Terms used in trade such as Diversification , Diversionary Dumping, Dividend , Docking Station ,Dock Receipt etc.

 

Terms used in business such as Diversification , Diversionary Dumping, Dividend , Docking Station ,Dock Receipt etc.

 

 

This post explains about terms used in business such Distributor, Diversification , Diversionary Dumping, Dividend ,Docking Station ,Dock Receipt,Documentary Collection,Documentary Credit,Domain name etc. These terms used in international business are arranged in alphabetical order and you may add more information about terms used in export business at the end of this article, if you wish.

 

Terms used in business

 

Distributor: Middleman, wholesaler, agent or company distributing goods to dealers or companies.

 

Distributor: The foreign distributor is a merchant who purchases goods from a US exporter (takes title of the goods and often at a substantial discount) and resells it for a profit. The foreign distributor generally provides support and service for the product, thus relieving the exporter of these responsibilities. The distributor usually carries an inventory of products and a sufficient supply of spare parts and also maintains adequate facilities and personnel for normal servicing operations. Distributors typically handle a range of non-conflicting but complementary products. End users do not usually buy from a distributor; they buy from retailers or dealers.

 

Diversification - The act or strategy of growing a business/brand by developing its range of products, services, investments, etc., into new market sectors, horizontally or vertically. The term diversification is not generally used in referring to the development of new greographical markets. The vastly diversified Virgin business and brand is a good example of diversification, from from its music mail-order origins in the 1970s, into recording, aviation, rail, holidays/hotels, health clubs, internet/broadband, communications/telephony, TV, radio, books/publishing, events/festivals, banking, insurance, charity, cola, bridal services, condoms, etc. Diversification may make use of an existing brandname (Virgin is a good example of this), or new brandnames, and may entail various business structures, including acquistion. Partnering and joint-ventures are common structural approaches to diversification (so as to work with people/businesses who have existing market presence/expertise). Much simpler examples of diversification are: a butcher's shop which starts a hog-roast service; a bakers shop which opens a cafe; a builder who starts a property development business. Diversification strategies, especially of large scale, typically involve considerable risk and investment because by implication the organization is seeking to become successful in a new unfamiliar field. Risk affects the existing business as well as the new one, in terms of finances, resources, time-management, and brand/reputation, particularly where branding is similar between existing and new activities, all of which are often overlooked. Failures are often characterized by under-funding, poor-planning, Terms used in  business such as Diversification , Diversionary Dumping, Dividend , Docking Station ,Dock Receipt etcinadequate resourcing, and over-optimism/arrogance of leaders, believing that success or dominance in one sector will automatically enable easy success in a new sector; a dangerously faulty assumption.

 

Diversion/Product Diversion - In marketing and business 'diversion' refers to the unofficial distribution/availability of branded consumer products. In other words this is the supply of branded products through unautorized stockists or retailers or other suppliers, notably via the web. Diversion does not refer to pirated or counterfeit or 'fake' goods. Diversion refers to official goods being sold through unofficial channels. Also called a 'grey market'.

 

Diversionary Dumping - The sale of foreign products at less than fair value to a 3rd country where the products are further processed and sold to another country.

 

Diversity - In the context of work/organizations, diversity is a business/employment term originating in the late 1900s, referring to the quality of a workforce (and potentially a group of users/customers or audience) as defined by its mixture of people according to ethnicity, race, religion, disability, gender, sexuality, age, etc. The use of the term diversity assumes that an equal non-discriminatory approach to employment produces positive effects, for staff, working environment, society, etc., and is an extremely healthy and ethical principle. As such the term 'diversity' has become a strongly symbolic principle, rather like other big progressive movements in organizational and societal/economic thinking such as 'green', 'sustainability', 'ethics', 'governance', etc.

 

Divest/Divestment - In business, divest/divestment refers to a corporation selling subsidiary interests, especially a subsidiary company. (The term derives originally from a more literal meaning of taking power of rights from someone or a body - from the original French desvestir, meaining literally removal of a person's vest or garment.)

