International physical distribution encompasses the logistics or movements of goods across countries from the sources of supply to the centers of demand. In other words, it is concerned with getting the right product to the right place at the right time in a good condition at a reasonable cost. Warehousing, transportation and inventory control are the major components of physical distribution.

The final purpose of physical distribution activity is to provide adequate service to their customer. This is an activity, which offers a great potential for increasing efficiency. In international distribution there are complexities of national borders, customs of trade, tariffs and duties carrier performances, monetary exchange, and the necessity of filling numerous documents.

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