chapter 12 part 2

Question 1

Seller assumes all risk.

Answer 1

Consignment

Question 1

Document issued by buyer’s bank which promises to pay the seller a specified amount when the bank has received certain documents specified in the letter by a specified time.

Answer 1

Letters of credit

Question 2

A bill of lading issued by an air carrier

Answer 2

Air waybill

Question 3

Exporter’s formal quotation, containing a description of the merchandise, price, delivery time, method of shipping, terms of sale, and points of exit and entry

Answer 3

Pro forma invoice

Question 4

important classification system used by all developed nations.

Answer 4

The Harmonized System

Question 5

An area authorized by customs authorities for storage of goods on which payment of import duties is deferred until their removal

Answer 5

Bonded warehouse

Question 6

A government corporation that offers U.S. investors in developing countries insurance against expropriation, currency inconvertibility, and damages from wars and revolutions

Answer 6

Overseas Private Investment Corporation (OPIC)