How to Start an Import-Export Business

Import export businesses can be very profitable in the long run. And the good news is that it doesn’t take much to get started in this direction. If you are wondering about how to start an import export business from home, this article should answer your most important questions. Even if the process itself is not a complicated one, it can be a challenging one if you don’t know how to create it most beneficially.

Getting into import export business, you can make a significant profit with low investment. And everything can be made from the comfort of your home! You can discover new export business opportunities every day and use them to improve your company. You also have the freedom to make your working schedule. But you have to consider that your working hours will depend a lot on your partners’ hours. And if you are trading internationally, you might need to adjust to different timeframes to maintain good communication with your importers and exporters. The good news is that if you develop such a business from home, you can also take time off whenever it is needed. Another advantage of developing such a business is that you will work with people from different parts of the world. It will make your activity a lot more interesting and less dull than any other domain.

Many importers and exporters started by creating their import export business from home and evolved to be successful business owners. Some of them even became investors in important countries such as those in Africa and developed or supported an entire industry! But to get to this level, you have to master the import export process, and you can gain the experience you need by working from the comfort of your house!

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Determinants of International Trade

Why do some countries export or import more than others? Several studies have been con¬ducted to establish major factors that influence exports. The trade and

Importance of International Trade to the Global Economy

International trade allows manufacturers and distributors to seek out products and services produced in foreign countries. Companies acquire them because of cost advantages or in

A Brief History of International Trade

1. Ancient Period International trade based on the free exchange of goods started as early as 2500 BC. Archaeological discoveries indicate that the Sumerians of

The Limitations of Export-Led Growth

International trade played an important role in the economic development of North America and Australia in the nineteenth century and that of East Asian economies

Important Developments in International Trade

Regional Trade Agreements After the implementation of the Uruguay Round, members of the World Trade Organization (WTO) launched a subsequent round in Doha, Qatar, in

Volume and Direction of International Trade

In 1990, the world reached a milestone when the volume of international trade in goods and services measured in current dollars surpassed $4 trillion. By

The Euro Crisis and Implications

Serious intraregional divergences in competitiveness and the related buildup of regional imbalances have been the root cause of the crisis in the euro zone. The

The European Union and Trade Agreements

The European Union (EU) is the oldest and most significant economic integration scheme, involving twenty-eight Western and Eastern European countries: Austria, Belgium, Bulgaria, Croatia, Cyprus,

The North American Free Trade Agreement (NAFTA)

The North American Free Trade Agreement (NAFTA) established a free-trade area for Canada, the United States, and Mexico. The agreement came into effect on January

Regional Integration Agreements (RIAs)

WTO members are permitted to enter into RIAs under specific conditions. RIAs must be consistent with the WTO rules, which require that the parties to

The GATT and the WTO

The General Agreement on Tariffs and Trade (GATT) was established in 1945 as a provisional agreement pending the creation of an International Trade Organization (ITO).

The Impact of the Financial Crisis on Exports

In view of the higher risk and working-capital needs of exporting, firms rely more on banks for their exports than for their domestic sales. As

General Principles of Taxation for Export-Import Business

The United States levies taxes on the worldwide income of its citizens, residents, and business entities. The United States, the Netherlands, and Germany are some

Organization for Export: Industry Approach

The Small Business Administration (SBA) states that, besides multinational firms such as General Motors or IBM, there are many small-scale industries that export their output.

Location and Use of Professional Services for Export-Import Business

When the export-import business is small, it is economical to use one’s home as an office during the early phase of the operations. Besides saving

Bank Accounts, Permits, and Licenses of Export-Import Business

An export-import firm must open a bank account with an international bank that can accommodate specialized transactions such as letters of credit, foreign exchange payments,

Export-Import Business or Trade Name

A sole proprietorship or partnership that is engaged in an export-import business can operate under the name of the sole proprietor or one or more

Ownership Structure of Export-Import Business

In this section, we examine different forms of business organizations: sole proprietorships, partnerships, corporations, and limited-liability companies. 1. Sole Proprietorships A sole proprietorship is a

Export Counseling and Assistance

A number of assistance sources are available to U.S. exporters. 1. The U.S. Department of Commerce Through the local district office, the exporter has access

Developing an International Business Plan for Export

A business plan involves a process in which an entity puts together a given set of resources (people, capital, materials) to achieve defined goals and

International Market Assessment

International market assessment is a form of environmental scanning that permits a firm to select a small number of desirable markets on the basis of

International Market Research

International market research deals with how business organizations engaged in international trade make decisions that lead to the allocation of resources in markets with the

Assessing and Selecting the Product for Export

Although the basic functions of exporting and domestic selling are the same, international markets differ widely because of great variations in certain uncontrollable environmental forces.

