International Trade Operations Research Articles

EVALUATION OF SPECIAL ECONOMIC ZONE RELATED CHALLENGES AND OPPORTUNITIES IN EXPORT AND IMPORT

The world has now evolved into a single global market, making it imperative for companies to excel in international trade. Special Economic Zones (SEZs) have emerged as crucial tools for countries to attract foreign investment, enhance export-oriented growth, and foster employment opportunities. SEZs offer tax benefits and preferential treatments to units operating within their confines. This study seeks to assess the challenges and opportunities related to international trade for SEZ companies. It conducts a survey to gather insights from various stakeholders, including employees, logistics partners, and customs housing agents of SEZ companies, regarding international trade operations within SEZs. A questionnaire is administered to collect opinions on the challenges and opportunities in international trade within SEZs. The gathered data is then analyzed and interpreted to offer valuable suggestions for SEZ companies. While SEZ units are presented with numerous opportunities for achieving rapid and sustainable growth, they also encounter specific challenges and constraints. These challenges may encompass documentation hurdles, stringent customs regulations, coordination with customs departments, and management of logistics and supply chain operations. The objective of the study is to assist companies in managing SEZ-related challenges effectively within the MEPZ (Make in India Economic Zone) while capitalizing on opportunities for balanced and sustainable growth.

INTERNATIONAL LEGAL STATUS OF THE WORLD TRADE ORGANISATION IN THE CONTEXT OF ECONOMIC GLOBALISATION

The subject of the study is the conceptual, theoretical, empirical, methodological and applied foundations of the international legal status of the WTO in the context of economic globalisation. Methodology. General scientific and specific legal methods were used in the research process. With the help of the analysis the quantitative and qualitative characteristics of international trade are determined as a prerequisite for the determination of the international legal status of the WTO in the conditions of economic globalisation. The synthesis ensured the formation of characteristic features of the legal status of the WTO as an international organisation. The comparative legal method allowed to identify the common and distinctive features of international organisations in this area, as well as to clarify the defining aspects of the legal personality of the WTO in the modern international legal field. The formal-legal method created the conditions for formulating conclusions on the effectiveness of the implementation of the legal personality of the WTO in the sphere of ensuring the rules of international trade in the conditions of economic globalisation. The purpose of this article is to identify the characteristics of the international legal status of the WTO under the conditions of economic globalisation. The results of the study showed that the international legal status of the WTO in the conditions of economic globalisation is based on the basic principles of legal regulation of international trade and is mediated by the purpose of activity, legal personality, the order of formation and powers of the governing bodies, principles and procedural aspects of the functioning of this organisation. Conclusion. The international legal status of the WTO in the conditions of economic globalisation is considered from the standpoint of a dichotomous approach to this category from the standpoint of economics and law. Economic preconditions for the introduction of international trade rules in the form of GATT, 1947 and WTO research through the analysis of primarily statistical data of the periods 1947-1948 and 2017-2022, reflected in the consolidated information data of the WTO, as well as the study of individual theoretical considerations of scientists. Statistical indicators show clear signs of globalisation of the world economy, which is mediated by international trade operations, as a result of which the creation of transparent mechanisms for the circulation of goods within the framework of trade activities as a kind of existence of the world community through various static and dynamic legal constructions, among which WOT occupies almost the most significant importance along with other international organisations. The above is demonstrated by the example of the impact of COVID-2019 on international trade, the corresponding reaction to which was the revitalisation of trade processes, primarily in the field of pharmaceutical industry products. The above has covered the main principles of international legal regulation of trade relations at the formal and substantive level, which is carried out at the universal international legal, regional international legal and national levels. In connection with the differentiation of the components of the legal personality of the WTO, the definition of international legal capacity is given as the ability of a subject of international activity to acquire appropriate rights for itself by its own actions and to exercise them independently, as well as to create corresponding obligations for itself by its actions, to fulfil them independently and to bear responsibility in case of their non-fulfilment. In terms of the nature of this organisation, its place among other similar international organisations, in particular those operating within the framework of the UN, was invented by the field of activity, where attention is paid to the predominance of the latter in order to maintain international peace and security. The purpose of the activities of the WTO is to create and ensure international, multilateral, open, based on fair competition and other features inherent to trade in modern society, where the quasi-procedural moment, based on the replacement of a number of bilateral and multilateral agreements, is an external manifestation of such activity. It characterises the original and derivative legal instruments of the WTO's operation, defines the socio-economic and legal purpose of its activities, defines the structure and powers of the WTO's governing bodies, and focuses the organisation's legal personality on the procedural aspect of its activities, in particular through the implementation of relevant principles, among which the principle of maximum contribution plays a leading role.

