INB 3305 Ch. 14 – Flashcards
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Japan's ministry of international trade and industry (always on the lookout for export opportunities)
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MITI
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Japan's great trading houses (offices all over the world and proactively seek export opportunities for their affiliated companies large and small)
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Sogo Shosha
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Export specialists who act as an export marketing department for client firms
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export management company
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Issued by a bank, indicating that the bank will make payments under specific circumstances
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letter of credit
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An order written by an exporter introducing an imporer, or an importer's agent, to pay a specified amount of money at a specified time
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Bill of exchange
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A draft payable on presentation to the drawee
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sight draft
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a promise to pay by the accepting party at some future date
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time draft
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A document issued to an exporter by a common carrier transporting merchandise; it serves as a receipt, a contract, and a document of title
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bill of lading
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Agency of the US government whose mission is to provide aid in financing and facilitate exports and imports; also referred to as the Ex-Im bank
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Export Import bank
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____ __ _____ is the instrument normally used in the international commerce to effect payment
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bill of exchange
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Two types of drafts:
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sight draft; time draft
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When a time draft is drawn on and accepted by a bank, it is called a :
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bankers acceptance
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When a time draft is drawn on and accepted by a business firm, it is called a:
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trade acceptance
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3 purposes the Bill of Lading serves as:
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receipt, contract, and document of title
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The trade of goods and services for other goods and services that cannot be traded for money
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countertrade
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The direct exchange of goods or services between two parties without a cash transaction
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barter
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A reciprocal buying agreement
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counter purchase
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A buying agreement similar to counter purchase, but the exporting country can then fulfill the agreement with any firm in the country to which the sale is being made
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offset
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The use of a specialized third party trading house in a countertrade arrangement
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switch trading
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When a firm builds a plant in a country and agrees to ale a certain percentage of the plants output as partial payment of the contract
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buyback
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5 types of countertrade:
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1) barter 2) counter purchase 3) offset 4) switch trading 5) compensation (buyback
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Which type of countertrade is viewed as the most restrictive arrangement?
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barter
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Which type of countertrade is when a firm agrees to purchase a certain amount of materials back from a country to which a sale is made?
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counter purchase
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Which type of countertrade occurs when a third-party trading house buys the firm's counter purchase credits and sells them to another firm that can better use them?
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switch trading
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Countertrade's main attraction is that it can give a firm a way to finance an _____ _____ when other means are not available.
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export deal
