Chapter1BriefIntroductiontoInternationalTrade
Fillintheblankstocompleteeachsentence
Aninternationalsalescontractisnotmerelyadocumentsettingforthquantity,price,deliveryarrangementoftheproduct;itmustalsotakeintoaccountthelocallegalsystemandpoliticalandexchangerisksinthecountryinvolved
Settlementoncommercialcreditusuallyincludespaymentinadvance,openaccount,remittanceandcollection
Settlementsonbankcreditincludeletterofcreditandbankguarantee
Tradetermsarealsocalledpricetermsanddeliveryterms
WhiletheEXW(ExWorks)termsrepresentstheminimumobligationfortheseller,DDPrepresentsthemaximumobligationa
Paymentinadvanceismostadvantageoustotheseller
Openaccountisleastadvantageoustotheseller
Collectioncanbedividedintodocumentarycollectionandcleancollection
Definethefollowingterms