FINANCING INTERNATIONAL TRADE

broker

 an agent in a particular market, such as securities

middlemen

a general term for agent, brokers, dealers, traders

retailer

a merchant such as a shopkeeper who sells to the final customer

outlet

a place where goods are sold to the public

sales force

a collective term for a company’s sales representatives or commercial traveler

wholesaler

an intermediary who stocks goods from various suppliers and deliver them to retailers when ordered

distributor

a person who stocks and resells components or goods to manufacturers or retailers

merchant

a person who buys goods and sells them on their own account

franchisee

a person who buys an exclusive right to sell certain products in a certain area

agent

a person who negotiates purchase and sales in return commission or a fee

commodities

raw materials and goods

balance of trade

difference between total earnings from all exports and total expenditure on visible imports

balance of payment

difference between total earning from all exports and total expenditure on all imports

batter / counter trade

direct exchange of goods without the use of money

protectionism

the favoring of domestic industries

division of labor

specialization of work into different jobs

economies of scale

savings in unit costs arising from large-scale production

tariffs

taxes charged on imports

quotas

restrictions on the quantity of imports

free trade

a believe that people and companies should be able to buy goods from all countries, without any barriers when they cross frontiers

comparative cost principle

countries should produce whatever they can make the most cheaply

living standard

measures of income and consumption

absolute advantage

when a producer can provide a good or service in greater quantity for the same cost, or the same quantity at a lower cost, than its competitors

productivity

the amount of output produced per unit of an input

balance of trade / trade surplus

positive balance of trade

protectionism

restricting imports in order to help local product

trade deficit

negative balance of trade

visible trade

trade in goods

invisible

services, such as banking, tourism

dumping

selling goods abroad at below cost price in order to destroy or weaken competitors

exporter

a company which sells goods / services to another country

importer

a company which buys products from other countries

documentary credit / letter of credit

payment for imported products

irrevocable

credits that cannot be changed unless all the parties involved agree

to endorse

to accept a bill of exchange before it matures

shipment

transportation of goods

commercial invoice

details of goods

bill of lading

a document signed by the transporter

carrier

tarnsporter

insurance certificate

a document which describes the goods and contains details of how to claim if they are lost or damaged

to transit

to transport