...different country? A) importing B) countertrading C) exporting D) freight forwarding Answer: C Diff: 1 Skill: Concept Objective: 1 2) Small and medium-size enterprises, such as SpinCent as seen in the opening case for chapter 13, account for ________ of all U.S. exporters. A) 38% B) 54% C) 79% D) 97% Answer: D Diff: 1 Learning Outcome: Discuss the roles of exporting, importing, and countertrade in international business Skill: Concept Objective: 1 3) Which of the following best explains why SpinCent decided to export? A) growth opportunities in Asia B) labor demands in the U.S. C) declining tariffs in the EU D) promising market locations in South America Answer: A Diff: 2 Skill: Concept Objective: 1 4) Iverson Products is a U.S. firm that is considering expanding internationally by exporting. Which of the following is the LEAST likely benefit for Iverson? A) boosting marketplace flexibility B) improving economies of scale C) facing lower business risk compared to other foreign market entry options D) requiring fairly few resources Answer: B Diff: 2 Learning Outcome: Discuss the roles of exporting, importing, and countertrade in international business Skill: Application Objective: 1 5) Which of the following transactions refers to the purchase of goods or services produced by a company based in one country from sellers that reside in a different country? A) importing B) countertrading C) exporting D) freight forwarding ...
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...Chapter THIRTEEN Export and Import Strategies Objectives • To introduce the ideas of export and import • To identify the elements of export and exporting strategies • To compare direct and indirect selling of exporting • To identify the elements of import and import strategies • To discuss the types and roles of third-party intermediaries in exporting • To discuss the role of countertrade in international business Chapter Overview The first part of Chapter Thirteen is devoted to an examination of export and import strategies. Table 13.1 identifies the steps to consider when developing an export (or import) business plan. Next, the roles of a wide variety of third-party intermediaries are discussed. The chapter concludes with a discussion of the major issues related to export financing, including the use of countertrade as a form of payment mechanism. Chapter Outline OPENING CASE: Grieve Corporation—A Small Business Export Strategy A small firm located near Chicago, Grieve Corporation manufactures laboratory and industrial ovens, furnaces, and heat processing systems for the U.S. market. Grieve began losing business as (i) foreign competitors began to penetrate the U.S. market and (ii) its customers began to move overseas and started sourcing locally. With the help of the International Trade Administration of the U.S. Department of Commerce, Grieve was able to identify potential Asian distributors. During a business trip to Asia, the...
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...International Business, 7e (Griffin/Pustay) Chapter 1 An Overview of International Business 1) Olympic sponsorship is best suited for companies that are ________. A) pursuing a niche market B) selling technological goods C) pursuing a worldwide market D) marketing athletic equipment Answer: C Diff: 2 Skill: Concept Objective: 3 2) IBM is considering becoming a worldwide partner for the 2012 Olympics. Which of the following would IBM most likely receive as a result? A) free public relations B) low-cost marketing C) top athlete endorsements D) priority advertising space Answer: D Diff: 2 Skill: Application Objective: 3 3) Cities wishing to host the Olympic Games must do all of the following except ________. A) make facilities commitments B) develop a volunteer workforce C) generate organizational support D) build high-speed rail links between event cities Answer: D Diff: 2 Skill: Concept Objective: 3 4) Which of the following is the LEAST likely benefit to Olympic host cities? A) enhanced media sponsorship B) greater economic growth C) improved infrastructure D) increased tourism Answer: A Diff: 2 Skill: Concept Objective: 3 5) ________ consist(s) of business transactions between parties from more than one country. A) Currency exports B) International business C) Domestic business D) Global ventures Answer: B Diff: 1 Skill: Concept Objective: 1 Learning Outcome: Define the fundamental concepts of international...
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...Exporting, Importing, and Countertrade OPENING CASE: SteelMaster Buildings How has SteelMaster Building been able to grow its exports? Did they use resources? What were they? How has the Internet helped to level the playing field for small- and medium-sized enterprises like SteelMaster Buildings that want to maximize their export opportunities? IMPROVING EXPORT PERFORMANCE Why export? Why has export increased? What are the enablers? What are our major exports? What are the common pitfalls of marketing? Management Focus: Export Strategy at 3M Understand why 3M initially enters markets on a small scale. How does the firm’s strategy fit with the philosophy that exporting is not an end in itself, but merely a step on the road toward establishment of foreign production? Explain the three principles that make 3M so successful. Why was it important for 3M to hire local personnel? Management Focus: Red Spot Paint and Varnish In an era of “time is money,” how can the trusting relationships that are so often critical to the success of a foreign venture be achieved? How important was the establishment of trust between Red Spot Paint & Varnish and its local distributors and customers to the success of the company? EXPORT AND IMPORT FINANCING Lack of Trust Why? What are the following? Know the definitions. Letter of Credit Draft Bill of Lading In a Typical International Trade Transaction what can go...
