classification of trade

classification of trade

A new edition is published every five years and, since 2013, a new version of each edition is published annually. In most jurisdictions, the products for which trademarks are registered are categorized using the 45 product classes of the International Classification of Goods and Services under the Nice Agreement.Classes 1 to 34 are used for goods and classes 35 to 45 for services. The high cost of transport is a great hindrance in international-trade. It means the sale of goods to a foreign country. It refers to purchase of goods from a foreign country. This involves the exchange of goods and services between the citizens of two countries. All correspondence has to be done in foreign language. International trade involves the exchange of currencies because the currency of one country is not the legal tender in the other country. Some countries can produce more of sugar like Cuba, some can produce more of cotton like Egypt, while there are some others which can produce more of wheat like Argentina. Article shared by. They render their services for smooth conduct of trade. This is a class of businessmen who buy goods on their own account and sell them in a foreign country at a profit. (iii) Differences in Economic Growth Rate: There are many differences in the economic growth rate of different countries. Every country has its own laws, customs and import and export regulations. The aim of international trade is to increase production and to raise the standard of living of the people. No help is taken from importing or exporting agency and middlemen too are avoided. 2. THE FOURTH SCHEDULE TO TRADE MARKS RULES, 2002 Classification of goods and services – Name of the classes (Parts of an article or apparatus are, in general, classified with the actual article or apparatus, except where such parts constitute articles included in other classes). The goods are purchased at lowest possible price while sales are made at highest available prices to maximise their profits. On the basis of geographical location of buyers and sellers, trade can be broadly classified into two categories; 1. Different foreign currencies are involved while trading with other countries. Here, the goods are imported not for consumption or sale in the country but for re- exporting to a third country. There is a need of international trade due to the following reasons: (i) Uneven Distribution of Natural Resources: Natural resources of the world are not evenly divided among the nations of the world. TOS 7. In this trade the goods are sent outside the country. On the basis of geographical location of buyers and sellers, trade can be broadly classified into two categories; 1. Content Filtrations 6. So importing of foreign goods for export purposes is known as entrepot trade. Remittances of money for payments in foreign trade are time-consuming and expensive. Types of International Trade Transactions: In direct business the importer places order with manufacturer of the exporting country. As the goods have to be transported to long distances, they are exposed to many risks. He collects goods as per the instructions of the international buyers and despatches them these goods after completing various formalities. In addition, other classifications in use for trade statistics include End Use Commodity Category and Advanced Technology Products (ATP). The consigner cannot change the price unless otherwise permitted by the sender. The risk involved in foreign trade is much higher since the goods are taken to long distances and even cross the oceans. Advantages and Disadvantages of International Trade. The consigner is allowed a commission on sales and the expenses incurred on the goods. Thus, trade relations of U.S.A. with U.S.S.R. and China with Japan are examples. Special Difficulties and Problems in International Trade: International trade is more complicated as compared to home trade of a country. It becomes difficult to understand the language of traders in other countries. Image Guidelines 5. There are a number of middlemen in international trade. He completes the complicated procedures involved in importing goods on behalf of the wholesaler. An import agent has a specialised knowledge of the goods in which he deals. These are facilities or medical practices in business primarily to perform outpatient surgery, or in the case of multipurpose clinics, to perform a significant volume of surgical procedures and have a sterile operating room dedicated to outpatient surgery. Middlemen have become almost a necessity in international trade. Even countries with different ideologies, culture, and political, social and economic structure have trade relations with each other. Both of these involve considerable delay as well as cost. Wholesaler act as an intermediary between producers and retailers. These risks may be covered through marine insurance, but this involves extra cost in foreign trade transactions. Each country specialises in the production of those goods which it can produce at the lowest cost as compared to other countries, which leads to international specialisation and division of labour. According to the theory of comparative cost, each country should concentrate on the production of those goods for which it is best suited, taking into account its natural resources, climate, labour supply, technical know-how and the level of development. But all these countries need sugar, cotton and wheat. Give a classification of trade. 5. Exporters and importers have to fulfill all the custom formalities as well as follow rules controlling exports and imports. Because of complex and intricate procedures in foreign trade the role of middlemen is very important. When citizens of one country exchange goods and services with the citizens of another country, it is called foreign trade. (v) Lack of information about International Traders: In international trade, since there is no direct and close relationship between the buyers and the sellers, the seller has to take special steps to verify the creditworthiness of the buyer. Foreign trade involves the preparation of a large number of documents both by the importer as well as the exporter. Every foreign market has its own characteristics. In today’s world, economic life has become more complex and diversified. Content Guidelines 2. The following excerpt was taken from the United Nations Statistics Division, international trade statistics branch: "For compiling international trade statistics on all merchandise entering international trade, and to promote international comparability of international trade statistics. It involves transfer or exchange of goods and services for money or money's worth. A clearing agent is appointed by an importer. It despatches goods to the country of the importer by collecting them from the exporter. Retail Trade. is to be paid. Before publishing your articles on this site, please read the following pages: 1. Internal Trade – Meaning. A clearing agent charges a commission for his services. Similarly, various rules and regulations are to be followed while sending goods outside the country. International trade is subject to greater risk and uncertainties as compared to home trade. There are many difficulties which are faced by a trader engaged in international trade. Classification of Trade. Plagiarism Prevention 4. Thus, there is a greater risk of bad debts also in foreign trade. This reduces the cost of production all over the world and improves the standard of living of the people in various countries. But they are geographically at a disadvantageous position to produce other goods. The SITC classification, is currently at revision four, which was promulgated in 2006. Classification based on trade Many unions have memberships and jurisdictions based on the trades they represent. The Gandhian Approach: The Gandhian approach of trade unionism is based on “class collaboration rather than class conflict and struggle”. Informed Compliance Publication. Trade between two or more countries is called foreign trade or international trade. There are three standard classification systems for merchandise trade: the Harmonized System (HS), North American Industry Classification System (NAICS), and Standard International Trade Classification (SITC). The classification does not judge on legitimacy, adequacy, necessity or discrimination of any form of policy intervention used in international trade. Direct business is possible when the manufacturer is known to the importer. Buying and selling of goods and services within the boundaries of a nation are called internal trade. Internal trade and. Due to long distances, it becomes difficult to establish close relationship between the buyers and the sellers. There are various types of trade. International trade helps citizens of one nation to consume and enjoy the possession of goods produced in some other nation. Internal Trade – Meaning. Report a Violation. Trade between two or more countries is called foreign trade or international trade. The International Classification of NTMs follows a taxonomy of all measures considered relevant in today's international trade. These agents purchase goods on behalf of international traders and make arrangements to send them. Exchange rates are determined for different currencies for this purpose. Some countries are developed some are developing, while there are some other countries which are under-developed: these under-developed and developing countries have to depend upon developed ones for financial help, which ultimately encourages international trade.

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