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International trade plays an extremely important role, considered an "economic bridge" between countries around the world. But not everyone clearly understands what international trade is. So below, Proship.vn will specifically answer what the term international trade is, its history of formation and development, the latest updates on the international trade transaction process, and list the types of international trade. In today's economic situation,... Any business that is interested is invited to refer, read and save the knowledge below to support future transactions.
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Ms Duy: 0902 581 247
What is International Trade?
The formation and development of international trade
International trade was formed quite a long time ago but only really developed after World War II. This formation and development is divided into 4 periods:
- First period (19th century BC - 4th century): During this period, international trade activities were considered to be formed when activities of exchanging and buying and selling goods were no longer limited within the scope of trade. of each country that goes beyond its borders. The highlight is the birth of the "Silk Road", connecting Asia with Europe.
- The second period (5th - 13th centuries): This period was due to continuous wars, so international trade activities were not developed. However, there are still some exchanges and trade of goods taking place bustlingly in cities of Europe and the Middle East.
- The third period (14th century - 1945): The period marked the strong development of international trade, especially financial services, banking, insurance,...
- The fourth period (from 1945 - present): Is a period of unprecedented boom and development of international trade thanks to scientific and technical achievements. A typical example is the birth of GATT and WTO.
What is international trade?
International trade, also known as International Trade, is essentially the import and export of goods and services between countries. Through international trade, countries will be able to buy goods at cheaper prices in the market where they produce them. Or you can use goods and services that are not provided domestically and produce them yourself.
According to the United Nations Commission on International Trade Law (UNCITRAL), international trade includes all business activities related to international markets. These activities will include international trade and investment processes such as buying and selling goods, insurance, finance, information technology transfer, transportation, tourism, etc.
Thanks to international trade, countries will improve their economic strength and at the same time improve people's living standards. However, benefits from international trade will not be shared equally among all countries and all strata of the population. Therefore, this gives rise to more trade protection trends and measures.
=> In general, this activity has actually existed for a long time, initially it was just the trade of tangible goods to bring benefits that could not be done domestically. However, it was not until the last few decades, when the market economy developed, that international trade activities were promoted, expanding to include intangible goods, services or large investments. In international trade business, there are agreements and principles that are set out and signed by participating countries.
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Learn in detail about International Trade today
In the context of the economy being open and integrating with the world, economic development is becoming an important strategy of many countries. The secret to the success of many newly industrialized countries is to be aware of the organic relationship between domestic economic development as well as expanding economic relations with the outside world. This activity is international trade. Next, PROSHIP will continue to share with you detailed information about International Trade after you have a clear understanding of what international trade is. As follows:
Subjects participating in International Trade
International trade is an economic activity that takes place between many entities of different countries. Therefore, in the process of international trade activities there will be 3 subjects directly participating in this activity including:
* Enterprises: Enterprises are considered the most common entities participating in international trade activities. These can be individuals, groups of businessmen, businesses can be large, medium and small enterprises operating with the goal of exploiting the benefits of international trade to gain profits for their businesses. me.
* Countries: Countries participate in international trade with a very special role to exploit the maximum benefits of international trade in national economic development. Participate in international trade to effectively regulate domestic international trade activities.
* International Organizations: International organizations participate in international trade with the common goal of regulating international trade activities to ensure the interests and goals of participating parties over a period of time. certain time. Some organizations participating in international trade include:
- International Organization: International Trade Organization (WTO);
- Regional Organization: Association of Southeast Asian Nations (ASEAN) or North American Free Trade Agreement (NAFTA);
- Specialized Organization: International Trade Center (ITC).
Characteristics of International Trade
International trade activities are activities of exchanging goods and services with the following basic characteristics:
- The main objects of international trade activities are goods and services. In addition, the objects of international trade are also forms of investment to reap profits from commercial activities.
- Parties participating in international trade activities are economic entities from different countries. It can be a company, business, economic group or government.
- The main goal of people carrying out commercial activities is commercial activities to create profits and make a profit.
- Units participating in international trade activities are allowed to do business and trade all types of goods, services and professions in accordance with the law.
- International trade activities are not limited to the territory of Vietnam. Depending on the research perspective, it will develop on a global scale, regional scale, exporting or importing country market.
- The means of payment in international trade activities between the seller and the buyer is a convertible currency.
