D 300 Ch 16 Exporting Importanting and Countertrade
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Export management companies (EMCs)
Letter of credit (L/C)
issued by a bank at the request of an importer, the letter of credit states that the bank will pay a specific sum of money to a beneficiary , normally the exporter, on presentation of particular , specified documents.
Draft:sight draft, time draft
- sight draft- is a payable on presentation to the drawee
- time draft- allows for a delay in payment normally 30, 60, 90, 120 days. it is presented to the drawee, who signfies acceptance of it by writing or stamping a notice of acceptance
Bill of lading
is issued to the exporter by the common carrier transporting the merchandise. it serve 3 purpose its a receipt, a contract, and document of title
denotes a range of bartedlike agreements; its principle is to trade goods and services for other goods and services when they cannot be traded for money
is the direct exchange of goods and services between two parties without a cash transaction. although barter is simplest its not the most common
is a reciprocal buying agreement. it occurs when a firm agrees to purchase a certain amount of materials back from a country to which a sale is made
is similar to a counterpurchase insofar as one party agrees to purchase goods and services with a specified percentage of the proceeds from the original sale.
refers to the use of a specialized third party trading house in a countertrade arrangement. , it when a firm enters a counterpurchase or offset agreement with a country, it often ends up with what are called counterpurchase credit, which can be used to purchase goods from that country
occurs when a firm builds a plant in a country- or supplies technology, equipment, training , or other services to the country- and agree to take a certain percentage of a plant's output as partial payment for the contract
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