Taxation of Export-Import Transactions

1. Taxation of U.S. Resident Aliens or Citizens U.S. citizens and resident aliens are taxed on their worldwide income. In general, the same rules apply

Locating, Contacting, and Evaluating Export Agents and Distributors

Once the firm has identified markets in which to use agents and distributors, it can locate these intermediaries by using various sources: government trade offices

Direct Export Channels

With direct channels, the firm sells directly to foreign distributors, retailers, or trading companies. Direct sales can also be made through agents located in a

Indirect Export Channels

With indirect channels, the firm exports through an independent local middleman that assumes responsibility for moving the product overseas. Indirect exporting entails reliance on another

Strategies for Entering New Markets

A. Picking the right country Select a country that understands the value of your product. Target a country with growth potential. Start with homogeneous markets

Developing Export Markets

A recent survey by Babson College and the London Business School on entrepreneurship noted that middle-income countries have a larger share of individuals engaged in

Overseas Travel and Trade Promotion

Once market research is conducted and the target countries are selected, the next step is to visit the countries in order to locate and cultivate

International Logistics

Logistics is a total systems approach to management of the distribution process that includes the cost-effective flow and storage of materials or products and related

The Internet and Exporting: A Focus on Developing Countries

A business that would like to succeed in export markets needs information about market prospects and must continually fine-tune its marketing skills, which includes the

Export Channel Decisions of Two U.S. Companies

1. Wayne Engineering Wayne Engineering is a leading manufacturer of side loaders, recycling vehicles, and recycling and garbage trucks. It uses Tradesur Inc. to handle

Maintaining and Motivating Overseas Representatives

Agents and distributors can be motivated in many ways to do the best possible job of marketing and promoting the firm’s product. This could be

Major Clauses in Representation Agreements

1. Definition of Territory The contract should define the geographical scope of the territory to be represented by the agent or distributor and whether the

Contracts with Foreign Agents and Distributors (Representatives)

It is estimated that about 50 percent of global trade is handled through overseas agents and distributors. Laws governing agents and distributors are complex and

Marine and Aviation Insurance

Export-import firms depend heavily upon the availability of insurance to cover against risks of transportation of goods. Risks in transportation are an integral part of

Risks in Foreign Trade

Businesses conducting export-import trade face a number of risks that may adversely impact their operations, such as the following: Political risk: Actions of legitimate government

Logistics Functions in International Trade

1. Labeling Importers are required to comply with domestic labeling laws. Even though an imported product may comply with the labeling requirements of the country

The International Logistics Proces

In export-import transactions, the following steps represent the approximate order of physical movement and distribution of goods to a foreign buyer. Step 1 As a

Typical Logistics Problems and Solutions in International Trade

Each export-import firm must use a logistics system that best fits its product line and chosen competitive strategy (see Table 6.1 for differences between domestic

External Influences on Logistics Functions in International Trade

A number of external factors influence international logistics decisions: regulations, competition, and technology. 1. Regulations Governments in many countries encourage their domestic carriers to handle

Trade Terms

Despite wide differences among national laws, there is a high degree of uniformity in contract practices for the export and import of goods. The universality

Calculating the Export Price

Calculating Landed Cost and Distributor/Retail Price There are two steps involved in calculating the export price: Calculating the landed cost: Landed cost is the total

Export Pricing Objectives

An exporter’s pricing objectives have an important influence on its pricing strategy. If a firm prefers an aggressive expansion strategy into foreign markets, it may

Pricing in Export Markets

The export price decision is distinct from the price decision in the home market. The export decision has to consider variations in market conditions and

Determinants of Export Prices

A number of variables influence the level of export prices. Some of these are internal to the firm; others are factors that are external to

Claims and Procedures in International Trade

1. Claims Shippers can claim from carriers or insurers with respect to loss or damage to their cargo. Shippers often attempt to recover from carriers

China National Products versus Apex Digital, Inc

China National is a Beijing-based corporation organized under the laws of China with specific foreign trading rights. It facilitates the import and export of goods

Pertinent Clauses in Export Contracts

An export contract is an agreement between a seller and an overseas customer for the performance, financing, and other aspects of an export transaction. An

CISG: Essential Elements

1. Oral Contracts/Statements A contract need not be concluded in or evidenced in writing. Import companies that negotiate contracts by phone may be under the

Harmonization of Export Sales Contract Law

Export sales contracts are central to international commercial transactions, and around them revolve a series of connected but distinct relationships, including cargo insurance, transportation, and

Introduction to Incoterms 2020

Incoterms are universally recognised rules. They guide buyers and sellers when formulating and fulfilling a contract for the shipment of goods. A careful study of Incoterms

Incoterms rules history

The Incoterms or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) relating to international commercial law. They are widely used in international commercial transactions or procurement

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