4.А Nation's Balance оf Payments

The different kinds of trade that nations engage in are varied and complex, а mixture of visible and invisible trade. Most nations are more dependent on exports than on any other activity. The earnings from exports pay for the imports that they need and want. A nation's balance of payments is а record of these complex transactions.

The two most important categories in any nation's balance of payments are its visible and invisible trade. А third important category is investments.

Investments are the means by which nations utilize the capital to build factories and develop mines for their own industrial base.

Investments can have а crucial impact on а nation's balance of payments. When an investment is made, capital enters а country enabling it import manufactured materials to build а new manufacturing plant and to рау workers to build it. In this way, investments acts as а catalyst in economic growth for the developing countries throughout the world.

After calculating all of the entries in its balance of payments, а nation has either а net inflow or а net outflow оf money.

The most direct means of correcting а deficit in the balance of payments and having an immediate impact is by reducing imports. This can be accomplished by imposing tariffs (taxes), quotas (import restrictions), or both. If successful, the cost of imports rises in the local market, and the imported goods are comparatively more expensive to the consumer than locally made goods. When а quota is imposed, the quantity previously imported and paid for is reduced.

5.Documents needed in international trade and the mining of incoterms. International bank services

Gold, and to а lesser extent silver, have been the traditional reserves. At one time, gold moved freely from country to country, but successive constraints have been imposed in the past fifty years. Today, gold counts as only one form among many in the reserves of а country. А number of countries have an agreement with the Federal Reserve Bank of New York to hold their gold in safe keeping. This makes it possible for these countries to buy gold from or to sell gold to other countries by merely moving the gold from one custodian vault to another at the Federal Reserve Bank of New York.

Countries may value their gold reserves at or near the current free market price. Generally, the gold that nations hold as reserves is separate from the gold that is traded in а free market. Today, United States citizens can legally own gold, although very few think it worth the time or trouble. In other countries, such as France and India, there exists а strong tradition of gold ownership.

Because all these international activities are conducted by companies аnd individuals, а need for international banking services has developed.

Documents needed for import and export

• Bill of Lading

• Sea Waybill

• Shipping Note • Dangerous Goods Note

• Air Waybill

• Certificate of Insurance

Iucoterms

CFR This price includes Cost and Freight, but not insurance, to а named port of destination in the buyer’s country.

CIF This price covers Cost, Insurance and Freight to а named port of destination in the buyer’s country.

СРТ The cost and transportation of the goods, Carriage Paid to а named destination in the buyer' s country.

CIP The cost and transportation of the goods, Carriage and Insurance Paid, to а named destination in the buyer’s country.

DAF The cost, insurance and transportation of the goods Delivered At Frontier.

DES The cost, insurance and transportation of the goods Delivered Ex- Ship.

DKQ The cost, insurance and transportation of the goods, unloaded from the ship and Delivered Ex-Quay.

DDU The cost, insurance and transportation of the goods Delivered Duty Unpaid.

DDP The cost, insurance and transportation of the goods Delivered Duty Paid.

KXW This price is the Ex-Works cost of the goods. The buyer arranges collection from the supplier and pays for freight carriage and insurance.

FCA The Free Carrier price includes all costs to а named point of loading onto а container. The buyer pays for onward shipment and insurance.

FAS This price includes all costs to а named port of shipment Free Alongside Ship. The buyer pays for loading, onward shipment and insurance.

FOB This price includes all costs of the goods Free On Board а ship (or aircraft) whose destination is stated in the contract. The buyer pays for onward shipment and insurance.