The information provided here is part of Export Import Training course online
What are the factors influencing price of goods under Exports in International Market?
In this article, I am going to explain about the situations influencing price of goods under international market. We will also discuss the causes influencing price of goods and its solutions in export import business.
Now let us discuss the factors influencing price of goods under export and import business. What are the reasons behind fluctuations of cost of goods in an international trade? How can we solve such fluctuations in import export business of international trade?
Changes in Import Duty and creation of tariff barriers disturb even an established market. For example, you have planed to import certain goods by calculating import duty with delivery charges to a location. However when final import takes place, the import duty has been revised and is attracted more than previous. Some of the multinational companies open manufacturing facilities in the importing countries to overcome these problems.
Exchange rate variation is another factor influencing price of goods under international trade. Changes in home currency of foreign currency affects the price realization. If the home currency is devalued, the competitive capacity of the exporter is enhanced. If the foreign currency is depreciated, there is a considerable reduction in the exporter’s competitive strength. I have written a detailed article about Exchange rate fluctuation in this website. You may kindly read the same to have more information about the fluctuation of exchange rates and its impact in international business.
Fluctuation of fuel price in international market reflects the whole world in hiking prices, in turn it affects international market also.
Changes in Transport Costs constitute, generally, a major part of the invoice value and so any change in transport costs affects the competitive edge of the exporter. When hiking prices of fuel abnormally, the direct cost hike is reflected on transportation every where in turn in international transportation. Change in transport costs does not affect FOB prices. There is no problem even in CIF contracts, which have escalating clause in respect of transport costs. Exporters have to worry in case of CIF contracts that are not provided with escalation clause.
Change in Foreign Market Characteristics also influence price changes in international business. A good example for this is change in style of product soon after shipment of goods in particular, when the shipment is made without letter of credit. The international market for Readymade garments suffer greatly from this problem, when the fashion and style of international market changes.
In this article I have explained about the factors influencing price of goods under export and import business and reasons behind fluctuations of cost of goods in an import export business. We have also discussed the solutions in import export trade on influence of price goods. If you would like to add more information about the factors influencing price of goods under international trade, you can comment below. I request you to share your experience in handling and resolving situations under the factors influenced in price of goods under import export business.
Also Read:
Commercial risks and solutions under Export Business
Political risks in International Trade
Risks arising out of foreign laws in Import Export Business
Cargo risks under Imports and Exports
Types of Policies to cover credit risks in Import Export Trade
Credit risks and solutions under International Business
Foreign exchange fluctuations risks and solutions in import export Business
How to overcome the credit risk in an export business?
Does exchange rate of currency effect export business?
Marine Insurance policies
Risks and solutions in Export Business
Types of export containers
Measurement of export containers
Export Import Policy of India 2015-20
MEIS, Merchandise Exports from India Scheme
SEIS, Service Exports from India Scheme
Merge your Commercial Invoice and Packing List for all your future exports
Export procedures and documentation
Comment below your thoughts about this article - The factors influencing price of goods under Exports in International Market.
The above information is a part of Import Export Training course online
Posts about export import online training
How to start Export Business?
How to get Export Orders?
What are the risks and solutions in Export Business?
How to overcome negative thinking in Exports Business?
How to send samples?
How to prepare Export Invoice?
How to get certificate of origin?
How does letter of credit work?
What are the terms of Payment in Export Import Trade?
Terms of Delivery in International Business
How to settle dispute in Exports and Imports?
Central Excise Procedures under Exports in India
How to get RCMC?,What are the legal documents in Exports?
Why does Documentation require in Exports and Imports?
Difference between Demurrage and Detention in import
Difference between Proforma Invoice and Commercial Invoice
How to protect Buyer and Seller in Triangular Exports and Imports?
How does High Sea Sales work in Exports and Imports