--%>

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 : Eliminating exposure of the currency

    Banks find it essential in order to accommodate their client’s requirements for buying or selling foreign exchange forward, in several instances for the hedging purposes.  How the bank can eliminate the exposure of the currency it has made for itself by acc

  • Q : Advance methods which are used in banks

    What are the advance methods which are used in banks presently?

  • Q : Purpose of foreign branch bank Discuss

    Discuss the purpose of the foreign branch bank.

  • Q : Accouning Required parts are clearly

    Required parts are clearly describes at the end of the questions and additional resource contains the journal article related to question three.. Approx 2000 word assignment.. First Question is of not more than 1000 words to make memorandum and its example is given at end of assignment and require

  • Q : Comprehensive Problem in Accounting

    Accounting Comprehensive Problem The case involves one accounting cycle (regular journal entries, adjusting journal entries, preparing financial statements,

  • Q : Define sales budget Give a short

    Give a short introduction of the term “sales budget”? While preparing the sales budget what are the factors which can be taken?

  • Q : Components of social interaction

    Identify and explain important components of social interaction.

  • Q : Factors considering before investing

    Being an investor, what are all factors you would consider before investing within the emerging stock market of developing country?

  • Q : What is Asset Disposition Asset

    Asset Disposition: Getting rid of the asset or security via a direct sale or some other technique. Quite frequently you will observe insider trades report a "disposition" of some number of shares; this merely means that they sold them.

    Q : Monetary/nonmonetary and temporal method

    Discuss dissimilarity in translation process between monetary/nonmonetary and temporal method.