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115.
Conditions of a sale that stipulate the point at which costs and risks are borne by the
buyer are known as the ______ of _____.
116.
Incoterms describe the three issues that arise in a commercial transaction: which party
does which ______, which party covers the ______, and which party bears the ______.
117.
When the seller makes goods available at the factory or warehouse, where risk passes, is
known as
118.
The Incoterm acronym for carriage paid to destination, with seller paying for carriage,
while risk passes from the seller when goods are handed to the carrier, is
119.
The Incoterm acronym
CIP
(named place of destination) refers to the situation where
______ and ______ are paid to destination, with risk passing from the seller when goods are
handed to the carrier.
120.
The Incoterm acronym
FAS
(named loading port), refers to
121.
The Incoterm acronym
FOB
(named loading port), refers to
122.
The Incoterm acronym
CFR
(named destination port), refers to
123.
The Incoterm acronym
CIF
(named destination port) refers to
124.
The Incoterm acronym
DDP
(destination place) refers to
125.
Many nations, especially those of Latin America, follow the ______ Doctrine, which holds
that contractual dispute cases should be tried under local, and not foreign, law.
126.
Three of the five export payment terms mentioned in the textbook are: __________,
__________, and __________.
127.
When a sale is made on ____________, the seller assumes all the payment-related risk, so
such terms should be offered only to reliable customers.
128.
A document issued by the buyer's bank in which the bank promises to pay the seller a
specified amount under specified conditions is a
129.
A ______ letter of credit is a confirmation made by a correspondent bank in the seller's
country by which it agrees to honor the issuing bank's letter of credit.
130.
__________ is a stipulation that a letter of credit cannot be canceled without the seller's
consent.
131.
A(n) ____________ is a bill of lading issued by an air carrier.
132.
Before opening a letter of credit, a buyer frequently requests a __________________. This is
the exporter's formal quotation, a description of the merchandise, price, delivery time,
proposed method of shipment, terms of sale, and ports of exit and entry.
Topic: Incoterms
133.
An unconditional order drawn by the seller that instructs the buyer to pay the draft on
presentation (sight draft) or at an agreed future date (time draft) and that must be paid
before the buyer receives shipping documents is known as a(n)
134.
If the exporter believes the political and commercial risks are not sufficient to require a
letter of credit, the exporter may agree to payment on a ______ draft basis, which is less
costly to the buyer.
135.
A ____________ is a time draft with a maturity of less than 270 days that has been
accepted by the bank on which the draft was drawn, thus becoming the accepting bank's
obligation.
136.
The sale of an exporter's accounts receivable on ordinary goods, with the balance of the
payment due upon delivery or soon after is known as
137.
The sale of an exporter's accounts receivable on capital goods, commodities, and other
high-value goods, with the payment due at least 180 days out is known as
138.
The U.S. government agency that provides loans, guarantees, and insurance programs to
support American exporters is the _________ Bank.
139.
The U.S. government corporation that offers insurance against expropriations, currency
inconvertibility and damages from wars or revolutions is the __________________
Corporation.
140.
An area designated by the government of a country as being outside its customs territory
is a ______________________________.
141.
Rebates on customs duties are known as
