Question

Explain significance of trade settlement in international business

Answer 1

Litigations and Arbitration in Export and Import Business. 

I hope this article helps all traders in a business especially those who are in to Import Export business - how to handle disputes in import and export trade?

I sell goods to you, you buy them, you pay bill, you use my goods. Simple. Both are happy. Right? But is it that much simple in an international trade? I will say ‘YES’ depends up on how fast you are untying the knot. In other words, I will say, ‘Removing hindrances with least time and least money is business’ . Am I right?

Let me discuss firstly about causes for disputes under export import business. What are the reasons for Disputes in international business?

Reasons for disputes in international trade between exporter and importer can be many. 
 

As per my experience in import export trade for the past 25 years, the primary reason for disputes is quality of the goods exported. Under contractual terms in many export contracts, importer gets the opportunity to inspect the quality of goods only when the consignment reaches him. In many cases, by that time, the exporter would have got money. Even if the consignment is sent on collection basis, importer can check the quality only after retiring the documents. Other reasons for the disputes can be delayed shipment or non-shipment due to change in government regulations or market conditions, restricting exports, etc.

 

Answer 2

Trade settlement is where the organization has fully settled in terms of its manpower, location and contains all the basic documents needed as per the government policy of any given Government, the trade is considered to have settled if it meets all the required standards of both the Government and the business itself for a successful ending.