...INCOTERMS© in international trade When merchants conclude a contract for purchase and sale of goods, they are entitled to freely negotiate the special terms with regard to price, quantity, properties, etc., as well as carriage, risks and surrender of the goods. Businesses involved in exports, however, are frequently faced with different interpretations of identical formula and national commercial practices. To counteract the resulting imponderables, the parties to the contract can use what are known as Incoterms©, which offer a range of international rules for interpreting the main forms of contract used. Specifically, the Incoterm agreed by the parties determines which party is liable for the respective costs in the transport chain, for loading and unloading the goods and Customs clearance and at what point a party bears the risk of loss for an international shipment. Incoterms© also affect the basis on which the imported goods are valued for Customs. The goal of the Incoterms is to alleviate or reduce confusion over interpretations of shipping terms, by outlining exactly who is obligated to take control of and/or insure goods at a particular point in the shipping process. Incoterms regulate: The distribution of documents. The conditions for delivering goods. The cost of transporting goods. The responsibility of risk in shpping the goods. Incoterms - International Commercial Trade Terms for sale of goods INCOTERMS The most complex & important tool of International...
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...1. General Conditions Under Article 1793 of the Civil Code for the Federal District and 7524 for the State of Mexico: “A kind of agreement that produces or transfers rights and obligations”. So we can say that a commercial contract is an agreement between two or more wills that creates or transfers rights and obligations of a commercial nature, an agreement of 2 or more wills on the production or transfer of rights and obligations, requiring that these wills have an outward manifestation with expressed or implied consent. Their legal nature is based on the presence of a dealer on any of the parties, due to its purpose being the industry, commerce or for the commercial mater of the object to which it refers. Article number 1794 (of the Civil Code for the Federal District) requires consent and an object in order for the contract to exist. Under articles number 1825 and 1826 the object must exist in nature, be determined or determinable and be in commerce (future objects may be subject of contracts as well). Usage and custom is defined as the result from the practice of traders so that they can become considered true law. Their uniform and continuous practice, make rules to be observed as existing law, but they cannot repeal mercantile laws themselves and be contrary to the principles of public policy. The practice is considered a source of DM autonomous and does not need the recognition of the legislator or judge, and changes to the wording of the new social needs. (Cco....
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...ASSIGNMENT ON LEGAL ASPECTS OF INTERNATIONAL CONTRACT SUBMITTED TO SUBMITTED BY PROF. A K PANDEY PRABHAT ANAND(2K12B72) INTRODUCTION INTERNATIONAL CONTRACT: The international contract is a contract that has a foreign element, that is to say that the contract is in contact with one or more order (s) legal (s) abroad (s). Specifically, the foreign element may be resident abroad, a party to the contract, nationality, place of contract conclusion, and many other possibilities. The commercial contract is a contract for a commercial transaction or a contract made by a trader for the purposes of his trade. Therefore an international commercial contract is the addition of foreign elements in a commercial contractual relationship. Example is a contract between a French commercial agent to an American entrepreneur. Or it may be a contract between a French company and a provider of electronics in China. The formation of a contract Main points that need to be addressed: • Agreement: who decides that an argreement has been reached (objective/ subjective approach) • Offer and acceptance: offer of invitation, display of goods, advertisements etc leading to acceptance • Certainty and agreement mistakes • Consideration and form • Intention to create legal relations: domestic...
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...Foundation of International Commercial Arbitrations Shaimaa Nasr Eldin ESLSCA Business School International Business law Foundation of the International Commercial Arbitrations Abstract. This paper analyzes the foundation of the international commercial arbitration, as a phenomenon widely used by most of the corporations among the world as a dispute settlement mechanism. You will see that it is one of many possible procedures for the settlement of disputes in regard to economic transactions. You will learn about the essential features of arbitration; that it is for the settlement of a dispute, consensual based on the agreement of the parties, private and not part of the State system of justice and leads to a final and binding decision that will be given execution by the court. This paper also identifies the selection by the parties of the place in which their international commercial arbitration is to take place will have a fundamental impact on the determination of those rights. Equally fundamental is the parties' selection of the law, both substantive and procedural, which will apply to the determination of those rights. This paper examines both of those choices, the forum and the law applicable to the arbitration. It also identifies the three sources of rules for international commercial arbitrations. Key words: Arbitration, applicable law, source of rules for international commercial arbitrations. What is "International Commercial Arbitration" ? This term is divided into...
