Actividad de aprendizaje 15

Evidencia 5: Summary “Export-import theory”

Contar con los conocimientos necesarios para realizar un proceso de exportación,

requiere no solo de manejar habilidades lectoras para apropiar las normas y pasos
a seguir, sino también comprender y extraer los aspectos más importantes de
cada texto. Existen gran cantidad de textos referentes exportación e importación
en inglés, por lo cual es necesario fortalecer las competencias en dicha lengua.

Para reforzar lo mencionado, realice las siguientes actividades:

1. Lea el siguiente texto:

Export-Import Theory1

Setting up the business

Whether it is a new or existing export-import business, the legal form, or

structure, will determine how the business is to be conducted, its tax liability,
and other important considerations. Each form of business organization has
its own advantages and disadvantages, and the entrepreneur has to select
the one that best fulfills the goals of the entrepreneur and the business.
Selection of an appropriate business organization is a task that requires
accounting and legal expertise and should be done with the advice of a
competent attorney or accountant.

Ownership structure

In this section, we examine different forms of business organizations: sole

proprietorships, partnerships, corporations, and limited liability companies.

1
Belay, S. (2009). Export-Import Theory, Practices, and Procedures. (2a ed.). New York: Routledge.
Sole proprietorships

A sole proprietorship is a firm owned and operated by one individual. No

separate legal entity exists. There is one principal in the business who has
total control over all export-import operations and who can make decisions
without consulting anyone. The major advantages of sole proprietorships
are as follows:

1. They are easy to organize and simple to control. Establishing an export-

import business as sole proprietorship is simple and inexpensive and
requires little or no government approval. At the state level, registration of
the business name is required, while at the federal level, sole proprietors
need to keep accurate accounting records and attach a profit or loss
statement for the business when filing individual tax returns (Schedule C,
Internal Revenue Service Form 1040). They must operate on a calendar
year and can use the cash or accrual method of accounting.

2. They are more flexible to manage than partnerships or corporations. The

owner makes all operational and management decisions concerning the
business. The owner can remove money or other assets of the business
without legal or tax consequences. He or she can also easily transfer or
terminate the business.

3. Sole proprietorships are subject to minimal government regulations

versus other business concerns.

4. The owner of a sole proprietorship is taxed as an individual, at a rate

lower than the corporate income tax rate. Losses from the export import
business can be applied by the owner to offset taxable income from other
sources. Sole proprietors are also allowed to establish tax exempt
retirement accounts. (Harper, 1991; Cheeseman, 2006a)
The major disadvantage of running an export-import concern as a sole
proprietorship is the risk of unlimited liability. The owner is personally liable
for the debts and other liabilities of the business. Insurance can be bought
to protect against these liabilities; however, if insurance protection is not
sufficient to cover legal liability for defective products or debts, judgment
creditors’ next recourse is the personal assets of the owner. Another
disadvantage is that the proprietor’s access to capital is limited to personal
funds plus any loans that can be obtained. In addition, very few individuals
have all the necessary skills to run an export-import business, and the
owner may lack certain skills. The business may also terminate upon the
death or disability of the owner.

Establishing an appropriate business organization: pointers

 Does the entrepreneur intend to be the sole owner of the export-import

business? If not, how many people have an ownership interest?
R- no, private property can be defined as the real right that is par
excellence over a bodily or incorporeal thing, which entitles its owner to
use, enjoy, exploit and dispose of it, provided that through its use the
functions are performed social and ecological that are their own.

 Does the entrepreneur need additional capital and/or expertise?

yes

 What legal form provides the greatest flexibility for management?

One of the few constants in the business world is that markets are always on the
move. It is a paradox that the only thing that can give as stable is the continuous
movement, but the reality is always more complex than we would like.
 What legal form affords the most advantageous tax treatment for the
business concern and individual entrepreneurs?
It does not have a specific legal regulation. In its business activity, it is
subject to the general provisions of the Commercial Code in commercial
matters and to the provisions of the Civil Code regarding rights and
obligations

 Which legal structure is easy and less expensive to establish and subject
to a low degree of government regulation?

The legal structure represents the way in which the company is

organized. It is very important to choose the best legal structure as it will
affect all aspects of your company, from paying taxes to personal
financial responsibility. The most common legal structures are sole
proprietorships, corporations and corporations. Find out about these
kinds of legal structures

 How important is it to limit personal liability of owners?

