regarded as one of the most common risks that are
being related to sloppy risk. Here, it is very much essential for the logistics manager that
it should make the right selection in relation to the packaging material used for the good.
For example, for the good like refrigerator and washing machines etc, thermocol should
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be used in packaging. If this will not be done then there are chances that good can
damage (Wang and et.al., 2018).
 Risk of inflammation: This can occur if sloppy packaging will be done for the flammable
good like wine and beer etc. Here, small damage to the bottle will pour wine in the
shipping container. However, if due to any situation if the product will come in the
contact of fire then the given thing will lead to a very big accident. Thus, these are the
main risk related to sloppy packaging.
Wang, X., Gu, J., Maria, M., Fang, Y., & Li, H. (2018). Bursaphelenchus decraemerae n. sp.
(Tylenchina: Aphelenchoididae) found in packaging wood from the
USA. Nematology, 20(2), 119-131.
CHAPTERS 15, 16, AND 17 – INTERNATIONAL WAREHOUSES AND
DISTRIBUTION CENTERS/INTERNATIONAL LOGISTICS
SECURITY/CUSTOMS CLEARANCE
45. Purpose of country’s custom authority
Customer authority is basically a government agency that the main aim is to protect the
community from the different type of risks that are associated with international trade and travel.
Here, for the given thing they tend to perform a different type of activities such as checking the
baggage and cargo of traveler, makes the collection of customs duties on the import goods,
provides protection to the business from all type of unnecessary or the illegal transactions. In
accordance with the given context, it can be said that the main purpose of the country’s customs
authority is put stoppage over the prohibited item from getting an entry in the country (Remali &
Harun, 2018). On the other hand, they also collect taxes from the goods imported. The given
thing indicates that they tend to handle all the transaction after getting goods from the importer.
In the nation, they have a very important role. It is with the help of given authority only,
smuggling of different type of illegal products like drugs can be stopped. Thus, it is by
complying with a given type of activity only they work for the betterment of the country in an
effectual manner.
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Remali, M. Z. H., & Harun, M. (2018). Malaysia National Single Window: The Enforcement
Royal Malaysia Custom and Miti Liabilities on Trade System and Logistic
Sector. Advances in Transportation and Logistics Research, 1(1), 935-947.
46. Role of world’s custom organization
World’s custom organization is the independent interdepartmental body that aims to
enhance the effectiveness of the customs administration. In this regard, it is identified that the
role of the world’s custom organization is to assure the growth of legitimate international trade.
With an aim to attain the same, it makes effort in terms of combating or taking appropriate action
in relation to all the ineffective activities that are happening in the international market (Martin
and et.al., 2018). In addition to this, it also plays a central role in the process of development,
growth, and promotion of different custom standards and procedures. While performing the
given activity, it assures that the things that it is planning to change should suit the needs and
demands of different nations. Here, it is by complying with the respective type of practices on
the world’s custom organization performs its roles and responsibilities effectively and
appropriately.
Martin, F., Cahill, A., Wright, E., & Stoianoff, N. (2018). An international approach to
establishing a Competent Authority to manage and protect traditional
knowledge. Alternative Law Journal, 1037969X18815254.
47. Meaning of duty and how it is calculated
Custom duty is basically the type of tax that is being imposed on the goods import by the
custom authorities of the nation. The main aim behind given duty is raise the revenue of the
state. On the other hand, the given duty will also provide protection to the local industry or the
companies from the international competitors. From the given thing, it can be said that the
respective duty works for the benefits of local companies. On the other hand, the custom duty is
also imposed on the exporting goods also. In addition to this, it can also be said that custom duty
has a purpose to provide protection to the each country’s residents, employment condition and
local companies (Shetty, 2018). With the help of given duty, flow of goods and services can be
controlled. Thus, for any nation the given duty has a significant importance in an effectual way.
However, the customs duty is basically calculated on the percentage of the custom value
of goods. In this regard, here custom value of goods possesses three basic elements such as item
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cost, shipping cost, and insurance cost etc. Thus, here on the basis of these all things only custom
duty is being calculated in an effectual way.