Сurrent International Situation and Opportunities for Financial Cooperation Between Russia and China

The article analyzes in detail the current international situation and possibilities of financial cooperation between Russia and China in the new normal functioning of the world economy. As a result, of the reorientation of Russian foreign trade, the share of the yuan in international trade calculations, domestic and international trade operations of Russia continues to grow. Under these conditions the question of how the Russian economy can get a steady, safe and affordable flow of capital to promote economic structural reforms and optimize the placement of debt currency, as well as how Russian enterprises and financial institutions can get yuan liquidity into their own hands, is becoming an important element of Chinese- Russian financial cooperation in the near future. In the future, Chinese-Russian financial cooperation may continue in the following directions: speedup of the connection of the Chinese payment system CIPS with the Russian SPFS, the creation of an offshore conversion center in yuan in Russia, assistance to the capital management agencies and investment banks of the two countries in conducting preliminary research to enter each other's capital markets, speedup of the construction of a regional currency system through multilateral cooperation mechanisms such as the SCO and BRICS.

A Review of the Book by Pierre A. David, PhD. International Logistics: The Management of International Trade Operations, Sixth Edition

A Review of the Book by Pierre A. David, PhD. International Logistics: The Management of International Trade Operations, Sixth Edition

The Application of Business English in Agricultural Products Trading Enterprises under the Background of Economic Globalization

As economic globalization continues to accelerate, international trade has become an important aspect of agricultural product trading enterprises. To be competitive in the global market, it is essential for these enterprises to possess proficient business English skills. This thesis examines the application of business English in agricultural products trading enterprises in the context of economic globalization. The literature review discusses the importance of business English in international trade, the challenges faced by agricultural products trading enterprises, and the strategies for developing effective business English skills. The empirical research involves a case study of a Chinese agricultural products trading enterprise, analyzing the application of business English in its international trade operations. The results suggest that effective communication in English is essential for success in international trade, and that agricultural products trading enterprises need to develop strong business English skills to remain competitive in the global market.

Priorities and movement vectors for further development of the foreign exchange market of Ukraine

Introduction. Ukraine continues to work on strengthening the role, importance and participation in European integration processes, improving the image of the national currency and stabilizing its exchange rate. In order to continue to be a participant in international trade operations, it is necessary to continue to form an effective foreign exchange market, because its normal functioning is an important component of the further development of the economy of Ukraine. Even under difficult modern conditions, international financial activity remains an important factor that determines the development of the currency market of Ukraine today and affects the ecosystem. Only thanks to external support, it is possible to stabilize and balance the currency market in the country. Purpose. The purpose of this article is an attempt to analyze the current state of the foreign exchange market of Ukraine in order to identify the main priorities and movement vectors for the further development of currency policy, in particular in the field of exchange rate regulation and to determine the main criteria for choosing the most appropriate currency regulation regime at this stage. Methodology. In the process of work, methods of analysis and synthesis, generalization and comparison, and scientific abstraction were used. Results. This article summarizes some analytical data on the peculiarities of the current state of the currency market of Ukraine as a component of international economic relations and the impact of the war on it and a number of negative factors caused by it. The article also highlights a number of problems of both stabilization and development of the foreign exchange market of Ukraine and describes the policy of the National Bank of Ukraine to overcome them and outlines the ways to international cooperation and support as a key aspect of overcoming modern threats in the specified sphere. The article also recommends ways to develop the foreign exchange market and provides certain measures to eliminate existing threats in view of state policy and the work of relevant financial institutions. It also outlines the activities of the mono-regulator in the field of international cooperation with financial institutions and institutions with the aim of establishing support for the world and international financial institutions for the regulation of the foreign exchange market according to all key criteria of its development.