The Role of International Trade
International trade plays an extremely important role for each country, the benefits of international trade can be mentioned such as:
- Allows countries to use abundant goods in larger quantities than each country's ability to produce goods and services;
- International trade activities have interactions that force countries to change their economic structures, industries, regions or economic sectors to increase national competitiveness;
- International trade is not simply an import and export activity between countries, but represents a country's inevitable dependence on the international division of labor through the international supply chain. And international trade is considered an important factor for national economic development based on the division of labor and international specialization;
- Through international trade activities, countries will build, plan and promulgate economic policies to suit the economic characteristics and level of development of the country;
- Is the basis for the Government to regulate international trade activities through the application of tools (tariff and non-tariff) to influence import and export activities;
- Create many jobs for domestic workers, thereby reducing the unemployment rate and reducing the burden on society.
Types of International Trade
* International trade in Services:
Services are understood as activities created from products that do not exist in physical form, do not lead to the transfer of ownership to promptly satisfy the production and daily life needs of people. . International trade in services is carried out in many different ways. According to GATS, there are 4 methods of providing services:
- Consuming services abroad: Is the method by which consumers of one country move to the territory of another country to consume services;
- Providing cross-border services: A method of services provided from the territory of one country to the territory of another country;
- Commercial presence of foreign service providers: Is the method by which service providers of this country establish forms of commercial presence (such as 100% foreign-owned companies, joint venture companies, subsidiaries, etc.). branch) in the territory of another country to provide services;
- Presence of natural persons: Is the method by which natural persons providing services in one country move (temporarily or for a term) to the territory of another country to provide services.
* International trade in Goods:
International trade in goods includes international trade in tangible goods and international trade in intangible goods. In particular, international trade in tangible goods includes all international trade activities related to visible and measurable goods, from machinery and equipment, to agricultural products, food, and raw materials. , fuel, materials... International trade in intangible goods includes international trade related to intangible goods such as inventions, inventions, utility solutions, industrial designs, copyrights Counterfeit, trademark monopoly,...
Goods can be supplied to the international market through the following methods:
- Export-Import industry;
- International outsourcing;
- Re-export and border transfer.
Shipping contact hotline:
Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247
Process of steps in International Trade transactions
Transaction processes and procedures will be much more complicated and strict than normal commercial activities. Specifically, the process steps in international trade transactions are as follows:
Step 1 – Inquiry
This is the first step, creating a premise for international trade activities to take place. Because the asking step is considered a step for both parties to explore and learn about each other's trading needs. The content of the inquiry step is unlimited, to ensure the buyer has all the necessary information. And this step is considered to be given for the seller to reach customers, so the buyer is not bound by responsibility but is also given the opportunity to explore the market and products.
Step 2 – Offer (sales offer)
Offering for sale is an important operational operation in international trade transactions. In the sales offering step, the seller needs to express his/her will to sell through legal documents and usually an offer. If asking for goods is the first step for the two parties to get to know each other, then offering to sell is considered a step to express the official offer from the seller to the buyer through an offer form. This offer must show details of the price and content of the goods as well as be valid for a certain period of time.
Step 3 – Counter offer or order (refund)
Refund is a turning point in both price and other transaction conditions of the buyer based on the seller's offer. However, if the seller's offer fully complies with the buyer's requirements, the buyer will not have to bargain, and the two sides do not need to discuss price or delivery conditions again. pandemic. In other words, in that case, there will be no refund step but it will be considered that the two parties have reached an agreement. At that time, the buyer will base on the offer to proceed and place the purchase order.
Step 4 – Order (order goods)
Placing a purchase order is considered the buyer's response to the seller's offer. It represents the buyer's agreement to conduct the transaction with the seller. On the other hand, placing a purchase order is considered an offer to sign a contract from the buyer.
Step 5 – Acceptance (accept)
Acceptance is the step that shows the agreement of the party offering to sign the contract with the party making the offer, thus reaching the acceptance step. This means that international trade contracts are also established.
=> And for an international commercial contract to have legal meaning, the contents of the contract must comply with the national legal regulations of the participating parties as well as the general principles of the international community. for International Trade activities.
Why is the International Multimodal Freight Transport Service at PROSHIP increasingly trusted?
Faced with the increasing demand for sending, importing and exporting goods from the market, PROSHIP.VN has strongly deployed "Cheap multi-modal international freight transportation service" with a professional process from the transportation stage. business to bring customers the best experience. The cost of shipping goods by container from Vietnam to International is always low, cheaper than the market but that does not reduce the quality of service, the unit will serve the best possible.
We always aim to balance costs so that budget issues do not become a burden for businesses. Proship will bring appropriate transportation solutions to meet customer needs. Confident in having enough capacity to meet door to door transportation needs through coordinating many different forms of transportation such as:
- Combined road and sea transport;
- Road transport combined with air;
- Road transport combined with rail;
- Road transport combining air and rail;
- Sea transport combines inland waterways and roads.
