Download AVOIDING AND MANAGING COMMON MISTAKES AND PROBLEMS Important Terms

Chapter 7
AVOIDING AND MANAGING COMMON MISTAKES AND PROBLEMS
Important Terms
1. Advising Bank Bank that advises a customer regarding revenue due to the
customer; in international trade, usually the exporter's bank
2. Boycott An organized refusal to buy (a company's or country's) products or
services
3. Business-to-Business Relationships (B2B) An activity or relationship between
or among businesses
4. Buy Forward Purchase foreign currency when an order is placed to secure the
price of a product
5. Containerization The stowage of freight in sealed, reusable containers of
uniform size and shape that makes transportation more effective because it
allows goods to be transported without the need to handle the goods
6. Hard Currency Currency that is widely accepted on the foreign currency
exchange market and can easily be converted to another currency
7. Infrastructure The large-scale public systems, services, and facilities of a
country or region that are necessary for economic activity
8. Issuing Bank Bank that issues a document or record; in international trade,
usually the importer's bank
9. Landed Cost Total cost of a product including all transportation, handling, tariff,
brokerage, and currency exchange rates, as well as import charges
10. Letter of Credit A financial document issued by a bank for an importer in which
the bank guarantees payment
11. Soft Currency Currency that fluctuates and is not considered stable; not easily
converted into Canadian dollars
12. Tariffs Customs duty on merchandise imports, the purpose of which is to give a
price advantage to similar locally produced goods or to raise revenues for the
country