Ch 14 - International Management

Front 1

MITI

Back 1

Japan's Ministry of International Trade and Industry, which is always on the lookout for export opportunities.

Front 2

sogo shosha

Back 2

Japan's great trading houses, has offices all over the world, and they proactively, continuously seek export opportunities for their affiliated companies large and small.

Front 3

export management company

Back 3

export specialists who act as an export marketing department for client firms - help first time exporters by identifying the opportunities associated with exporting and to avoid many of the associated pitfalls

Front 4

letter of credit

Back 4

stands at the center of international commercial transactions. Issued by a bank at the request of an importer, the letter of credit states that the bank will pay a specified sum of money to a beneficiary, normally the exporter, on presentation of particular, specified documents

Front 5

bill of exchange

Back 5

is the instrument normally used in international commerce to effect payment. 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.

Front 6

draft

Back 6

same as bill of exchange

Front 7

sight draft

Back 7

Is a category of draft that is payable on presentation to the drawee

Front 8

time draft

Back 8

"Allows for a delay in payment - normally 30,60,90, or 120 days. It is presented to the drawee, who signifies acceptance of it by writing or stamping a notice of acceptance on its face.
* once accepted, the time draft becomes a promise to pay by the accepting party."

Front 9

banker's acceptance

Back 9

when a time draft is drawn on and accepted by a bank

Front 10

trade acceptance

Back 10

when a time draft is drawn on and accepted by a business firm

Front 11

bill of lading

Back 11

A third key document for financial international trade. Is issued to the exporter by the common carrier transporting the merchandise; it serves as a receipt, a contract, and a document of title

Front 12

export-import bank

Back 12

It is an independent agency of the U.S. government whose mission is to provide aid in financing and facilitate exports and imports, and the exchange of commodities between the United States and other countries; also referred to as the Ex-Im Bank

Front 13

export credit insurance

Back 13

the lack of a letter of credit exposes the exporter to the risk that the foreign importer will default on payment. The exporter can insure against this possibility by buying export credit insurance. Which will cover a major portion of the loss.

Front 14

FCIA - Foreign Credit Insurance Association

Back 14

an association of private commercial institutions operating under the guidance of the Export-Import bank. Which provide export credit insurance in the United States

Front 15

coutertrade

Back 15

Is an alternative means of structuring an international sale when conventional means of payment are difficult, costly, or non-existent.
It is basically the trade of goods and services for other goods and services

Front 16

barter

Back 16

It is a type of countertrade. The direct exchange of goods or services between two parties without a cash transaction

Front 17

couterpurchase

Back 17

It is a type of countertrade. A reciprocal buying agreement

Front 18

offset

Back 18

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

Front 19

switch trading

Back 19

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

Front 20

buyback

Back 20

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