Glossary+of+commerce,+finance+&shipping

__Bills __: requests for the payment of money owed for services such as electricity, gas and telephone connections. __Bonus__: extra money given for meeting a target or for good financial results. __Commission__: money paid to salespeople and agents – a certain percentage of the income the employee generates. __Fees__: money paid to professional people such as lawyers and architects. __Health Insurance__: financial protection against medical expenses for sickness or accidental injuries. __Living Expenses__: money spent on everyday needs such as electricity, gas and telephone connections. __Mortgage__: repayments of money borrowed to buy a house or flat. __Overtime__: money received for working extra hours. __Pension__: money paid by a company or the government to a retired person. __Rent__: the money paid for the use of a house or flat. __Salary__: money paid monthly by an employer. __Social Security__: money paid by a company or the government to unemployed and sick people. __Tax__: money paid to finance government spending. __Wages__: money paid by the day or the hour, usually received weekly.  __Balance sheet __: financial statement which shows the company’s assets, the things it owns, its liabilities, the money it owes and its capital.  __Bonds __: loans that pay interest and are repaid at a fixed future date.  __Capital __: money that people need to set up or start a company.   __Debt __: money that is owed, that will have to be paid, to other people or businesses.  __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Loan __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: money borrowed by companies from banks. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Interest __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: the amount paid to borrow the money. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Profit and loss account __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: a financial statement which shows the company’s revenues and expenses during a particular period, such as three months or a year. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Revenue __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: all the money coming into a company during a given period. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Shares or equities __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: certificates representing units of ownership of a company. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Shareholders __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: the people who invest money in shares, they own part of the company. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Share capital __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: the money provided by shareholders. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Working capital or funds __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: the money that a business uses for everyday expenses or has available for spending. __Assets:__ things that a company owns __Liabilities:__ money that a company owns <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Assets __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: things owed by the company, such as factories and machines that will bring future economic benefits. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Liabilities __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: obligations to pay other organizations or people, money that the company owes, or will owe at a future date. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Retained earnings __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: profits from previous years that have not been distributed, paid out to shareholders, as dividends. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Suppliers __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: companies which provide raw material or parts. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __Brand names__: legally protected names for a company’s products <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Current assets __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: things that will probably be used by the business in the near future. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Debtors __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: companies or people who owe money they will have to pay in the near future, and stock. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Fixed assets __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: buildings or equipment that will continue to be used by the business for a long time. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Patents __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: exclusive rights to produce a particular new product for a fixed period. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Tangible assets __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: assets with a physical existence, things you can touch, such as property, plant and equipment. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Trademarks __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: names or symbols that are put on products and cannot be used by other companies. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Accrued expenses __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: these are expenses that have accumulated or built up during the accounting year but will not be paid until the following year, after the date of the balance sheet. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Creditors __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: largely suppliers of goods or services to the business who are not paid at the time of purchase. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Deferred taxes __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: money that will have to be paid as tax in the future, although the payment does not have to be made now. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Reserves __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: funds set aside from share capital and earnings, retained for emergencies or other future needs. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Share premium __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: money made if the company sells shares at above their face value-the value written on them. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> Cash flow statement __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: shows how effectively a company generates and manages cash, money coming into and leaving the business. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Cost of goods sold __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: the costs associated with making the products that have been sold, such as raw materials, labour and factory expenses. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">Gross profit __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">: the difference between the sales revenue and the cost of sales. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Upward movement: rise, growth, climb, increase Downward movement: fall, decrease, drop, decline <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Large changes: considerable, dramatic, significant, sharp Fast changes: abrupt, rapid, sudden, quick Small changes: slight, moderate Slow changes: slow Regular changes: gradual, steady <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">to peak, to top out, to hit bottom, to reach a low point, to remain stable, to level off, to remain constant, to fluctuate
 * <span style="font-size: 12pt; color: #cc0099; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">UNIT 1 **<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';">
 * <span style="font-size: 12pt; color: #cc0099; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">UNIT 2 **<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;"> <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';">
 * <span style="font-size: 12pt; color: #cc0099; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">UNIT 11 **<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;"> <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';">
 * <span style="font-size: 12pt; color: #cc0099; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">UNIT 12 **<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">
 * <span style="font-size: 12pt; color: #cc0099; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">UNIT 13 **<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;"> <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';">
 * <span style="font-size: 12pt; color: #cc0099; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">UNIT 14 **__<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">
 * <span style="font-size: 12pt; color: #cc0099; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">UNIT 38 **<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;"> <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';">
 * <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Increase and decrease: **<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';">
 * <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Rate of change: **<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';">
 * <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">High points, low points, and staying the same: **<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';">

