Beruflich Dokumente
Kultur Dokumente
Language Coordination
English VI Administration
Unit 5
Pre-reading
I.-Answer
1.-What do you know about importing and exporting?
2.-What are some procedures and documents to import and export? Name some of them.
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Types of Import.
There are two basic types of import:
Industrial and consumer goods: Goods which are bought for household use, personal use, or
family use from retail stores (consumer goods), and goods which are bought by companies to
produce other products which are sold later, (industrial goods).
Intermediate goods and services, which are used by a business in the production of goods or
services. They are also referred to as producer goods.
Companies import goods and services to supply to the domestic market at a cheaper price and
better quality than competing goods manufactured in the domestic market. Companies import products
that are not available in the local market.
There are three broad types of importers:
Looking for any product around the world to import and sell.
Looking for foreign sourcing to get their products at the cheapest price.
Using foreign sourcing as part of their global supply chain.
Direct-import refers to a type of business importation involving a major retailer (e.g. Wal-Mart) and
an overseas manufacturer. A retailer typically purchases products designed by local companies that can be
manufactured overseas. In a direct-import program, the retailer bypasses the local supplier (colloquial
middle-man) and buys the final product directly from the manufacturer, possibly saving in added costs.
This type of business is fairly recent and follows the trends of the global economy.
Advantages of Import
It reduces dependence on existing markets
It exploits international trade technology
It extends sales potential of existing products
It maintains cost competitiveness in your domestic market
Disadvantages of Import
Importation of items from other countries can increase the risk of getting them which is no more
common in the warm weather.
It leads to excessive competition.
It also increases risks of other diseases from which the country is exporting the goods.
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Disadv.
Adv.
Imports
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Export is to ship the goods and services out of the port of a country. In International Trade, "exports"
refers to selling goods and services produced in the home country to other markets. The seller of such
goods and services is referred to as an "exporter".
Types of Export
Physical Export: If goods physically go out of the country.
Deemed Export: If goods and services are supplied to another entity. The goods supplied do not
leave the country and the payment for such supplies is received either in national currency or in
free foreign exchange.
Advantages of Export
Exporting is one way of increasing your sales potential.
Increasing sales & profits.
Reducing risk and balancing growth.
Sell Excess Production Capacity.
Gain New Knowledge and Experience
Disadvantages of Export
Extra costs
Financial risk
Product adaptation
Lack of market information
Requires a lot of paperwork :export licenses and documentation
V Match the terms taken from the text above with their meanings.
1.-sales potential
2.-profits
3.-production capacity
4.-financial risk
5.-product adaptation
2.-Purchase Order
5.-Certificate of origin
8.-Multimodal Bill of lading
10.- Commercial invoice
3.-Airway bill
6.-Bill of lading
9.-Letter of credit
2.-Administrative document detailing items, prices, services, delivery and payment conditions, taxes, etc.
a.-Commercial invoice
b.-Packing list
c.-Letter of credit
c.-Inspection certificate
4.-Main contract form in international transactions constituting the first legally binding offer
a.-International commercial
b.-International purchase order
c.-CMR transport document
invoice
5.-Document where the importers bank agrees that the exporter will be paid.
a.-Letter of credit
b.-Bill of lading
c.-Commercial invoice