FOREIGN BILL Meaning and
Definition
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A foreign bill refers to a negotiable instrument that is issued in one country but is payable in another country. It serves as a formal written promise by the drawer to pay a specified amount of money to the payee or the holder of the bill at a future date. Foreign bills are commonly associated with international trade, facilitating payment transactions between parties located in different countries.
These bills are regulated by international laws and conventions such as the Uniform Commercial Code (UCC) and the International Chamber of Commerce (ICC) rules. The parties involved in a foreign bill transaction usually include the drawer (seller/exporter), the drawee (buyer/importer), and the payee (individual/entity owed the payment). The bill outlines the payment terms, including the due date, which can be classified as either sight or time drafts. Sight drafts require immediate payment upon presentation, while time drafts allow for payment at a future specified date.
Foreign bills provide a mechanism for sellers and exporters to secure payment for goods or services sold to foreign buyers. By relying on a foreign bill, the exporter mitigates the risks associated with non-payment or late payment, given the involvement of the banking system in the transaction. These bills are widely used to regulate and facilitate international trade, supporting economic activities and fostering relationships between countries around the world.
Common Misspellings for FOREIGN BILL
- doreign bill
- coreign bill
- voreign bill
- goreign bill
- toreign bill
- roreign bill
- fireign bill
- fkreign bill
- flreign bill
- fpreign bill
- f0reign bill
- f9reign bill
- foeeign bill
- fodeign bill
- fofeign bill
- foteign bill
- fo5eign bill
- fo4eign bill
- forwign bill
Etymology of FOREIGN BILL
The word "foreign bill" derives from the combination of two words: "foreign" and "bill".
- "Foreign" originated from the Old French word "forain" meaning "outside, external", which further comes from the Latin word "foranus" meaning "outside the home" or "from abroad". In English, it entered as "forein" around the 13th century and later evolved into "foreign" as we know it today.
- "Bill" in this context refers to a document or a written statement. It is derived from the Medieval Latin word "bulla" meaning "a seal", and later "a document" or "a written declaration". The term transitioned into Old French as "bille" and eventually entered English as "bill" during the 14th century.
Similar spelling words for FOREIGN BILL
- foreign draft,
- foreign agent,
- foreign-born,
- foreign mission,
- foreigner,
- foreign aid,
- foreign legion,
- foreignness,
- foreign policy,
- foreign office,
- foreign service.
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