Essay On International Trade

1594 Words7 Pages
Natural limits and man-made regulations make businessman to look for markets in a foreign country to expand and develop. Globalization is taking away all the barriers between countries offering more successful trading ways with both increased efficiency and decreased costs. Risk involved in doing business with unaffiliated parties puts the parties in unsecured position. Thus, they look for third parties to rely on and to act properly on their behalves in case of unexpected conditions. International Banking stands at the center of these processes by acting as a reliable third party. An International Bank with 6000 offices and many branches UzBank Group, having wide range of information about the global markets, is concerned to help local organizations to manage trading successfully. Trade is an exchange of goods or services while The International trade is when supplier of goods or services performs activities beyond her home country. Nowadays, corporations prefer to trade world widely instead of limiting their performance with local market. The reason is that International trade brings various benefits to both business firms and countries: First of all, International trade boosts development and generates growth by allowing exchanging knowledge, standards, and best practices of skills and techniques globally and using the best that fits well. Moreover, Country’s Shortage and high costs become avoidable. Scarcity in availability of raw materials or expensive labor force in local market is exempted. Obtaining the raw materials at relatively lower price than local market can reduce the cost of doing business. In case of illiquid Local markets clients can benefit by Easy access of acquiring financing by entering into highly li... ... middle of paper ... ... terms and condition which may cause future disputes or Documentation risk • Acknowledge the buyers culture and accept cultural differences to keep friendly based business partner. • Foreign exchange risk can be mitigated as the same way as advised for the Buyers. UzBank overseas branch help by offering forward or option foreign exchange contracts to hedge against the risk. And do the business in one currency. • Obtaining sufficient insurance coverage from the side of Uzbank branches can help clients to decrease the level of transit risk. A representative bank of the Uz Bank Group in buyers country help with insurance of accounts receivables in case of non-payment or non-acceptance • If financing in needed for producing process, seller should use fixed interest rate loans or interest rate swaps in order not have interest rate problems even if hey fluctuate. 5

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