Practice 17 Flashcards
Export Business
Produce in one country, export to others
Global Marketplaces
Online platform that facilitates byuing and selling of goods and services across international borders
Partnerships & Alliances
provide local insights, established networks and understanding of regulatory landscapes
M&A
purchase or merge with a business already operating in the target market
Greenfield investment
purchase the land, build your base, and then carry out operations as an extension of your domestic business abroad
Motivations for importers
- Specialization of labour
- Input optimization (costs)
- Local unavailability
- Diversifiation against
disruptions
Motivations for exporters
- Sales and profitability
- Productivity and increased
economies of scale - Diversification against
disruptions
Problems and Pitfalls of Importing and Exporting
- financial risk
- customer management
- int man business expertise
- Marketing challenges
- top management commitment
- Gov regulation
- trade documentation
Bill of lading
receipt for goods delivered
certificate of origin
Indicates products origination and is usually validated by locally designated agency
commercial invoice
A bill for the goods from the buyer to the seller, describing the goods, buyer/seller adresses and delivery and payment terms
consular invoice
Sometimes required by countries to monitor imports => used by Gov to track trade flows
Electronic export information (EEI)
Most common export document where exporter declares key elements of the transaction (involved parties, dates, consignee, fowarding agent, destinantion, loading pier) => export statistics and control
Export- packing list
Itemizes the material in each individual package, indicates the type of package and is attached to the outside => used by shipper and customs officials to verify cargo
Pro forma invoice
Document from exp to imp that outlines selling terms, price and delivery as if the goods had actually shipped => if imp accepts terms and conditions => it sends a purchase order for payment => then exp issues commercial invoice
