Chapter 16 Exporting, Importing and Countertrade

A set of vocabulary flashcards based on the key terms and concepts from the lecture on exporting, importing, and countertrade.

Exporting

The process of sending goods or services produced in one country to another for sale.

Countertrade

Trade of goods and services for other goods and services instead of cash.

Letter of Credit

A document issued by a bank, guaranteeing payment to a seller under specified conditions.

Bill of Lading

A document that serves as a receipt, contract, and document of title in an international trade transaction.

Draft

A written order for one party to pay a specified sum to another party at a specified time.

Export Assistance

Support provided to businesses to ease the export process and navigate international trade.

Freight Forwarders

Companies that arrange the transportation of goods on behalf of exporters.

Customs Brokers

Professionals who assist businesses in complying with customs regulations and facilitate international shipping.

Export Management Companies (EMC)

Firms that act as export marketing departments for other companies.

Barter

A direct exchange of goods or services without using money.

Reciprocal Buying Agreement

An arrangement where one party agrees to buy from another party in exchange for the latter's purchase of goods.

Trade Acceptance

A time draft that is accepted by a business firm.

Negotiable Instruments

Document that guarantees payment to the holder and is transferable.

Export Credit Insurance

Insurance that protects exporters from the risk of non-payment by foreign buyers.

Export Processing Zones

Designated areas that offer favorable conditions for exporting goods, including tax breaks and fewer regulations.

Economic Agreements

Agreements between countries aimed at reducing trade barriers and enhancing trade cooperation.

Barriers to Trade

Obstacles that countries put in place to regulate foreign trade.

Market Entry Strategies

Plans that outline how a company will enter a new foreign market.