The trade which is carried on between two or more countries is called foreign trade. It is conducted between the individuals or organizations of two or more countries. It is the international trade in which the payment is made in foreign currencies. It is divisible into import trade and export trade. The purchase of goods from a foreign country is called importing and the sale of goods to a foreign country is called exporting. The foreign trade exists because all types of goods necessary for human beings cannot be produced by a single country due to the lack of raw materials, skilled manpower, capital and technology.
The following are the main documents of foreign trade:
The act of buying and selling of goods and services between the persons or parties of two or more than different countries is called foreign trade. Following are the three types of foreign trade:
In foreign trade, the exporter generally dispatches the goods to the importer through the ship with the help of a special document known as ______.
a letter of credit
a bill of lading
a confirmation letter