International Trade Logistics

International Trade Logistics

International trade logistics comprises of some services such as payment systems, warehousing, and border clearance. Therefore, logistic has a significant impact on global economic development due to the complexity of the services and transactions involved. The barriers to the global logistics take different forms that are sometimes hard to control. Such rigid procedures and regulations are not only a means by foreign nations to protect their infant industries, but also enables the countries to enhance the safety of their citizens. The differences in trade logistics are usually considered as the differences between international trade regulations between nations, for example, the control of the flow of goods and services. The elimination of barriers to global trade logistics is necessary for internal logistic companies to remain competitive as illustrated in how the companies have prevented obstacles to market access, and the use of third parties to facilitate the trade

Countries have been able to deal with market access barrier through the application of supply mode structures identified in the General Agreement on Tariffs and Trade (GATT).Countries have based on the agreements to shield themselves against discriminatory practices in international trade logistics.The market access barriers include limitation of licenses for transportation, limiting the services provided by foreign logistics companies among others.The organizations have learned to use the various trade agreements between nations to overcome the punitive measures that can be taken with a specific country. Moreover, there are countries such as the United States which have state acts and legislation that exempt firms from discriminatory actions in international trade. They provide incentives to international logistic firms to enable them to compete favorably with other well-established firms.

Many countries have had to deal with the strict customs which often cause delays through partnering with a third country to facilitate cheaper and quick transactions. The legal channels such as transshipment have been made necessary because of the trade agreements between countries. Although the scheme had been adopted to make it easier for states to engage in international trade, some global logistics company are using it as a means of getting products which are illegal or subjected to a higher taxation in a given country. Therefore, as international logistics companies are perhaps looking for ways to make trade cheaper and favorable, countries are equally looking for way to safeguard the interest of their domestic firms and for safety of their citizens. This conflicting interests in the reason why the restrictions have been adopted by different countries

In conclusion, eliminating the barriers to international trade logistics is vital in making a country maintain its competitive advantage in international trade. Therefore, it’s necessary that any international logistic company identifies the barriers that can affect effective trade and devise ways to eliminate them. Once the barrier has been identified it becomes easy for the logistic firm to control such barriers. For instance, if their barriers to market access, the logistic company can make use of the legally established trade agreements such as the GATT, which ensures that the measures taken by the foreign nation favor trade. They can also opt to use third parties where the customs adopted favor trade, through the services such as the transshipment

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