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Foreign Trade

by Noah Howell

Buying and selling activities that ensure that goods and services produced are delivered to the end users for a fixed price are called trade activities in foreign countries. 

Trade between countries is referred to as “foreign commerce.” Import and export are the two methods used to deliver the goods purchased and sold in international trade. The growth of the country’s economy relies heavily on exports. One of the most important goals for countries should be to increase exports while simultaneously reducing imports. The foreign trade policy is a set of decisions and actions taken by countries in order to achieve these objectives.

Prohibitions, customs duties, trade agreements, subsidies, premiums, and administrative protectionism all affect a state’s foreign trade policy in a significant way. Import, export, and transit are the categories into which prohibitions fall.

The following is a list of terms associated with international trade.

Foreign currencies, checks, policies, letters of credit, money orders, and other assets that can be used in international transactions are all examples of currency. For example, “effective” money is cash that is in your hands, while “currency” is money that can be transferred via bank transfer, payment orders or foreign exchange policies or certificates of deposit and traveler’s checks.

There are numerous ways to say “currency.” Accounts, documents, and instruments that allow for payment in foreign currency, including foreign currency effective, are defined in the Law on the Protection of the Turkish Currency.

Exchanging money or documents that can be used in place of money is known as exchanging. If you’re looking for a way to pay in foreign currency, then you’ll need to use bills of exchange. It includes transactions involving the purchase and sale of cash. However, the bill of exchange, which is the most commonly used form of negotiable paper, has all the features of a negotiable instrument. Special provisions have been made for this in the Turkish Commercial Code due to the fact that it is regulated in writing by the law, based on the fact that it is guaranteed to be paid in terms of the rights it contains, and that has a significant impact on the economic sector.

However, foreign exchange can be defined as the purchase and sale of all kinds of instruments and bills that can be used as money substitutes and payment instruments, if foreign exchange is related to the circulation of national currency and foreign currency.

Laws governing how money and other securities, minerals, and stones are traded in the domestic market and exported or imported from the country are referred to as Foreign Exchange Legislation.

An FOB shipment means that the seller’s obligation to deliver is fulfilled when the goods are transferred to a ship at the designated port of shipment.

If the seller is responsible for providing marine insurance to cover the risk of loss or damage to the goods while they are in transit, then CIF (Cost, Insurance, and Freight) is used.

All countries in the international money markets accept convertible currencies, which means they can be freely exchanged for the currency of another country.

In order to buy export prices and bank commissions requested by the exporter’s bank, a Foreign Currency Purchase Document (DAB) must be drawn up.

Export fees, broker commissions, correspondent branch commissions, etc. are included in the Foreign Exchange Sales Certificate (DSB). The document is required.

All natural or legal persons in the country or abroad may open a foreign currency deposit account (DTH) in a foreign currency bank or private financial institution, which is open to all persons. Money in these accounts can be used without restriction.

Customs is the department responsible for monitoring and controlling commercial traffic entering and leaving a country. As a result, it serves as a hub for all things related to clearing customs when travelling abroad or returning home. Businesses that conduct international trade transactions must pay close attention to the following sections of customs procedures.

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