Types of Service
Private: owned by merchants or manufactures themselves to carry their own goods
Liner ships: a ship that operates on a regular schedule, traveling from one group of ports to
another group of ports
Pre-established schedule, de
Semi truck: an articulated truck that is made up of a tractor and a trailer
Piggy back: placing semi trucks or trailers on railroad cars
Used in North America
In Switzerland, trucks cannot cross the country, so they are
Cargo Airlines, Airports, and Markets
Freight tonne kilometer (FTK): a unit designed to express cargo volume shipped. It is equal to
the number of tonnes of cargo shipped multiplied by the number of kilometers they were skipped
Types of service
International and domestic transactions is the bill (invoice) that the exporter sends to the importer
Commercial Invoice: document sent by the seller to the buyer that lists the goods purchased and the
Contrast the various currency options available for international transactions.
Explain the risk of currency exchange rates to the exporter and importer.
Identify international banking institutions.
Defend the IMF mission.
International Payment Characteristics
Exporters tend to prefer conservative measures in handling their foreign receivables for the
Credit information: much less information on the creditor in a foreign market than in a domestic