TAILIEUCHUNG - SITPRO International Trade Guides: Cargo Insurance

Next, we can modify our model to account for different firm sizes. For notational convenience and ease of exposition, we have used a continuum model. A firm hires a unit mass of consumers. The size of the firm then becomes a normalization and hence has no bearing on the dynamics and steady-state properties. In practice, firms hire a finite number of workers, and the law of large number becomes a poor approximation when the firm is small. Even when a small firm draws from the same work force as any other firm, the variance of workers’ health-care cost may be larger. The most convenient way to. | SITPRO International Trade Guides Management Cargo Insurance Cargo Insurance This guide provides general information about cargo insurance and why you need it. You should read it if you are involved in trading your goods worldwide. If you are an exporter you should pass this information onto your sales and marketing team and the department responsible for arranging the shipment of export consignments. If you are an importer you should ensure your buying department as well as the team handling the supply and import process are aware of the information in this Briefing. What is cargo insurance Cargo insurance also called marine cargo insurance covers physical damage to or loss of your goods whilst in transit by land sea and air and offers considerable opportunities and cost advantages if managed correctly. Unfortunately many UK traders do not want to become involved in arranging this type of insurance because they feel they do not have sufficient knowledge. They see it as an unnecessary expense involving extra administration and make the mistake of allowing suppliers or customers to control this vital area of business. This loss of control not only increases the difficulties of implementing an effective trade risk management strategy but can also have far reaching effects on profitability. Fortunately this attitude is changing with more and more companies following the lead of many of the blue-chip manufacturing and trading giants of the UK economy who tend to take full control of this type of insurance. When you are looking at the types of cargo insurance available you may come across the term General Average. This is one of the oldest principles of cargo insurance and relates only to ocean and sea voyages but is still relevant in today s trading environment. General Average covers the situation where damage or loss of certain goods occurs so that the remaining cargo and the means of transport are saved. For example goods may sustain water damage during fire .

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