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EFFORTS TO IMPROVE COMPETITIVENESS IN INTERNATIONAL
MARKETS IN THE ERA OF GLOBALIZATION
Introduction
Trade or exchange is an exchange process based on the voluntary will of each party to
the transaction so that there is no coercion or threat from any party. Each party must have
the freedom to determine the advantages or disadvantages for their interests and each party
determines whether to carry out the exchange or not.
Trade with other countries because there is a profit motive to be obtained, buy goods
and services from foreign countries because they can buy at a cheaper price, better quality,
meet consumer tastes or cannot be produced in their country and various other economic
considerations. Selling to other countries, for example, because they can sell at a higher
price or sell goods that cannot be produced in other countries. By selling products to other
countries, there are benefits from expanding the market and increasing the productivity of
the company.
Differences in product or commodity prices are determined by differences in
production costs, a country can be efficient in the process of producing a product or
commodity so that it can compete in the global market. Therefore, the types of goods
produced by The difference in costs is due to differences in the number, type, quality, and
ways of combining factors of production in the production process. This difference causes
trade between countries.
Differences in the cost of production are not the only thing that causes trade between
countries, but there are still many factors that affect it, for example, differences in income
and tastes.
Currently, trade between countries is faced with various challenges, especially the
very dynamic developments in international trade relations. The role of the WTO in
upholding the multilateral trading system will lead to an increasingly fierce level of
competition in the global market.
The origin of goods is becoming blurred as production becomes more complex with
multiple sources from different countries, and with the rise of globalized production
systems, industrial resources may come from two or more countries and are combined into
intermediate goods that can be used for domestic consumption or export.
The development of product competitiveness in a country is the transformation of
comparative advantages of relatively strong supporting factors into productive and
competitive competitive advantages influenced by relatively strong supporting factors.
Product competitive advantage efforts by creating product advantages over time through
product differentiation - products with efficient production scale.
Michael E Porter states that the success of a country to increase the competitive
advantage of an industrial product is strongly influenced by four main interrelated factors,
namely the position of production factors such as experts or the necessary infrastructure, the
nature and conditions of domestic demand for goods and services produced, the relationship
between domestic industries that can support the supply of competitive goods/services,
national policies that are integrated in business strategies and the development of industrial
structures and competitive conditions that exist in the country.
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
International Organizations In Globalization
In 1990, the term globalization was unfamiliar, but ten years later it appears in every
conversation. Globalization can be understood as a name "covering all places in the world".
Efforts to liberalize trade can be made through international and regional approaches.
International approaches such as what is done in the WTO, which aims to reduce both tariff
and non-tariff barriers.
Multilateral treaties as an international agreement involving three or more
participating countries, usually multilateral treaties contain mutual agreements on the
commencement and expiration of an agreement, and specific matters detailed in the
agreement. For countries that want to bind an agreement with one of the countries bound by
a multilateral agreement, the agreement automatically applies to that country.
Regional agreements are agreements between several countries in a particular
economic region or region, usually making agreements to cooperate in the political,
economic, social, cultural and defense fields. Regional means an area (country or region)
with a certain geographical scope that influences and has a relationship with each other.
The regional approach involves cooperation between several countries with the aim of
conducting free trade among member countries, but still imposing barriers on non-member
countries (those that do not join regional agreements). Forms of cooperation include FTAs,
common markets and Customs Unions.
FTA is a certain area consisting of two or more countries where the countries together
make an agreement that aims to eliminate barriers both tariff and non-tariff, especially in
their own territory.
FTA member countries do not uniformly determine economic policies and tariffs on
goods entering from non-member countries.
Customs Union
Custom unions contain elements of free trade as well as a greater element of
protection, member states add a common external tariff to the FTA form while member
states have eliminated tariffs among themselves.
Shared Market
Common markets are customs unions coupled with the removal of restrictions on the
mobility of capital and labor between member countries.
Full Economic Integration
It is a form of economic integration with a high degree of political integration as
member states give up important elements of sovereignty. It includes the replacement of
member currencies with a single currency.
European Single Market
The European Single Market, aims to create a market in which ME industries can
compete on a level playing field. The European single market will be a complete market,
where goods will circulate freely under competitive conditions without distortion for
individuals and companies regardless of where they are located in the ME. This can be
achieved by removing all artificial barriers to trade between member states.
When the ME was established in 1957 with only six member states, there were
various obstacles that hindered the process of establishing a single common market,
concerning import duties, import-export quotas, immigration controls on population
movements, monetary controls on financial flows between member states and restrictions on
company incorporation. The Pact of Rome has included the foundations for legislation
intended to remove such obstacles.
