Considering that this book is for users who might Aimed have only a basic idea of ??trade, it does not cover Indian regulations associated with trade in great detail, but looks at various restrictions such as cap on pricing, etc. that are mandated by RBI on various transactions. Operational aspects of import and export transactions, such as time limits mandated by RBI for completion of transactions, operational guidelines, etc. have been left for an advanced version, Which is planned to be brought out soon.
I would love feedback on the contents, and suggestions on how to make this more useful. Product Description
What is trade?
Most of us know the answer to this question, or at least have, an idea of ??the same. But why do people trade, and why do countries trade, more importantly, why does trade often cross geographical boundaries?
There are risks and rewards associated with conducting trade across borders. The rewards usually outweigh the risks, but if you do not understand the associated risks and are not mindful of how you mitigate them, they could probably weigh down your transaction significantly. At worst, a transaction gone wrong could even bankrupt your business.
Again, once you get into the world of trade, the language can pretty much sound like Greek. As a Corporate Banking RM, you could be at sea when the client asks you Whether your bank handles DP / DA documents, or documents collection. Or as a first time importer wishing to open an LC, you could be stumped for words when your bank asks you what you and your supplier incoterms have agreed upon! Or, as a risk manager trying to approve a proposal for LC facility, you would wish to know what risks accepting a charter party bill of lading might pose for the bank
Understanding trade is even more important if you are a party in India, considering the regulatory restrictions and requirements associated with it. This book is an attempt to decrypt the world of international trade and the associated language – DP / DA, Collections, LCs, Incoterms, trade credits, etc. This is not a “be all” for anything associated with trade. This is like a “beginner’s guide” Aimed at students of International Trade, first-time exporters / importers, management students, corporate banking relationship managers, etc. This is so
intended for anyone who wishes to understand trade in general. How a collection transaction takes place, who is a collecting banker, what is the significance of expiry date in the LC, who or what is an applicant, what does an advising bank do; what is a packing credit, etc.