chapter 3

Question 0

Different global intermediaries? explain the differences between:

1. foreign freight forwarders
2. airfreight forwarders
3. non vessel operating common carriers
4. export management companies
5. export trading companies
6. customs house brokers

Answer 0

1. foreign freight forwarders
   - consolidate small international shipments into economical sizes for small international businesses.
2. airfreight forwarders
   - consolidate small shipments for businesses. same as land forwarders but in the air.
3. non vessel operating common carriers
   - consolidate and dispense containers. group freight together from multiple companies that are going to a similar location. benefit from economies of scale.
4. export management companies
   - sell products in a foreign market for companies that want to expand their market but can’t do it themselves . they don’t buy the goods and resell, they are AGENTS.
5. export trading companies
   - locates oversea buyers and handles export arrangements. does not take title of goods.
6. customs house brokers
   - oversee movement of goods through customs. make sure documents are complete and accurate for entry.

Question 1

what are some challenges with the global market

Answer 1

• tariffs and trade barriers
• comps must standardize products
• comps must reduce product life cycle. this is because products can be copied easily.
• supply chain changes frequently. supplies and transportation and customers
• volatility and complexity . weather, terrorism, strikes, and other threats become potentials.