MST 111

Introduction to Business

Terms used in international Trade

Invoice. An invoice, bill or tab is a commercial

document issued by a seller to a buyer, relating to a sale transaction and indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer.

letter of credit  A written commitment to pay, by

a buyer's or importer's bank (called the issuing bank) to the seller's or exporter's bank (called the accepting bank, negotiating bank, or paying bank).

Definition of 'Back-To-Back Letters Of Credit‘Two letters of credit (LCs) used together to help a seller

finance the purchase of equipment or services from a subcontractor. With the original LC from the buyer's bank in place, the seller goes to his own bank and has a second LC issued, with the subcontractor as beneficiary. The subcontractor is thus ensured of payment upon fulfilling the terms of the contract. 

Free on Board (FoB) FOB is an acronym for "free on board", meaning that the buyer

pays for transportation of the goods.[1] Specific terms of the agreement can vary widely, in particular which party (buyer or seller) pays for which shipment and loading costs, and/or where responsibility for the goods is transferred.

Cash on Delivery (CoD) Definition of 'Cash On Delivery - COD'

A type of transaction in which payment for a good is made at the time of delivery. If the purchaser does not make payment when the good is delivered, then the good will be returned to the seller.

Payment can be made by cash, certified check or money order, depending on what is stipulated in the shipping contract. 

Clearing and forwarding agent

Definition: “Clearing and forwarding agent” means any person who is engaged in providing any service, either directly or indirectly, concerned with the clearing and forwarding operations in any manner to any other person and includes a consignment agent. 

A clearing and forwarding agent normally undertakes the following activities: (a)receiving the goods from the factories or premises of the principal or his agents; (b)warehousing these goods; (c)receiving dispatch orders from the principal; (d)arranging dispatch of goods as per the directions of the principal by engaging transport on his own or through the authorized transporters of the principal; (e)maintaining records of the receipt and dispatch of goods and the stock available at the warehouse

Generalized System of Preferences (GSP

The U.S. Generalized System of Preferences (GSP) is a program designed to promote economic growth in the developing world by providing preferential duty-free entry for up to 5,000 products when imported from one of 123 designated beneficiary countries and territories. The GSP program also supports U.S. jobs. U.S. businesses imported $19.9billion worth of products under the GSP program in 2012, including many inputs used in U.S. manufacturing. According to a 2005 U.S. Chamber of Commerce study, over 80,000 American jobs are associated with moving GSP imports from the docks to farmers, manufacturers, and retail shelves. GSP was instituted on January 1, 1976, by the Trade Act of 1974.

SAFTA The South Asian Free Trade Area or SAFTA is an

agreement reached on 6 January 2004 at the 12th SAARC summit in Islamabad, Pakistan. It created a free trade area of 1.6 billion people in Bangladesh, Bhutan, India, Maldives, Nepal, Pakistanand SriLanka (as of 2011, the combined population is 1.8 billion people). The seven foreign ministers of the region signed a framework agreement on SAFTA to reduce customs duties of all traded goods to zero by the year 2016.

Association of Southeast Asian Nations Motto: "One Vision, One Identity, One Community"[1]Anthem: The ASEAN Way Headquarters Jakarta, Indonesia Membership10 states[show] 2 observers[show] The Association of Southeast Asian Nations (ASEAN) is a political and economic

organisation of ten countries located in Southeast Asia, which was formed on 8 August 1967 by Indonesia, Malaysia, thePhilippines, Singapore and Thailand.[9] Since then, membership has expanded to include Brunei, Burma (Myanmar), Cambodia, Laos, and Vietnam. Its aims include accelerating economic growth, social progress, sociocultural evolution among its members, protection of regional peace and stability, and opportunities for member countries to discuss differences peacefully. [10]

The European Union (EU) is an economic and political union of 28 member states that are located primarily in Europe.[12][13]The EU operates through a system of supranational independent institutions and intergovernmental negotiated decisions by the member states.[14][15] Institutions of the EU include the European Commission, the Council of the European Union, theEuropean Council, the Court of Justice of the European Union, the European Central Bank, the Court of Auditors, and theEuropean Parliament. The European Parliament is elected every five years by EU citizens.

The North American Free Trade Agreement (NAFTA; an agreement signed by Canada, Mexico, and the United States, creating a trilateral rules-based trade bloc in North America. The agreement came into force on January 1, 1994. It superseded theCanada–United States Free Trade Agreement between the U.S. and Canada.

SAARC

South Association for Regional Cooperation (SAARC) is an economic and geopolitical cooperation among eight member nations that are primarily located in South Asia continent.[10] Its secretariat is headquartered in Kathmandu, Nepal.

The idea of regional political and economical cooperation in South Asia was first coined in 1980 and the first summit held in Dhaka on 8 December in 1985 led to its official establishment by the governments of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. In the intervening years, its successors have grown in size by the accession of new member states. Afghanistan was the first to have been accessed in the physical enlargement of the SAARC in 2007

Current members  Afghanistan  Bangladesh  Bhutan  India  Maldives  Nepal  Pakistan  Sri Lanka

Observers  Australia  China  European Union  Japan  Iran  Mauritius  Myanmar  South Korea  United States

Potential future members  China has expressed interest in establishing special relations with

SAARC, and is supported by Pakistan, Bangladesh, Sri Lanka, Nepal and the Maldives.

 Burma has expressed interest in upgrading its status from an observer to a full member of SAARC.

 Russia has applied for observer status membership of SAARC.  Turkey has applied for observer status membership of SAARC in 2012. Others  South Africa has participated in meetings.