Proship applies multimodal transportation with the following advantages:
- Flexible – Fast – Safe – Economical;
- Large warehouse system;
- Extensive and safe dealer system;
- Enthusiastic and responsible consulting team.
Flexible pickup and delivery methods at Proship
- Door to door delivery: All import and export transportation activities are handled by Proship. We will receive and deliver the goods at the requested address;
- Pick up at the door, deliver at the warehouse: Proship will send a vehicle to pick up the goods at the door, gather at the warehouse and transport to the warehouse near the delivery address. After that, customers go to Proship warehouse to receive goods;
- Receive at the warehouse, deliver to your door: You will deliver the goods to the Proship warehouse. After that, we carry out home delivery upon request;
- Receive at warehouse, deliver at warehouse: You will transport goods to Proship warehouse. Then, we will proceed with transportation to the Proship warehouse located close to the delivery address. After that, the customer will come to our warehouse to receive the goods.
With multi-modal transport service, Proship collects goods at your door
- Northern region: Hanoi, Vinh Phuc, Cao Bang, Hoa Binh, Lang Son, Bac Giang, Quang Ninh, Son La, Dien Bien, Lai Chau, Lao Cai, Yen Bai, Phu Tho, Bac Kan, Thai Nguyen, Hung Yen, Bac Ninh, Ha Nam, Hai Duong, Hai Phong, Thai Binh, Nam Dinh, Ninh Binh, Ha Giang, Tuyen Quang,...;
- Central and Central Highlands region: Thanh Hoa; Nghe An; Ha Tinh; Quang Binh; Quang Tri and Thua Thien-Hue; Danang; Quang Nam; Quang Ngai; Pacify; Phu Yen; Khanh Hoa; Ninh Thuan; Binh Thuan; Kon Tum; Gia Lai; Dak Lak; Dak Nong and Lam Dong;
- Southern and Western regions: City. Ho Chi Minh, Binh Duong, Binh Phuoc, Dong Nai, Long An, Tay Ninh, Dong Thap, Tien Giang, Kien Giang, Ca Mau, Ba Ria-Vung Tau, An Giang, Soc Trang, Tra Vinh, Bac Lieu, Can Tho, Binh Thuan, Ninh Thuan,...;
- In large industrial parks: Phuoc Dong, Duc Hoa III, Nhon Hoi Binh Dinh, My Phuoc 3, Tan Khai, Minh Hung, Dong Xoai, Tan Phu Trung, Ham Kiem, Binh Thuan, Bau Xeo, Loc An - Binh Son, Giang Dien, An Tay, Bim Son, Long Duc, Du Long, An Hoa; Long Huong, Tam Diep II, Tram Vang, Cat Trinh, My Yen – Tan Buu – Long Hiep; Khanh Phu, Ba Thien 2, Nhon Hoa, Yen Phong II, Cong Hoa, Dong Anh, Soc Son, Long Khanh, Dau Giay, Tan Thanh, Soai Rap Shipbuilding, Khai Quang Vinh Phuc, Gian Khau, Thanh Duc Industrial Park, Industrial Park Song Cong 2, North Dong Phu Industrial Park, Thuan Yen Industrial Park,... and potential Export Processing Zones and Industrial Clusters stretching from North to South.
Multimodal transport charges depend on the information provided by the customer
- What type of goods need to be transported?
- How much goods need to be transported?
- What is the size of the goods transported?
- Where to receive and send goods?
- How long does it take to transport multimodal goods?
- Some other factors: Loading and unloading fees at both ends, prohibited road fees, crane fees and VAT, etc.
Proship vehicles are used to transport goods to provinces and cities
- Small truck: 500kg; 1 ton; 1.5 tons; 2.5 tons; 3 tons; 5 tons;
- Large truck: 8 tons; 10 tons; 15 tons; 20 tons;
- Container trucks of 10 feet, 20 feet, 40 feet, 45 feet,... Multi-load refrigerated containers and other specialized vehicles.
Transportation services, e-Logistics Proship has been providing
- Transporting containers by rail;
- Road transport by container and truck;
- Transporting goods by air;
- Sea transport;
- Transporting goods by refrigerated containers;
- Multi-modal transportation of project cargo;
- Transporting retail cargo, bulk cargo, special cargo, and oversized and super heavy cargo.
Above is a summary of the knowledge you need to know about international trade to help businesses who are interested in understanding what international trade is , what are its characteristics, what is the role, and common types of international trade. What are the current variables? From here, individuals or business units wishing to conduct commercial transactions will have more experience in handling some problems that arise during the exchange of goods. /product. To receive direct advice and receive a quote for goods import and export services using optimal low-cost transportation methods, please contact Proship Joint Stock Company at the Hotline below.
Shipping contact hotline:
Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247
