MKT 4358 QUIZ 7
Terms
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- Clearance
- The accomplishment of the customs procedures / formalities necessary to allow goods to be imported or to be exported.
- Countertrade
- Reciprocal and compensatory trade agreements involving the purchase of goods or services by the Seller from the Buyer of his product where Seller receives some form of non-cash compensation.
- Drayage
- The charge made for hauling freight via carts, drays or trucks.
- Marginal Cost
- The increase in the total costs of a producer of producing one more unit of output, or the decrease in producing one less unit of output.
- Hard currencies
- Monies that are easily traded and exchanged in country money markets.
- Ocean Bill of Lading
- A document describing the contents of a shipment by sea and how it is to be handled.
- Certificate of Inspection
- A certificate issued by an independent third party verifying the condition of cargo or of property.
- Commercial General Liability (CGL) insurance
- Insurance widely used to provide commercial enterprises with premises and operations liability coverage, products and completed operations insurance and personal injury coverage which oftentimes includes medical payments coverage.
- Price strategy
- A long-term framework that establishes the initial price for a product or service and the direction for price movements over some or all of the product life cycle.
- Government assistance
- This refers to various forms of aid a government provides firms and individuals to support commercial activities.
- Cost Plus
- A pricing method where the purchaser agrees to pay the production cost of the goods plus a fixed percentage to the Seller for profit.
- EXIMBANK
- The export credit agency of the U.S. which guarantees working capital loans for U.S. exporters, guarantees the repayment of loans, makes loans to foreign purchasers of U.S. goods and services, and provides credit insurance protecting U.S. exporters.
- Clean Bill of Lading
- A B/L issued by a carrier for goods delivered in 'apparent good order and condition' - bearing no notations or added clauses which may limit the liability of the carrier.
- Predatory pricing
- A pricing practice by which a company hopes to inhibit or eliminate competition by charging lower than normal prices for its products.
- Confirmed Letter of Credit
- A L/C issued by a foreign bank whose validity has been confirmed by a domestic bank. This is in addition to the commitment of the opening bank.
- Freight Forwarder
- This agent for cargo specializes in arranging the transport and completing required shipping documentation for products. In the United States, they are licensed by the Federal Maritime Commission.
- Acceptance Letter Of Credit
- A draft (or a bill of exchange) accepted by the drawee (acceptor) by putting his signature and 'accepted' on its face. In doing so, he commits himself to pay the bill upon presentation at maturity.
- Terms
- Any of a variety of conditions attached to a financial transaction.
- Bid Bond
- A type of indemnity bond that is a surety guarantee which is often required to be established by a bidder to guarantee fulfillment of his offer if accepted.
- Half container
- A 20' long metal structure for shipping merchandise by sea also referred to as a pup.
- Confirming Bank
- Any bank which engages to honor a letter of credit issued by another, or engages that such L/C will be honored by the issuer or by a third bank.
- Cost and freight (CFR)
- An INCOTERM indicating the cost of the product and freight is included in the Seller's quoted price to a named destination. All other charges are the Buyer's responsibility.
- Declared Value for Customs
- The value of a shipment according to the customs laws of the destination country required to be declared by the shipper on the shipping documents or by the importer when he presents the goods for customs clearance.
- Cash Against Documents (CAD)
- A term used in collections supported by shipping documents which are released to the Buyer only against payment. Same as Documents Against Payment (D/P).
- Certificate of Manufacture
- A certificate sometimes required from a manufacturer to attest that goods have been manufactured according to the contract; for example, to support payment under a letter of credit.
- Bank (ers) Acceptance
- A time draft drawn on, and accepted by, a bank. They are limited to 6 months in the US. They may be kept to maturity or sold.
- Arbitration Clause
- A contract clause describing the process of resolving a dispute or a grievance outside of the court system by presenting it to an impartial third party or panel for a decision that may or may not be binding.
- Discount
- Desribes whenever there is a straight reduction in price on purchases during a stated period of time.
- Bulk ocean cargo
- Cargo shipped by sea, usually a homogenous raw material, shipped in bulk i.e. complete shipments.
- Pro forma invoice
- An abbreviated invoice sent in advance of a shipment, usually to enable the Buyer to obtain an import or an exchange permit or both, and primarily used for banking purposes.
- Inland Bill of Lading
- A bill of lading used in transporting goods overland within a single nation.
- Invoice
- A detailed itemized statement of the merchandise sold or shipped to the Buyer, consignee, shipper, or other factor showing the type and amount shipped and prices and totals due.
- Black Market
- The buying or selling of products or currency that violate government restrictions.
- Claused Bill of Lading
- A notation on a B/L which denotes a deficient condition of the goods or packaging, or other annotated conditions modifying the printed conditions on the B/L.
- Collecting Bank
- A bank involved in the collection process. In this process if presentation is made to the drawee, it also becomes 'the presenting bank'.
- Certificate of Insurance
- A document issued by an insurer (usually an insurance company) that a stated amount of coverage exists for certain types of claims.
- Transfer price
- The unit price at which one entity sells to a different entity within the same firm.