Alternative tools for the valuation of transactions between related parties

The objective of this research work is to analyze the advantages of using the information contained in transfer pricing studies for the valuation of goods at customs in operations agreed by entities with common economic interests, known as related parties.
 The process of estimating the value of goods at customs poses problems for both importers and customs authorities, since establishing a system that is equitable, uniform and neutral for all parties involved is complicated within a context of disparity of interests.
 International trade operations carried out between related parties give rise to quite peculiar situations since they lead to the incorporation of additional considerations into the customs valuation process, since, when carried out by entities that share the same economic interest, the price agreed between they could be artificially manipulated in order to produce an undue benefit to the detriment of the collection of taxes and duties.
 At present, transfer price studies constitute a control element that is very helpful to the tax authority, so that´s why they have been gaining relevance, since it eases the supervision of operations that involve two or more companies that are part of a same business group, in order to verify that their prices adhere to reality and are not simple speculations to achieve economic benefits, without there really being a business reason.
 Although the Transfer Pricing Studies were designed to prevent the erosion of the tax base in the determination of Income Tax, through the qualitative analysis of the various doctrinal positions on customs valuation, it is concluded that the information contained in them, it constitutes a valuable resource in determining prices in foreign trade operations

The Fraud Rules in the Letter of Credit under Jordanian Legal System

Letter of credit (L/C) has a massive role in expanding international trade operations. It is considered the most secure and stable banking service to finance foreign trade operations such as import and export. As an international contract, potential legal issues arise due to fraud practices. In this case, L/C users have to be aware of different approaches followed by domestic courts while dealing with fraud at the international level. This paper aims to identify the fraud means under the fraud rule governing L/C and its impact on Jordan's practice. By applying a qualitative and doctrinal legal approach, this paper analyses the lack of organization of the uniform customs and practice for the letter of credit (UCP No. 600). It also examines, via interviews with Jordanian judges, the perceptions of the Jordanian courts' policy regarding the fraud rule exception in L/C. The finding reveals that to protect the interests of all parties in a letter of credit transaction, Jordanian courts should extend the scope of fraud to cover sale contracts fraud in cases where bona fide holder is involved and when a confirming bank is absent, or when the credit amount has not been paid yet by the issuing bank. In respect of the bank practices, such special provisions implemented to commercial code must be issued due to the lack of legal provisions of the L/C in Jordan legislation.

Analysis of the dynamics of international trade operations in the market of vegetables and fruits in Russia

Relevance. The structure of the food market is represented by various types of products, of which the largest share is taken by the fruit and vegetable sector. In the conditions of a tense political situation in the world and the establishment of barriers in foreign trade, agriculture is a strategically important branch of the Russian economy. Today, the fruit and vegetable sector of the Russian economy does not fully satisfy the needs of the population for vegetables and fruits. This is evidenced by the fact that the domestic market does not provide the population with high-quality vegetables and fruits, creates favorable conditions for filling it with foreign goods, which constitute about 35% of the consumer basket of Russians. All this leads to the need for additional analysis to identify trends in the development of the Russian market for fruits and vegetables and to identify priority areas for its development.Methods. The purpose of the article is to conduct an analysis of the main trends in the development of the Russian fruit and vegetable market, in order to determine the priority areas of its operation. The basis of the study was the statistical data of the customs authorities of the Russian Federation on the import and export of fruits and vegetables, as well as the federal service of state statistics on the volumes of production and consumption of fruits and vegetables in Russia.Results. As a result of the analysis of the state of the fruit and vegetable market in Russia in 2011-2018, carried out in the article. It can be stated that the population is experiencing a shortage of consumption of fruits and vegetables. Over the past eight years, imports exceeded exports in the structure of commodity circulation of fruits and vegetables, which indicates the dependence of the national market on foreign goods. The state of the fruit and vegetable market is influenced by the following factors: the level of development of the logistics infrastructure, material and technical equipment of enterprises, as well as the presence of sanctions and counter sanctions.

