1. INERNATIONAL TRADE
The process of buying and selling goods and services between countries
Countries can import or export:
a) visible goods: the ones you can see (e.g. clothes; cars)
b) invisible goods: services (banking, tourism, insurance)

2. Balance of trade and balance of payments (p 33)
Balance: difference between the amount a country spends on IMPORTS and the amount it receives from EXPORTS
Balance of trade (ONLY visible goods)
Balance of payments => visible & invisible goods
BoP: SURPLUS = EXPORTS >IMPORTS
BoP: DEFICIT = EXPORTS <IMPORTS

3. Foreign trade controls
Governments implement protection policies through:
Tariffs on imports =CUSTOMS DUTIES= taxes on imported goods)
Quotas = limit on the quantity of foreign goods coming into a country
Subsidies: money given to domestic producers to make them more competitive
Embargoes: ban on the export/import of certain goods

4. MULTINATIONAL TRADING BLOCKS
Groups of contiguous countries that agree to adopt common trading/protectionist policies for the rest of the world, but have preferential treatment towards one another THE EU ( :ECC) NAFTA (North American Free Trade Agreement – 1994) MERCOSUR (southern Cone free trade area - Argentina, Brazil, Paraguay, Uruguay 1991) Asean (Association of South East Asian Nations – 1967)

5. PROMOTING INTERNATIONAL TRADE
WTO World Trade Organisation
IMF International Monetary Fund
The World Bank
Listening p. 35 tr 7

6. Documents in international trade
Within the EU (since 1993)= goods exempt of VAT
VIES /vaiz/ = VAT Information Exchange System (companies can get confirmation of VAT numbers (partita IVA) and administrations
VIMA (VIES Intrastate and Mutual Assistance) = office where exporters send a VIES statement (monthly or every 3 months)

7. Documents in international trade
Outside the EU
SAD = Single Administrative Document used to declare imports and exports and to remove goods from customs procedures (sdoganare)
CERTIFICATE OF ORIGIN signed by the exporter’s Chamber of Commerce = necessary because the rate of customs duties on imports varies depending on the origin of the goods
(e.g p. 39)

8. TRANSPORT DOCUMENTS - 1
The DELIVERY NOTE … …contains the details of the goods (NO prices) …is signed on arrival by the importer to state that he accepts the goods …the carrier keeps a copy as proof of delivery

9. TRANSPORT DOCUMENTS - 1
The COMMERCIAL INVOICE= a document that the exporter sends to the importer with information about
importer/exporter details
invoice number
place/date of issue
order number
description of the goods
unit amount/total amount
Terms (INCOTERMS)
PROFORMA INVOICE = statements of costs to be paid before the goods are delivered

10. INCOTERMS = International Commercial Term pp.42-43
13 standard terms
established by the ICC (International
Chamber of Commerce)
they define the respective responsibilites of exporter/importer as to:
-Transport costs
-Risks/insurance
-Customs duties and formalities
-Loading/unloading

11. INCOTERMS
E- TERMS (EXW= ex works) goods are placed on the seller’s premises at the diposal of the buyer, and become his responsibility from then on F-TERMS (FCA, FAS,FOB = free…) the buyer is responsible for the cost and risk of international carriage C-TERMS (CFR, CIF, CPT, CIP = freight/carriage paid to…) the seller pays for international carriage, but does not bear the risks… D-TERMS (DAF, DES,DEQ, DDU, DDP= delivered….) the seller bears all costs up to the delivery point…

12. TRANSPORT BY ROAD = - couriers on motorbikes
- Road haulage firms carriers (small areas)
- TIR (Transport International Routier) lorry
BY RAIL=
freight service, esp. for bulk materials (chemicals, petrol cement)

13. TRANSPORT SEA TRANSPORT
- Freighter = large ship (or plane) carrying goods
- It can transport almost unlimited weight
BY AIR= Goods of limited size/weight
PIPELINES = Liquids, gas, oil (to oil refineries or ports)

14. TRANSPORT
Forwarding agents = experts in the transportation of goods/freight shipment; they arrange:
insurance
packaging, storing, transporting
Documentation
Accidents/damages
Customs formalities
Logistics = the process of planning, implementing, and controlling the effective and efficient flow of goods and services from the point of origin to the point of consumption.

15. INSURANCE
Protection of people and goods against accidents, risks, loss
Key terms:
- The Insurer/underwriter =company providing the insurance
- The insured = company/person requiring the insurance
- Policy = document specifying the terms…
- Premium = amount of money paid by the business
Claim = formal request of payment in case of accident/loss
E.g of early insurance company :Lloyd’s London, coffee houses, 18th century

16. PACKING/packaging DRUM (barile) BARREL (botte)
CASE (cassa in legno/chiusa)
CRATE (cassseta /aperta)
BAG/SACK sacco
CARTON scatola in cartone
BALE balla
CONTAINERS (CONTAINERISATION) = steel boxes of standard size ; loaded as sealed units

17. TRANSPORT DOCUMENTS - 2
INTERNATIONAL ROAD CONSIGNMENT NOTE(CMR) = lettera di vettura
THE AIR WAYBILL = lettera di vettura aerea
Both contain:
NAMES AND ADDRESSES OF CONSIGNOR/SENDER, CONSIGNEE, CARRIER
DESCRIPTION OF GOODS,
DATE/PLACE OF DEPARTURE
CARRIAGE CHARGES
THE BILL OF LADING= polizza di carico (sea tr.)

18. TRANSPORT DOCUMENTS - 2
Do ex pp 58-59