International Business Basics

What is a Multinational Corporation (MNC)?

A multinational corporation may be defined company that operates in more than one country. According to the United Commission, Multinational Corporations or Global Corporation is a corporation, which operates in addition to the addition in which; it is incorporated, in one or more other, countries. Such a corporation owns and controls, business in two or more countries.

In the words of W H Moreland, “Multinational Corporations or Companies are those enterprises whose management, ownership and controls are spread in more than one foreign country”.

In common usage, multinational corporations are also called global corporations and international corporations. While in general these terms may be used interchangeably, there are actually subtle differences between them.… Read the rest

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Import Process

Importing refers to the purchase of foreign products for use or sale in the home market. Importing involves searching foreign markets for acceptable products and sources of supply, providing for transfer of the product to the home market, arranging financing, negotiating the import documentation and customers procedure, and developing plans for use or for resale of the item of service. Thus, successful importing depends on more than good buying; it requires planning for acceptance of the product and delivery of the promised benefits. The importing firm has the responsibility to determine whether the foreign product or service will meet the needs to the home market.… Read the rest

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Export Packing List

The export packing list, which may be shown on the commercial invoice or separately, should contain item by item, the contents of cases or containers or of a shipment’s cases, with each item listed separately and with its weight and description set forth in such a manner as to permit a check of the contents by the customs on arrival at the port of destination as well as by the importer. The export packing list must be made in accordance with the instructions of the customer. Great care should be exercised to make certain that the contents of the packages are exactly as indicated in the export packing list.… Read the rest

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Concept of Export Packing

The aim of every exporter must be to ensure that the goods arrive safely in the hands of the consumer. The fact that the goods are fully insured is in excuse for not bothering to check whether damage or pilferage occurs during the transit. Whilst the payment of the insurance claim may satisfy the buyer financially, it will not satisfy him mentally. The buyer orders the goods because he can sell them, before the vessel arrives. If he receives only a part of what he has handed in a salable condition, he will probably lose the goodwill of his customers and, in consequences, will blame the exporter.… Read the rest

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Marine Insurance Claims

Under an ordinary marine insurance cover, if the goods have been damaged or pilfered or lost, the buyer report the fact immediately to his local agents or the local branch of the marine insurance company or to the firm of insurance assessors. They examine the goods and certify the extent of the loss. The buyer then works out his claim on the basis of the proportion which the damaged goods bear to the whole consignment.

If the goods have been invoiced on F.O.B (Freight On Board) value plus the cost of marine freight, insurance, and shipping charges, the buyer is entitled to claim a proportion of such charges.… Read the rest

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Marine Insurance

Marine insurance is a contract of indemnity whereby the assurer or underwriter agrees, for a stated consideration, known as the premium, to protect and indemnify the shipper and/or owner of the goods against loss, damage, or expense in connection with the goods at risk, if the damage is caused by perils specified in the contract known as the policy of insurance.

When the goods have left the shipper’s plant or warehouse and are in the course of transportation, shipper has no physical means for the protection of these goods and must rely upon the ability of the transportation company to which he entrusts them for safe delivery at their intended destination.… Read the rest

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