Exam 19: Exports and Imports

ABC Inc.is a manufacturer of office furniture located in Quebec.XYZ Corp.is a Romanian manufacturer of pots.XYZ Corp.has approached ABC Inc.and would like to barter pots for office furniture.You are the financial manager of ABC Inc.and your job is to explain the pros and cons of this transaction to management.

A direct exchange of goods between two parties is called:

The time from acceptance to maturity on a banker's acceptance (B/A)is 90 days,the importing bank's acceptance commission is 1 percent and the B/A's discounted value at the time of acceptance is $1,000,000.What is the 90-day B/A rate if the value at maturity is $1,034,000?

Which of the following financial support mechanisms of export is offered by the EDC?

The ________'s bank sends the letter of credit to the ________'s bank.After sending the merchandise,the ________ gives the shipping documents and time draft to his bank.

If the value at maturity is $2,860,000 calculate the 90-day B/A rate.(Round your intermediate values to four decimal places.Assume 360 days in a year.)

Which of the following is the fundamental forms of countertrade?

Name and explain the three most important documents in a typical international trade transaction.