Significance of Understanding of International Trade Procedures and Documentation

While operating in international markets, a businessperson can not transact without the interventions of mainly four groups of intermediaries or regulators – 1) Governments of host and home country, 2) Banks in both the countries, 3) Transporting group – Different payers involved with the overall logistics of carrying the goods from home country to host country, 4) Misc Group – Different service providers which facilitate the transaction of the goods internationally. Due to the simple fact that the transacting parties are located in different countries with different set of laws and regulations as also differing business practices, it becomes too complicated for them to carry out their transactions without the active participation of different players belonging to these groups or categories of entities. While governments of exporting and importing countries have their own objectives and compulsions to intervene, other groups are motivated to intervene seeing opportunities of profit in international transactions. Banking groups thrive on providing their services for profits of their own, transporters carry out their role on daily basis to make profit from the movement of the goods. Miscellaneous group consists of service providers which thrive on peculiar situations arising from international transactions.

In all, the involvement of so many parties in international transactions create a set of challenges and opportunities. The understanding of International Trade Procedures and Documentation is vital to meet these challenges and exploit these opportunities to its maximum.

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