Final

Question 1

A draft accepted by drawee with a signature. Commits to pay the bill upon maturity

Answer 1

Acceptance Letter of Credit

Question 2

tax by gov’t

Answer 2

Duty/Tariff

Question 3

nation that exports manufactured goods in exchange for raw materials

Answer 3

Industrialized economy

Question 4

bank that issues a L/C, and notifies beneficiary of terms of credit

Answer 4

Advising Bank

Question 5

one who applies to his bank to issue a documentary credit

Answer 5

Applicant

Question 6

a time draft drawn on and accepted by a bank. limited to 6 months

Answer 6

Bankers Acceptance

Question 7

many buyers and one seller

Answer 7

Monopoly

Question 8

a payee or recipient, usually of money

Answer 8

Beneficiary

Question 9

many sellers but only one buyer

Answer 9

Monopsony

Question 10

an INCOTERM indicating the Seller delivers the goods to the carrier but must also pay the cost of carriage to get it to the destination

Answer 10

Carriage Paid To (CPT)

Question 11

tightly knit group of people w common culture

Answer 11

Nation

Question 12

An INCOTERM indicating the Seller delivers the goods to the carrier but must pay the cost of carriage to get it to the destination plus the insurance against damage/lost

Answer 12

Carriage Insurance Paid To (CIP)

Question 13

A term used in collections supported by shipping documents which are released to the Buyer only against payment. Same as Documents against payment (D/P)

Answer 13

Cash Against Documents

Question 14

A credit where Buyer pays for merch in full before shipment

Answer 14

Cash in Advance

Question 15

An advantage with factors that are not common to all countries like Physical Geography

Answer 15

Principle of Factor endowment

Question 16

a bank that is authorized to accept demand deposits. can make loans and issue credit

Answer 16

Commercial Bank

Question 17

the encouragement of restriction on imports to enable the domestic producers to compete successfully with foreign producers

Answer 17

Protectionism

Question 18

a duty/tax on imported products to make them more expensive compared to domestic ones

Answer 18

Protective Tarrif

Question 19

a l/c issues by a foreign bank who has been validated by a domestic bank

Answer 19

Confirmed letter of credit

Question 20

primarily European entities that use their credit where their client has customers with a high cost of funds or are located in a country with an uncertain credit environment

Answer 20

Confirming house

Question 21

trading routes connecting mkts in the Mediterranean and middle east

Answer 21

Silk roads

Question 22

An INCOTERM indicating the cost of the product and freight is included in quoted price . other chargers are buyers responsibility

Answer 22

Cost and Freight

Question 23

payment for goods without a guaranteed form of payment in which the documents transferring title to the goods are not given to the buyer til she has signed a draft

Answer 23

Documents against payment

Question 24

INCOTERM indicating the cost of the product, insurance, and freight is included in sellers quoted price. other charges are buyers responsibility

Answer 24

cost, insurance and freight

Question 25

INCOTERM indicating the seller has fulfilled its obligation to deliver when the goods have been made available in country of import.

Answer 25

Delivered Duty Unpaid

Question 26

Adam smith. countries should produce and export products in which they have acost advantage and import the cost disadvantage

Answer 26

Absolute Advantage

Question 27

David ricardo. produce and export the product that have the greatest comparative advantage

Answer 27

Comparative advantage