International Trade? Yes, there are three types of international trade!

IIf you have never imported or exported before, it goes without saying that the intricacies of International Trade are not that easy to understand. 

To be successful in this area of business, the  importer/exporter must do alot research or must hire professionals to do so. Some of the research areas are: the parties, suppliers , freight forwarders , market, competition, culture and law.

However, once you know these and where your company fits in, international trade is a great way for your company to grow. There is nothing new about international trade so believe that you can do it. There are many governmental incentives for  companies to go global. This is because what private companies do to grow affects the country's gross national product.

“In the early 1900s, a theory of international trade was developed by two Swedish economists, Eli Heckscher and Bertil Ohlin. This theory has subsequently become known as the Heckscher–Ohlin model (H–O model).” The theory explains how a nation should operate and trade when resources are imbalanced throughout the world.

There are three types of International Trade: export trade, import trade and lastly but not the least entrepot trade. So what are they? 

Export Trade-

When goods and services that are manufactured in a different country are purchased by the residents of another country. The export of the goods can be anything from clothing, furniture, food and building materials. 

Import Trade-

When goods and services are manufactured in a different country and brought into your country. Imported goods or services are used when similar goods or services are not able to be manufactured in the country or it is inexpensive or efficient. 

Entrepot Trade

Transhipment is another word for Entrepot.it is when goods are imported into the country and then re-exported out without being distributed within the country. For example, if Russia has imported oil to the US, it has been processed and then re-exported to Canada , it is entrepot trade. 

TEIL Firms assist with all three. If we can help you or even introduce you to a logistics company, marketing researcher or review a legal contract let us know: 708/531-1740 TEIL Firms, “Where Excellence Matters!”