Documents used in Home Trade — Flashcards

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Trade carried on within the boundaries of a country is called internal trade or home trade. In home trade, both buyers and sellers are residents of the same nation.

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An enquiry is a request made by an intending buyer to a seller, seeking information about goods before placing an order. It usually asks about quality, size, quantity, price, delivery terms, payment m…

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If the seller is not local, the enquiry is made through a letter of enquiry. If the seller is local, it can be made by telephone or personal contact.

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A quotation is a letter written by the seller in reply to the buyer's enquiry, giving information about price, quality, and trade facilities. It helps the buyer compare offers before placing an order.

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A quotation usually includes quality, size, design, quantity available, price per unit, terms of delivery and payment, and the date up to which the offer is valid.

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COD means Cash on Delivery, where delivery is given only when payment is received. CWO means Cash with Order, where part or full payment is sent along with the order. COD and CWO are opposite timing c…

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FOR means Free on Rail. The seller pays the expenses up to loading the goods on the railway wagon, but railway freight is not included. It is also called FOW or free on wagon price.

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Franco means the seller takes responsibility for sending the goods to the buyer's godown free of charge. All expenses up to delivery are borne by the seller.