For What Reason Might an Exporter Use Standard International Trade

question 21

Essay

For what reason might an exporter use standard international trade documentation (letter of credit, draft, order bill of lading) on an intrafirm export to its parent or sister subsidiary?

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Definitions:

Suppliers

Entities that provide goods or services to another entity, typically a company, under terms outlined in a contract or agreement.

Salaries Payable

An account that records the amounts owed to employees for work performed but not yet paid.

Salary Expense

Salary expense is the cost incurred by a business to compensate its employees, including wages, salaries, and other forms of compensation.

Cash Paid

The total amount of cash disbursed by a company for various purposes, including operating expenses, investing activities, and financing activities.