An examination of the issues involved in establishing an import and export business.
Written in 2009; 1,590 words; 9 sources; APA; $ 52.95
Paper Summary:
The paper focuses on a new apparel company that plans to import the necessary commodities from other countries. The paper considers the elements involved in international operations that include the payment methods to be implemented, the instruments and intermediaries to be engaged in the operations and the need for insurance. The paper also discusses the management of foreign exchange risk, the practical application of the INCO terms and the shipment finance.
Outline:
International Payment Methods
Letter of Credit
Instruments and Organizations
Insurance and Foreign Exchange Risk
INCO Terms
Shipment Finance
From the Paper:
"The newly founded company is based in Los Angeles and it activates in the apparel industry, addressing the market formed from teenagers and adults registering medium and above medium incomes. The products will basically include casual and smart clothing items and the services will include free adjustments when required and even free transport to the destination desired by the customer, in the case where the order is larger than 20 items.
"However it will conduct most of its operation within the United States, the company will distribute its products world wide. Also, in the attempt to operate with reduced costs and be able to offer their clients the lowest retail price, the company will import the necessary commodities from other countries which present a comparative advantage in manufacturing apparel commodities."
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