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Exporting Goods.

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Exporting Goods Although Fit - for - Life will be selling to domestic customers it will in the future rely on sales to foreign customers. Goods (sometimes called visibles) and services (sometimes called invisibles), which are sold to foreign customers, are known as EXPORTS. Fit - for - Life will sell products to foreigners this could be trainers and other sportswear. Fit - for - Life (a British company) receives the money from the sale of the trainers. So the trainer is an exported good as it is a good sold to foreigners. Exchange Rates A British customer is likely to pay for a Fit - for - Life product in pounds sterling. However a French customer is likely to pay in Euros. The price of euros for pounds, the EXCHANGE RATE, is frequently changing. The changes can have a vital effect on Fit - for - Life. The exchange rate at present is �1.50 = �1. ...read more.


The Balance of Payments is a record of all the money coming into and going out of the UK. The BALANCE OF TRADE is the difference between values of exports and imports of goods only. The difference between the values of exports and imports of both goods and services is called the CURRENT BALANCE. If at any point the imports are greater than the exports the government may try to correct it by: > Forcing down the value of the pound, making it easier for UK businesses to export making imports more expensive. > Pushing up the interest rates. This should lead to a fall in spending in the UK and so lead to a fall in imports. However, a fall in spending could lead to a recession in the economy, which would be bad for UK businesses. > Increasing tariffs and quotas, although this would be difficult because of membership of the European Union. ...read more.


The third payment is for the air cargo property. At the Cargo Office the exports must be weighed and the airline charges at a fixed rate per kilo. This is known as the House Airway Bill (HAWB). When this has been done an AIR WAY BILL (AWB) is issued- for goods sent by air. The Air Way Bill is issued in a set, which contains originals for Shipper, Carrier, and Consignee and several copies. The Consignee's original travels with the goods in the carrying aircraft and is used to effect clearance at the destination airport. The AWB also contains conditions, limitations of liability, shipping instructions, description of commodity, and applicable transportation charges. Exporting is good for country as more foreigners by exported goods, as they are cheaper due to the Exchange Rate. Exporting is also vital for the country because if there are more imports then more money is going out of the country, thus leaving the UK in debt. It is important that exports equal imports so as to keep the UK economy from falling. ...read more.

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