Chapter 13: Exporting, Importing, and Countertrade

Offset

A buying agreement similar to a counterpurchase, but the exporting country can then fulfill the agreement with any firm in the country to which the sale is being made.

Bill of Lading

A document issued to the exporter by the common carrier transporting the merchandise; it serves as a receipt, a contract, and a document of title.

Sight Draft

A draft payable on presentation to the drawee.

Time Draft

A promise to pay by the accepting part at some future date.

Counterpurchase

A reciprocal buying agreement.

Export-Import Bank

Agency of the U.S. government whose mission is to provide aid in financing and facilitate exports and imports; also referred to as the Ex-Im Bank.

Draft

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.

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; also called a draft.

Export Management Company

Export specialists who act as the export marketing department for client firms.

Letter of Credit

Issued by a bank, indicating that the bank will make payments under specific circumstances.

Sogo Shosha

Japan's great trading houses.

Barter

The direct exchange of goods and/or services between two parties without a cash transaction.

Countertrade

The trade of goods or services for other goods or services.

Switch Trading

The use of a specialized third-party trading house in a countertrade arrangement.

Buyback

When a firm builds a plant in a country and agrees to take a certain percentage of the plant's output as partial payment for the contract.