INTERNATIONAL TRADE

international trade

an exchange of different products between countries

export

the selling and transporting goods to another country

import

bringing products or services into one country from another

a policy of treating foreign goods as well as your domestic goods

Free trade

a policy of discriminating against foreign goods by putting obstacles / barriers for merchants

Protectionism

Trade in commodities

visible trade

Trade in services

invisible trade

direct exchange of goods without money (counter trade)

Barter trade

Balance of trade

difference between the volume of a country's overall export and import in visible trade

if the volume of exports is higher than the volume of imports

favourable balance of trade

if the volume of exports is lower than the volume of imports

adverse balance of trade

the difference in total earnings from all (visible + invisible) exports and total expenditures on all imports as a result - surplus/deficit

Balance of payments

Letter of credit

buyer - issuing/opening bank - confirming/advising bank - seller=bebeficiary

the fact that somebody can be trusted to pay back money that is owed

creditworthiness

verify

to authenticate

minor changes, modifications, alterations

amendments

the person to whom the money should be paid

beneficiary

BILL OF EXCHANGE

draft:is an ORDER by a seller/exporter. It instructs an importer/buyer to pay (a specified amount of money at a specified time).

the party that draws = writes out, issues the B/E and binds the debtor to pay

drawer

if a b/ E is drawn/ issued by an individual/company

a trade draft

If a b/ E is drawn/ issued by a bank

a bank draft

the party supposed to pay

drawee - the debtor

the party that receives the money, to whom the bill is payable

payee - the beneficiary

process of B/E being selled

endorsement

Bill of Lading, B/L

it is a transfer document

it means that money was paid to the shipping company before the journey

freight advance

recipient, importer

consignee

goods to be delivered, cargo, shipment

consignment

cargo

ship

carrying goods by rail or by road

haulage

good or cargo of goods

freight