COMMERCE 4SA3 Chapter Notes - Chapter 13: Chartered It Professional, Countertrade, International Trade
27 Nov 2018
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Document Summary
Chapter 13 importing exporting and countertrade international business. Sogo shosha: large, vertically integrated japanese"s trading houses whose affiliates offer a wide range of products and materials. The size and breadth of the organizations allow them to generate captive supply and demand and to provide risk management, financial and export services to their affiliates. 3m"s 3 exporting principals: enter on small scale to reduce risks, add additional product lines once becoming successful, hire locals. Lack of trust: firms engage in international trade with a person they have never met/ speaks another language / may default on obligations. Letter of credit: issued by a bank, a document indicating that the bank will make payments under specific circumstances. Stands at he centres of international commercial transactions. Draft: an order written by an exporter instructing an importer, or an importers agent, to pay a specified amount of money at a specified time; also called a bill of exchange.
