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more global familiarity with exporting. 14 PAYMENT TERMS 4. Benefits of Open Accounts: a. greater flexibility in making a trade b. lower transactions costs 5. Major disadvantage: highly vulnerable to government currency controls. 15 II. DOCUMENTS II. DOCUMENTS USED IN INT’L TRADE A. Four most used documents 1. Bill of Lading (most important) 2. Commercial Invoice 3. Insurance Certificate 16 DOCUMENTS B. Bill of Lading Three functions: 1. Acts as a contract to carry the goods. 2. Acts as a shipper’s receipt 3. Establishes ownership over goods if negotiable type. 17 DOCUMENTS 2. Type of Bills a. Straight b. Order c. Onboard d. Receivedforshipment e. Clean f. Foul 18 DOCUMENTS C. COMMERCIAL INVOICE Purpose: 1. Lists full details of goods shipped 2. Names of importer/exporter given 3. Identifies payment terms 4. List charges for transport and insurance. 19 DOCUMENTS D. INSURANCE 1. Two Categories: a. Marine: transport by sea b. Air: transport by air 2. Insurance Certificate issued to show proof of insurance 3. All shipments insured today. 20 DOCUMENTS E. CONSULAR INVOICE Loca