Doing business internationally can be a lot more involved than dealing strictly with domestic businesses. As you enter the global market, be sure you have a solid understanding of trade terminology that your worldly transactions will involve.
international trade—the exchange of goods and services between countries.
import—a good or service brought into the country from another country
export—a good or service produced in one country shipped to another country
trade balance—the difference between a country’s imports and its exports. Trade balance is also known as international trade balance or balance of trade (BOT).
import duty—a tax collected on imports by the customs authorities of a country. The tax can be based on the value or dimensions of the goods.
tariff—a tax imposed on imported goods and services that serves to restrict trade by making the price of imports higher. Tariffs provide revenue for governments and domestic producers.
embargo—a government order that restricts trades with a specific country (or with specific goods from that country). Embargos are used as leverage for influencing the affected nation.
trade barrier—aka customs barrier; a measure that limits or restricts trade across international borders. The government may implement a trade barrier to protect a domestic industry from foreign competition.
customs—the authority in a country that collects tariffs and controls the flow of goods into and out of that country. In most countries, customs are attained through government agreements and international laws.
Fully understanding the components and complexities of conducting international business is a must. Fortunately, such in-depth knowledge of the nuances of cross-border trade is easily achieved through an international trade manager.
An international trade manager, such as Walker World Trade, enables businesses to conduct business-as-usual without the worries or headaches of dealing with overseas suppliers, transporters, or border control.
Walker has been in the international trade business for nearly 80 years. We fully understand the challenges involved with getting products from one country to another. Let us worry about language barriers, customs paperwork, air and ocean freight, and the other nuts and bolts of international trade.
Contact Walker World Trade to get started.
Definitions courtesy of Investopedia