Discuss about the International Trade for Production and Development System.
An example of trade policy is the use of tariffs which safeguard domestic industries from outside competition (foreign competition). The policy uses tax to raise the cost of imported goods. Another Example of trade policy is subsidies which are a form of support or financial help granted by the public body or state to business or institution (Jones & Kierzkowski, 2018).
Example of procedures is the Administrative procedures which are the system or set of rules that guide processes for the organization’s management (Jones & Kierzkowski, 2018). They are established to regulate trade at the border.
Route planner provides information that relates to public transport services. The information can be retrieved via web. Sources that can be accessed to provide information on a particular transport route include the quality assurance system, production system, and Development system.
DATE:
TO:
FROM:
SUBJECT:
Dear Sir/Madam,
The intention of this is to inform you of the methods and rating principles used in the entire forms of transportation such as rail and roads. The method and principles of rating used include the tariff rates, FAK, Ad Valorem, Heavy Lift, Dangerous, Special and Refrigerated.
Thank you,
Name
1) The first step is the advance checking with the consulate of another foreign nation to which I’m shipping in. This help in the determination of restrictions that may affect my shipment.
2) I will then analyze specific requirements; this will help in the determination of the best method of transport to provide the best results (McCalman, 2018).
3) I will then analyze the transportation cost
4) The next step is to analyze the insurance cost
5) The fifth step is the preparation of suitable international documentation for the Vehicle exportation.
6) The last step is to take identification plate approval. This is because Australia prohibits the importation of Vehicles in some circumstances.
1.5 Answer:
The main Factors that must be considered include Weight, Volume, Perishability, Insurance, and Types of goods (Examples are Stuff, Food, and services).
1) When the airplane engaged in the accident, the goods may be damaged or lost.
2) The problem at vessels or air cargo may prevent the goods from reaching the target destination.
The risks are: 1) Commodities may be lost at sea; 2) The package may be damaged.
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ITEM LIVESTOCK VEGETABLES PETROLEUM MOTOR VEHICLES COMPUTERS GRAIN |
ACCEPTED METHOD OF TRANSPORT . The method used to move Livestock include on hoof, by rail, by motor vehicle and by air or on ship. . Vegetables can be transported by air or by sea. The transportation of vegetables require the use of refrigerated container The best mode of transporting Petroleum is by Trains, truck and Pipeline. .Motor Vehicles can be transported by cargo vessels mainly for international freight and by truck for domestic freight. . The best way to transport Computers is by air. . The best way to transport Grain is by Cargo vessels or by sea. |
RISK FACTORS RELATED TO PACKING AND STORAGE . Livestock transport is the most injurious and stressful when operating it between slaughterhouse and farm and this may contribute to loss of production and poor welfare of the animals. .The transportation of Vegetable is very complicated. Different Vegetables and Fruit require various requirements for the purpose of safe preservation (Chowdhury, A., Liu, Wang & Wong, 2017). The vegetable may be damage by micro-organisms. The safe carriage may require that the vegetables should be maintained in a favorable temperature and pre-cooled. .Petroleum is regarded as the most dangerous commodity to transport. The most dangerous method is by train transport. Petroleum products plus death or injury and Truck are common. Another problem associated with the Petroleum is Spilling of fuel content (gallon semitrailer of fuel). . Australia prohibited importation of vehicles. Manufacturing wishing to import vehicles must therefore obtain approval which may take time. .The main internal components of the computers are delicate and need special packaging methods. . The shipments of bulky grain may necessitate the seller or buyer to charter the vessel or to transport it from the loading destination to the place where unloading take place (Leamer & Stern, 2017). |
The organizations that can provide information on the accessibility of services of transport route include the following: PTC (Petroleum transport) and Pasha International Service (Connolly & Swoboda, 2018).
The three types of air Cargos and airlines include operating out and in of Australia include: UPS Airlines, China Airlines and FedEx Express.
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FCL |
It represent Full Container Load |
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LCL |
It stand for Less than a container Load |
– Insurance
– Discharge Location and load (pickup)
– Identification of the best kind of goods (cargo) used for
– Whether the shipment is international or domestic
1.12 Answer:
Types of Ocean vessels include the following: Oil tanker, Bulk carriers, Livestock carriers, Dry Cargo Vessels and LNG Carriers.
|
Shipping service |
ADVANTAGES |
DISADVANTAGES |
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PARCEL POST |
Parcel post is mostly cheap and convenient. |
they are unsafe since they are being send via mail |
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CHARTER SERVICES |
they are mostly safer and faster |
They are very expensive |
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LINER CONFERENCE |
It is made up of modern equipment |
The shipping service is very very expensive |
Answer:
The three types include the following: 1) Pallets which are used for quick unloading/loading of small items and cartons. 2) Strong planks and square timber. 3) Steel gilders.
