Chapter 3. International trade and export business

The chapter is dedicated to an international trade and export business as one of the simplest and easiest ways to internationalize a business. Topics of the chapter:

• Economic rationale behind international trade
• Types of export
• Pros and cons of international trade
• Payments in international trade
• Product identification in international trade
• Tariff and non tariff restrictions
• International dumping and cartels
• Protectionism and stages of trade liberalization
• Blocks of states to facilitate international trade
• Questions for Chapter Review
• Chapter Bibliography

The chapter about international trade and export business contains a structured description of the economic reasons and logic why the organization should trade with customers and business partners from other countries. The chapter focuses on methods and technical aspects of international trade. The described methods of payment for goods, their principles and advantages, disadvantages and threats are useful both for those planning to export and import.

The chapter describes the types and ways of organizing international trade, including the export of goods and services, sales to a business customer and to an end user, the differences between physical and commercial flows of goods, the meanings of re-export and transit are explained as well.

The chapter focuses on international trade and its state regulation. Seeking to sell goods or services to another country, it is not enough to understand business and market laws, demand and marketing principles. Often what is possible in one country is not possible in another country. The main principles of international trade regulation are systematized and explained in the chapter – trade restrictions, taxes related to international trade, trade quotas, anti-dumping policy. Separate attention is paid to trade liberalization, cross-border agreements and blocs of states that facilitate and promote trade between businesses located in different countries.

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