Transportation Essay Sample

The world being at the dawn of globalization, international business and trading has become very popular. Multinational organizations are the most leading in profit making. However, conducting business internationally has led to the negative impact on the transportation of company that is receiving the goods. International transportation of goods is very expensive. This means that a company will incur more cost in transporting good from another country. The same company could have incurred less transportation cost if the goods had been purchased within the country. For example importing a vehicle from Japan to United States is more expensive than buying the same vehicle within United States.
Increased in transportation cost of moving goods internationally has made companies spend more goods in transportation. The reason why international transportation of good is expensive is because of various taxations and customs duty which are paid for good to enter into another country. For instance, chocolate making company which relies on the coffee as the raw material to make its chocolate will incur extra cost of production which will be due to importing of coffee from another country. The same company would incur less cost of production if it purchased the coffee locally.
When products are while being transported, the responsible for paying for the damages is on either the transporting company or to the seller. When a company buys good from an international supplier, the supplier becomes liable to transport the good to the buyer. If the goods become damaged before delivery, the seller is held responsible. However in a case where the buyer and seller choose to hire an independent transportation company to transport the product to the buyer, the case is different. A transportation company is liable to the goods that are destroyed on its hand.

Reference

Damar, D. (2011). Wilful Misconduct in International Transport Law. Dordrecht: Springer.