Marketing transportation homework Essay Example | Topics and Well Written Essays - 500 words - 1

Marketing transportation homework - Essay Example Supplying and selling goods across international boundaries are affected by different macroeconomic factors. They can be political in nature where the tariffs, Non-Tariff Barriers and import quotas imposed by the host country can affect the supply chain. Free trade policy has significantly decreased these barriers to trade. Currency fluctuation in foreign country, size of the market, income profile of the consumers and economic infrastructure exhibit distinct effects on supply chain. Also the foreign country is subjected to change due to cultural and regional differences. Before starting any business across national boundaries of a country these factors must be taken into account. After considering the feasibility and profitability the firm approaches to different countries. This whole process comprises of series of activities such as international documentation, following the terms and conditions of sales, methods of payment through international freight forwarders. The shipment coming from another country must contain a certificate of origin which indicates the country from which it belongs and invoices supporting commercial and financial activities. There must be a letter of instruction to the shipper and a declaration from the shipper for ensuring the safety and security of the product. Terms of sales, known as Inco terms 2000, are mandatory for every exporter to follow. Free alongside Ship (FAS), where it is the seller’s responsibility to make necessary arrangements for delivery of the goods, assuming all the risks associated with delivery, Free on Board (FOB), where the responsibility of all risks is on the seller till the point of delivery. Once the shipment crosses the ship’s rail, responsibility of goods is totally on the buyer. Another example can be Delivery Duty Paid (Seller’s is obliged to pay the cost of delivering the goods and