Final Flashcards
A draft accepted by drawee with a signature. Commits to pay the bill upon maturity
Acceptance Letter of Credit
tax by gov’t
Duty/Tariff
nation that exports manufactured goods in exchange for raw materials
Industrialized economy
bank that issues a L/C, and notifies beneficiary of terms of credit
Advising Bank
one who applies to his bank to issue a documentary credit
Applicant
a time draft drawn on and accepted by a bank. limited to 6 months
Bankers Acceptance
many buyers and one seller
Monopoly
a payee or recipient, usually of money
Beneficiary
many sellers but only one buyer
Monopsony
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
Carriage Paid To (CPT)
tightly knit group of people w common culture
Nation
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
Carriage Insurance Paid To (CIP)
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)
Cash Against Documents
A credit where Buyer pays for merch in full before shipment
Cash in Advance
An advantage with factors that are not common to all countries like Physical Geography
Principle of Factor endowment
a bank that is authorized to accept demand deposits. can make loans and issue credit
Commercial Bank
the encouragement of restriction on imports to enable the domestic producers to compete successfully with foreign producers
Protectionism
a duty/tax on imported products to make them more expensive compared to domestic ones
Protective Tarrif
a l/c issues by a foreign bank who has been validated by a domestic bank
Confirmed letter of credit
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
Confirming house
trading routes connecting mkts in the Mediterranean and middle east
Silk roads
An INCOTERM indicating the cost of the product and freight is included in quoted price . other chargers are buyers responsibility
Cost and Freight
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
Documents against payment
INCOTERM indicating the cost of the product, insurance, and freight is included in sellers quoted price. other charges are buyers responsibility
cost, insurance and freight
INCOTERM indicating the seller has fulfilled its obligation to deliver when the goods have been made available in country of import.
Delivered Duty Unpaid
Adam smith. countries should produce and export products in which they have acost advantage and import the cost disadvantage
Absolute Advantage
David ricardo. produce and export the product that have the greatest comparative advantage
Comparative advantage
