Nasbite Cgbp

Front 1

What is the least secure method of payment for Exporters?

Back 1

Open Account

Front 2

What is the least secure method of payment for Exporters?

Back 2

Cash-in-Advance

Front 3

What are the methods of payment?

Back 3

Open Account
Documentary Collections
Letters of Credit
Cash-in-Advance

Front 4

What is the least secure method of payment for Importers?

Back 4

Cash-in-Advance

Front 5

What is the least secure method of payment for Importers?

Back 5

Open Account

Front 6

Under which method of payment is risk most evenly spread between the importer and exporter?

Back 6

Letters of Credit

Front 7

Is Documentary Collections riskier for the importer or the exporter?

Back 7

The Exporter

Front 8

Group E INCOTERMS

Back 8

Risk Transfers at Departure

Front 9

Group F INCOTERMS

Back 9

Main Carriage Unpaid by Seller

Front 10

Group C INCOTERMS

Back 10

Main Carriage Paid by Seller

Front 11

Group D INCOTERMS

Back 11

Risk Transfers at Arrival

Front 12

What is an Air Waybill?

Back 12

An Air waybill is a reciebt issued by an internaitonal courier for goods. It is evidence of the contract of carriage, It is not a title of goods and is non negotiable.

Front 13

What is SNAP used for?

Back 13

To apply for an export license.

Front 14

What is a Drawback?

Back 14

A method of recovering 99% of duty on items used to manufacture goods for export.

Front 15

Force Majeure

Back 15

A clause releasing all parties from responsibility due to extrodinary circumstances.

Front 16

Warsaw Convention

Back 16

Regulates carriage by aircraft - including people and goods. First signed in 1929. Being replaced by the Montreal Convention.

Front 17

What is the Madrid System?

Back 17

The Madrid System is the system used to register trademarks aroud the world.

Front 18

What is Transfer Pricing?

Back 18

Transfer Pricing refers to goods being "sold" within a company. The price will normally by lower than the market price. This is of concern for cross-border transactions due to tariffs.

Front 19

What is a Drawback?

Back 19

A method of recovering 99% of duty on items used to manufacture goods for export.

Front 20

Force Majeure

Back 20

A clause releasing all parties from responsibility due to extrodinary circumstances.

Front 21

Warsaw Convention

Back 21

Regulates carriage by aircraft - including people and goods. First signed in 1929. Being replaced by the Montreal Convention.

Front 22

What is the Madrid System?

Back 22

The Madrid System is the system used to register trademarks aroud the world.

Front 23

What is Transfer Pricing?

Back 23

Transfer Pricing refers to goods being "sold" within a company. The price will normally by lower than the market price. This is of concern for cross-border transactions due to tariffs.

Front 24

What is the Overseas Private Investment Corporation?

Back 24

OPIC is a US government organization that helps business invest in new and emergin markets.

Front 25

What is an Ocean Bill of Lading?

Back 25

A docuement that serves as both the carrier's receipt to the shipper and as a collection document

Front 26

What is UCP?

Back 26

The Uniform Customs and Practice for Ducumentary Collection. It is a set of rules on the issuance and use of letters of credit.

Front 27

What does SNAP-R stand for?

Back 27

Simplified Network Application Process - Redesigned.

Front 28

EXW

Back 28

Ex Works

Front 29

FCA

Back 29

Free Carrier

Front 30

FAS

Back 30

Free Alongside Ship

Front 31

FOB

Back 31

Free on Board

Front 32

CFR

Back 32

Cost and Freight

Front 33

CIF

Back 33

Cost, Insurance and Freight

Front 34

CPT

Back 34

Carriage Paid To

Front 35

CIP

Back 35

Carriage and Inusrance Paid

Front 36

DAF

Back 36

Delivered at Frontier

Front 37

DES

Back 37

Delivered Ex Ship

Front 38

DEQ

Back 38

Delivered Ex Quary

Front 39

DDU

Back 39

Delivered Duty Unpaid

Front 40

DDP

Back 40

Delivered Duty Paid

Front 41

What is the best INCOTERM for sellers?

Back 41

EXM

Front 42

What is the best INCOTERM for buyers?

