Inglés Profesora L. Méndez

Economics Basics: What Is Economics? By Reem Heakal In order to begin our discussion of economics, we first need to understand (1) the concept of scarcity and (2) the two branches of study within economics: microeconomics and macroeconomics . 1. Scarcity Scarcity, a concept we already implicitly discussed in the introduction to this tutorial, refers to the tension between our limited resources and our unlimited wants and needs. For an individual, resources include time, money and skill. For a country, limited resources include natural resources, capital, labor force and technology. Because all of our resources are limited in comparison to all of our wants and needs, individuals and nations have to make decisions regarding what goods and services they can buy and which ones they must forgo. For example, if you choose to buy one DVD as opposed to two video tapes, you must give up owning a second movie of inferior technology in exchange for the higher quality of the one DVD. ...

Other Possible Benefits of Trading Globally International trade not only results in increased efficiency but also allows countries to participate in a global economy, encouraging the opportunity of foreign direct investment (FDI), which is the amount of money that individuals invest into foreign companies and other assets. In theory, economies can therefore grow more efficiently and can more easily become competitive economic participants. For the receiving government, FDI is a means by which foreign currency and expertise can enter the country. These raise employment levels, and, theoretically, lead to a growth in the gross domestic product . For the investor, FDI offers company expansion and growth, which means higher revenues . SEE: The Importance Of Inflation And GDP . Free Trade Vs. Protectionism As with other theories, there are opposing views. International trade has two contrasting views regarding the level of control placed on trade: free trade and protectionism . F...

What Is International Trade? By Reem Heakal AAA |  If you walk into a supermarket and are able to buy South American bananas, Brazilian coffee and a bottle of South African wine, you are experiencing the effects of international trade. International trade allows us to expand our markets for both goods and services that otherwise may not have been available to us. It is the reason why you can pick between a Japanese, German or American car. As a result of international trade, the market contains greater competition and therefore more competitive prices, which brings a cheaper product home to the consumer. What Is International Trade? International trade is the exchange of goods and services between countries. This type of trade gives rise to a world economy, in which prices, or supply and demand , affect and are affected by global events. Political change in Asia, for example, could result in an increase in the cost of labor, thereby increasing the manufacturing cost...

IMPORTING Take a look at the household items and equipment you have in your home. Made in West Germany; made in Japan; made in Korea. You may have clothing from India, shoes from Brazil, a leather wallet from Italy. Your car may be an import; your stereo equipment may be manufactured elsewhere. There are hundreds and hundreds of items manufactured all over the world, now being used by the American consumer. The market is huge. And there are many American firms looking for foreign-made merchandise to distribute. Some items are less expensive; some are better made; some are imported because they are made in a country now fashionable with the designers. What can you tap into? Maybe you have contacts in the United States, distributors looking for certain goods. And you've already made contacts in the foreign countries that produce these goods. Follow through and get yourself an exclusive distribution agreement with those manu...

THE FREIGHT FORWARDER A   freight forwarder   is a person who takes care of the important steps of shipping the merchandise. This person quotes shipping rates, provides routing information, and books cargo space. Freight forwarders prepare documentation, contract shipping insurance, route cargo with the lowest customs charges, and arrange storage. They are valuable to you as an import/export agent, and they are important in handling the steps from factory to final destination. They can be found by looking in the yellow pages or by personal referrals. Find someone who can do a good job for you. You'll need someone who you can work with, since this may become a long-term business relationship You'll need the help of a freight forwarder when you make up the total price quotation to the distributor. Not only do you include the manufacturer's price and your commission - usually added together, but you need to include...

MAKING AN AGREEMENT Once you have agreed to represent the manufacturer as the export agent, you need to have a written and signed contract to bind this agreement. Your attorney should be the one to draw up this contract - later you can just use the same one, substituting names of other manufacturers. Basically, the contract is between the manufacturer and you as the export representative. You are granted exclusive rights to distribute goods to all countries except those they already distribute in. The manufacturer will pay you the specific commission quoted to the distributors on top of the price of goods. The company will also provide catalogs and samples for your use in distribution. You, the export representative, in turn will promise to do everything possible to make contacts and distribute the manufacturer's goods in foreign territories. The terms of the contract should then be stated: how many years the contract...