Posted: November 23rd, 2014

Using at least one company with which you are familiar, discuss critically the global trade distribution processes used by the company, suggesting possible improvements, with reasons; Cadbury and Häagen-Dazs

Using at least one company with which you are familiar, discuss critically the global trade distribution processes used by the company, suggesting possible improvements, with reasons; Cadbury and Häagen-Dazs

Project description
Cadbury and Hagen-Dazs (not bothered what companies you use – any companies you have knowledge on)

Modes of transport and channels of distribution
The movement of goods in global trade must follow a channel of distribution achieved through the use of a variety of transport modes. Students consider the factors to be used in deciding which modes to use through the use of models which critically evaluate the need for speed vs cost.
Risk
Risk in global trade distribution ranges from the loss of the goods through to force majeure. The circumstances in which these risks can occur will be identified and discussed, along with the manner in which those risks can be managed through the purchase of insurance cover.
Communications between buyer and seller
It is important that buyer and seller both understand their respective responsibilities in organising the various operations attached to moving goods globally. The mode requires a substantial understanding of Incoterms which is used not only to enable clear understanding but also allows the two parties to calculate the costs associated with their agreed responsibilities.
Documentation
The progress of goods around the global from seller to buyer requires documentation to satisfy the various intermediaries who will be involved in the process, whether it be carriers or customs. It is important that the purpose of the documents can be understood and the circumstances under which they are needed.
Technology and global trade
The rapid rate of the introduction of technology into global trade, whether it be the introduction of software or the revolution that is containerisation, has meant that goods travel more quickly and cheaply than ever before.

Key Reading
Reuvid, J. & Sherlock, J.2011International Trade: an essential guide to the principles and practice of export. ( 2nd.edn)Kogan PageLondon
Branch, A. (2006) Export Practice and Management (5th Edn). London: Cengage Learning

Helpman, E. (2011) Understanding Global Trade. Cambridge, MA: Harvard University Press

International Chamber of Commerce (2010). Incoterms, 2010. Paris: ICC Services Publications

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