1 Framework of International Trade Transactions!

Over a period of time, international trade transactions evolved a customary

and regulatory framework so as to facilitate the smooth flow of cargo from
the exporter to the importer and ensure receipt of payment from the importer.
In order to carry out cross-country trade, international managers are required
to follow a certain set of procedures and deal with a wide range of
documents.

The exporter needs to comply with rules, regulations, and trade customs of
both the exporting and importing countries. Besides, the exporter on one hand
has to assure herself/himself of receiving timely payment, while on the other,
the importer has to ensure that she/he timely receives the imported cargo in
good condition.

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Further, the cargo is exposed to a number of risks factors, such as damage,

fire, loss, and maritime damage due to perils of voyage.

The international trade transaction chain consists of a number of entities that

form an integral part of the entire system.

It includes a number of government regulatory agencies in both exporting and

importing countries, such as government agencies under the ministry of trade,
commerce, or industry like the Directorate General of Foreign Trade (DGFT)
in India, inspection agencies, insurance companies, customs and central
excise, banking institutions, clearing and forwarding (C&F) agents, shipping
companies or airlines, carriers for inland transportation, etc.
As exporters and importers are located in two different countries and are
governed by different legislative frameworks, the modus operandi of
international trade transactions becomes not only crucial but also highly
complex. Therefore, international managers have to make themselves fully
aware of various legislations governing international trade in the exporting as
well as the importing country.

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To carry out an international trade transaction, one has to follow various

international commercial practices and laws, such as the Carriage of Goods
by Sea Act, 1924, Uniform Customs and Practices for Documentary Credit
(UCPDC), 1993; International Commercial Terms (INCOTERMS), 2000;
etc., and any amendment thereof from time to time.

In case of India, the relevant laws/acts include Insurance Act, 1938; Central
Excise Act, 1944; Customs Act, 1962; Marine Insurance Act, 1963; The
Export (Quality Control and Inspection) Act 1963; Foreign Trade
(Development and Regulation) Act, 1992; Foreign Exchange Management
Act, 1999; Central Excise Rules, 2001; Export-Import Policy and Handbook
of Procedures and amendments thereof brought out from time to time by the
DGFT; etc.

An illustrative export transaction framework is depicted in Fig. 18.1 in

simplified form so as to make the readers appreciate the process. For entering
into international markets, an exporter has to identify an importer and strike a
deal with him/her.
The export contract should explicitly indicate the description of goods, price
of each item, net and gross shipping weights, the terms of delivery, the terms
of payment, insurance and shipping costs, currency of sales, the port of
loading, port of discharge, and estimated shipping date and validity period of
the contract.

In an export transaction, the documents are generally routed through banking

institutions in the exporter’s and importer’s country so as to substitute the
risk of non-payment by the importer and non-receipt of goods from the
exporter. As soon as the export contract is finalized and the payment terms
are decided, the exporter initiates action for procurement or manufacturing of
goods.

As the documentary requirements and procedure for export transaction is

considerably complex, the exporter generally avails services of clearing and
forwarding agents at the ports who specialize in these operations.

Depending upon the terms of export contract, the export cargo is delivered to
the carrier against the receipt of Bills of Lading. The ocean Bills of Lading
serve as a receipt of cargo by the shipping company, the contract of transport
(or carriage), and a negotiable ‘document of title’.

Therefore, the goods can be claimed at destination only by the lawful holder
of Bills of Lading. As a part of international commercial practices, the Bills
of Lading is handed over to the importer by the importer’s bank only after
payment is made; or in case of usance documents, when the importer makes a
commitment to make the payment on a future date.

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This process ensures receipt of payment to the exporter on one hand and
receipt of cargo to the importer on the other. Therefore, international
managers have to develop a thorough understanding of export procedures and
documentation practices in international trade.

Considerable time is required to export or import merchandise as the

complexity of processes involved such as obtaining all the documents, inland
transport, customs clearance and inspections, and port and terminal handling
procedures, vary across countries.

