The international commodity auctions represent specially organized, periodically operating in certain places markets in which by the public auction in in advance caused time sale of the goods which are previously examined by the buyer which are carrying over the buyer who offered the highest price is made.
the principle of step reduction of prices on the offered range of goods (usually the firm develops and makes not separate products, but the whole grocery lines. Complexity consists in definition of steps on each separate modification of production);
Protection of positions. Each of the firms acting in this market seeks to keep at least that share of the market which it occupies. The main methods necessary for competitive fight – a technological level and other quality indicators of goods, terms of deliveries, volume and terms of guarantees and other actions of formation of demand and sales promotion.
The standardized production. At determined price to the consumer it is indifferent from whom to buy a product – all of them are analogs. Owing to standardization of production there is no basis for not price competition.
Definition of that such profit, variously in the different companies. Therefore a variety of definitions specifies that it is necessary to be very attentive by drawing up indicators of profitability of the companies; if indicators of profit have various names and definitions, it is necessary to do adjustment to make sure that we compare the comparable.
If standard extra charges on costs of production are used within channels of distribution, extending them or increasing costs in system of production, it will cause increase in the prices for the consumer in much bigger size, than it is possible to assume. At product sales for export there can be two circumstances which will lead to increase in goods prices for the consumer. First, channels of distribution are, as a rule, longer because of long distances, and also because of involvement of the organizations familiar with export producers and practice of the organization of sale in the foreign market. Secondly, the transport tariffs which are already making additional expenses can be postponed for the account of the buyer in much the increased size.
Foreign trade gives to some countries the chance to receive these or those goods which is not made in their limits. It is not so essential to the big economically developed states. But thanks to the international division of labor, each country has opportunity to concentrate on production of those goods which it can make more more effectively and cheaper, than other countries.
gross profit or loss (a turn, but without other operating expenses, minus production prime cost, that is expenses without commercial or administrative administrative an expense;
However the absolute value of profit does not give an idea of the level and change of production efficiency or trade. The sum of profit can increase, and production efficiency can remain at the former level or even to decrease. It occurs in case the gain of profit is received for the account of extensive (quantitative) factors of production – increase in number of workers, growth of park of the equipment, etc. If with a growth of number of workers their productivity remained former or decreased, production efficiency respectively does not change or even decreases.
the profit relation to costs of production, characterizing the level of profitability of the current expenses (on acquisition of raw materials, materials, fuel, on depreciation of means of labor, management expenses and to service of production and a salary of the worker;
The theory of comparative costs proceeds from actually existing costs of production of certain goods, without paying attention to the reasons which cause distinctions (Ricardo paid attention only to an environment). Though natural factors are one of the factors influencing the level of costs.
On the basis of the got profit relative indicators of profitability are calculated: profitability of sales, profitability of assets, profitability of fixed capital, profitability of own capital, average standard of profitability.