The Quarter of A Billion Dollars Commodity Transaction: The Aftermath

International trade for this article is explained as, “a means of connecting a seller and a buyer to trade across countries for a particular good(s)/service(s) at an agreed price, with accepted payment instrument, and an acknowledged sanctioned working procedure”.

Trade is simply the selling and buying of goods or services. Where a seller puts across a good or service searching for a credible buyer, and the buyer seeks (agrees) to purchase the good or service of the seller. Buyers on the other hand, in an equal measure require a credible, efficient, track record and seller who can perform seamlessly.

Borders/Boundaries is the physical demarcation or territorial sovereignty of nations (countries). Example is, Ghana is bordered to the East by Togo, Ivory Coast to the West, and Burkina Faso to the North. These three countries Ghana shares boundaries/borders with basically are our neighboring countries. There is as well the broader boundaries or borders of continents, for instance we have Africa, Europe, Asia, North America and South America, and Australia.

Goods/Services is the item or product of transaction between a performing seller and a credible buyer. Hence without goods or services in essence, trade or international trade cannot happen in a vacuum. So, goods or services of any variety is the fulcrum around which trade or international trade evolves.

Price is the single most important agreement or discussion that ensures trade or international trade takes off on a smooth starting. Price is the economic value at which a good or service is exchanged between a seller and a buyer for mutual benefits. Price discussions, negotiations, countering, acceptance and agreement is critical to finalizing a trade between any two interested parties. Price is key to satisfying both seller and buyer to agree to trade. Price solidifies and fortifies the spirit and intent of trading or engaging the common interest of both seller and buyer.

Payment Instrument is the guarantee or assurance of settling the agreed price and accepted payment schedules or arrangement. In strict international trade or business transaction, instrument might imply any of the following: Stand-By Letter of Credit (SBLC), Letter of Credit (LC), Bank Guarantee (BG), Block Fund, Proof of Fund (POF), Bank Comfort Letter (BCL) and others. Payment can be by Swift messaging or others. The commonest and often requested mode of Payment is MT103.

Procedure/Steps of Engagement is the agreed ‘way and manner’ for which both seller and buyer have agreed to guard and guide the business transaction or trade between both parties. Procedure is usually given by seller to buyer for consideration by buyer. However, buyer can as well submit their proposed procedure for seller’s consideration. In any which way, either the seller or buyer is at free will to ‘counter’ the procedure for final acceptance by both parties.

Nonetheless to enter into international trade, just like a customary administrative or managerial functions or roles, it is necessary and incumbent you appreciate the following tools or principles (however, not limited to them):

• Activation: Activation is meant to initiate a business dealings with the next party or partner. By activating a party or partner in international trade or business, it is recommended you come prepared, straight to point, clear and concise and precise with what the activation is about. The activation should be enough to fully get the other partners desire to enter into a business or trade with your offer or activation. Simply put, activation can equally be referred to as an offer from one party (buyer/seller) to the other party (seller/buyer). In practice however, activation or offer can be: Letter of Intent (LOI), Irrevocable Corporate Purchase Order (ICPO), Full Corporate Offer (FCO) and others.

• Trust: Trust is simply to get and secure the attention of the other party who has fully been activated. Trust is never an end on itself. Trust is…