Back 42

DDP

Front 43

Revocable Letter of Credit

Back 43

A revocable letter of credit is one which can be amended or cancelled by the applicant or the issuing bank at any time, without prior notice, discussion or agreement with the beneficiary. A revocable letter of credit offers no protection to the beneficiary and is seldom if ever used.

Front 44

Irrevocable Letter of Credit

Back 44

An irrevocable letter of credit can not be amended or revoked without the agreement of ALL the parties to the letter of credit, so it provides the assurance that providing the beneficiary complies with the terms, he/she will be paid for the goods or services.

Front 45

Unconfirmed Letter of Credit

Back 45

An unconfirmed irrevocable letter of credit provides a commitment by the issuing bank to pay, accept, or negotiate a letter of credit. An advising bank forwards the letter of credit to the beneficiary without responsibility or undertaking on its part except that it must use reasonable care to check the authenticity of the credit which it advised. It does not provide a commitment from the advising bank to pay, so the beneficiary is reliant upon the undertaking of the overseas bank. The beneficiary is not protected from the credit risk of the issuing bank nor the country risk.

Front 46

Confirmed Letter of Credit

Back 46

A confirmed irrevocable letter of credit is one to which the advising bank adds its confirmation, makes its own independent undertaking to effect payment, negotiation or acceptance, providing documents are presented which comply with the terms of the letter of credit. The advising bank, which may also be the confirming bank, assumes the country (political and economic) risk of the applicant’s country as well as the credit risk, failure and default of the issuing bank and effects payment to the beneficiary without recourse.

Front 47

Fixed rate of exchange

Back 47

A fixed rate of exchange is a ratio established by the government at which foreign currencies can be exchanged. The value of the national currency is based on parity with other currencies. Sustaining the parity is the question: if other factors force a market change to a floating rate, the impact could negatively impact the country.

Front 48

Floating rate of exchange

Back 48

A floating rate of exchange allows open market conditions to determine the value of the currency in relationship to other currencies. Open market exchange rates are highly volatile and change every 5 seconds or 18,000 times per day. This volatility translates into the need to manage the risk of rising or falling exchange rates.

Front 49

Managed rate of exchange

Back 49

A managed rate of exchange allows a central bank to intervene to adjust for market conditions. It controls wide valuation swings that may occur due to adverse market conditions.

Front 50

Uniform Customs and Practice – Electronic Supplement (eUCP) [edit]

Back 50

The eUCP provides a general framework of principles for dealing with the electronic documents (shipping, customs clearance and banking documents) being presented in letter of credit transactions.

Front 51

Uniform Rules of Collection (URC)

Back 51

The Uniform Rules of Collections are the international standards of draft collection practices established for bankers by the International Chamber of Commerce. The Uniform Rules are not law but are more properly viewed as a handbook for banks used to establish common understanding of terminology and expectations.

Front 52

Country Risk

Back 52

Regulations of individual countries that effect a goods ability to cross broders. This may include: need for a license, customs and duties, limitations on sending money or emargos.

Front 53

Political Risk

Back 53

Political risks are those risks that arise from the legal and foreign relations actions of the national governments of a seller, a buyer and sometimes third countries, especially third countries through which cargo may travel. Transfer and convertibility risks also relate to the buyer and seller’s countries, but more specifically in terms of the management of the currency and the availability of foreign currencies, also known as foreign reserves.

Front 54

Documentary Risk

Back 54

Documentary risks are the primary cause of slow or non-payment in international trade. In its simplest form, documentary risk arises from a missing or incorrectly prepared document that is required to complete the buy/sell transaction and/or make payment.

Front 55

Cultural Risk

Back 55

Cultural risks occur as the result of different expectations, misunderstandings and miscommunications between a buyer and the seller.

Front 56

Documents against Payment

Back 56

The export documents and the bill of exchange provided to a collecting bank are only made available to an importer when payment is made. The collecting bank then transfers the funds to the seller through the remitting bank.

Front 57

Documents against Acceptance

Back 57

The export documents and a time/usance bill of exchange are sent to a remitting bank. The documents are then sent to a collecting bank with instructions to release the documents against a buyer’s acceptance of the bill of exchange.

Front 58

Landed Cost

Back 58

the total cost of a landed shipment including purchase price, freight, insurance, and other costs up to the port of destination. In some instances, it may also include the customs duties and other taxes levied on the shipment.

