Top 5 Regional Trade Agreements in the World

In general countries make the majority of their international trade with their close neighbors.

For example the USA makes 29% percent of its total exports to Canada and Mexico while 27% of its total imports from these two close neighboring countries.

Similarly the UK makes 25% percent of its total exports to Germany, France and Netherlands while 26% of its total imports from these three close neighboring countries. These examples can be extended.

Regional Trade Agreements have been set up between close countries with the aim of increasing trade between member states by reducing or eliminating tariffs, quotas and other non-tariff barriers.

Top 10 Exporting Countries in 2012

WTO (World Trade Organization) published its International Trade Statistics 2013 recently. 

On this publication we can find invaluable information regarding the current status global trade. 

International Trade Statistics is the WTO’s annual compilation of global trade statistics. 

They have been published online since year 2001. As these statistics are collected by WTO they are the best available source in terms of reliability.

Important Note : Figures show only merchandise exports excluding exports of services. Al data gathered from International Trade Statistics 2013 published by WTO (World Trade Organization).

Non-tariff barriers in international trade

What does non-tariff barrier mean in international trade?

Contemporary Economic Development Strategies in today’s global business system encourage countries to do more exports and fewer imports to achieve a sustainable development. 

Especially less developed countries that could not reach adequate export levels try to limit their imports in an aggressive ways. 

As tariffs have been decreased by WTO agreements all around the world now the only choice left for these kinds of countries that can be used to restrict the import is Non-tariff barriers (NTB).

Payment Methods in International Trade

If you would like to be permanent and successful in international trade then you need to learn payment methods very well.

Profit margins in a typical foreign trade transaction is limited due to high competition but risks are high.

One mistake could lead to your bankruptcy.

Reasons why you need to know international payment methods:

• Legal Issues: In international business your customer will be located in a different legal area. This makes almost impossible to recover your losses through legal ways. Once you make the payment as an importer you cannot get back to your money against a fraudulent exporter. On the other hand if you trust your buyer and make the shipment without having paid your chances of recovering your payment is very limited against a fraudulent importer. As a result you need to learn and practice well payment methods either you are an importer or an exporter. 
• Commercial Issues: You cannot seal the deal every transaction with simple payments such as cash in advance or open account. You may have to use letters of credit or documentary collections as conditions dictates. The better you can use payment methods in international trade the more likely you can complete successful deals. 
• Better Career Chances: Much of the sales stuff does not understand from complicated payment types especially sound usage of letters of credit is very rare. If you can learn and practice letters of credit you will be getting ahead of the competition for better job opportunities.