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.
It is important to consider the logistics of moving your merchandise to your customers. For businesses considering international trade, however, it becomes a crucial part of their decision making and planning process.
Many countries seek to discourage imports through the imposition of tariffs, quotas and non-tariff barriers (NTBs) though they may agree to make concessions to selected countries, usually in exchange for some sort of trade agreement.
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.
This note outlines the questions to consider when appraising a business. You will find this helpful when you are looking at other businesses with view to investing in the business or buying it outright. You may find some of the questions appropriate to ask yourself if you are thinking of launching a new company in your target market.
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.