The European Customs Union (Community Customs Union) was soon established, all
import duties and quantitative restrictions as well as all fees and other rules that had a
similar effect on imports and exports between member states were abolished. In their place a
Common Customs Tariff was created, whereby all imported goods from non-member
countries are subject to the same level of tariffs and duties.
Although the ME is a Custom Union that has a Common Custom Tariff and Common
commercial policy, but in reality until now the application of the common customs regime
has not been fully implemented. Therefore, the ME is still moving towards the
standardization of customs procedures in its 12 member countries.
Imports in the ME require not only the provisions of the ME and its procedures, but
also the national laws of the countries concerned which are still in force and differ from one
member state to another. Both sets of provisions are applied at the point of entry. Imports in
the ME consist of two separate levels of procedure: declaring goods and clearing customs.
Once both levels have been completed, the imported goods only have to fulfill the transit
procedure in ME.
In the case of goods entering the ME, the importer or the individual responsible for the
goods must apply to the customs authorities and make a Summary Declaration. In certain
cases it may be the case that an importer imports for the German market through France and
then on to Germany.
Customs settlement is carried out by the customs authorities in the member state
where the goods are imported who are responsible for determining the exact value of the
goods for the purposes of duty assessment. The process of valuation involves 3 steps,
namely classifying goods, valuing goods and determination and payment of duties.
In Classification of Goods all ME members have a standard format for classifying
imports into the EEC called the Combined Nomenclature which is administered by the
Customs Coorperation Council (CCC) based on the Harmonized Tariff System (HTS)
Nomenclature. Goods are classified by the respective national customs authorities following
the guidelines of the HTS.
Export And Import Business
Companies that will start exporting usually start from looking for buyers abroad.
There are several ways to find buyers abroad, namely; by participating in trade fairs both
domestically and abroad, participation in trade missions, through embassy offices abroad,
namely the trade attaché and ITPC (Indonesia Trade Promotion Center) or representatives
of foreign countries in the country, through the Department of Industry and Trade, through
the Department of Industry and Trade at the provincial and district / city levels. After
obtaining the names and addresses of prospective buyers abroad, correspondence can be
conducted either by mail or electronic media.
Combinations of factors of production open up export trade, which is linked to their
comparative advantage.
Trading entities (traders) can carry out export activities through the collection of
products made by small industries and household-scale industries that have not been able to
export in terms of management, through direct purchase patterns or business partnerships.
Ira's business entity exports because of its administrative capabilities and market access
abroad, sometimes the trading business entity has representatives abroad.
Import is the activity of entering goods into the customs area, namely an area of the
Republic of Indonesia which includes land, waters and airspace above it as well as certain
places in the Exclusive Economic Zone and continental shelf in which Law number 10 of
1995 concerning Customs applies.
The import policy implemented in Indonesia refers to Law No. 7 of 1994 on the
Ratification of the Agreement on the Establishment of the World Trade Organization
(WTO), which contains guidelines that must be obeyed by each WTO member country.
Imports can be carried out by companies that already have an Import Identification
Number (API). API consists of General API (AP1-U) which is given to trading companies,
the owner of API-U can import goods for the purpose of trading and the type of goods that
can be imported are goods that are not regulated by the import trade system. API Producer
(API-P) is given to industrial companies outside PMA /MDN, API-P can only be used to
import certain goods for the purposes of the production process of the API-P owner
company.
Export and import trade is trade using documents, meaning that almost all of its
activities are carried out using documents. Administrative skills in handling export-import
documents in each company need to be considered, because the slightest error in export
documents sometimes causes problems.
In carrying out international business activities, it is necessary to know how to pay for
exports and how to deliver export goods according to what is generally accepted in
international business.
Increasing Export Transactions
Export promotion
The export promotion stage is the initial stage of an exporter / prospective exporter
introducing the products they produce to potential importers.
Export promotion can be done by placing advertisements in print and electronic
media, through trade attachés and the Indonesian Trade Promotion Center (ITPC) of our
country abroad, participating in trade shows abroad and domestically visited by potential
importers, using international marketing services.
Export exhibition activities aim to make potential importers recognize, impressed and
then interested in products which then try to market in their country.
Prospective importers usually buy or ask for product samples, the product samples
should be produced in accordance with the actual results of the company's products, so that
at the time importers market their products according to the quality of the products on
display.
Other forms of promotion include sending leaflets to our overseas trade
representatives or foreign trade representatives located here, or in the form of making a CD-
Room containing product specifications from raw materials, production processes, quality
control, as well as transportation activities to the loading port. Promotional activities can
also be carried out using the internet.
