Revision: Economic sectors

a draft

A bill of exchange is also called ...

importer

A company which buys products from other countries

exporter

A company which sells goods and services to other countries

invoice

A document describing the goods or services sold: quantity, weight, number of packages, price, therms of delivery, terms of payment, etc.

insurance certificate

A document describing the goods, and containing the details about the amount of insurance provided and how to claim if they are lost or damaged in transit.

an export licence

A document giving the right to sell particular goods abroad.

bill of lading

A document issued by a transport carrier to an exporter to prove that the goods have been received for shipment.

subsidy

A government payment that supports a business or market

a documentary credit

A letter of credit is also called .....

Quota

A limit placed on the quantities of a product that can be imported

balance of payments

A record of all transactions (trade in services and goods) between a particular country and other countries during a specified time period.

Primary Sector

A sector which encompasses industries involved in the extraction and collection of natural resources, such as copper and timber, as well as by activities such as farming and fishing

free trade

A situation in which goods come into and out of a country without any controls or taxes.

Tariff

A tax on imported goods

Documentary Credit (Letter of Credit)

A written promise by a bank to pay a certain amount to the seller, within a fixed period, when the bank receives instructions from the buyer.

a bill of exchange

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.

irrevocable

If a document cannot be changed it is .....

matures

If an insurance agreement or an investment becomes ready to be paid, it .....

Quality & Weight certificates

Issued by private inspection and testing companies, may be necessary, confirming that these are the correct goods in the right quantity.

secondary sector

Sector which manufactures finished products.

absolute advantage

The ability of a country, individual, company or region to produce a good or service at a lower cost per unit than another entity that produces the same good or service.

economies of scale

The greater the quantity of output produced, the lower the per-unit fixed cost.

service sector

The sector of the economy that provides support activities, such as health care, banking, etc., for customers or other industries.

to endorse

To guarantee to pay a bill of exchange if the buyer of goods does not do that is ... it.

Visible trade

Trade in physical goods.

Invisible trade

Trade in services

in transit

While being transported

certificate of origin

a document that states the name of the country in which the shipped goods were produced

Laissez-faire

a policy or attitude of letting things take their own course, without interfering.

infant industry

an industry in the early stages of development

strategic industry

an industry that a government considers to be very important for the country's economy or safety

growth industry

an industry that is developing particularly rapidly

balance of trade

difference between how much a country imports and how much it exports

heavy industry

industry that requires a large capital investment and typically involves large and heavy products or large and heavy equipment and facilities

light industry

industry that usually is less capital-intensive than heavy industry and is more consumer-oriented than business-oriented, as it typically produces smaller consumer goods

incoterms

international commercial terms

Dumping

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

trade surplus

situation in which a country exports more than it imports

trade deficit

situation in which a country imports more than it exports

Protectionism

the actions of a government to help its country's trade or industry by taxing goods bought from other countries

Deregulation

the removal of some government controls over a market

draw up

to prepare and write something such as a document or plan