international trade dictionary

(also: international trade )
(also: international trade guide)

1. Market Entry Strategy: A plan for entering and establishing a presence in a foreign market, such as through exporting, licensing, franchising, or setting up a subsidiary.

2. Logistics: The management of the flow of goods, information, and other resources from the point of origin to the point of consumption.

3. Freight Forwarder: A company that provides services for the transportation of goods, including customs clearance, insurance, and storage.

4. Incoterms: International commercial terms agreed upon by the International Chamber of Commerce (ICC) that define the responsibilities and obligations of buyers and sellers in international trade transactions.

5. Letters of Credit (LC): Financial instruments used in international trade transactions to provide a guarantee from a bank that payment will be made once certain conditions are met.

6. Exchange Rates: The value of one currency relative to another, which can impact the cost of exporting and importing goods and services.

7. Market Research: The process of gathering information about a foreign market to assess its potential for trade and investment.

8. Export Marketing: The activities and strategies involved in promoting and selling goods and services in a foreign market.

9. Market Segmentation: The process of dividing a market into smaller groups of consumers with similar needs or characteristics to target specific products or services.

10. Market Access: The ability of a company or country to enter and participate in a foreign market, taking into account trade barriers, regulations, and other factors.

11. Foreign Market Entry Mode: The method by which a company enters a foreign market, such as through exporting, licensing, franchising, joint venture, or setting up a subsidiary.

12. Dumping: The practice of exporting goods at a price lower than the price charged in the domestic market, which can harm domestic producers in the importing country.

13. Tariff: A tax imposed on imported goods, designed to make imported goods more expensive and therefore less competitive with domestic goods.

14. Quota: A limit on the amount of a specific good that can be imported into a country, designed to protect domestic producers from foreign competition.

15. Embargo: A complete ban on trade with a specific country or group of countries, imposed for political or economic reasons.

16. Subsidies: Financial support provided by a government to domestic industries, to help them compete with foreign rivals.

17. Intellectual Property: Legal protection for intangible assets, such as patents, trademarks, copyrights, and trade secrets, which are critical components of many international trade transactions.

18. Licensing: An agreement in which a company allows another company to use its intellectual property, such as patents or trademarks, in exchange for payment.

19. Franchise: An agreement in which a company allows another company to use its business model, branding, and support services, in exchange for a fee.

20. Joint Venture: A business partnership in which two or more companies pool their resources and expertise to pursue a specific opportunity.

21. Foreign Direct Investment (FDI): Investment by a company or individual in a foreign market, through setting up a subsidiary or acquiring an existing company.

22. Export Processing Zones (EPZs): Special economic zones set up by governments to encourage exports, typically by offering tax and regulatory incentives to foreign investors.

23. Regional Trade Agreements (RTAs): Agreements between two or more countries to reduce barriers to trade, such as tariffs, and promote economic integration.

24. World Trade Organization (WTO): The international organization responsible for overseeing and promoting the rules-based global trading system.

25. GATT: The General Agreement on Tariffs and Trade, a predecessor to the WTO that was established in 1947 to promote free trade and reduce barriers to trade.

26. Tariff Schedule: A list of tariffs for each product, which can vary by country or trade agreement.

27. Customs: The government agency responsible for collecting tariffs and enforcing trade regulations at the border.

28. Tariff Classification: The process of determining the correct tariff code for a product, which determines the applicable tariff rate.

29. Origin Certificate: A document that certifies the country of origin of a product, which can affect its eligibility for certain trade agreements or preferential tariffs.

30. Incoterms: Standard trade terms defined by the International Chamber of Commerce (ICC), used to specify the responsibilities of buyers and sellers in international trade transactions.

31. Bill of Lading (B/L): A document that serves as a receipt for goods shipped by sea, and also as a contract between the shipper and the carrier.

32. Letter of Credit (L/C): A payment mechanism in international trade, in which a buyer's bank guarantees payment to the seller's bank, provided certain conditions are met.

33. Ex Works (EXW): An incoterm in which the seller is responsible for making the goods available at their premises, and the buyer is responsible for all costs and risks involved in transporting the goods to their destination.

34. Free on Board (FOB): An incoterm in which the seller is responsible for delivering the goods to the port of shipment, and the buyer is responsible for all costs and risks involved in transporting the goods from the port of shipment to their destination.

35. Cost, Insurance, and Freight (CIF): An incoterm in which the seller is responsible for delivering the goods to the port of shipment, and for obtaining insurance coverage for the goods. The buyer is responsible for all costs and risks involved in transporting the goods from the port of shipment to their destination.