It takes only five days to export and three days for import from Singapore, six
and five days from the US, seven days each from Germany, nine and 12 days
from Australia, 10 days each from UAE, 10 and 11 days from Japan, 13 days
each from the UK, 14 and 19 days from Brazil, 17 and 20 days from India, 18
and 14 days from Malaysia, and 20 and 17 days from Italy for exports and
imports respectively as shown in Fig. 18.2.
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On the other hand, it takes 102 days to export and 101 days for import from
Iraq, 36 days each from Russian Federation, 30 and 35 days from South
Africa, 24 and 31 days from Tanzania, and 21 and 24 days for exports and
imports, respectively, from China.

The time taken to effect an export shipment is crucial as each additional day
that an export product is delayed is reported to reduce a country’s exports by
more than 1 per cent. For time-sensitive agricultural products, reducing
delays by 10 per cent increases country’s exports by more than 30 per cent.

To effect export or import, various costs are incurred for obtaining

documents, administrative fees for customs clearance and technical control,
terminal handling charges, and inland transport. A cross-country comparison
indicates that the cost incurred in exports is the lowest at US$450 per
container in Malaysia whereas the cost to import is the lowest at US$439 in
Singapore, as shown in Fig. 18.3.

In Chad, the per container cost incurred to export and import is US$5,367 and
US$6,020, respectively, which is the highest. Interestingly, the cost incurred
in exports and imports in India is comparatively lower than many developed
countries, including Japan, the US, the UK, and Australia.

Therefore, a thorough understanding of the procedures and documentation

involved facilitate decision-making while handling an international
transaction. The set of international commercial terms, widely known as
INCOTERMS, have also been elucidated.

Besides, the important regulatory and auxiliary documents, such as

commercial invoice, packing list, transport documents, such as Bills of
Lading, airways bill, combined transport documents, certificate of origin,
inspection and insurance certificates.
 2……

Export Development Canada (EDC; French: Exportation et développement Canada) is Canada's export

credit agency and a state-owned enterprise wholly owned by the Government of Canada. Its mandate is to
support and develop trade between Canada and other countries, and help Canada's competitiveness in the
international marketplace.[3] EDC products and services include trade credit insurance, export financing for
Canadian companies and for their foreign customers, bonding solutions[buzzword], international market expertise, as
well as information on opportunities in international markets.[4][5][6]
EDC was founded in 1944. Its corporate headquarters is located in Ottawa, and it has 17 regional offices across
Canada and permanent representations in 12 foreign markets.[7][8]

Contents

 1History
 2Operations
o 2.1Executive team
 3Services
 4Governance
o 4.1Board of Directors
 5Corporate Sustainability and Responsibility
 6Events by EDC
 7References

History[edit]
In 1944, the Export Credits Insurance Act was proclaimed. Export Credit Insurance Corporation (ECIC) was
created following WWII to help stimulate the Canadian economy, create jobs and help Canadian exporters.
The Export Development Act proclaimed on October 1, 1969, repealed Part 1 of the Export Credits Insurance
Act and established the Export Development Corporation (EDC) as successor to all property, rights, and
obligations.[9] In 2001, EDC changed its name from Export Development Corporation to Export Development
Canada[10]

Operations[edit]
EDC operates at arm's length from the federal government and according to commercial principles. EDC's
mandate is spelled out in the Export Development Act. In response to the global credit crunch, in 2009, the
Government of Canada broadened EDC's mandate and scope of activity for a two-year period to include
support for domestic trade and domestic business opportunities. The period was extended to March 12, 2014. [11]
The corporation is financially self-sustaining. EDC raises funds by charging fees for its services and interest on
its loans, as well as issuing debt in capital markets.
EDC operates according to a Corporate Plan approved annually by the federal government, and its Operating
Principles dictate that it conducts its business in a manner that is respectful of applicable international
agreements to which Canada is a party; is consistent with its Corporate Sustainability Responsibility (CSR)
commitments; and ensures the sound financial management of its activities. [12]
EDC publishes an online magazine for Canadian Exporters, ExportWise (Exportateurs avertis in French).
In 2011, EDC and BDC (Business Development Bank of Canada) announced the signing of a new protocol to
coordinate collaborative efforts between the two Crown corporations to better benefit Canadian businesses. [13]
In addition to the Ottawa headquarters, EDC operates from 21 regional offices in Toronto, Kitchener, London,
Mississauga, Windsor, Vancouver, Calgary, Edmonton, Regina, Saskatoon, Winnipeg, Montreal, Sherbrooke,
Brossard, Drummondville, Quebec, Saint-Laurent, Halifax, Moncton, St. John's, Charlottetown; as well as
representation abroad including Mexico, Peru, China, India, Chile, Colombia, Brazil, Germany, South Africa,
Singapore, Australia, United States, and more.