Uniformity of Application of the EU Customs Law: Problematic Aspects in the Baltic States

Abstract Research purpose. The EU Customs Law is a significant branch of the EU substantive law. On the basis of the Union Customs Code (UCC; Regulation [EU] No. 952/2013) and the Combined Nomenclature of the European Union (Regulation [EU] No. 2658/87 and its Annexes), it regulates the international trade of the European Union and its Member States with the third countries, in particular the taxation of the international trade operations by applying the customs duties/tariffs. However, after the adoption of the UCC, which imperatively requires all the customs administrations of the EU Member States to work as one, the problem of the uniform application of the EU customs law remains very important. Therefore, the authors analyse the practice of the Baltic States (i.e. Republics of Estonia, Latvia and Lithuania) in this area, based on the case law of the Court of Justice of the European Union (CJEU) in cases involving references to the CJEU by the national courts of different Baltic States. Design/Methodology/Approach. The authors used the thematic analysis method and the method of generalisation of professional (judicial) practice as the basis of the chosen methodology and its design. Therefore, first of all, the authors have selected the judicial cases of the CJEU (in the period from 2010 to 2018) related to a certain theme – customs duties. Second, the authors compared the practice of the CJEU in such cases, which are attributable to the relevant EU Member State in order to identify the problems of uniformity in the application of the EU customs law (specific to the different Baltic States). Finally, by using comparative insights and comparative method, the authors present proposals for the improvement of legal regulation to ensure the compatibility of national rules and practices with the EU law. Findings. During the investigation, the authors established that the problems of the uniform application of the EU customs law in the Baltic States arose in specific areas. Such areas were tariff classification of goods, determination of the origin and value of goods (in the case of Latvia), regulation of customs procedures (in the case of Estonia), customs duties and other import taxes preferences (in the case of Lithuania). At the same time, it was established that the national courts of the Republic of Lithuania were the least active in ensuring co-operation with the CJEU this area, which could have been caused by the improper national legal regulations. Originality/Value/Practical implications. The authors present (after the assessment of the experience of the Baltic States) the proposals for the improvement of both the legal regulations of the EU customs law as well as national legal regulations (in particular – in the Republic of Lithuania) to improve the areas that cause systemic irregularities of the uniform regulation of the international trade regulatory measures of the European Union. Whilst some of the similar studies were completed in the recent years (e.g. Limbach 2015), they do not provide a detailed comparative analysis of the issues that were investigated, specifically considering the situation in the Baltic States.

Settlement Methods of International Trade Disputes in the Pharmaceutical Industry: A Short Legal Empirical Research

The complexity of international trade agreements with pharmaceuticals is evidenced by the dynamics of the multitude of mechanisms and factors involved in contractual relations. The goal of the present research is represented by the analysis of the contractual clauses regarding dispute settlement used by pharmaceutical companies in international trade operations. Our study aims to analyze into details the challenges of settling and managing disputes arising from such agreements and to determine through empirical legal research, which ones are the specific dispute resolution means of such commercial operations. In the first part of the study, our research will target the legal counsels of pharmaceutical companies in order to determine, through the questionnaire method, the preferred dispute resolution practice and the applicable law in the international trade agreements. In the final part of this study, we are going to analyze the contractual clauses that are part of the international trade agreements with pharmaceuticals, with the purpose of validating the questionnaire’s results.

