Hope PART 1 was an interesting read to you.
In this part, we’ve covered the rest of the five basic international trade acronyms.
Read on.
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| Image Source: industry.ctigroup.us |
6. MOU (Memorandum of
Understanding)
An MOU is an endorsed contract between at
least two participants describing the points of understanding which can be
applied to move forward with the future businesses, deals or other styles of
closer trading association. It is also a part of export documentation.
MOUs are often not lawfully binding unless they
meet particular criteria, which differ between nations, but can be applied as
the primary step in building a legally obligatory contract or agreement.
7. OECD (Organization for
Economic Co-operation and Development)
The OECD is an organization of 35 nations, including numerous of the world’s most advanced and well-off economies.
Its
members are advocates of equality and market economies and operate through the
medium of the organization to support economic prosperity and business growth,
among many other problems. Along with giving economic data and forecasts, the
organization has performed major parts in anti-bribery and anti-spam
activities, as well as pushing for greater openness in distributing financial
information.
8. SWIFT (Society for
Worldwide Interbank Financial Transactions)
SWIFT is the interface through which banks
send and obtain financial dealings from one another.
As a guarded method
adopted by over 9,000 different banks in the world, it is the highly prevalent method
for businesses to be sent to other banks.
It does not, nevertheless, work as a
way to transfer money, but serves as a facilitator, delivering between
different banks.
9. TEUS (Twenty-Foot
Equivalent Units)
TEUs are the approved unit of measurement used to decide the space of load containers or the ships and terminals which stock or export them.
A conventional load container is 20 feet large, or 1 TEU,
and eight feet broad. Though the length of a container can differ, a 1 TEU
container is normally about eight and a half feet long.
Along with twenty-foot containers, the
other common size is forty foot large (2 TEUs) containers.
Forty foot containers are usually applied
to send goods by water medium and are the regular sized container exported by
semi-trailer (transport) trucks. Forty-five-foot large containers are also
utilized by some transportation companies and confusingly are oftentimes
measured as being 2 TEUs, instead of 2.25 TEUs.
10. INCOTERMS
Incoterms are common trade terms issued by
the International Chamber of Commerce (ICC.) INCOTERMS are made up of
three-letter codes that are designed to precisely specify the duties, expenses,
and risks associated with the conveyance and delivery of products in an international
dealing.
They represent how duty is designated between the exporter and the
importer for all roles of the transaction.
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