Answer:
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CONTAINER TYPE .BAGGED GOODS FOR SHIPPING .BALES OF GOODS FOR SHIPPING E.G WOOL . CARTONS OF GOODS FOR SHIPPING . CASES OF GOODS FOR SHIPPING .DRUMS OF GOODS FOR SHIPPING .LIFT VANS OF GOODS FOR SHIPPING .PALLETISED BOXES OF GOODS FOR SHIPPING .GOODS IN THERMAL CARTONS FOR SHIPPING .UNIT LOAD DEVICE (ULD) |
EXAMPLE OF USE . Used to protect the goods during transportation. . They are break bulk cargo packing which must be loaded separately. They bundles or bale into a unit. . Used for the purpose of handling the goods. Carton labels and marks can also be used for identification. . A case comprise of items which are packed together. They are used for the transportation of goods. for example Soda and cereal. . They are containers in the form of Cylindrical used for shipping heavy cargo. . Used to transport household goods internationally and nationally. .They enables easier freight movements. .These represents packaging boxes for the transportation of goods. They help in moving goods over longer distance. .This is a container or pallet used in loading the freight, mail and luggage on wide-body aircraft. |
1) Handling instructions- This help in handling fragile goods.
2) Destination information such as name of buyer/name of shipper, this can help when the goods lost.
3) Label Hazardous cargo, this will provide information on the danger of the commodities.
1.17 Answer:
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Legislation |
Legislation include: 1) Registered agents, 2) World Trade Organization and 3) International operating regulation and treaties. |
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Codes of practice |
Codes of practice that protect consumers of employment and work. Those that encourage the performance of international trade, in ethical way. |
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Standards |
The use of ISO. Help to ensure that the goods are of high quality. |
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International conventions |
WTO) World Trade Organization and (WTO) World Customs Organization. |
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AIR CARGO SERVICE PROVIDERS |
.The majority of the Organizations in Australia provides the same types of freight, by sea or by air. The cargo service providers include: Cargo master, Express cargo services and Pack and send. |
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OCEAN FREIGHT SHIPPING SERVICE PROVIDERS |
.The shipping services providers include: Pack and send, CargoMaster and Express Cargo Service |
2.2 Answer:
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AIRCRAFT |
The 2 types of Aircraft include: Embraer 120 Brasilia and HS748 The payload of HS748 Cargo is 6metric tons per 55cbm. |
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OCEAN VESSELS |
The two types of Ocean Vessels are Container vessel and Traditional freighter. Traditional freighters have different deck mounted cranes which functions as transferring cargo to vessel (Antras & Foley, 2015). Length or size: the length is between 250ft to 600ft. The liberty ships measured between 56ft wide and 441ft in length. Types of cargo include all the varieties of break bulk cargo. Traditional freighters uses different deck-mounted cranes to move non containerized cargo for example bales, cartons and pelletized. b) Container vessels: Length and size- container ships differ dramatically in capacity and size. The specification of containers vessels are in TEUs. The new vessels contain 1000 TEUs. Types of Cargo- It contain any type of Cargo with any of this container types: high cube, general purpose, and open top, platform, flat, insulated, refrigerated and bulk. Can also include merchandise in bales, cartons, cars, drums and features. Cargo is mostly loaded by use of Port-based cranes. |
Cargo Master (shipping service and air Cargo service) – it is one of the trusted international companies in Australia, which provide the logistic solution of moving international freight to every part of the world.
Transport route: air shipping moves the goods from the production industry to the airport (Melbourne, Brisbane, Sydney, Perth, Darwin, and Adelaide) and then the loading and shipping process takes place at Tokio’s Airport.
Sea shipping moves the goods from the production industry to Melbourne port or Brisbane port by Truck.
Park and send (shipping services and air cargo services)- Economy Airfreight Express weigh over 30kg to 7000kg.
Transport route: air shipping moves the goods from the production industry to the airport (Melbourne, Canberra, Sydney, Perth, Darwin, and Adelaide) and then the loading and shipping process takes place at Tokio’s Airport (Mansfield & Reinhardt, 2015).
Sea shipping Sea shipping moves the goods from the production industry to Melbourne port or Brisbane port by Truck.
Express Cargo services (Shipping services and air cargo)- It provides a range of logistics and freight services. The services include both sea freight services and Air freight services.
Transport route: Air shipping moves the goods from production industry to the airport (North WA, SA, QLD, Central Australia, Eromanga Basin, Inner NT, Cooper Basin, Bowen Basins and Surat).
Sea shipping moves goods from the production industry to the Melbourne port or Brisbane by Truck.
2.4 Answer:
Through evaluation of the various offers provided by the Companies, The best method to ship by use of Air is with Express cargo services. This is because the Firm guarantees immediate transport by road, the services of the dual or single driver are also non-stop, there is also the availability of multiple Vehicles at the airport and they also guaranteed services of NEXT FLIGHT.
The shipment that needs transportation by Sea, CargoMaster should be used due to low risk associated with this type of transportation. The firm also has convenient sea freight by FCL and LCL.
