int bus quiz 3

  1. Types of export documentation?
    • •The bill of
    • lading is the basic contract between exporter and
    • shipper. It authorizes a shipping
    • company to transport the goods to the buyer’s destination.

    • •The
    • shipper's export
    • declaration (sometimes called "ex-dec”)
    • lists the contact information of the exporter and the buyer (or importer), as
    • well as a full description, declared value, and destination of the products
    • being shipped.

    • •The certificate
    • of origin is the "birth certificate" of the
    • goods being shipped and indicates the country where the product originates.

    • Exporters usually purchase an insurance
    • certificate to protect the exported goods against
    • damage, loss, pilferage (theft) and, in some cases, delay.

    • •A quotation or pro forma invoice is issued upon a request by potential customers. This can be structured as a standard form,
    • which informs the potential buyer about the price and description of the
    • exporter’s product or service.

    • •The commercial
    • invoice is the actual demand for payment issued by
    • the exporter when a sale is concluded.
    • It includes a description of the goods, the exporter’s address, delivery
    • address, and payment terms.

    • •A packing
    • list, particularly for shipments that involve
    • numerous goods, indicates the exact contents of the shipment.
  2. Export Documentation?
    • Documentation
    • refers to the official forms and other
    • paperwork that are required for export sales to transport goods and clear
    • customs.
  3. Letter of credit?
    • •Contract
    • between the banks of a buyer and a seller that ensures payment from the buyer
    • to the seller upon receiving an export shipment.

    • •A
    • letter of credit may be either irrevocable or revocable. Once established, an irrevocable letter of
    • credit cannot be canceled without agreement of both buyer and seller. The selling firm will be paid as long as it
    • fulfills its part of the agreement.

    • •The
    • letter of credit immediately establishes trust between buyer and seller.
  4. Countertrade?
    • •Countertrade
    • refers to an international business transaction where all or partial payments
    • are made in kind rather than cash. The focal firm is engaged simultaneously in
    • exporting and importing.

    • •Also
    • known as “two-way” or “reciprocal” trade, countertrade operates on the
    • principle of “I’ll buy your products, if you buy mine.”

    • Goods and services are traded for other goods
    • and services when conventional means of payment are difficult, costly, or
    • nonexistent. Thus, barter is a form of countertrade
  5. examples of export documentation
    • pro-forma invoice
    • commercial invoice
    • packing list
    • bill of lading
  6. Letter of credit important players
    • exporter
    • exporters bank
    • importer
    • importers bank
  7. advantages of exporting
    • increased sales
    • benefit from economies of scale
    • diverse costumer base
    • easy to exit
  8. disadvantages of exporting
    • unknown target market
    • tarriffs/trade barriers
    • paperwork
Card Set
int bus quiz 3
int business