Risk mitigation framework for the international sale of goods

Abstract

The definition of export is when something has been traded out of the country. In the parlance of economics, an export is any good or commodity that has been transported from one country to another country in a legally correct manner, typically for use in trade. Similarly, the term import means to bring in the goods and services into the port of a country. The buyer of such goods and services is referred to an importer who is based in the country of import whereas the overseas based seller is referred to as an exporter. Imports, along with exports, are what comprise of international trade. Imports of goods normally require involvement of the customs authorities in both the country of import and the country of export and are often subject to different kinds of quotas, tariffs, international rules and agreements. With rapid globalization in progress, there are numerous checks and measures needed to ensure that goods are traded legally and also ensuring hassle free transactions. Many different conventions and standards have been formed and adopted by countries worldwide to ensure this. But in a way it also increases the complexity as rules and conventions may differ based on the country. Hence the risks involved in international trade are something which every importer and exporter are wary of and try to mitigate the same by following the international rules set down for international trade.