A Deeper Understanding of Foreign Trade Terms: Key Terms in International Trade
Posted: Thu Jan 23, 2025 4:26 am
International trade (foreign trade) is an important part of global economic relations, involving complex contracts and terms. Understanding and mastering common foreign trade terms and their meanings is essential for professionals engaged in trade. This article will explain in detail common foreign trade terms and their role in trade contracts, helping you better understand and apply them in practical work.
1. Goods
In international trade, goods refer to tangible items traded between buyers and sellers, including consumer goods and capital goods. The description of goods in a trade contract usually includes the following important contents:
● Product Specifications: Describes in detail the technical argentina telegram database parameters of the goods such as size, weight, material, performance characteristics, etc., and is the key basis for ensuring that the product meets the contract requirements.
2. Pricing
The price clause determines the price of the goods, the transfer of ownership, the sharing of risks and the burden of expenses. The following are common price clauses and their meanings:
● EXW (Ex Works) : Factory delivery, the seller delivers the goods to the place specified by the buyer, and the buyer bears all costs and risks, including shipping and insurance.
● FOB (Free on Board) : Free on Board price. The seller is responsible for shipping the goods to the designated shipping port and paying the shipping costs. Once the goods enter the ship, the transportation risk is transferred to the buyer.
● CIF (Cost, Insurance, and Freight) : Cost, insurance and freight. The seller bears the cost and freight of transporting the goods to the destination port and purchases cargo insurance at the same time.
1. Goods
In international trade, goods refer to tangible items traded between buyers and sellers, including consumer goods and capital goods. The description of goods in a trade contract usually includes the following important contents:
● Product Specifications: Describes in detail the technical argentina telegram database parameters of the goods such as size, weight, material, performance characteristics, etc., and is the key basis for ensuring that the product meets the contract requirements.
2. Pricing
The price clause determines the price of the goods, the transfer of ownership, the sharing of risks and the burden of expenses. The following are common price clauses and their meanings:
● EXW (Ex Works) : Factory delivery, the seller delivers the goods to the place specified by the buyer, and the buyer bears all costs and risks, including shipping and insurance.
● FOB (Free on Board) : Free on Board price. The seller is responsible for shipping the goods to the designated shipping port and paying the shipping costs. Once the goods enter the ship, the transportation risk is transferred to the buyer.
● CIF (Cost, Insurance, and Freight) : Cost, insurance and freight. The seller bears the cost and freight of transporting the goods to the destination port and purchases cargo insurance at the same time.