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...INTERNATIONAL DISTRIBUTION SUPDELUXE Alain VIOT November 19th, 2015. INTERNATIONAL DISTRIBUTION Agenda Introduction + Quiz Different business models Structure and organization decision making Local partners selection Partnership implementation Opening a subsidiary Next class : Distribution networks + E-commerce INTRODUCTION INTERNATIONAL DEVELOPMENT IS ESSENTIAL FOR LUXURY BRANDS BUT WHAT ? Case by case according to brand specificities WHY ? Gaining new customers and making them loyal WHERE ? Development strategy : Understanding local specificities HOW ? Different Business Models : The right choice at the right time QUIZ I want to launch and develop my brand and its products in one (or several) international market(s) What is your market strategy : your decisions on your project ? QUIZ : YOUR MARKET STRATEGY Project Sizing : Market critical size Brand/Product Positioning : volume estimation ? A- Access B- High end C- Niche D- Hyperlux Locations : Market Potential ? A- Large Area B- National C- Local D- Destination Customers target profile : number of customers ? A- CSP+ B- Specific categories C- Defined Profile D- Very affluent (HNWI) Sales Development : planification ? A- Quick breakthrough B- Step by step C- According to results D- Long term Resources : budget ? A- Consequent B- Annual C- Limited D- Weak A-B-C-D numbers ? QUIZ : YOUR...
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...EXM104 FA Export Documentation & Methods of Payment Instructor: Emiliano Introcaso Seneca College ASSIGNMENT 02 Xueyuan Tan 041-806-084 Xtan9@learn.senecac.on.ca Due Date August 2nd 2011 – Week 9 Letters of credit accomplish their purpose by substituting the credit of the bank for that of the customer, for the purpose of facilitating trade. There are basically two types: commercial and standby. The commercial letter of credit is the primary payment mechanism for a transaction, whereas the standby letter of credit is a secondary payment mechanism. Commercial letters of credit have been used for centuries to facilitate payment in international trade. Their use will continue to increase as the global economy evolves. Letters of credit used in international transactions are governed by the International Chamber of Commerce Uniform Customs and Practice for Documentary Credits. The general provisions and definitions of the International Chamber of Commerce are binding on all parties. Domestic collections in the United States are governed by the Uniform Commercial Code. A commercial letter of credit is a contractual agreement between a bank, known as the issuing bank, on behalf of one of its customers, authorizing another bank, known as the advising or confirming bank, to make payment to the beneficiary. The issuing bank, on the request of its customer, opens the letter of credit. The issuing bank makes a commitment to honor drawings made under the credit. The beneficiary...
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...GUIDANCE FOR DOING INTERNATIONAL BUSINESS © International Trade Centre, August 2010 Model Contracts for Small Firms: International Commercial Sale of Goods Contents Foreword Acknowledgements Introduction Chapter 1 International Contractual Alliance Introduction ITC Model Contract for an International Contractual Alliance Chapter 2 International Corporate Joint Venture Introduction ITC Model Contract for an International Corporate Joint Venture Chapter 3 International Commercial Sale of Goods Introduction ITC Model Contract for the International Commercial Sale of Goods (short version) ITC Model Contract for the International Commercial Sale of Goods (standard version) Chapter 4 International Long-Term Supply of Goods Introduction ITC Model Contract for the International Long-Term Supply of Goods Chapter 5 International Contract Manufacture Agreement Introduction ITC Model International Contract Manufacture Agreement Chapter 6 International Distribution of Goods Introduction ITC Model Contract for the International Distribution of Goods ii © International Trade Centre, August 2010 Model Contracts for Small Firms: International Commercial Sale of Goods Chapter 7 International Commercial Agency Introduction ITC Model Contract for an International Commercial Agency Chapter 8 International Supply of Services Introduction ITC Model Contract for the International Supply of Services © International Trade Centre...
