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 succh 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 travellers
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 certai products in a certain area
agent - a person who negotiates purchase and sales in return commission or a fee
nations - countries
commodities - raw materials and goods
balance o ftrade - difference between total earnings from visible exports and total expenditure on visible imports
balance of payments - difference between total earnings from all exports and total expenditure on all imports
batter or counter trade- direct exchange of goods without the use of money
protectionism - the favoring of domestic industries
factors of production - inputs
climate - weather conditions
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 -Â 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 - hen 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
economies of scale - reduced production costs because of large-scale production
balade of trade / trade surplus - positive balance of trade
trade deficit - negative balance of trade
visible trade – trade in goods
invisible imports / exports- services, such as banking, insurance and tourism
balance of payments - adding invisibles to the balance of trade
protectionism - restricting imports in order to help local product
dumping - selling goods abroad at below cost price in order to destroy or weaken competitors
exporter - a company which sells goods or services to another countries
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 - transporter
insurance certificate - describes the goods and contains details of how to claim if they are lost or damaged
transit - transport
certificate of origin - where the goods come from