Chapters 3,4,10 Flashcards
export licencing could fall into one of two categories
no licence required (NLR)
validated export license required
what are the two types of licences granted by the U.S. government
general licence
individual validated licence
what is an ECCN?
export control classification number
what are the three options in determining weather a given item has an ECCN
find out yourself
ask the manufacturer
get an official classification number from the BIS
what are the 5 embargoed and support terrorist countries?
Cuba Iran North Korea Sudan Syria
what is the anti-boycott requirements?
foreign currupt practicies act
policy of opposing restrictive trade practicies that countries impose against other countries friendly to the U.S.
what is the anti-bribery measures?
The Foreign Currupt Practices Act
it’s illegal for the U.S. company to offer, promise, or pay money for anything of value to a foreign official for the purpose of retaining business.
what are the 4 customs available to exporters?
drawback of customs duties
U.S. foreign trade zones
foreign free port and free trade zones
bonded warehouses
what are the 5 advantages to sole proprietor?
easy to create less costly profit and tax incentives decision making authority easy to disolve
what are the 4 disadvantages of a sole proprietor?
unlimited personal liability
hard to obtain capital
lack of range of skills to run a successful business
die or incapacitated businesses cease to exist
what are the 4 advantages of a partnership?
inexpensive and easy to establish
skills and abilities complement one another
flexibility
tax incentives
what are 3 disadvantages of a partnership?
one partner faces unlimited liability
terminated when one person dies or leaves the agreement
personal conflict may affect the partnership
3 advantages for forming a corporation
liability is limited
transfer of ownership is easy
can continue indefinitely
what are the 4 disadvantages of forming a corporation?
involves time and money
separate legal entity must pay federal taxes and possibly state and local taxes
subject to more than a sole proprietorship or partnership
when shares of stock are sold some ownership is lost
what are the 4 steps to screening potential markets
focus on needs
narrow down the countries
develop secondary list
narrow down list to the most promising countries