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...Legislation Terms and Definition Posted on June 19, 2008 by Imran [pic][pic][pic] Bill of Lading for Import Export Pakistan A bill of lading (also referred to as a BOL or B/L) is a document issued by a carrier , e.g. a ship’s master or by a company’s shipping department, acknowledging that specified goods have been received on board as cargo for conveyance to a named place for delivery to the consignee who is usually identified. Care (Customers Administrative) for Import Export Pakistan Care stands for Customs Administrative Reforms and it is a project of the Central Board of Revenue overseeing reforms in Pakistan Customs. The project was initiated in February 2002. Since its inception CARE has carried out research and development work to enhance the efficiency of the department. Cost and Freight (CFR) for Import Export Pakistan Cost and Freight (CFR) means that the seller pays for transportation to the Port of Loading (POL), loading and freight . The buyer pays for the insurance and transportation of the goods from the Port of Discharge (POD) to his factory . The passing of risk occurs when the goods pass the ship ’s rail at the port of shipment which means that this term cannot be used for airfreight or land transport and also is inappropriate for most containerised sea shipments. Cost, Insurance and Freight (CIF) for Import Export Pakistan Cost, Insurance and Freight (CIF) is a common term in a sales contract that may be encountered in international trading when...
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...Arbitration Act (FAA)(http://www.mondaq.com/unitedstates/x/309172/Arbitration+Dispute+Resolution/International+Arbitration+And )”The Federal Law on International Commercial Arbitration, 1993 (the "Law") governs international commercial arbitration throughout the entire territory of Russia. Manifestly, this has a unification effect and harmonizes legal practice in Russia. The Law is largely a mirror image of the UNCITRAL Model Law on International Commercial Arbitration (1985) and places Russia on the map of the countries with modern arbitration legislation.” http://www.arbitrations.ru/en/dispute-resolution/arbitration-in-russia.php “An acceptance is “a manifestation of assent to the terms [of the offer] made by the offeree in the manner invited or required by the offer.”1 In determining if an offeree accepted an offer and created a contract, a court will look for evidence of three factors: (1) the offeree intended to enter the contract, (2) the offeree accepted on the terms proposed by the offeror, and (3) the offeree communicated his acceptance to the offeror.” (Book page 353) In my opinion, Russia should be the country that handles the dispute in this situation between Monarch Associates and Vladir Unlimited. Monarch associates I believe intended to enter into the contract, accepted the terms, and communicated their acceptance by signing, Monarch Associates should have negotiated their terms and expressed their concerns prior to agreeing to the contract. An advantage is “something...
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...International Marketing Review 14,5 376 International online marketing of foods to US consumers Gregory K. White Department of Resource Economics and Policy, University of Maine, Orono, Maine, USA Introduction Internet shopping is beginning to show signs that it may live up to its early revolutionary projections. It is now estimated that 23 per cent of US and Canadian residents over the age of 16 use the Internet, and as of March 1997, 17 per cent of this population had used the World Wide Web (WWW) in the previous month. (CommerceNet, 1997) Nearly three quarters of these Web users have searched the Internet for information about products and services, and 15 per cent have made an online purchase. Thousands of firms marketing food and beverages worldwide are among those trying to attract the attention, and buying power, of these Internet shoppers. It is now possible to purchase specialty Italian cheeses direct from a cybershop in Italy or New York. Consumers interested in smoked fish can pay a virtual visit to companies in Alaska or Iceland from their home computers. Internet users are an attractive target group for specialty food and drink producers. Like the overall Internet population, people who visit food and drink sites online are relatively young (median age of 37), wealthier than most (median income of $58,000), and well educated (91 per cent have attended some college and 75 per cent have at least a four-year degree) (White and Cheng, 1996). They also mirror those...
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...might be worth half of the left rump, but a person would not just take off a rump from a living cow and directly exchange). Other roles include store of value (saving of individuals’ surplus earning). The funds saved by surplus units- those savers with current excess funds- can be put to use by those whose current demand for goods and services is greater than their current available funds. (Deficit units) * Financial institutions and markets facilitate financial transactions between the providers of funds and the users of funds. * Financial assets are represented by financial instrument that states how much has been borrowed, and when and how much is to be repaid by the borrower. E.g. money invested in a term deposit with a bank, the bank will issue a term deposit receipt. This is a financial instrument. * Buyers of financial instruments are lenders that have excess funds today and want to invest and transfer that purchasing power to the future. The sellers of the instruments are those deficit units that are short of funds today, but expect to have a surplus amount in the future which will enable the repayment. * A...