 

Dividend - A portion of profits paid by a company to its shareholders. Shareholders of commercial private and public limited companies generally receive a return/profit from their investment in two ways: firstly the increasing value of the business is reflected in an increasing value of the shares held; secondly the value of a dividend paid (typically annually), based on a per-share rate, normally determined by the board of directors, which represents a proportion of the profit made by the business for the year. For smaller owner-managed and family businesses a dividend usually offers a more tax-efficient way to extract profit from a business by its owners, compared to salaries/bonuses subject to high personal taxation rates. For larger corporations, especially big public corporations providing essential services such as utilities, transport, communications, etc., shareholder dividends can be highly controversial, because dividends are paid from profits of a which a portion must also be reinvested in the business for improvements, efficiences, growth, future liabilities, etc., and which also customers can argue could be used to contain or reduce prices. Within modern free market economics, shareholder dividends are a major and neglected aspect of the psychological contract.

 

Dividend Distribution Tax:This is a tax levied on companies that pay out dividends to its shareholders, i.e. share a portion of earnings with them.

 

DIY superstore / GSB :Do-it-yourself outlet.

 

Dock (or Warehouse) Warrant: It is an important document used in foreign trade. This document is given by the owner of a dock or warehouse stating that certain specified goods are stored in the dock and registered in the name of a specified person. It entitles such a person to take possession of the goods.

 

Dock Receipt - Document issued by a shipping company to acknowledge that goods have been received for shipment.

 

Docking Station - A device to which a notebook computer or a laptop can be connected so it can serve as a desktop computer.

 

Document Sharing - Used in video-conferencing. A system which allows people in different places to view and edit the same document at the same time on their computers.

 

Documentary Bill: A bill with which shipping documents like a bill of lading, an insurance policy, invoice, etc. are enclosed is known as a ‘documentary bill. These documents are required to take delivery of goods from the shipping company and from the customs authorities on, importation from any country. ‘

 

Documentary Collection: This payment term is known by a number of names including documentary collections, cash against documents and payment against documents. When the product is shipped, the seller forwards the documents to the foreign buyer’s bank which holds the documents until the payment term is met. The payment term may be at sight, which means the buyer must pay prior to taking possession. The payment term also may be against acceptance of a time draft payable a predetermined number of days from the date of shipment. Unlike letters of credits (L/Cs), there is no commitment from the buyer’s bank to make payment upon presentation of the documents.

 

Documentary Credit: This in one of the varieties of letter of credit which requires the attachment of documents of title to goods to any bill drawn there under.

 

Documentary letter of credit / Crédit documentaire :Banking technique which gives a guarantee to the exporter that he will be paid for the sale and to the importer that he will receive the goods as agreed in the commercial contract. It is a commitment by the importer's (or the buyer's) bank following a request made by him and on his behalf to pay a certain amount, determined by the commercial contract, to the exporter (or seller) against documents conform to the instructions of the Letters of Credit.

 

Dog - An informal slang term for an investment which has shown a poor performance. The slang term dog may also refer to other poor-performing elements within a business, for example a product or service within a company range, as in the widely used 'Boston Matrix'.

 

Dollar-Cost Averaging - Known in the UK as Pound-Cost Averaging. The practice of investing a fixed amount of money at fixed times in particular shares, whatever their price. A higher share price means less shares are purchased and a lower share price means more shares can be purchased.

 

Dolly - In the entertainment industry, a piece of equipment on wheels which allows the camera to move smoothly for long walking shots.

 

Domain name: The officially registered Web site address of a Web site.

 

Domestic Bonds - Bonds issued and traded within the internal market of a single country and denominated in the currency of that country.

 

The above details describes about terms called in business such as Distributor, Diversification , Diversionary Dumping, Dividend ,Docking Station ,Dock Receipt,Documentary Collection,Documentary Credit,Domain name etc. These phrases may help importers and exporters on their day to day business activities. The readers can also add more information about terms used in business trade below this post. Terms used in trade such as Direct Overhead,Dirty Money,Dirty price,Discount Window,Discriminatory Pricing etc.

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