Internship Report

Introduction:

Foreign trade can be easily defined as a business activity, which transcends national boundaries. These may be between parties or government ones. Trades among nationals are a common occurrence and normally benefit both the exporter and importer. In many countries, international trade accounts for more than 20% of their national incomes.

In every international trade transactions, there must be:

* An agreed products or services

* A sales contract

* Delivery details

* Shipping and delivery details

* Terms of payment

* Required documentation

* Insurance cover

Foreign trade can usually be justified on the principle of comparative advantage. According to this economic principle, it is economic profitable for a country to specialized in the production of that commodity in which the producers has the greater comparative advantage and to allow the other country to produce that commodity in which it has the lesser comparative advantage. It includes the spectrum of goods, services, investment, technology transfer etc.

This trade among various countries causes for close linkage between the parties dealing in trade. The bank which provides such transactions is referred to as rendering international banking operations. International trade demands a flow of goods from seller to buyer and of payment from to seller. And this flow of goods and payment are done through letter of credit (L/C).

What is Foreign Exchange?

In a bank where people can do transaction in foreign currency is called foreign exchange. Any kinds of dollar transaction are done by this section. ABL’s foreign exchange section is working with the head office internal division. The full process is governed by Bangladesh bank. Any kind of transaction in foreign currency is a sensitive issued.

Definition of Foreign Exchange

Foreign exchange is a process which convert one national currency into another and transfer money from one country to other countries.

According to...