The factors influencing price of goods under Exports in International Market


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What are the factors influencing price of goods under Exports in International Market?

risks and solutions in import and export businessIn 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


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The above information is a part of Import Export Training course online

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Pankaj Pandya : We are export EOU zone please give me which type of document require for export obligation purpose we have purchase raw materail again advance licenase please give me advice

Admin: Hi Nankaj Pandya, EOU/EPZ has their own arrangements to complete duty obligations by executing a general bond (B16). Please consultant an expert for more details.

suresh nair : I am the auditor of a company in Vasai,Mumbai.They now want to export from Cochin port as goods had gone to Kerala for a job work so instead of returning it back to Mumbai we like to export from Cochin port itself.Is it possible and if yes what are the formalities. Need your urgent assistance and hope you wont mind.

Admin: Hello Suresh Nair, You can export directly from Cochin subjected to port registration with AD code in Customs Department at Cochin as per present Indian customs regulations.

P.Sathyanarayanan: We are an Exporters from Hosur, Tamilnadu.We would like to export Onion, Potato, Coconut, Dry Red Chilli, Vegetables, Rice, Made Ups etc.,We hereby attached our company profile for your kind referenceCan you please help us for getting export orders

Sachin: Our supplier in India has imported few pounds value of tools from UK but unfortunately, exporter (UK supplier) has made a note on invoice saying that "No Commercial Value" where as the invoice value in 700 GBP. The goods are under custom clearance. Once received by Indian supplier, how can he pay this invoice if "No Commercial Value" is written on the invoice. We want Indian supplier to pay to UK supplier. Please advice

Admin: Hi Sachin, The customs department has option to assess value by physical inspection of cargo thereby determine duty amount

hemanta saikia : I am from Assam, where arround 90% of India's Muga{Golden) Silk is produced along with high quality Paat(Mulberry) Silk. I recently have come to know about the tremendous international demand for these kind of silks, specially in Japan for Muga Silk. I have completed all formalities required for an Export firm and i am having a well sustainable supply chain and want to start an export business with these two products. Since i am very new to this field hence seeking your kind guidence in below mentioed points. 1. What is the possible international markets for these products. 2.How would i find international customers. 3. In what form (e.g Yarn, Gabric etc.) Muga & Paat Silk is having international demand. 4.How profitable this business is.

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