Executive team[edit]
As of April  2019

 Mairead Lavery - President and CEO

 Carl Burlock - SVP and Global Head, Financing and International Growth Capital
 Al Hamdani - SVP and Chief Risk Officer, Enterprise Risk Management
 Stephanie Butt Thibodeau - SVP, Human Resources
 Ken Kember - SVP, Finance and Technology and Chief Financial Officer
 Catherine Decarie - SVP, Corporate Affairs and Secretary
 Derek Layne - SVP, Strategy and Innovation
 Lorraine Audsley - Acting SVP and Chief Credit Officer, Global Risk Management
 Mike Neals - Acting SVP, Business Development
 Clive Witter - SVP, Insurance and Working Capital Solutions

Services[edit]
EDC provides trade credit insurance and export financial services, bonding products and small business
solutions[buzzword] to Canadian exporters and investors and their international buyers. EDC also supports Canadian
direct investment abroad and investment into Canada. Much of its business is done in partnership with
other financial institutions and through collaboration with the government of Canada. EDC’s business
solutions[buzzword] can help companies who want to:[14]

 Grow their business internationally

 Get financing
 Protect against risk
 Free up working capital
 Invest in foreign markets
 Access trade knowledge and tools

Governance[edit]
EDC is governed by a Board of Directors composed of representatives primarily from the private sector. The
Board's responsibility is to supervise the direction and management of EDC. The Board reports to Parliament
through the Minister for International Trade. Board members are appointed by the Government of Canada. [15]

Board of Directors[edit]
As of April  2019[15]

 Irman, M. (Chair)
 Boivin, P.
 Culbert, H.
 Gordon, L.
 Gupta, K.
 Lifson, E.
 MacWilliam, K.
 Matuszewski, P.
 McLeese, R.
 Stairs Krishnappa, A.
 Thibault, D.
 Yuers, K.

Corporate Sustainability and Responsibility[edit]

Corporate Sustainability and Responsibility is an operating principle at EDC,[16] as demonstrated through the
continuing partnership with CARE Canada.[17] as well as various awards and recognitions given to the company
(See Awards and recognitions section).
Youth Education Program[18] – International Business Scholarships: EDC awards up to 30 scholarships
annually, 25 of which go to undergraduate university or college students interested in pursuing a career or
furthering their studies in international business, with up to 5 additional scholarships for students in programs
which combine business with environmental or sustainability studies. An EDC scholarship is worth a $4,000
cash award.

Events by EDC[edit]
EDC participates in many events, both their own hosted and partnered events, including conferences, webinars,
matchmaking sessions, and roundtable discussions.
EDC events include:
Lets Talk Exports: Each spring, EDC’s Vice-President and Chief Economist travels across Canada to share his
view on the global economy.[19]
Global Export Forecast: EDC’s Vice-President & Chief Economist provides attendees an insightful look at
what Canadian exporters and investors may expect for the upcoming year. The Global Export Forecast is
produced twice per year in April and October.[20]\

7…..answer

Safe transport of goods and materials

Minimise the risks of transporting goods

It's important to take steps to minimise risks when you are transporting goods and materials.

Transport risks
Key risks in goods transport include:
 goods damaged in transit
 loss and theft
 fire
 explosion
 chemical burns
 other accidents
You should also consider environmental and other damage caused by spillages or leaks.

How to minimise risk when transporting goods

There are some useful steps you can take to protect your goods against common risks:

 Ensure you use the most appropriate form of transport for your goods.
 Consider how best to protect large, heavy or unusual loads.
 Ensure loads are secure and weight is distributed evenly - this is essential, even if you're just carrying
a ladder on the roof of a vehicle.
 Consider whether you need goods-in-transit or marine insurance to protect goods being transported.
This may be paid for by the buyer or seller of goods, depending on the terms of trade you agree.
 Always take appropriate security measures. For example, for high-value goods you could consider
using a vehicle-tracking system.
 Make sure suitable packaging, labelling and containers are used. It's common for goods to be damaged
in transit and good protection and effective packaging will help reduce this risk.
 Put suitable warning signs on vehicles - for example, to indicate an overhanging, wide, long or
hazardous load.
You should also remember that employees' health and safety could be at risk when loading and unloading
goods.

