Docu-in-Foreign-Trade

Only available on StudyMode
  • Topic: Bill of lading, Legal documents, Negotiable instrument
  • Pages : 17 (5489 words )
  • Download(s) : 24
  • Published : January 5, 2013
Open Document
Text Preview
B. K. SCHOOL OF BUSINESS MANAGEMENT

SUBJECT : International Finance Management

Report on Documents used in
Foreign Trade

Submitted to : Prof. Shri Swetang Jagirdar

Submitted by : Nilesh R. Parekh (2033)
Jayesh Purohit (2020)
MBA-III, SEMESTER-V(EVENING)

1. Title : Report on Documents used in Foreign Trade

2. Introduction

International trades between countries and across continents have existed for centuries including previous civilizations. Traditionally international trade consisted of traded goods like textile, food items, spices, precious metals, precious stones, and objects of art and various items across the borders. Everybody has heard of the silk route as well as amber road and other famous routes that existed and the ports and settlements that flourished due to the trade, which was carried on through land route as well as sea routes. We have come a long way since the earlier times and International trade today has taken on new dimension. It was a fact earlier that impact of trade between two countries was not limited to economics alone, but fuelled political, social ambitions too. Today with the advancement of technology and impact of globalization has made it necessary for all countries to engage necessarily in international trade for their survival. International trades between countries and across continents have existed for centuries including previous civilizations. Traditionally international trade consisted of traded goods like textile, food items, spices, precious metals, precious stones, and objects of art and various items across the borders. Everybody has heard of the silk route as well as amber road and other famous routes that existed and the ports and settlements that flourished due to the trade, which was carried on through land route as well as sea routes. We have come a long way since the earlier times and International trade today has taken on new dimension. It was a fact earlier that impact of trade between two countries was not limited to economics alone, but fuelled political, social ambitions too. Today with the advancement of technology and impact of globalization has made it necessary for all countries to engage necessarily in international trade for their survival.

International market involves various types of trade documents that need to be produced while making transactions. Each trade document is differ from other and present the various aspects of the trade like description, quality, number, transportation medium, indemnity, inspection and so on. So, it becomes important for the importers and exporters to make sure that their documents support the guidelines as per international trade transactions. A small mistake could prove costly for any of the parties.

For example, a trade document about the bill of lading is a proof that goods have been shipped on board, while Inspection Certificate, certifies that the goods have been inspected and meet quality standards. So, depending on these necessary documents, a seller can assure a buyer that he has fulfilled his responsibility whilst the buyer is assured of his request being carried out by the seller.

3. Executive summery

A long list can be drawn of the documents used in international trade. Some of the documents owe their use to commercial expediency. The buyer and seller rarely meet : the conditions of sale are included in the contract of sale which incorporates in detail the term of the contract. When the seller ships the goods, he is required to furnish the evidence to show that the various condition of contract have been fulfilled. Thus there is need for evidence that goods have been shipped; goods shipped are of specific quality; the required quantity has been shipped etc. This evidences are furnished in the form of different documents. While in transit, the goods are exposed to the risks and need to be insured. Beside this...
tracking img