God created the earth with all resources for the use of us and our descendants after us throughout our generation. Each and everything of our use has come from the earth, however we divide among ourselves into different nation and the resources also scattered according to the division. The distribution of natural resources around the world is not uniform; some nations possess natural ores and chemical deposits in excess of their own requirements while other nations have not so. Some agro products will grow only in certain climatic condition which may of great demand in other nation of different climatic condition. Likewise developed countries with advanced technology manufacture sophisticated goods which have good demand in developing countries and certain developing countries posses' cheap labour to manufacture certain products which may find good market in the developed countries. That is the reason nations began to trade each other. For a country, excess of exports over import is favourable which is called ‘trade surplus’ and an excess of imports over exports is unfavourable balance of trade which is called ‘trade deficit’, however whether a trade deficit is bad thing or not is relative to the business cycle and economy of a country.
A seller may sell his goods to the buyer on different payment terms as against cash on delivery, Letter of Credit, Bill of Exchange etc., and on a different Sale terms as fob, cfr etc., i.e. Whatever goods are sold from seller to buyer should be moved either by truck, train, air or ship to be delivered to the buyer and whose responsibility of the carriage of goods . In the case of fob (free on board) sales term, the responsibility of carriage of goods is with the Buyer and for cfr (Cost and Freight)the responsibility of carriage of goods is with the Seller.
A seller may also be the shipper of the goods or perhaps a separate party altogether whilst, similarly a buyer or consignee may or may not be the receiver at the port(s) of discharge, shippers and receivers are perhaps employed in a separate capacity by the sellers or buyers to act on their behalf in the handling and storage of the commodities concerned.
Sugar and grain traders are large enough to employ their own transportation experts called ship brokers, and whereas retailers who deal with small quantity such as garments, apparels, footwear etc., employ their own freight forwarders for the transportation of their goods. Certain small quantity with highvalue commodites preferred by certain trade terms lifted by air and certain commodites in large quantity require sea transportation.
This chapter gives complete details about, how to start a new company, export, import procedure, payment term, sales term, air & sea transporataion, customs clearance, documentation In this chapter, business, trading , commercial and computer laungage terminology are given for the beginners to get familiarisation of the terms used in business.