International Business Final Flashcards
Question 1
A
- Import codes vs Export codes
Export Schedule B, Import HTSUS
- US commercial service - What is the gold key service
offered by uscs is useful for identifying an appointments setting with potential foreign partners
- SWOT Analysis - good business plan contains
Strengths Weaknesses Opportunities Threats
- How to gain insight tips for US Companies selling into foreign country
Commercial service Commercial Service Country Commercial Guide
- A restaurant chain wants to expand internationally but doesn’t want risk of owning foreign asset A resta
Licensing
- all things being equal, what product policy would an international firm prefer to pursue, everything custom or standard
Standardisation
8 What is a distributor and what does it do
international distributor purchases products and services from the US company and then resells them to customers in one or more foreign countries.
When do you do EEI filing
for any shipment when a single commodity value is 2500 or greater
What should you do when there are two possible GS codes
Review the section and chapter notes for clarification
Balance sheets
Assets = Liabilities + Equity
What does confirming a letter of credit mean?
if a company is not comfortable with risk associated with foreign bank they would ask local bank to confirm the Letter of Credit
What does a freight forwarder do?
They are a consolidator of freight and because of consolidation they offer savings
What’s qualitative and quantitive research
quantity/how much. Quality is more subjective – a company conducts a focus group in a foreign market place and they want to gain insight into customers opinion of what a successful life means in th
Which US agency enforces trade embargoes
The office of foreign asset controls
A company considers whether to enter a particular country, worried about IP rights within a specific country
They are worried about a country risk
A letter of credit
Is a term of payment
What product should a country choose when they decide to go global
one that has the highest value added and that represents core competencies of the firm
Legal system based on religious precepts
Theocratic
- If a company needs to know which language to translate their commercial invoice into the resource that would be the most helpful
country commercial guide
Pre-export financing
SPA
Laws organised into codes
Civil system
Which incoterm places the most responsibility on the importer
Import duties
Are a tariff barrier
Piggyback exporting
Piggyback marketing is an arrangement in which one manufacturer or service firm distributes a second firm’s product or service. The most common piggybacking situation occurs when a U.S. company has a contract with an overseas buyer to provide a wide range of products or services.
Know what the PIERS database is useful for
PIERS collects import/export data from Bills of Lading for all waterborne cargo vessels that enter or exit U.S. ports. This data is analyzed and augmented with supplementary datasets to produce the PIERS trade intelligence data resources.
Companies seeking information on the credit worthiness of a foreign buyer may use reports from which organisations
Graydon or Coface
- a key feature of a futures contract vs a forward contract
A forward contract is a private and customizable agreement that settles at the end of the agreement and is traded over the counter. A futures contract has standardized terms and is traded on an exchange, where prices are settled on a daily basis until the end of the contract.
what is a bill of lading
A bill of lading is both a receipt for cargo and a contract for the transportation of goods
Patents
First to file, not automatically protected elsewhere
CE mark
Is a safety standard
UCP
Governs letters of credit
Grey marketing
Selling a product outside manufacturers distribution channel
Harmonised codes are harmonised globally to…
6 digits
- Does a Free trade agreement guarantee a zero duty
no not automatic but gives greater freedom and movement of goods with lesser or no tariffs. Certificate of origin for preferential treatment
High context society
High-context cultures are cultures in which subtlety and collective understanding rule the day - eg. family high context, airport low context
- Ethnocentric manager
Would implement management decisions that mirror their own culture
Expropriation
The action by the state or an authority of taking property from its owner for public use or benefit.
EAR99.
export license is not required but DPL (denied party list) is not waved
Which foreign partner gives most control over pricing
Agent
KOMPASS
Database/marketing data provider that offer an online digital directory
What is a trade mission
government officials and businesspeople from one country travel to another to promote trade between the two. Trade missions are usually organized by national or provincial governments. - ????
Vertical vs Horizontal trade show
Vertical focused on one type of product or market, horizontal wide variety of products and markets
- What is a global trend concerning consumer behaviour
– people like the same things globally, customers demanding same types of products
Difference between Drayage and Demurrage
Demurrage is the charge that is payable to the owner of a chartered ship in respect of failure to load or discharge the ship within the time that was allotted. Drayage involves the transportation of goods a short distance
- Which of the following is not a necessary condition for a company to be ready to go global
foreign language ability
- Documentary collection
the sight draft needs to be consigned to the bank, not freight forwarder
- C-TPAT
benefit is to lower inspection rates
- Main things to have to go global
management commitment
