Chapter 14: International Logistics Flashcards
Macro-environmental Influences
uncontrollable forces and conditions facing an organization and include cultural, demographic, economic, natural, political, and tech factors
political factors
Tariffs, import quotas, embargoes, subsidies, fed government cross-border trade involvement
Import quota
limits amount of product that can be imported from a country during a period of time
Embargoes
The prohibition of trade between particular countries
Balance of Payments
System of accounts that records a country’s international financial transactions
Economic factors
Currency flucuations, market size, income, infrastructure, economic integration
Cultural factors
language, national holidays, time orientation
International Documentation
required at Point of Importation
- Commercial invoices
- Certificates of origin
- Shipper’s export declaration (SED)
- Shipper’s letter of instruction (SLI)
Terms of sale
Referred to as Incoterms - 1930's, Parties involved logistics channels determines when and where to transfer the following - physical goods - payment - legal title of goods - docs - responsibility of goods (livestock)
Incoterms 2010
Group 1: organized by modes of transport (any)
Group 2: uses terms in both international and domestic (inland and sea transport)
Method of payment
refers to the manner by which a seller will be paid by a buyer
- Cash in advance
- letters of credit
- bills of exchange
- open account
Cash in advance
buyer sends payment in the agreed currency and through agreed method to a seller before the product is manufactured and/or shipped
letters of credit
a letter issued by a bank to another bank (typically in a different country) to serve as a guarantee for payments made to a specified person under specified conditions.
Bills of exchange
a written order to a person requiring the person to make a specified payment to the signatory or to a named payee; a promissory note.
open account
a sale where the goods are shipped and delivered before payment is due