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...Academic Year Semester/Term 2012 / 2013 1 / 2 Course Code Course Title Credit Medium of Instruction Course Pre-requisite(s)/ Minimum Requirement(s) CBEB 3305 INTERNATIONAL BUSINESS MANAGEMENT 3 English None Main Reference 1. Charles W. L. Hill, Chow-Hou Wee, Krishna Udayasankar (2012), International Business: An Asian Perspective, Singapore: McGraw hill. Additional References: 2. Charles W. L. Hill (2009), International Business, 7th edition, Singapore: McGraw-Hill 3. Mohd Nazari Ismail (2007), Globalization Debate, UM Press. Teaching Materials/ Equipment Text Book, Journal Articles, Case Studies Learning Strategies Lecture, Tutorial, Discussion Student Learning Time 120 Hours Face to face: 41 Hours (lecture, tutorial) Independent learning: 75 Hours (preparation before and after lecture, preparation for final examination) Assessment : 4 Hours (Test, Final Exam) (Refer to Student Learning Time form) Soft Skills Communications Skills : CS1 – CS3 Critical Thinking : CT1 – CT3 Team Work : TS1 – TS2 Entrepreneurship : KK1 Ethics and Professional Moral : EM1 – EM2 Leadership : LS1 – LS2 Lecturer Room Telephone/e-mail Prof. Dr. Mohd Nazari Ismail A2-25 mdnazari@um.edu.my Lecture Session: Day/Time Venue Tutorial/Practical Session: Day/Time Venue Isnin 2.00 – 4.00 ptg DK1 Monday 4 – 5 pm; Tuesday 2 – 3 pm; 3 – 4 pm; Thursday 9 – 10 am; Thursday 12 pm – 1 pm; 1pm – 2 pm. BSB 2 Important Dates ...
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...organization has made a decision to enter an overseas market, there are a variety of options open to it. These options vary with cost, risk and the degree of control which can be exercised over them. The simplest form of entry strategy is exporting using either a direct or indirect method such as an agent, in the case of the former, or countertrade, in the case of the latter. More complex forms include truly global operations which may involve joint ventures, or export processing zones. Having decided on the form of export strategy, decisions have to be made on the specific channels. Many agricultural products of a raw or commodity nature use agents, distributors or involve Government, whereas processed materials, whilst not excluding these, rely more heavily on more sophisticated forms of access. These will be expanded on later. Chapter Objectives The objectives of the chapter are: Structure of the Chapter The chapter begins by looking at the concept of market entry strategies within the control of a chosen marketing mix. It then goes on to describe the different forms of entry strategy, both direct and indirect exporting and foreign production, and the advantages and disadvantages connected with each method. The chapter gives specific details on "countertrade", which is very prevalent in global marketing, and then concludes by looking at the special features of commodity trading with its "close coupling" between production and marketing. Basic issues An organization wishing to "go...
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...Business Entry 4 1.4 Basic Issues an Organisation Faces 5 1.5 Strategies used by Firms 5 ENTRY STRATEGIES 6 2.0 EXPORTING 6 2.1 Advantages and Disadvantages of Exporting 7 2.2 Passive exports Vs Aggressive exports 7 2.3 Direct and Indirect Export 8 2.4 Case Study 9 3.0 PIGGYBANKING…………………………………………………………………………………….10 4.0COUNTERTRADE……………………………………………………………………………………10 4.1 Forms of Countertrade…………………………………………………………………………….10 4.2 Examples of Countertrade…………………………………………………………………………11 4.3 Disadvantages of Countertrade……………………………………………………………………11 5.0 BARTER………………………………………………………………………………………………11 5.1 Forms of Barter Trade…………………………………………………………………………….11 6.0 FOREIGN PRODUCTION……………………………………………………………………………14 6.1 Licensing…………………………………………………………………………………………..14 6.2 Joint Ventures……………………………………………………………………………………..15 6.3Ownership………………………………………………………………………………………….16 6.4 Exports Processing zones………………………………………………………………………….17 7.0 ANALYSIS AND CONCLUSION…………………………………………………………………...17 7.1 Conclusion and Recommendation………………………………………………………………..17 8.0 REFERENCES………………………………………………………………………………………...19 EXECUTIVE SUMMARY. There are a variety of ways in which a company can enter a foreign market. No one market entry strategy works for all international markets. Direct exporting may be the most appropriate strategy in one market while in another you may need to set up a joint venture and in another...
