Pages: 9

No chapter abstract available.

Pages: 7

This opening chapter explains why international trade matters for us all, tracing the transformative shifts that have shaped the contemporary landscape of global commerce. It examines the multifaceted impacts of globalisation, highlighting the deep interconnections that bind economies across borders and the challenges and opportunities arising from this interconnectedness. Drawing on updated facts and figures, the chapter provides a panoramic view of the magnitude, scope, and sectoral composition of international trade. It also introduces the structure of the book, which combines perspectives from business, economics, and law to provide a comprehensive understanding of global trade. Part 2 explores trade from the firm’s perspective, with a focus on internationalisation strategies and global value chains (GVCs). Part 3 examines the significance of trade for national economies, including theoretical foundations, policies, and measures. Part 4 turns to the legal dimension, covering Incoterms, customs formalities, contracts, and dispute resolution. Finally, Part 5 considers the role of trade in advancing sustainability, emphasising its potential to foster equitable and inclusive growth.

Pages: 35

No chapter abstract available.

Pages: 10

This chapter explores the international trade ecosystem, explaining its key players and their roles in shaping global commerce. At the international level, institutions like WTO, United Nations Conference on Trade and Development (UNCTAD), WCO, as well as regional trade blocs play important roles in their regulatory and collaborative functions. Nationally, governments, trade promotion organisations, trade associations, and investment promotion bodies play crucial roles in facilitating and regulating trade. Meanwhile, the private sector, encompassing carriers, banks, freight forwarders, exporters, importers, distributors, and logistics companies, forms the operational backbone. Understanding the synergies and interdependencies within these tiers is essential for comprehending the intricate dynamics that underpin the global trade landscape.

Pages: 12

In today’s highly interconnected global economy, internationalisation has evolved from being a strategic option to a strategic necessity for firms aiming to achieve long-term, sustainable growth. By expanding beyond domestic borders, firms can access larger and more diverse markets, increase their revenue potential, and strengthen their global brand presence. Internationalisation also creates opportunities for cost optimisation, such as leveraging lower production costs, accessing specialised talent, and achieving economies of scale, while providing avenues for risk diversification across multiple markets. This chapter introduces the concept of internationalisation strategy and explains why it matters for firms. It explores the key rationales behind international expansion and the strategic benefits it can deliver. The chapter also addresses the critical decision-making questions firms must consider when entering foreign markets. Finally, it examines the various modes of international market entry, outlining their advantages, disadvantages, and suitability for different strategic objectives and resource capabilities.

Pages: 11

This chapter explores the key challenges associated with internationalisation, with a focus on identifying and managing the wide range of risks that firms face when expanding into global markets. It touches on macro-level risks, such as political, economic, legal, technological, and environmental risks, and micro-level risks, including business, operational, and financial risks. The chapter emphasises the interconnected nature of these risks, demonstrating how systemic events can escalate into firm-specific crises. It also examines commonly adopted risk mitigation strategies, offering practical insights into how firms can enhance resilience amid rising global uncertainties.

Pages: 34

No chapter abstract available.

Pages: 8

This chapter highlights the importance of international trade as a vital pillar of economic growth, job creation, and competitiveness, shaping the economic development of nations worldwide. It explores the interplay between international trade and GDP and examines the concept of trade openness as an indicator of a country’s integration into the global economy. The chapter also provides key figures and insights into the structure of global trade, including major traded products, trade values, and the dominant players shaping international trade flows.

Pages: 10

This chapter traces the evolution of international trade thought, from mercantilism and its focus on national surplus, through classical economic theories that introduced principles such as absolute and comparative advantage, to modern frameworks that account for economies of scale, strategic trade, and competitive advantage. These theoretical contributions have formed international trade ideologies and have significantly influenced international trade policies and regulatory frameworks, shaping how governments and firms navigate the global trading system today.

Pages: 14

This chapter delves into the rationale behind international trade policies, applications of international trade measures, and their impacts on global trade. It explores the common international trade instruments employed by governments. On the one hand, the government can apply measures to restrict international trade, such as tariffs, quotas, tariff rate quotas, voluntary export restraints, subsidies, local content requirements, administrative policies, and anti-dumping measures. On the other hand, the government can also give preference to international trade by applying regional economic integration and various types of preferential trade agreements.

Pages: 47

No chapter abstract available.

Pages: 10

This chapter is dedicated to comprehending the applications of Incoterms in international trade, addressing their significance and operational mechanics in defining responsibilities and risks for exporters and importers. The obligations of buyers and sellers under the 11 Incoterms of the latest version, Incoterms 2020, will be explained in detail. These include the seven terms applicable to any mode of transport, namely EXW, FCA, CPT, CIP, DAP, DPU, and DDP, and the four terms specific to sea and inland waterway transport, namely FAS, FOB, CFR, and CIF. Each term will be analysed to show how it defines the point of delivery, cost allocation, and the transfer of risk from the seller to the buyer.

Pages: 17

This chapter delves into the process of export–import customs formalities, emphasising their crucial role in ensuring compliance with both national regulations and international trade obligations. Customs procedures serve as a gatekeeping mechanism for the lawful movement of goods across borders, safeguarding economic interests, security, and public health while facilitating legitimate trade. It also introduces the globally standardised classification system maintained by the WCO, known as the HS, which provides a universal framework for identifying goods in international commerce, enabling accurate tariff determination, trade statistics compilation, and the enforcement of trade policies. In addition, this chapter outlines the essential documents required for the customs formalities process.

Pages: 18

This chapter provides a detailed examination of key contracts in international trade. It outlines the obligations between a buyer and a seller within a sales contract, offering a valuable checklist for negotiation and contract finalisation. The discourse extends to the obligations between a shipper and a carrier under a carriage contract; the obligations between an assured and an insurer within a cargo insurance contract; and the obligations between a bank and a beneficiary under a L/C contract. Lastly, the chapter goes further to discuss the mechanisms for resolving international trade disputes.

Pages: 14

No chapter abstract available.

Pages: 12

International trade has long been recognised as a driver of economic growth and global integration, but in the twenty-first century, it faces growing scrutiny for its social and environmental costs. This concluding chapter examines the ways in which trade can evolve from a mechanism of profit and efficiency into a transformative force for sustainable development. It explores the dual role of voluntary sustainability initiatives and binding legal frameworks in reshaping global commerce. Voluntary measures, such as Fairtrade certification, corporate social responsibility programmes, and eco-labels, have become de facto requirements in many industries, reflecting consumer, investor, and civil society demands for ethical and environmentally responsible practices. At the same time, regulatory instruments, including carbon pricing, supply chain due diligence laws, and deforestation regulations, embed sustainability into trade governance, ensuring enforceable minimum standards. Together, these mechanisms highlight a global shift towards aligning trade with broader societal goals. The chapter argues that international trade, when responsibly managed and properly governed, can become a catalyst for inclusive growth, social justice, and environmental stewardship, contributing to a fairer and more resilient global economy.