__<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Free trade: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> people and companies should be able to buy goods from all countries, without any barriers when they cross frontiers. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Comparative cost principle: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> says that countries should produce whatever they can make the most cheaply. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Absolute advantage: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> if countries have this it means they are the cheapest in the world. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Comparative advantage: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> if countries have this it means they are only more efficient than some other countries in producing certain goods or services. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Economies of scale: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> reduced production costs because of large-scale production. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Imports: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> goods or services bought from a foreign country. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Exports: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> goods or services sold to a foreign country. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Balance of trade or trade surplus: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> It is the result when a country exports more goods than it imports. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Trade deficit: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> It is the opposite of trade surplus. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Visible trade: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> Trade in goods can be called like this. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Invisible imports and exports: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> Services such as banking, insurance and tourism can be called like this. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Strategic industries: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> They are necessary if there was a war and international trade became impossible. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Tariffs: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> They are imposed by governments on goods from abroad, so as to make them more expensive and to encourage people to buy local products instead. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">World Trade Organization: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> It tries to encourage free trade and reduce protectionism <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Protectionism: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> Restricting imports in order to help local products. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Exporter: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> A company which sells goods or services to other countries. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Importer: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> A company which buys goods products from other countries. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Documentary credit or letter of credit: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> Payment for imported products, which is written promise by a bank to pay a certain amount to the seller, within a fixed period, when the bank receives instructions from the buyer. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Irrevocable credits: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> They cannot be changed unless all the parties involved agree. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Bills of exchange: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> It is another method of payment. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Commercial invoice: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> It contains details of the goods <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Bill of lading: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> Is a document signed by the carrier or transporter confirming that the goods have been received for shipment <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Insurance certificate: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> Describes the goods and contains details of how to claim if they are lost or damaged in transit. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Certificate of origin: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> States where the goods come from. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Quantity and weight certificate: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> Issued by private inspection and testing companies, may be necessary, confirming that these are the correct goods in the right quantity. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Export license: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> Gives the right to sell particular goods abroad <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Incoterms: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> Standard arrangements which are called by companies exporting or importing goods. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">Additional costs: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> The costs on top of the cost of the goods. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">FCA-Free Carrier: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> the goods are delivered to a named place where the carrier can load them onto a truck, train or airplane. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">FAS-Free Alongside Ship: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> the seller delivers the goods to the quay next to the ship in the port. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">FOB-Free On Board: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> the seller pays for loading the goods onto the ship. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">CFR -Cost and Freight and CPT-Carriage Paid… : __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> the buyer is responsible for insurance. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">CIF- Insurance and Freight and CIP-Carriage and Insurance Paid…: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> Cost, the seller arranges and pays for insurance. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">DAF-Delivered At Frontier: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> the importer is responsible for preparing the documentation and getting the goods through customs. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">DES-Delivered Ex Ship: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> the buyer pays for unloading the goods from the ship <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">DEQ-Delivered Ex Quay: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> the seller pays for unloading the goods from the ship to the quay, and for the payment of customs duties and taxes. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">DDU-Delivered Duty Unpaid: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> the buyer pays any import taxes. <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';"> __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">DDP-Delivered Duty Paid: __<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> the seller pays any import taxes.
 * <span style="font-size: 12pt; color: #cc0099; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">UNIT 43 **<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;"> <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';">
 * <span style="font-size: 12pt; color: #cc0099; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">UNIT 45 **<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;"> <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';">
 * <span style="font-size: 12pt; color: #cc0099; line-height: 115%; font-family: 'Comic Sans MS'; mso-ansi-language: EN-GB; mso-bidi-font-family: Arial;">UNIT 46 **<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Arial','sans-serif';">

<span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;"> <span style="font-size: 12pt; color: #ff66cc; line-height: 115%; font-family: 'Comic Sans MS'; mso-bidi-font-family: Arial;">source: MacKenzie,Ian. (2006). __Professional English in Use__. Cambridge: Cambridge Univercity Press