EXPORTING, IMPORTING AND COUNTERTRADE

Question 1

Refers to range of barter-like agreements that facilitate the trade of goods and services without two parties without a cash transaction.

Answer 1

BARTER

Question 2

a reciprocal buying agreement

Answer 2

COUNTERPURCHASE

Question 3

A similar to counterpurchase in so far as one country agrees to purchase goods and services with a specified percentage of the proceeds from the original sale.

Answer 3

OFFSET

Question 4

When a firms build a plant in a country or supplies technology, equipment, training, or other services to the country and agrees to take a certain percentage of the plant’s output as a partial payment for a contract.

Answer 4

BUYBACK

Question 5

Refers to use of a specialized third-party trading house in a counter trade arrangement.

Answer 5

SWITCH TRADING

Question 6

Issued by a bank at the request of an importer and states the bank will pay a specified sum of money to a beneficiary, normally the exporter, on presentation of particular, specified documents.

Answer 6

LETTER OF CREDIT

Question 7

also called a bill of exchange, is the instrument normally used in International commerce for payment.

Answer 7

DRAFT

Question 8

Issued to the exporter by the common carrier transporting the merchandise.

Answer 8

BILL OF LADING

Question 9

BILL OF LADING serves three purposes:

Answer 9

it is a receipt
it is a contract
it is a document of title

Question 10

Export specialist that act as the export marketing department or international department for client firms.

Answer 10

EXPORT MANAGEMENT COMPANIES (EMCs)

Question 11

occurs when a third partyytrading housebuys the firm’s counterpurchase credits and sells them to another firm that can better use them

Answer 11

SWITCH TRADING

Question 12

Many internatinal transactions are facilitated by a third party, by including the third party, an element of trust is added to the relationship.

Answer 12

Lack Of Trust