International trade and trade finance are specialized sectors of business and banking, requiring particular knowledge and expertise. Here, trade expert Anders Grath provides a compact, complete guide to the fundamentals of this crucial aspect of global commerce. Grath walks you through the basics of risk management, financing techniques and payment methods that ensure safe and profitable import and export transactions. Though somewhat dry, his clear information is crucial for any firm buying and selling internationally. getAbstract recommends Grath’s guidance to bankers, entrepreneurs or executives involved in overseas trade.
Buying and selling beyond your national borders add a layer of new risks to those of day-to-day domestic business. For all the technological advances that seemingly shrink the globe, transacting from a distance with an unknown customer or supplier still presents major headaches, and even potential losses. You must identify and plan for anything that could go wrong.
This risk-identification process begins with your first business negotiation with a counter party. If you’re the vendor, you want to get terms that maximize your profits while curtailing your risks. You might have to compromise if you’re competing with others for a sale. As a buyer, you want to ensure that you’re dealing with a reputable and reliable supplier who will deliver the products you want in a timely fashion.
To provide common standards for trade in the cross-border market – beyond the reach of national laws and regulations – the International Chamber of Commerce (ICC) establishes the rules of global trade and investment. Its members include firms of all sizes in various industries and fields in more than 130 countries. As “the world’s only truly global business organization...
Anders Grath, a banker and trade finance specialist, is a consultant to banks and trade councils in Europe.