Ch. 13- Vocab. Flashcards
Export/import financing in which an importer pays an exporter for merchandise before it is shipped
Advance Payment
Individuals or organizations that represent one or more indirect exporters in a target market
Agents
Exchange of goods or services directly for other goods and services without the use of money
Barter
Contract between an exporter and a shipper that specifies merchandise destination and shipping costs
- Bill of Lading
Export of industrial equipment in return for products produced by that equipment
Buyback
Sale of goods or services to a country by a company that promises to make a future purchase of a specific product from the country
Counterpurchase
Practice of selling goods or services that are paid for, in whole or in part, with other goods or services
Countertrade
Practice by which companies use licensing agreements to exchange intangible property with one another
Cross Licensing
Practice by which a company sells its products directly to buyers in a target market
Direct Exporting
Export/import financing in which a bank acts as an intermediary without accepting financial risk
Documentary Collection
Document ordering an importer to pay an exporter a specified sum of money at a specified time
Draft (Bill of Exchange)
Institutional arrangement by which a firm gets its products, technologies, human skills, or other resources into a market
Entry Mode
Company that exports products on behalf of indirect exporters
Export Management Company (EMC)
Company that provides services to indirect exporters in addition to activities related directly to clients’ exporting activities
Export Trading Company (ETC)
Practice by which one company (the franchiser) supplies another (the franchisee) with intangible property and other assistance over an extended period
Franchising
Specialist in export-related activities such as customs clearing, tariff schedules, and shipping and insurance fees
Freight Forwarder
Practice by which a company sells its products to intermediaries who then resell to buyers in a target market
Indirect Exporting
Separate company that is created and jointly owned by two or more independent entities to achieve a common business objective
Joint Venture
Export/import financing in which the importer’s bank issues a letter pledging to pay the exporter when the exporter fulfills the terms listed in the letter
Letter of Credit
Practice by which one company owning intangible property (the licensor) grants another firm (the licensee) the right to the use that property for a specified period of time
Licensing
Practice by which one company supplies another with managerial expertise for a specific period of time
Management Contract
Agreement that a company will offset a hard-currency sale to a nation by making a hard-currency purchase of an unspecified product from that nation in the future
Offset
Export/import financing in which an exporter ships merchandise and later bills the importer for its value
Open Account
Relationship whereby two or more entities cooperate (but do not form a separate company) to achieve the strategic goals of each
Strategic Alliance
Practice in which one company sells to another its obligation to make a purchase in a given country
Switch Trading
Practice by which one company designs, constructs, and tests a production facility for a client firm
Turnkey (build-operate-transfer) Project
Facility entirely owned and controlled by a single parent company
Wholly Owned Subsidiary
