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Unit 8 Learning Objectives Understand the procedure of export transaction Understand the procedure of import transaction Identify the necessary documents associated with international trade Know how to make out commercial invoice, packing list and bill of lading Import and Export Practice For most countries exports and imports are the most important international activities. International trade is the exchange of goods and services across international or . Each country may import some goods and raw materials that it needs and export some goods that it produces. Thus the import and export trades are two sides of the same coin, and both can have beneficial effects on the home market. However, the procedure of foreign trade is much more complicated than that of domestic trade, and the former involves specialized knowledge and highly trained personnel. This unit discusses the procedure of export and import transactions and some important documents involved in international trade. Contents Section 1 Step 1 Preparation Any exporter who wants to open a new market in a foreign country must a lot of market research. Export market research is a study of a given market abroad to determine the needs of that market and the methods by which the products can be supplied. The exporter needs to know which countries are likely to use his products and which companies are interested in marketing the products. And the exporter must analyze whether there is a for making a profit. Section 1 The exporter should select the target markets after careful consideration of various factors like political and economic conditions, scope of exporter’s selected product, demand stability, market penetration by countries and products, distance of potential market, transport problems, language problems, tariff and non-tariff barriers, size of demand in the market, expected life spa
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