8 answer

I would agree that having a global network of partners is necessary, especially if you want to be
able to stay competitive against other freight forwarders. Certainly this is the case more recently
where it has become harder for shippers around the world to send their cargo with the
implementation of certain rules and restrictions on certain destinations.

The parameters are always going to be different depending on the business model of your
forwarding company. For example, if you were looking at increasing the profile of your
company in a certain market, say China, then a ‘smaller’ network focused on the best companies
in China may be the best way such as the CCA.

However, if you are looking for as much reach as possible globally, there are plenty of shipping
networks that have many agents in almost every country globally. This isn’t always the best way
to choose the network for your company as although it gives you the global reach for contacts, it
does not necessarily reflect the quality of the companies in the network. For example, the WCA
is the largest network in terms of member companies with (as of 26/07/2017) 5304 companies in
190 countries globally, but this means that on average, there are 27 companies in each of those
190 countries… Who do you trust to do the best job?

Many networks have certain requirements for a company to be able to join, for example they will
look at annual turnover, credit status, current market shares in certain trade lanes needed to the
network, references from other members of the network etc. Although more difficult to get in,
usually means that the network consists of strong companies which in turn *should* mean
greater knowledge and capabilities (although not always the case). These networks will also only
usually allow 1 company in each country to ensure specialist knowledge and commitment to the
network.

For example, the Goods and Service Tax law (GST) in India was launched on July 1st which has
caused the whole economy to go into a stand still as it is still not 100% understood in India with
companies having to register for licences etc (issues for another answer) - Some of our customers
needed assistance which we could not have given without the use of our incredible agent in India
who helped various consignees in India to understand the way that the GST would affect them.

For ‘summary’, it depends on the parameters, personally, I would select the network that greater
benefits my company model which will always be quality over quantity. This means that we may
not have a truly global reach in every corner of the world, but does mean that we will always be
able to give the best service to *most* of the world

9 answer
establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our
uncompromising principles while we grow” (p. 80, Kotler et al. 2005) Furthermore the mission
statement emphasizes work environment, diversity, high standards of excellence to every aspect of
the core product as well as “…commitment to a role of environmental leadership in all facets of our
business”. (p. 80, Kotler et al. 2005)

at the speed Starbucks are expanding their business there is risk that some of these missions will be
ignored when entering new markets.

As I realized from the case, when Starbucks entered global markets, controllable elements that
Starbucks has encountered entering the global market are similar to those in their domestic market.
These include product, price, place and promotion. The Starbuck’s name and image connect with
millions of consumers around the globe. Internally, Starbuck’s is able to make adjustments to fit a
county’s cultural tastes and expectations regarding their product, its price, where it is available and
how it is marketed. Starbuck’s is also able to take part in market research to be sure their product has
the right fit for each of its international locations. According to the company’s website, they maintain
a high level of success internationally by choosing international partners who share their values and
commitment to bringing the Starbuck’s experience to customers worldwide

I would like to bring a good example about price as controllable elements. Italian coffee bars prosper
by serving food as well as coffee, an area where Starbucks still struggles. Also Italian coffee is
cheaper than US java say, Italian purists, much better. Americans pay about $1.5 for an espresso, on
the other hand northern Italy the price is 67 cents in the south just 55 cents
10 answer;
Importing regulations
Importing is a regulated process. If you wish to buy products from other countries, you will need
to comply with a variety of regulations.
The importing process can often seem overwhelming, due to the amount of paperwork and the
number of different rules and regulations that you need to consider. This document provides you
with the guidance you need to navigate this process when buying goods from other countries.

Registering for an import/export account

Before you start importing, you must register your business for an import/export account.

 Business Number (BN)

Your Business Number is your single account number for dealing with the government
regarding GST/HST, payroll, import/export and other activities.

