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IB INTERNAL GV Yeshwanth
IB INTERNAL GV Yeshwanth
MBA 1
International Business
1)
A joint venture is a business arrangement in which two or more parties agree to pool their resources for the purpose
of accomplishing a specific task which can be new project or any other business activity.
2)
International trade is important ASPECT OF ANY COUNTRY .It is the only way a country acquires
money .It includes goods and services.
International trade of any country with any country is affected by many factors like demand for particular
good, tax barriers,etc but most important of them is political environment.
Political environment refers to popular vote of the country .They vote and elect the government and it
decides and directs the political environment of a country which may either be favorable or against any
country or for international trade itself.
For example, US president when he was in power he implemented various policies which discouraged
international trade by imposing of Tariffs on imports.
Political Environment also includes the state of country. It means if the country is peaceful or in state of
war. These effects the international Trade to great extent.
Hence with these examples it is clear that proper Political environment is essential for International
Trade.
3)
In international trade, various instruments for payment are used by exporters and importers.
These payment instruments are the documents that are needed to fulfill the legal requirements of a
contract between the exporter and importer.
Banks typically require a pledge of securities or cash as collateral for issuing a letter of credit.
Banks also collect a fee for service, typically a percentage of the size of the letter of credit. The International Chamber of
Commerce Uniform Customs and Practice for Documentary Credits oversees letters of credit used in international
transactions. There are several types of letters of credit available.
Types of Letters of Credit
Commercial Letter of Credit
This is a direct payment method in which the issuing bank makes the payments to the beneficiary
4)
Any commercial cargo, whether it is for import or export, requires customer clearance.
The type of documents required for customs clearance usually depends on the type of goods being shipped