Ch. 15 Exporting, Importing and countertrade

counter purchase

a reciprocal buying agreement, occurs when a firm agrees to purchase a certain amount of materials back from a country to which a sale is made

draft

also called bill of exchange, is the isntrument normally used to international commerce for payment. a draft is simply 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

versions of countertrade

barter, counterpurchase, offest, compensation or buyback, swith trading

barter

is a direct exchange of goods and/or services between two parties without a cash transaction, most restrictive countertrade arrangement, one time only deals

sight draft

is a payable on presentation to the drawee in payment

export-import bank

is an independent agency agency of the us government

bill of lading

is issued to the exporter by the common carrier transporting the mercandise, it serves three purposes; it is a receipt, contract, document of title

letter of credit

issued by a bank at the request of an importer and states the bank will pay a specified sum of money to a beneficiary, normally the exporter, on presentation of particular, specified documents

sogo shosha

japanese trading companies; a key part of the keiretsue, the large japanese industrial groups

export

large and small firms

buyback

occurs when a firm builds a pland in a country etc and agrees to take a certain percentage of the plants output as a partial payment for the contract

counter trade

refers to a range of barter-like agreements that facilitate the trade of goods and services for other goods and services when they cannot be traded for money

switch trading

refers to the use of a specialized third-[arty trading house in a counterade arrangement

offset

similar to couterpurchase, one party agrees to purchase goods and services with a specified percentage of the proceeds from the original sale