International Trade and Contracts of Sale



International Trade and Contracts of Sale

Introduction

International trade involves the study of trade in goods and services between nations. The globalization process that integrates the world in the economic, political and cultural life has been a favorable environment for the expansion of international trade, with increasing participation of the different economies and economic actors in the global market. Thus, the world becomes the object of study of international trade professionals. Trade between nations has implications for decisions of the different actors involved in it, as the state that in order to achieve economic development and welfare of the population, an economic policy designed in the field of trade, exchange, fiscal, monetary and other, so the theoretical aspects which justify the exchange between nations and the design of trade policy become the basic foundation that guides the study of International Trade. The exchange of goods and services also includes time generated flows of capital and payment mechanisms in international transactions inherent in an international financial system. It also involves decisions on issues of international marketing, product positioning, market penetration strategies, and analysis of physical distribution and logistics decisions that integrate the entire supply chain business level.

In this essay, we will be discussing the role of buyers and sellers in international trade, who choose to allocate the rights and responsibilities between them by adopting one of the recognized standard form contracts of sale. For this purpose, we will be selecting three such contact types in order to analyze the distribution of rights and responsibilities between parties in international trade.

Discussion

Traditionally trade was regulated through bilateral agreements between two countries. With the belief in mercantilism for many centuries, the countries used to impose high tariffs and other critical restrictions on international trade. In the nineteenth century, especially in Great Britain, the belief in free trade took place, and this perspective has come to dominate the political calculus among Western countries until today. Since the end of World War II, several multilateral treaties have attempted to create a global structure of trade regulation.

Most of the countries communists and socialists believe in autarky, which implies the entire absence of international trade and budgetary needs are met through self-sufficiency. Despite these beliefs, all countries are involved in some international trade, as it is very difficult for one country to satisfy all their financial needs. Different contracts and agreements have been seen in this context. Out of such agreements, contract of sale is one that is explained in detail below:

The International Contract of Sale is an onerous contract that relates to the transfer of ownership of a movable or immovable product, against payment of the agreed price. The international contract of sale (referred to "consumer goods") does not necessarily require the written form for its validity, although it is preferable to cases where the execution of the contract or its rules continue to apply in time, i.e., in stipulated conditions.

In general and unless otherwise provided, the principal responsibilities of the seller are discussed below:

Seller ...