100 Basic concepts of foreign trade
Divided into five categories: Foreign Trade Process, Products and Industry, Market and Customers, Legal and Compliance, and Logistics and Supply Chain.
I. Foreign Trade Process
FOB (Free on Board): The seller bears the costs and risks until the goods are loaded onto the vessel.
CIF (Cost, Insurance, and Freight): Includes transport and insurance costs.
EXW (Ex Works): The buyer takes on all responsibilities from the factory onward.
DDP (Delivered Duty Paid): The seller handles all duties and taxes.
Incoterms (International Commercial Terms): Rules governing international trade.
LC (Letter of Credit): A payment method where a bank guarantees payment.
TT (Telegraphic Transfer): An international wire transfer.
CAD (Cash Against Documents): Buyer receives the documents after making payment.
Proforma Invoice (PI): A preliminary invoice for reference purposes.
Commercial Invoice: The official invoice used for payment.
Bill of Lading (B/L): A document of title for goods shipped.
Packing List: Lists the details of the packed goods.
HS Code (Harmonized System Code): Classification code for customs purposes.
Customs Declaration: Required documentation for goods import/export.
Import License: Authorization to import specific goods.
Export License: Required permit for exporting goods in some countries.
Certificate of Origin (COO): Proof of the goods' country of origin.
Trade Agreement: Agreements between countries that dictate trade rules and tariffs.
Quota: A limit on the quantity of goods that can be imported/exported.
Trade Embargo: A ban on trade with certain countries.
II. Products and Industry
SKU (Stock Keeping Unit): A unique code for inventory management.
MOQ (Minimum Order Quantity): The smallest quantity a supplier will accept.
Lead Time: The time from order placement to delivery.
Sample: A product provided for customer evaluation.
OEM (Original Equipment Manufacturer): A company that manufactures for another company's brand.
ODM (Original Design Manufacturer): A company that designs and manufactures products.
Private Label: Products branded for a specific retailer.
QC (Quality Control): Ensuring product meets quality standards.
QA (Quality Assurance): Setting processes to guarantee product quality.
AQL (Acceptable Quality Level): Standard used for product quality evaluation.
R&D (Research and Development): Innovation and design of new products.
Prototype: A sample or model created for product development.
Fashion Trend: The direction in which design preferences move.
Fabric Composition: The materials used in fabric production.
Lingerie: Typically refers to women's intimate apparel.
Lace: A common fabric used in lingerie.
Mesh: Lightweight, breathable fabric often used in lingerie.
Elasticity: The stretchability of the fabric.
Seamless: A method of lingerie production without visible seams.
Push-up Bra: Designed to enhance and lift the bust.
Underwire: Metal support added to bras.
Bodysuit: Tight-fitting one-piece garment covering the torso.
Bustier: Form-fitting lingerie emphasizing the bust and waist.
Chemise: A lightweight, sleeveless dress often used as sleepwear.
Corset: Lingerie designed to shape the waist.
Thong: A type of underwear that reveals the buttocks.
Garter Belt: Holds up stockings.
Bralette: A non-underwired bra with minimal support.
Babydoll: A loose-fitting nightgown with a sexy design.
III. Market and Customers
B2B (Business to Business): Trade between companies.
B2C (Business to Consumer): Trade between businesses and end consumers.
D2C (Direct to Consumer): Direct sales from brands to customers.
E-commerce: Conducting trade online.
Marketplace: Online platforms like Amazon and Alibaba for selling products.
SEO (Search Engine Optimization): Improving website ranking on search engines.
PPC (Pay Per Click): Online advertising where advertisers pay for each click.
Conversion Rate: The percentage of visitors who make a purchase.
Customer Retention: The ability to keep customers over time.
CRM (Customer Relationship Management): Managing relationships with clients.
KPI (Key Performance Indicator): Metrics used to assess business success.
ROI (Return on Investment): Measure of profitability from investments.
Market Penetration: Increasing a product's market share.
Target Audience: The specific group a marketing effort is aimed at.
Consumer Behavior: Study of purchasing decisions.
Brand Identity: The image and values a brand represents.
USP (Unique Selling Proposition): A product’s distinctive competitive edge.
After-Sales Service: Support provided after a product is sold.
IV. Legal and Compliance
IP (Intellectual Property): Protects original designs and brands.
Trademark: Legal protection for brand identifiers like names or logos.
Patent: Legal rights for inventions or innovations.
Copyright: Protection for creative works.
GDPR (General Data Protection Regulation): EU law regulating data privacy.
Compliance: Following industry regulations and standards.
Ethical Sourcing: Ensuring fair and sustainable practices in the supply chain.
Sustainability: Reducing environmental impact in production.
Child Labor Laws: Regulations prohibiting child labor.
Anti-Dumping Laws: Protect domestic markets from unfairly low-priced imports.
Product Liability: Legal responsibility for product safety.
Export Control: Regulations limiting the export of certain goods.
Customs Duties: Taxes paid on goods imported or exported.
V. Logistics and Supply Chain
Freight Forwarder: A company that organizes international shipping.
3PL (Third-Party Logistics): Outsourcing logistics to a third party.
Inventory Management: Managing stock levels to meet demand.
Supply Chain: The full process from raw material to consumer.
Drop Shipping: Supplier ships directly to customers.
FCL (Full Container Load): Goods shipped in a full container.
LCL (Less than Container Load): Goods shipped in shared containers.
Last Mile Delivery: Final stage of delivery to the customer.
Air Freight: Shipping goods by air.
Sea Freight: Shipping goods by sea.
Courier: Delivery service for small shipments.
Warehouse: Facility for storing goods.
Port of Loading (POL): The port where goods are shipped from.
Port of Discharge (POD): The port where goods arrive.
ETA (Estimated Time of Arrival): The expected time of arrival.
ETD (Estimated Time of Departure): The expected time of departure.
Customs Broker: A professional who handles customs clearance.
Demurrage: Charges for delayed removal of goods from ports.
Transit Time: Time taken for goods to reach the destination.
Cargo Insurance: Protects against loss or damage during shipment.
