Introduction to IB chapter 11 Flashcards
Direct export
When a company sells products made in its own country directly to customers in other countries
Free on board (FOB)
A contract term where the seller must deliver goods onto a ship or train for transport
Cost, Insurance and Freight (CIF)
A contract term where the seller pays for all transportation costs, including insurance, to get the goods to a destination port
Bill of Lading (B/L)
A document that proves the goods have been delivered onto a ship or train for transport
Letter of Credit (L/C)
A financial agreement where the importer’s bank promises to pay the exporter a certain amount once the goods are delivered
Indirect exports
A way for small and medium-sized MNEs to sell to customers in other countries by using local export companies
Export intermediaries
companies that help connect sellers in one country with buyers in other countries
Sales agents
Intermediaries who earn a commission for helping make sales
Cross-border services
services that are sent across national borders
Servicing foreign residents
delivery of services to people visiting from another country
Turnkey projects
projects where clients pay contractors to design, build and set up new facilities, including training the staff
Build-operate-transfer (BOT)
A contract where a company builds and runs a project for a certain period, then transfers it to a new owner
Design-and-build contract (DB)
A contract where the same company handles both the design and construction of a project
Tender
A process where companies compete for a bigger contract
Consortium
A temporary business partnership where several companies work together on a project