--%>

Foreign commerce trade

State three basic documents which are essential in order to conduct the typical foreign commerce trade?  Discuss briefly the purpose of each.

E

Expert

Verified

Three basic documents which are essential in order to conduct typical foreign commerce trade are: time draft, letter of credit, and a bill of lading. Letter of credit (L/C) is a guarantee from the importer’s bank which it will act on behalf of the importer and pay exporter for the merchandise in case all the relevant documents specified within the L/C are presented in accordance with the terms of L/C.  Time draft is a written order instructing the importer or his agent, the importer’s bank, to pay amount which is specified on its face on the particular date.   Bill of lading (B/L) is the document which is issued by the common carrier specifying that it has received goods for shipment; it can also serve as title to the goods.

   Related Questions in Financial Accounting

  • Q : French Association of Private Companies

    In the year 1995, working group of the French chief executive officers was formed by the Confederation of French Industry (CNPF) and the French Association of Private Companies (AFEP) for studying the structure of the French corporate governance. Group has reported th

  • Q : Finalization of Accounts What does the

    What does the term Finalization of Accounts mean?

  • Q : Define Asset Purchase Asset Purchase :

    Asset Purchase: Agreement between seller and buyer to obtain an organization's assets. In an asset purchase, only particular assets transfer ownership from seller to the buyer. Assets should be re-titled to the latest owner who has the capability to d

  • Q : International and financial management

    Explain, how international financial management is different from the domestic financial management?

  • Q : What is Liability Management Liability

    Liability Management: The procedure by which financial institutions balance outstanding liabilities, like deposits, CDs, and so on, with suitable liquidity reserves. Banks and other lenders employ liability management to decrease liquidity risks and u

  • Q : Freedmens Bureau What did Freedmen’s

    What did Freedmen’s Bureau do?

  • Q : What is the opening accounts receivable

    Big Problem Ltd., an oil refining business uses an allowance system to account for bad debts. At the beginning of the year the allowance had a credit balance of $16,000. The following transactions took place during the year. a) Tot

  • Q : Ihi Which of the following adjustments

    Which of the following adjustments is an example of an accrual adjustment? an asset/expense adjustment involving depreciation an asset/expense adjustment involving insurance a liability/expense adjustment involving utility expenses a liability/revenue adjustment involving unearned revenues

  • Q : Explain Direct expenses Explain Direct

    Explain Direct expenses. Also write its main illustrations?

  • Q : European term bid-ask quotes Restate

    Restate following one-, three-, and six-month outright forward European term bid-ask quotes in forward points. Spot               1.3431-1.3436

    Discover Q & A

    Leading Solution Library
    Avail More Than 1453074 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads
    No hassle, Instant Access
    Start Discovering

    18,76,764

    1935961
    Asked

    3,689

    Active Tutors

    1453074

    Questions
    Answered

    Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

    Submit Assignment

    ©TutorsGlobe All rights reserved 2022-2023.