Effect of Performance of International Trade Logistics Chain on Pricing of Goods

Abstract

According to the World Trade Organization (WTO), in 2019, international trade value amounts to 19.5 trillion U.S dollar. Certain goods are sensitive to price, and some reactive to income; some goods have constant demand or are inferior. Exporters of price-sensitive goods lose their market owing to cost increase. Cost of goods sold in the international market comprises of three major components: newline1. Ex-factory price newline2. Logistics cost. newline3. Duties and Taxes. newlineThis research is focussed on the logistics cost that is influenced by the effectiveness of international trade logistics chain and other factors. Some factors are controllable selection of logistics entities (3PL, inland carriers, ports - dry and seaport), and some are un-controllable factors fuel-cost, and fleet strength. The study is validated using data of rice (HS CODE 1006) sale from India to Senegal whose imports from India constitutes 62%. newline