2.5 Answer:
The risks associated with storage and packing includes the following:
.The food may sometimes expire due to the perishability of the goods
.The packaging may be damaged as well as crushing of chocolate or breaking of jars.
.The ship that arrives at the port may also delay because of bad weather, and this can prevent the goods from arriving on time to the required destination (McGovern, 2018).
.It may occur that because of the overthrow and accident the goods may lose in the process of transportation (Low, 2016).
.It may happen that when the airplane engaged in an accident, then the goods are damaged or lost and never reached the destination.
2.6 Answer:
-The various types of containers include Flat rack container, Dry storage container, Double doors container, open side container and Tunnel container.
-The most suitable type of container for the transport of the goods is the Frigo-container.
The perishable goods require suitable making and documentation requirements for cargo.
The required documents are the Letter of credit. These are the commonly used form of payment.
This report discusses the variations in charges of airfreight which is being caused by fuel surcharges, TACT rates, and other different variants. TACT is made up of comprehensive information that is related to air cargo regulation, rules, and charges ad rates. TACT is the essential guide to people who are working in the international air cargo. TACT covers the following: Information relating to the facilities of the airport, county regulation, rules and charges on transit, export and import for more than 200 countries.
Depreciation will make the exporting Firms to benefit because it will make export to be cheaper.
Appreciation will make the export to be so expensive as well as reducing the competitiveness of the firms that export the commodities.
The calculation of the shipping cost requires the following:
– Lift off/Lift on
-BAF/CAF
-Terminal Handling Charge
– The basic rate of service
2.15 Answer:
Factors that determine whether the cargo should be carried by sea air or as a combination of the two modes of transport include the following:
Insurance cost, shipping cost, transportation cost from the origin firm to port/airport, cost of workforce and transportation cost to buyer firm (Moon, 2018).
Task 3
Part 1
DATE:
TO:
FROM:
SUBJECT:
Dear Sir/Madam,
This is the external export advisor; I wish to take this chance to advice on the things that deal with taking an insurance cover for your Cargo. First, it is importance to take the insurance coverage because it can protect your cargo in case of Damage or Loss. The hazards that the insurance policy can cover include theft, Damage goods, loss goods, the action that may lead to losing profit as well as penalties related to contract breach with buyer and risks connected to Cargo transportation (Edmond, Midrigan & Xu, 2015).Taking the insurance contract, have the following essential steps that can give you a good deal. The steps include the following: it is a good deal because the seller will be responsible for organizing the ocean freight, the policy will also follow the INCOTERMS and
Lastly, it will cover risks that are associated with the goods transported from seller to those who buy the goods.
Thank you,
Name
DATE:
TO:
FROM:
SUBJECT:
Dear Sir/Madam,
Thank you so much for the positive response to the previous e-mail which I sent to you. These are answers to the questions which you are seeking clarifications of There are different types of insurance cover which include Open policy, Annual policy, and single transit. My company uses restricted cover this is because it is the best when the goods are directly shipped by the owner. In case of any freight loss or Cargo damage, you should do the following: first, you should inspect your freight, cargo, package, and shipment. Second, any cargo damage or freight loss that are found during the delivery should be indicated in the delivery receipt. Thirdly, any shipment damage or loss should be reported to the nearest concerned authorities for thorough investigation. Lastly, you must file a written insurance claim when there is a loss of an item.
Thank you,
Name
References
Antras, P., & Foley, C. F. (2015). Poultry in motion: a study of international trade finance practices. Journal of Political Economy, 123(4), 853-901.
Chowdhury, A., Liu, X., Wang, M., & Wong, M. S. (2017). Institutions in International Trade: The Effect of GATT/WTO Membership on Trade Volatility and Trade Volatility Co-movement.
Connolly, M. B., & Swoboda, A. K. (2018). International trade and money. Routledge.
Edmond, C., Midrigan, V., & Xu, D. Y. (2015). Competition, markups, and the gains from international trade. American Economic Review, 105(10), 3183-3221.
Jones, R. W., & Kierzkowski, H. (2018). The role of services in production and international trade: A theoretical framework. World Scientific Book Chapters, 233-253.
Jones, R. W., & Kierzkowski, H. (2018). The role of services in production and international trade: A theoretical framework. World Scientific Book Chapters, 233-253.
Leamer, E. E., & Stern, R. M. (2017). Quantitative international economics. Routledge.
Low, P. (2016). International trade and the environment. UNISIA, (30), 95-99.
Mansfield, E. D., & Reinhardt, E. (2015). International institutions and the volatility of international trade. In THE POLITICAL ECONOMY OF INTERNATIONAL TRADE (pp. 65-96).
McCalman, P. (2018). International trade, income distribution and welfare. Journal of International Economics, 110, 1-15.
McGovern, E. (2018). International trade regulation (Vol. 2). Globefield Press.
Moon, B. E. (2018). Dilemmas of international trade. Routledge.
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