Important Tools for International Trade

The Government of any country uses a number of tools to manage their international trade operations. In general, the tools can be categorized into tariffs, import quotas, and subsidies. Tariffs are the taxes imposed on imports, Import Quotas are imposed to restrict the sale of foreign goods within the country to avoid monopoly of these goods in the domestic markets while Subsidies are the grants provided by the government to make the domestic markets more competitive.
As far as the export/import trade is concerned, it is important to have a complete idea of the various tools required/used for smooth logistics management. Freight rates are one of the important tools used for the export/ import of goods across countries as it is the price paid or collected for the delivery of a cargo from one one port to another. These rates differ on the basis of the cargo, mode of transport used like truck, ship, train, or aircraft, dimensions or weight of the cargo, and the distance to the destination port. In other words, the freight rate is the cost that a shipper or consignee is charged for the transportation of goods.