Commerce Questions and Answers

Free on Board (FOB) is a shipment term used to indicate whether the seller or the buyer is responsible for goods that are damaged or destroyed during shipping. In this instance, it means that the buyer is liable for the insurance and transportation of the goods while on transit

A price list is simply a list giving the prices of items for sale.

Globalization is the process by which businesses or other organizations are able to move and exchange human resources, goods, and services, capital, technologies or cultural practices all over the planet. Globalization promotes and increases interactions between different regions and populations around the globe.

The balance of payments (BOP) is a statement of all transactions made between people in one country and the rest of the world over a defined period of time. It consists of current and capital items.

Current items consist of the inflow and outflow of goods and services between countries, including all the receipts and payments made with respect to raw materials and manufactured goods. While capital transactions include the purchase and sale of assets (non-financial) like land and properties.

A bonded warehouse is a customs-controlled warehouse for the retention of imported goods until the duty owed is paid.