Getting paid is often the hardest part of your international trade transaction. Even if you are used to taking payment up-front in your domestic market, you will find that much harder in an overseas market.
You have probably found that taking decisions is much easier when you have all the facts you need. Take the simple example of buying a birthday present for a relative or close friend and having to choose between the red one or the blue one.
There is much talk amongst trade economists of value chains, supply chains and market structure. Market structure refers to a market overall and you will hear terms such as monopoly, duopoly, oligopoly, imperfect competition, and oligopsony and monopsony.
Technology transfer and licensing are closely related but are subtly different. Licensing allows the licensee to make use of the licensor’s intellectual property. Often the licensee wants to license the use of a specific technology though they might also be able to license the rights to use a brand name or a trademark or even a piece of music.
When you make a capital investment, whether in equipment for your existing business or by investing in another business, you do so because you expect to generate income in the future. If this were not the case, you would not make the investment.
Foreign direct investment (FDI) is an activity where an investor sets up or invests in an enterprise in a foreign country with the intention of acquiring a lasting interest and at least a degree of management control.
You will be aware from running your business in your domestic market that there is a difference between costing and pricing. It is only rarely that businesses can add up all the costs, then add a margin, and call that the price.