Are the EU Member States Ready for the New Union Customs Code: Emerging Legal Issues On the National Level

AbstractIn 2016, the European Union has launched a new and ambitious project for the future regulation of international trade in the European Union and the rules of its taxation: since the 1 May 2016, the new Union Customs Code (UCC) has entered into force. It revokes the old Community Customs Code (CCC), which was applied since 1992, and passed in the form of EU regulation sets brand-new rules for the application of Common Customs Tariff and calculation of customs duties (tariffs) in all the EU Member States. It is oriented to the creation of the paperless environment for the formalisation of international trade operations (full electronic declaration of customs procedures) and ensuring of a more uniform administration of customs duties in the tax and customs authorities of the Member States in the European Union. Therefore, the article raises and seeks to answer the problematic question whether the Member States of the European Union themselves are ready to implement these ambitious goals and does the actual practice of the Member States support that (considering the practice of the Republic of Lithuania). The research, which is based on the analysis of case law in the Republic of Lithuania (case study of recent tax disputes between the taxpayers and customs authorities that arose immediately before and after the entry into force of the UCC), leads to the conclusion that many problematic areas that may negatively impact the functioning of the new Customs Code remain and must be improved, including an adoption of new legislative solutions.

International Parity Conditions and the Possible Impact on the International Business Operations

There is not only one currency and an exact predictable parity for each currency in the globe. This makes the accomplishment of international business and trade operations complicated owing to the fact that the mandatory usage of strong currencies in international trade. However, business cycles, alternating macroeconomic variables, political conditions and government interventions impact on the value of currencies and international parity conditions. Turkey is at the convergence of Eurasia and serves as a trade route among many regions. It also derives a considerable part of its GDP from international trade operations. However, the variations in the international trade volume, foreign exchange operations and international parity conditions impact on the economic and commercial potential sweepingly. Thus, the objective of this paper is to review the international business and trade potential of the Republic of Turkey with respect to foreign exchange and international parity conditions depending on credible national and international publications.

Huth & Co.’s credit strategies: a global merchant-banker’s risk management, c. 1810-1850

The pivotal role played by non-banking institutions in supporting the expansion of international trade after the Napoleonic Wars and before first globalization c. 1870-1913 has long been recognised. Merchant-bankers in particular played a crucial role by advancing monies to consignors of products all over the world. Without this form of credit, many international trade operations could not have taken place. Despite the important extant literature on merchant-banking, we knew little about how these international lenders protected themselves against the risks involved in advancing during this period, in particular for merchantbankers who had diversified both geographically and by products. This paper is concerned with the risk protection strategies followed by one of these actors: Huth & Co., the first of these companies to globalize their operations. During this expansionary period they provided credit to many of their connections all over the world, thus becoming an important financial intermediary within world trade. This paper, therefore, provides the first account of the credit risk management strategies followed by this pioneer global lender.

TERMOS INTERNACIONAIS DE COMÉRCIO (INCOTERMS): UTILIZAÇÃO DOS TERMOS EXW NAS EXPORTAÇÕES E DDP NAS IMPORTAÇÕES EM OPERAÇÕES NO BRASIL.

The purpose of this research work is to emphasize the importance of international trade terms (INCOTERMS) in international trade operations, focusing on the terms DDP, on imports and EXW, on exports. The problem presented is the difficulty of using these incoterms in the foreign trade operations in Brazil and the existing conflict with the Brazilian legislation and the SISCOMEX rules. The methodology used to perform this research was literature review and exploratory study. It was attested the inappropriateness of Brazilian legislation in order to make it possible the usage of incoterms, DDP (for import operations) and EXW (for export operations) in International Commerce, due to the conflict with the present law and Siscomex customs house procedures.