There are also exporters who get to know overseas buyers by opening promotional
booths in places frequented by buyers such as hotels and airports.
Negotiation activities are often carried out by exporters with importers. After
exporters get buyers from abroad then negotiation activities are carried out.
Issuance of an Inquiry Letter
After doing export promotion and getting interested prospective importers (buyers),
the prospective importer will issue a letter addressed to the exporter containing a price
request for the goods promoted by the exporter. A price inquiry letter is often referred to as a
letter of inquiry.
Offersheet
After receiving a letter of inquiry, the exporter prepares activities in the form of
calculating the cost of goods and selling prices that can be offered in foreign currency,
payment methods, production capabilities and should contact shipping companies regarding
shipping times. After the information is complete, then the exporter sends an offersheet, the
offersheet contains as complete information as possible so that the importer can make a
decision on the product it offers, including a statement of the exporter's ability to supply
products to prospective importers on the terms of price, time, delivery and payment
determined by the seller.
Issuance of ordersheet
Offersheets that have been received by importers are then carefully studied one by
one. Communication with exporters needs to be carried out, agreed and unagreed terms are
conveyed to exporters, including changes.
After scrutinizing and agreeing to the offersheet issued, the importer then puts the
form of approval in the ordersheet or in international business known as PO (Purchase
Order).
International Business Negotiations
International trade activities can initially be carried out by exporters and importers
through negotiation activities to obtain buying and selling agreements between the parties to
the transaction.
Negotiation is a form / means of meeting between two or more parties armed with
information to negotiate / discuss / bargain through arguments in order to achieve certain
goals using their respective techniques, strategies and methods but based on good intentions
and pursued in a controlled situation.
The purpose of negotiation is to harmonize the missions/interests of the negotiating
parties so that a favorable agreement will be reached and satisfy all parties. Negotiation is an
effort to bring together two opposing interests, or conflicting each party makes concessions,
which is an effort to achieve a favorable agreement and satisfy all parties give and get rights
from the other party.
The implementation of negotiation activities starts from creating a negotiation team
whose members consist of parties who are competent in their fields.
The negotiation implementation stage starts from :
preparation,
implementation of negotiations in the form of
introduction statement of goals and objectives
offers
bargaining
agreement/settlement
endorsement.
Control bargaining at the upper limit and lower limit range.
The final stage of negotiation is the settlement stage or the agreement and ratification
of the negotiation results. The settlement stage should be guided by the criteria that the
concession point is at the upper limit and lower limit, and our interest is met...
Negotiations are considered successful when
The agreement reached must be better than the best alternative we have.
The agreement reached fulfills or satisfies our interests, but is acceptable to the other
party and tolerable to the other party.
The agreement adopted is the best of all options.
The agreement reached is adhered to by each negotiating party because the outcome
is fair, feasible, and acceptable in terms of the applicable criteria.
The agreements reached contain commitments that are truly achievable, realistic and
workable.
The deal that reached generated in an efficient through effective communication
through two-way communication.
The agreement reached can help establish a good working relationship between the
negotiating parties.
International Marketing
In international marketing activities, the question often arises: why is the export
intensity of a country to other countries very large while to other countries it is small? Of
course, this is related to the market demand for a country's products.
A market can be said to be a place or area where the forces of demand and supply
meet to determine a price. There are three factors that support it, namely, people and their
desires, purchasing power, and willingness to spend money. Market potential is determined
by three main factors: population structure, purchasing power, and consumption patterns of
people in a country.
To enter a new market, exporters can consider data on the GNP per capita of a
country, as well as the economic conditions of the country whose products will be marketed
with rapid economic growth.
Market Screening
Market screening is a method of market analysis and assessment that allows
management to identify desirable markets using environmental observations.
Conclusions
The realization of free trade tends to encourage each country to fully specialize in the
production of goods that have a comparative advantage for the country. The readiness of a
country in globalization depends on how the country encourages the products it produces to
have a comparative advantage. With comparative advantage, products that are competitive
in the global market will be produced.
In addition, the growth of world trade regions, which tend to form trade blocs on
almost all continents, adds to the globalization of trade in the world today.
Economic globalization is the expansion of global markets where global resources for
production and marketing are no longer limited by national geographical boundaries. In fact,
globalization encompasses a much broader field, including political, technological and
cultural influences.
The role of the market becomes more important in creating economic conditions than
the government. The state can have its way, but it is market policies that will be directly
related to the global market. Companies and other forms of organization are no longer
limited by national territory, the world has truly become one global "village".