S corporations as a limited liability company in the sense that income and

expenses are "transferred" to private owners in their tax returns, which avoids
double taxation of C corporations. Even so, S corporations they protect personal
property from debts and lawsuits against the company, protection that belong to
societies of all kinds. Only the real investment of shareholders is at risk. However,
protection is limited, and can even be lost if proper accounting is not used.

o Which legal structure is the most appropriate in light of the goals and
objectives of the export-import business? (Belay, 2009).
 It's important to present detailed information about the company.
Especially a description of their capacity, experience and skills to
implement the project. As detailed With your business, defining the
strengths and weaknesses of the company is also recommended. In
addition, we must include the long and short term objectives, if there is a
history of an export business plan, the strategy of insertion into the target
market, and the description of the product or service

2. Elabore una lista de vocabulario sobre el texto, mínimo de 15 palabras y escriba

su respectivo significado en inglés.
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
Whether it is a new or existing export-import business, the legal form, or
structure, will determine how the business is to be conducted, its tax liability, and
other important considerations.

Sole proprietors are also allowed to establish tax exempt retirement accounts.
(Harper, 1991; Cheeseman, 2006a)
The major disadvantage of running an export-import concern as a sole
proprietorship is the risk of unlimited liability. The owner is personally liable for
the debts and other liabilities of the business. Insurance can be bought to
 protect against these liabilities; however, if insurance protection is not sufficient
to cover legal liability for defective products or debts, judgment creditors’ next
recourse is the personal assets of the owner. Another disadvantage is that the
proprietor’s access to capital is limited to personal funds plus any loans that can
be obtained.

3. Organice las ideas en un solo resumen, de manera que se conecten

coherentemente, en 15 líneas.
nternational trade or foreign trade refers to trade between two or more different
economic countries / regions, with a remote origin. It is caused by the irregular
distribution of resources and the difference in prices between countries or
regions. The advantages presented by foreign trade are specialization, greater
price stability, import when domestic production is insufficient and export when
there is excess supply of national consumption.

International Trade Theories

Foreign trade theories aim to find the causes of this phenomenon and study its
effects on production and consumption. According to Raquel González Blanco
these theories can be classified into three categories:

Traditional theories of international trade. These theories are based on the fact
that foreign trade is caused by the differences between countries. Among them
are the following:
- Model of the Absolute Advantage of Adam Smith ("The Invisible Hand"). It is
characterized by poor trade regulation. It provides as an advantage that each
country can specialize in the production of goods in which it has an absolute
advantage.
- Model of the Comparative Advantage of David Ricardo. The costs are relative.
The exchange is possible and mutually beneficial. It is a specialization in
comparative advantage.
- Heckscher-Ohlin model. Countries specialize in the export of goods whose
production is intensive in the factor in which the country is abundant.
The "new" theory of international trade. These theories are based on imperfect
competition. Among them are the following:
- Opportunity Cost Theory, by G. Haberler. Work is not the only resource nor is it
homogeneous. It is based on the opportunity cost of a good.
- Monopolistic Competition Model, by Paul Krugman.
The "latest" recent developments that incorporate differences between
companies. In this category, differences between companies are considered to
understand this area. Among them are:
 - Conclusions of Bernard, Redding and Schott. Increase the productivity of the
entire industry. The expansion of the production of the exporting companies
implies an increase in the demand for factors and an increase in the price of the
inputs.
- R. E. Baldwin and R. Forslid.

Nota: para el desarrollo de esta evidencia se debe tener en cuenta el material de

formación “Using simple present and progressive to export” y el material
complementario asociado a esta actividad de aprendizaje.

Desarrolle esta evidencia con la herramienta ofimática de su preferencia y envíe el

archivo al instructor a través de la plataforma virtual de aprendizaje en formato
.doc o .pdf.

Pasos para enviar la evidencia:

1. Clic en el título de la evidencia.

2. Clic en Examinar mi equipo y buscar el archivo previamente guardado.
3. Dejar un comentario al instructor (opcional).
4. Clic en Enviar.

Nota: esta evidencia es de carácter individual. Recuerde revisar la guía de

aprendizaje con el fin de verificar que ha realizado todas las actividades
propuestas, saber cómo desarrollarlas y entregarlas correctamente.
 Criterios de evaluación
Realiza resúmenes de la información relevante y detallada de un texto técnico en
inglés.