Internationalization Strategy and Performance of Small and Medium Sized Enterprises

Focusing on the timing and geographical scope of import and export activities of Belgian small and medium sized enterprises (SMEs), the paper analyzes the importance, structural features and performance implications of firms that recently started to export following the geographical configuration of their international trade operations and their year of establishment. The analysis allows us to separate firms that started to export in the period 1998-2005 into four distinct groups: born internationals, i.e. firms which were established less than five years before their first year of exporting and exporting to less than five countries in the same region (regional focus), born globals; young firms but with a more internationally diversified export portfolio, born again globals, i.e. firms similar to born globals but established longer than five years before their first exports and traditional internationalizers, firms established more than five years before their first export operations characterized by a narrow geographical scope of their exports. We find SME export growth to be driven by a small group of born global firms, accounting for 60 per cent of the total increase in SME exports between 1998 and 2005. Analyzing the structural feature of the different types of firms, we find born globals to be more productive and characterized by a higher R&D spending and intangible asset intensity compared to other types of traders. We next test if the typology matters for the observed export performance differences across firms over time. We find that born globals grow faster in terms of export sales, have a stronger commitment to export markets and are more likely to continue exporting. Born globals also have the highest failure rate, traditional internationalizers the lowest. These findings suggest strong risk/return tradeoffs among the strategies chosen by the different types of firms. Performing a dynamic analysis of changes in trade configurations of firms over the observation period, we investigate how these changes have an impact on performance. Specific attention is paid to firms that stop importing/exporting. Especially firms that move from being exporters to become two-way traders, i.e. also starting to import goods from other countries show the most marked increases in turnover and productivity. The final part of the study analyzes the relationship between export and import activities to particular countries following the sequence in which they occur. We find that the probability to start importing from a country is 4 times higher for firms already exporting to that country than for trading SMEs without prior export experience in that country.

Imported Mollusks and Dissemination of Human Enteric Viruses

Imported Mollusks and Dissemination of Human Enteric Viruses

Internationalization Strategy and Performance of Small and Medium Sized Enterprises

Focusing on the timing and geographical scope of import and export activities of Belgian small and medium sized enterprises (SMEs), the paper analyzes the importance, structural features and performance implications of firms that recently started to export following the geographical configuration of their international trade operations and their year of establishment. The analysis allows us to separate firms that started to export in the period 1998-2005 into four distinct groups: born internationals, i.e. firms which were established less than five years before their first year of exporting and exporting to less than five countries in the same region (regional focus), born globals; young firms but with a more internationally diversified export portfolio, born again globals, i.e. firms similar to born globals but established longer than five years before their first exports and traditional internationalizers, firms established more than five years before their first export operations characterized by a narrow geographical scope of their exports. We find SME export growth to be driven by a small group of born global firms, accounting for 60 per cent of the total increase in SME exports between 1998 and 2005. Analyzing the structural feature of the different types of firms, we find born globals to be more productive and characterized by a higher R&D spending and intangible asset intensity compared to other types of traders. We next test if the typology matters for the observed export performance differences across firms over time. We find that born globals grow faster in terms of export sales, have a stronger commitment to export markets and are more likely to continue exporting. Born globals also have the highest failure rate, traditional internationalizers the lowest. These findings suggest strong risk/return tradeoffs among the strategies chosen by the different types of firms. Performing a dynamic analysis of changes in trade configurations of firms over the observation period, we investigate how these changes have an impact on performance. Specific attention is paid to firms that stop importing/exporting. Especially firms that move from being exporters to become two-way traders, i.e. also starting to import goods from other countries show the most marked increases in turnover and productivity. The final part of the study analyzes the relationship between export and import activities to particular countries following the sequence in which they occur. We find that the probability to start importing from a country is 4 times higher for firms already exporting to that country than for trading SMEs without prior export experience in that country.

International Logistics: The Management of International Trade Operations, Second Edition

International Logistics: The Management of International Trade Operations, Second Edition

International Logistics: The Management of International Trade Operations, Second Edition

International Logistics: The Management of International Trade Operations, Second Edition