Front 59

Fisher Effect

Back 59

An economic theory that holds that the interest rates that businesses pay to borrow money should be uniform throughout the world and that the nominal interest rates that they actually pay in a given country are composed of this common interest rate and the inflation rate of the country.

Front 60

Interest Rate Parity

Back 60

An economic theory that holds that the forward exchange rate between two currencies should reflect the differences in the interest rates in those two countries.

Front 61

What is Foreign Exchange Risk hedging?

Back 61

Currency hedging is the activity carried out in order to eliminate the risks stemming from an undesired exposure to a foreign currency. For example, a US investor might want to take exposure to the Japanese stock market, but not to the currency risk related to unexpected movements in the USD/JPY exchange rate. He would then invest in the Japanese stock market and perform currency hedging by selling the Japanese Yen forward, in order to fix today tomorrow's price of the Yen and eliminate the currency risk associated to his position in the Japanese stock market.

Front 62

What is the purpose of the anti-boycott laws?

Back 62

Objectives:
The antiboycott laws were adopted to encourage, and in specified cases, require U.S. firms to refuse to participate in foreign boycotts that the United States does not sanction. They have the effect of preventing U.S. firms from being used to implement foreign policies of other nations which run counter to U.S. policy.

Front 63

"Pull" Marketing

Back 63

A demand requested by the customer.

Front 64

"Push" Marketing

Back 64

A new product created by the manufacturer and then advertisex to the customer. It is pushed on them because they did not know about it.

Front 65

Demurrage

Back 65

The amount of time a vessel is in port past the time allotted.

Front 66

Cabotage

Back 66

Refers to the transport of goods or people between two points in the same country.

Front 67

General Average

Back 67

The maritime principle in which all parties in a sea venture proportionally share any losses resulting from a voluntary sacrifice of part of the ship or cargo to save the whole in an emergency.

Front 68

What does C-TPAT stand for?

Back 68

Customs - Trade Partnership Against Terrorism

Front 69

What does C-TPAT stand for?

Back 69

Customs - Trade Partnership Against Terrorism

Front 70

What is PIERS used for?

Back 70

PIERS provides trade data.

Front 71

What is Kompass used for?

Back 71

Kompass is a business directory. It can provide trade leads.

Front 72

What is UN Comtrade used for?

Back 72

UN Comtrade provides trade statistics.

Front 73

What is Trade Stats Express used for?

Back 73

Trade Stats Express is a US government site that provides quarterly trade data. Data can be viewed visually.

Front 74

What is AES Direct used for?

Back 74

AESDirect is the US Census Bureau's free, Internet based system for filing Shipper's Export Declaration.

Front 75

What is STATS-USA used for?

Back 75

STATS-USA provides economic statistics, international market research, and trade leads from across the Federal government

Front 76

Trade Development Agency

Back 76

A US government agency that advances economic development and US interestes in middle income and developing countries. Helps build infrustucure and promote free trade.

Front 77

What benefits does C-TPAT provide?

Back 77

embers of C-TPAT are less subject to customs inspections, and will be routed to the front of customs lines when they do need to be inspected.

Front 78

What does the Export-Import Bank do?

Back 78

The Ex-Im Bank is the official export credit agency of the United States. It assists in financing the export of US goods and services to international markets.

Front 79

What type of risk does the Ex-Im Bank take on?

Back 79

credit and country risk

Front 80

How can an exporter limit credit and/or country risk?

Back 80

By using the Export-Import Bank.

Front 81

What is the mission of the SBA office of Internaitonal Trade

Back 81

The mission of SBA's Office of International Trade is to enhance the ability of small businesses to compete in the global marketplace; facilitate access to capital to support international trade; ensure that the interests of small business are considered and reflected in trade negotiations; and support and contribute to the U.S. Government's international agenda.

Front 82

What is SBA's Export Working Capital Program?

Back 82

A program that provides loans to business that are able to generate export sales and need additional working capital to support the sales.

Front 83

what percentage of costs will an SBA loan cover?

Back 83

An SBA EWCP loan will cover 100% of supplier costs for an export transaction.

Front 84

What is the SBA International Trade Loan program?

Back 84

A program designed for businesses that plan to start or continue exporting or those that have been adversely affected by competition from improts.