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...operations or for starting up a new project. One of the important sources of raising finance is loans from banks. Commercial lending is one of the prime functions of any bank. But how does the bank appraises the creditworthiness of a borrower? What are the criterions to be fulfilled for granting loans? What are the tools used by the banks to appraise the loan proposal? These questions are being answered in this paper. This paper describes the credit appraisal process followed in Allahabad Bank. * Assistant Professor, Department of Accounting and Finance, Amity Business School, Amity University, Noida. A Monthly Double-Blind Peer Reviewed Refereed Open Access International e-Journal - Included in the International Serial Directories Indexed & Listed at: Ulrich's Periodicals Directory ©, U.S.A., Open J-Gage as well as in Cabell’s Directories of Publishing Opportunities, U.S.A. International Journal of Management, IT and Engineering http://www.ijmra.us 537 May IJMIE Volume 2, Issue 5 ISSN: 2249-0558 2012 ___________________________________________________________ Companies can avail a variety of credit facilities from banks for meeting the requirement of funds. The various credit products which can be availed are listed belowFunded Credit Facilities- it refers to those facilities where transfer of funds takes place Overdraft Cash Credit Term Loans ( long term finance) Bill discounting Non Funded Credit Facilities- it refers to those facilities where the funds are...
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...BoP Manual of the International Monetary Fund. 4.2. Balance of payment (BoP) comprises of current account, capital account, errors and omissions and changes in foreign exchange reserves. Under current account of the BoP, transactions are classified into merchandise (exports and imports) and invisibles. Invisible transactions are further classified into three categories, namely (a) Services-travel, transportation, insurance, Government not included elsewhere (GNIE) and miscellaneous (such as, communication, construction, financial, software, news agency, royalties, management and business services); (b) Income; and (c) Transfers (grants, gifts, remittances, ets.) which do not have any quid pro quo. 4.3. Under the Capital Account, capital inflows can be classified by instrument (debt or equity) and maturity (short or longterm). The main components of the capital account include foreign investment, loans and banking capital. Foreign investment, comprising Foreign Direct Investment (FDI) and Portfolio Investment consisting of Foreign Institutional Investors (FIIs) investment, American Depository Receipts/Global Depository Receipts (ADRs/GDRs) represents non-debt liabilities, while loans (external assistance, external commercial borrowings and trade credit) and banking capital, including non-resident Indian (NRI) deposits are debt liabilities. 4.4. The data on merchandise trade are available from two sources namely; (a) from the Directorate General of Commercial Intelligence and Statistics...
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...Commercial Paper Thomas K. Hahn C ommercial paper is a short-term unsecured promissory note issued by corporations and foreign governments. For many large, creditworthy issuers, commercial paper is a low-cost alternative to bank loans. Issuers are able to efficiently raise large amounts of funds quickly and without expensive Securities and Exchange Commission (SEC) registration by selling paper, either directly or through independent dealers, to a large and varied pool of institutional buyers. Investors in commercial paper earn competitive, market-determined yields in notes whose maturity and amounts can be tailored to their specific needs. Because of the advantages of commercial paper for both investors and issuers, commercial paper has become one of America’s most important debt markets. Commercial paper outstanding grew at an annual rate of 14 percent from 1970 to 1991. Figure 1 shows commercial paper outstanding, which totaled $528 billion at the end of 1991. This article describes some of the important features of the commercial paper market. The first section reviews the characteristics of commercial paper. The second section describes the major participants in the market, including the issuers, investors, and dealers. The third section discusses the risks faced by investors in the commercial paper market along with the mechanisms that are used to control these risks. The fourth section discusses some recent innovations, including asset-backed commercial...
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...are making to meet the needs of the growing international business and commercial aircraft market. Global business depends on global economic performance. The world is recovering from a recession. Aviation international business is beginning to have a positive outlook as individual countries’ economies once again begin to grow, especially in emerging markets where there is a projected increase in demand for aircraft. In a globalized world, international air travel at airline and corporate level aviation is assuming a positive outlook. Aviation companies such as Boeing are aggressively marketing their products to compete with Airbus in the international arena, through rigorous global marketing strategies aimed at maintaining a leadership position in commercial aircraft sales. Especially in the medium and heavy aircraft categories. Boeing marketing strategies like other actors in the aviation industry is dependent on projections and forecasts. Boeing targets existing clients/ customer and uses marketing strategies that starts with customer oriented strategy, thereafter product oriented strategy. Included in these strategies are product pricing and advertising strategies. Customer Oriented Strategy Boeing’s main strategy is to target airplane companies by researching all of the airplanes that companies currently use; aircraft routes, capacity, economy, and suitability etc. Boeing’s customers include; corporate clients, commercial airlines, governments, and private organizations...
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