Navigating the border

There is nothing worse than having your goods turned away at the border or being held up at
customs because you didn't complete the proper paperwork. Before you place your import order,
be sure that you understand the rules and regulations involved in clearing your goods through
customs.
You must:

 Determine if the goods you want to import are prohibited from entering Canada
 Determine if the goods are subject to any restrictions that would require you to obtain approvals
or permits before importing them
 Know how to classify the goods (tariff classification) and how any tariffs, duties or taxes are
calculated
 Ensure that your supplier meets all Canadian labelling and marking requirements
 Ensure that you use a shipping company that understands and complies with customs formalities
 Make sure that all required paperwork is ready to be examined along with your shipment
 Be prepared to pay the duties and taxes owing.

All of this information and more can be found in the Step-by-Step guide to Importing
Commercial Goods into Canada:

 Permits and licences

Find the federal, provincial/territorial and municipal permits and licences that you may need to
start or manage your business.
  SIMA self-assessment guide
Find out if you need to pay duties under the Special Import Measures Act for imported goods that
cost less than they would in the country of export.
 Border Information Service
Get telephone assistance to help you comply with border and customs regulations.
 Advance rulings for tariff classification
Get confirmation on the rate of duty that will apply to goods you plan to import.
 NAFTA Cross Border Movement of Business Persons
Learn about temporary entry into the United States and Mexico as a business person under the
North American Free Trade Agreement (NAFTA).
 Customs Tariff
Use the Customs Tariff to determine the classification of your imported and exported goods and
the rate of duty you may need to pay on your imports.
 Step-by-Step Guide to Importing Commercial Goods into Canada
Learn the basics of the commercial importing process.
 Centre of Administration for Permissions — Food, Animals, Plants
Find answers to your questions about domestic and import licences, permits, and registrations
issued by the Canadian Food Inspection Agency.
 Canadian Economic Sanctions
Be aware of the Canadian sanctions that prohibit or restrict economic activity with specific
countries, organizations and individuals.
 Export and import controls
Get permission to export or import products related to agriculture, firearms, logs, softwood
lumber, steel, textiles, clothing, the military and more.

Warehousing or storing your shipment

When you are bringing goods across the border, you have the option of moving them to a facility
that is convenient to you, before they clear customs. The goods remain under the control of the
Canada Border Services Agency while being stored. There are several different options for
storing your goods.

 Warehousing or storing your shipment

Learn about storing your goods in sufferance warehouses, bonded warehouses and places of
safekeeping before they are released from customs.
11 answer

Foreign investment in Canadian securities slows

Foreign acquisitions of Canadian securities totalled $9.8 billion in August, below the monthly
average investment of $17.7 billion observed from January to July. The activity in August was
concentrated in the Canadian debt market.
Chart 1 
Foreign investment in Canadian securities

Foreign investment in Canadian bonds amounted to $8.2 billion in August, mainly secondary

market purchases of government instruments denominated in Canadian dollars. This followed an
investment of $23.8 billion in July. Foreign investors acquired $4.3 billion of federal government
bonds and $1.8 billion of provincial government bonds in August. Foreign investors also added
private corporate bonds to their holdings in the month, but at a much slower pace than in the
previous two months. Canadian long-term interest rates were down by 12 basis points in August
following a significant increase in July.
Non-resident investors resumed their acquisitions of Canadian money market instruments by
adding $1.5 billion to their holdings in August, following two straight months of divestment.
Foreign acquisitions of corporate and provincial government paper were moderated by a
divestment in Canadian Treasury bills during the month. Canadian short-term interest rates
edged down and the Canadian dollar depreciated slightly against its US counterpart in the month.
Foreign investment in Canadian equities totalled $232 million in August, down from the
previous month. This was the fourth consecutive month of foreign acquisitions of Canadian
shares. Canadian stock prices edged up in the month.

Canadian investors buy US securities

Canadian investors resumed their acquisitions of foreign securities by adding $12.0 billion to
their holdings in August, led by purchases of US corporate instruments. This followed a
divestment of $1.8 billion in July.
Chart 2 
Canadian investment in foreign securities

Canadian investment in foreign bonds increased in August to reach $4.9 billion, the highest
investment since February 2016. The bulk of the activity in August was in US corporate bonds.
Acquisitions of US Treasury bonds and non-US foreign bonds also contributed to the
increase. US long-term interest rates were down by 11 basis points in the month.
Canadian investment in foreign equities rebounded to reach $7.2 billion in August, after a
$2.9 billion divestment in July. The increase was largely due to acquisitions
of US shares. US stock prices edged up in the month