IBUS Chapter 14

Trade Agreements like NAFTA and the EU have increased the opportunity for…

Countries to Export.

MITI

Japan’s Ministry of International Trade and Industry.

sogo shosha

Japanese trading companies; a key part of the

keiretsu, the large Japanese industrial groups.

export management company (EMC)

Export specialist that acts as an export marketing department for client firms.

bill of exchange

An order written by an exporter instructing an

importer, or an importer’s agent, to pay a specified amount of money at a specified time.

draft

An order written by an exporter telling an

importer what and when to pay.

sight draft

sight draft

A draft payable on presentation to the drawee.

time draft

A promise to pay by the accepting party at some

future date.

bill of lading

A document issued to an exporter by a common

carrier transporting merchandise. It serves as a

receipt, a contract, and a document of title.

The Export-Import Bank (EXIM Bank) of the

United States

Agency of the U.S. government whose mission

is to provide aid in financing and facilitate

exports and imports.

countertrade

The trade of goods and services for other goods

and services.

barter

The direct exchange of goods or services

between two parties without a cash

transaction.

counter purchase

A reciprocal buying agreement.

offset

Agreement to purchase goods and services with

a specified percentage of proceeds from an

original sale in that country from any

firm in the country.

switch trading

Use of a specialized third party trading house in a

countertrade arrangement.

buyback

Agreement to accept a percentage of a plant’s

output as payment for contract to

build a plant.

is a financial document issued by a bank or financial institution that guarantees payment to an exporter (seller) on behalf of an importer (buyer), provided that the exporter meets specific terms and conditions outlined in the letter.

Letter of Credit (LC)