int bus quiz 3
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Types of export documentation?
- •The bill of
- lading is the basic contract between exporter and
- shipper. It authorizes a shipping
- company to transport the goods to the buyer’s destination.
- shipper's export
- declaration (sometimes called "ex-dec”)
- lists the contact information of the exporter and the buyer (or importer), as
- well as a full description, declared value, and destination of the products
- being shipped.
- •The certificate
- of origin is the "birth certificate" of the
- goods being shipped and indicates the country where the product originates.
- Exporters usually purchase an insurance
- certificate to protect the exported goods against
- damage, loss, pilferage (theft) and, in some cases, delay.
- •A quotation or pro forma invoice is issued upon a request by potential customers. This can be structured as a standard form,
- which informs the potential buyer about the price and description of the
- exporter’s product or service.
- •The commercial
- invoice is the actual demand for payment issued by
- the exporter when a sale is concluded.
- It includes a description of the goods, the exporter’s address, delivery
- address, and payment terms.
- •A packing
- list, particularly for shipments that involve
- numerous goods, indicates the exact contents of the shipment.
- refers to the official forms and other
- paperwork that are required for export sales to transport goods and clear
Letter of credit?
- between the banks of a buyer and a seller that ensures payment from the buyer
- to the seller upon receiving an export shipment.
- letter of credit may be either irrevocable or revocable. Once established, an irrevocable letter of
- credit cannot be canceled without agreement of both buyer and seller. The selling firm will be paid as long as it
- fulfills its part of the agreement.
- letter of credit immediately establishes trust between buyer and seller.
- refers to an international business transaction where all or partial payments
- are made in kind rather than cash. The focal firm is engaged simultaneously in
- exporting and importing.
- known as “two-way” or “reciprocal” trade, countertrade operates on the
- principle of “I’ll buy your products, if you buy mine.”
- Goods and services are traded for other goods
- and services when conventional means of payment are difficult, costly, or
- nonexistent. Thus, barter is a form of countertrade
examples of export documentation
- pro-forma invoice
- commercial invoice
- packing list
- bill of lading
Letter of credit important players
- exporters bank
- importers bank
advantages of exporting
- increased sales
- benefit from economies of scale
- diverse costumer base
- easy to exit
disadvantages of exporting
- unknown target market
- tarriffs/trade barriers
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