Trade Jargon

This article is about specific trade terms used in international trade forms. It is very important to use the same terms to prevent miscommunications. If the forms aren’t filled in correctly, the customs won’t let it import or export. The international trade forms are divided in 3 parts.
· The first part is the Commercial document (invoice, insurance, weight certificate,…),
· The second part is the Financial document (bill of exchange, letter of credit and a check drawn)
· The thirt part is the Transportation document which is the Bill of Lading (BOL).

In a formal trade we have 4 parties.
· The Exporter also called the shipper or seller
· The Exporter’s bank or the confirming bank
· The Importer who is the buyer
· The Importer’s bank or the Collecting bank.

The more documents, the plainer language should be used. The best way to trade internationally is by only using those four words, in this way miscommunication will be avoided.

These Formal terms should be used to make everything easier. By reading this article, I realized that it is very important. I will certainly use those terms when I have to trade or ship something later. The specific jargon should be globalised, this will make trade a lot easier. Maybe a lot more trades will be made between different countries and this means that the contact and relation between different countries will improve. I think this is a necessary unification. It will also be easier for the customs who don’t understand synonyms from the official terms. I also think there are a lot of miscommunications, and when it is going about million dollar shipments it is very important to take all of this into account. Searching a new article for my new blog wasn’t easy. I wanted to search something else then the articles that I found before (about Vanilla trade, and Cuba Embargo). I thought this could be very interesting for everyone, we aren’t trading for millions yet but a little trade could use this information too.

Julie Deaulmerie

http://internationaltrade.suite101.com/article.cfm/trade_jargon_cheat_sheet

Trade policy

Trade policy is a guideline of rules which falls on every form of trade all over the world. Every nation has his own form of trade policy. The policy exists to create a better international trade. Things like taxes, regulations, tariffs and other forms of trade costs are part of the trade policy. Every nation is free to chose his position in the international trade. The safety aspect in different countries can be a barrier to trade because of the policy, that’s why there exists a trade agreement. This agreement makes it much easier to trade because it’s adapted to the situation. This creates a better contact and a better form of trade.

Opinion:

I think it’s good that there exists a trade policy because otherwise the international trade would be too chaotic. Weaker economic countries could suffer a lot if there weren’t rules on trade. These policies keep a certain balance in the economy of all the nations. I prefer an open trade system in the world, because I think globalization is a very good way to create employment in the world and good relations between the different nations. But countries may chose themselves if they are protectionist or non-protectionist. When countries trade between each other it’s very important to make some agreements. Otherwise there would be a lot of countries who suffer because of their policies, on for example tariffs. I also think it’s necessary to reform these policies on an easy way because the world economy is constantly changing and evolving. A country must have the opportunity to trade on a very honest way.

http://www.wisegeek.com/what-is-trade-policy.htm

Nico Cossyns