Voice of International Business

The Ukraine-Russia War has shaken the entire world-economy heavily. Business strategies of different countries of the world have changed with the emergence of this war since February 2022. Economic power houses like USA and European Union imposed various sanctions on transactions with Russia. Therefore, this war created volatility in the prices of foreign currencies.   Business organizations as well as the general people have become the victim of this fluctuation in the foreign-exchange market. Smart business organizations around the world are using different derivative products of the foreign exchange market. Hedging is one of the most powerful tools in this derivative group. Here we will discuss about how you can hedge a foreign exchange risk involved for import in US Dollar during the present scenario of Ukraine-Russia war.   What is Hedging Hedging is the activity of minimizing the risk of financial losses by using different financial instruments/ derivatives.   Purpo

For many of us who are working in the field of International Trade and especially dealing with import-cum-export business want to know the difference between Entre-port trade and the Re-export trade. This two types of import is done to export the imported goods again adding some profit margin on its import cost. In this article we will discuss those two terms as per import policy order 2015-2018 from ministry of commerce in Bangladesh. It will help you to understand how those two trade prcedures are handled as well as their differences.  Entre-Port Trade: Definition of entre-port trade: Entre-port trade means such a trade where imported goods are exported to a third country adding a margin to its import cost without any change, including their quality, quantity or shape.  Conditions for entre-port trade in Bangladesh: Import Permit on returnable basis from the Chief Controller of Imports and Exports will be required. Margin to be added to the import cost is minimum 5% as per Import Pol