Chapter 15

BILL OF LADING

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

COUNTERPURCHASE

A reciprocal buying agreement.

EXPORT-IMPORT BANK

Agency of the U. S. government whose mission is to provide aid in financing an dfacilitate exports and imports.

BUYBACK

Agreement to accept percentage of a plant's output as payment for contract to build a plant.

OFFSET

Agreement to purchase goods and services with a specified percentage of proceeds from an original sale in that country from any firm in that country.

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.

DRAFT

An order written by an exporter telling an importer what and when to pay.

EXPORT MANAGEMENT COMPANY

Export specialists who act as an 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

Japanese trading companies; a key part of th ekeiretsu, the large Japanese industrial groups.

BARTER

The direct exchange of goods or services between two parties without cash transaction

COUNTERTRADE

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

SWITCH TRADING

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