Imports
When a country buys an item from another country.
Imports
When a country sells an item to another country.
Name one promise associated with exporting.
Large revenue and profit opportunities, or
Access to more consumers and businesses, or
Different Markets
Direct trade of goods.
A letter that guarantees payment in an international trade as an economic guarantee from a creditworthy bank to an exporter of goods.
Letter of Credit
The amount by which the cost of a country's imports exceeds the value of its exports.
Trade Deficit
The annual difference between a country's exports and imports.
Name one risk associated with exporting.
Not exporting often makes you lose out on significant opportunities for growth and cost reduction, or
Extreme paperwork and potential delays or errors, or
Culture shock
Buying and using the profit to buy more merchandise from the seller.
*(Hint- Store Credit)
Counter Purchase
A receipt that promises the company that the goods will only be shipped to the destination without being tampered with.
Bill of Lading
The state of Arizona _________ maple syrup FROM the state of Vermont.
What is an import?
The state of Florida makes so many oranges that it ___________ some to other states.
What is an export?
Another risk in exporting business.
What are payment risks?
Getting a 3rd party to sell the country currency earned from counter purchases or offsets.
Switch Trading
A guaranteed form of payment within a certain time limit by the bank.
Time Draft
As an ________, you are able to get a better price than you would otherwise get in the local market.
What are exporter?
What is transport risk?
Buying and using the profit to buy more merchandise from any seller.
Offset
A person or company that transports goods or passengers on regular routes at set rates.
Common Carrier
Taking a percentage of earnings from a company that wishes to create a plant in said country.
Compensation or Buybacks
How many steps are involved in Export Financing?
14