Chapter 19 International Contracts Flashcards
1
Q
Why go Internationally?
A
Increase Market size
Experience
Reputation
Connection
2
Q
What are Major Considerations when going International?
A
How Stable is the Gov't? Pay? Communicate? Customs and Traditions? Disputes? Security?
3
Q
Why International Firms?
A
Local firms don’t have resources
Int. firms have technological advances
4
Q
What type of contracts are Int. Ks?
A
Usually Cost Plus unless earthwork is involved. Then it will be unit price.
5
Q
Bid goes to whom?
A
In general, to the most Qualified (best quality)
6
Q
Foreign Corrupt Practices ACT
A
Prevents US companies from bribing International and/or Gov’t officials
7
Q
Use of local labor
A
Requirement to stimulate economy
8
Q
Transfer of Technology
A
Incorporating native engineers to teach them due to lack of design capability