Shetty, M. R. (2018). IMPACT OF GST ON CUSTOM VALUATION OF CASHEW
KERNALS: A STUDY ON PRESENT SCENARIO. GPH-Journal of Business
Management, 1(1), 19-26.
48. Customs clearance process for the goods imported into the US
A general process in relation to goods imported into the US is being examined. It is
detailed below:
 Making arrangement at a CBP Port of Entry: Here, before getting an entry in the US, the
importing company will have to make an arrangement of different type of documents and
files.
 Declaring the entry of goods: Here, once ship will arrive in the US, the importer of good
will have to make a declaration that how goods have taken the entry. Here, goods may be
entered for the consumption purpose or it may be entered for the warehouse at the port.
 File cargo release: Once goods will get an entry in the US, the importer of goods will
have 15 day time with an aim to put the file for cargo release. Through this way, the
goods will be released from the custody of importer (Khan and et.al., 2018).
 File entry summary: In this importer will have to fill the form such as CBP form 7501.
This needs to be filled within 10 days. With the help of given form only, cargo can be
released from CBP custody in an effectual manner.
 Paying estimated duties: Within the 10 days of releasing cargo, the importer of good will
has to pay the duty to imported goods.
 Ensuring that entry of documentation is complete: After performing all the
documentation related work, the goods imported will be given to the concerned
individual.
Khan, H. U. R., Siddique, M., Zaman, K., Yousaf, S. U., Shoukry, A. M., Gani, S., ... & Saleem,
H. (2018). The impact of air transportation, railways transportation, and port container
traffic on energy demand, customs duty, and economic growth: Evidence from a panel of
low-, middle-, and high-income countries. Journal of Air Transport Management, 70, 18-
35.
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49. Non-tariff international trade barriers
There are some nontariff barriers to international trade examined. These are all depicted
below:
 Quotas: It is being considered as one of the most common barriers that is related to the
non tariff. Here, the government of nation tends to imposed ceiling on the certain
imported product for a specific period of time. The main aim of the given barrier is to
protect the small industry like agriculture and automobiles etc from the international
competitors (Gibiino and et.al., 2018).
 Embargoes: It is basically the type of order that is being passed by the government of the
nation. Here, in the given order government of nation tends to prohibit any kind of trade
from the specific country. Here, basically, that company is taken into consideration to
which company does not have effective relations. For example, earlier the US have
implemented the given order. It has applied this on those nations with which it has
diplomatic relations. The nation of the country includes North Korea, Cuba, and Libya
etc.
 Export subsidy: It is being applied to the goods exported to the other country. The main
aim behind a given barrier is to lower the price of goods exported. Through this way firm
can sell goods in another market at lower prices and thus it can create a competitive
position in the foreign market.
Gibiino, G. P., Cignani, R., Santarelli, A., & Traverso, P. A. (2018, August). A bias network for
small duty-cycle fast-pulsed measurement of RF power transistors. In Journal of Physics:
Conference Series (Vol. 1065, No. 5, p. 052007). IOP Publishing.
50. What is C-TPAT?
C-TPAT is the custom trade partnership against terrorism. It is basically voluntary or the
joint government and business partnership that helps to enhance security at the boarder of the
nation in an effectual manner. This was launched on November 2001. The given agency
possesses more than 10000 partners. The main aim of the given agency is to provide protection
to the supply chain of private companies from the terrorism (DuBois and et.al., 2018). The
company can apply for the given type of certificate and can make sure that their goods will
supply safely to the other country. From the whole thing, it can be said that the given thing will
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play very important role in the process of protecting private companies’ product from the
unnecessary activities that could happen during supply chain operation.
DuBois, A. M., Sokolov, V., Knapp, K., Thompson, M. C., & TAE Team. (2018). Design of a
custom insertable probe platform for measurements of C-2W inner divertor plasma
parameters. Review of Scientific Instruments, 89(10), 10J115.
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