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...position; raising quality levels; and becoming more customer oriented. 2. Describe the principal strategies for going global. Perhaps the simplest and least expensive way for a small business to begin conducting business globally is to establish a site on the World Wide Web. Companies wanting to sell goods on the Web should establish a secure ordering and payment system for online customers. Trade intermediaries such as export management companies, export trading companies, manufacturer’s export agents, export merchants, resident buying offices, and foreign distributors can serve as a small company’s “export department.” In a domestic joint venture, two or more U.S. small companies form an alliance for the purpose of exporting their goods and services abroad. In a foreign joint venture, a domestic small business forms an alliance with a company in the target area. Some small businesses enter foreign markets by licensing businesses in other nations to use their patents, trademarks, copyrights, technology, processes, or products. Franchising has become a major industry for the United States. Successful franchisers have learned to adapt their products and services to suit local customers’ tastes. Some countries lack a hard currency that is convertible into other currencies, so companies doing business there must rely on countertrading or bartering. A...
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...GLOBAL BUSINESS MANAGEMENT (MGT380) DEGREE IN BUSINESS STUDY (BBA) MODULE HANDBOOK Instructor: IMRAN KHAN Office Timing: 0930-1730 Faculty of Business Administration Department of Management Sciences CONTENTS S.No | Topic | Page No. | 1. | Module Handbook | 1 | 2. | Contents | 2 | 3. | Introduction | 3 | 4. | Contacting the Module Instructor | 3 | 5. | Aim for this Course | 3 | 6. | Prerequisites | 4 | 7. | Teaching and Learning Strategies | 4 | 8. | Learning outcomes | 5 | 9. | My teaching Philosophy | 5 | 10 | Assessment Scheme | 5 | 11. | Reading Materials | 6 | 12. | Course Requirements and Expectations | 6 | 13. | Assessed Coursework | 7 | 14. | Academic Dishonesty | 7 | 15. | Plagiarism and Cheating | 7 | 16. | Course Outline | 8 | 17. | Detailed Course Outline | 9 | INTRODUCTION__________________________________________________ Today the world is becoming a global village. No country has such great economy that can survive by its own. The 21st century is the era of interdependence, globalization, and outsourcing. The International environment is more complicated than domestic and more challenging. Transnational problems whether environmental, cultural, economic and political, needs better understanding to compete in international world. This course, International Business (IB MGT 480) provides a foundation to understand different strategies required in international business whether at small scale or large scale....
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...into exporting, its definitions and other international business transactions, it goes on discussing the different strategies available to a firm internationalizing for the first time, and these include both direct and indirect strategies available, and provides examples of firms that use export strategies. It also gives the advantages and disadvantages of such strategies. At the end of the report it provides a conclusion and recommendations to what strategies a firm can adopt depending on the situation. 2.0 INTRODUCTION AND BACKGROUND The most conventional forms of international business transactions are international trade and investment. International trade refers to an exchange of products and services across borders. Exchange can be through exporting, importing or countertrade. Exporting is an entry strategy involving the sale of products and services to customers located abroad from the home base or third country. Importing is the buying of products abroad and bringing them to the home market. Countertrade is a business transaction where all or partial payments are made in kind rather than cash. Both finished and intermediate goods, such as raw materials and components are subject to trade. While on the other hand international investment refers to the transfer of assets to another country, or acquisition of assets in that country through foreign direct investment and contractual agreements, Cavusgil (2008). Among the organizations arrangements for exporting are Indirect...
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...End-of-Chapter Question Solutions 1 ____________________________________________________________________________________________ CHAPTER 23: INTERNATIONAL TRADE FINANCE 1. Trade dilemma. What is meant by the term ‘trade dilemma’? International trade must work around a fundamental dilemma. Imagine an importer and an exporter who would like to do business with one another. They live in different countries located far apart. They have never met. They speak different languages. They operate in different political environments. They worship different gods (each capitalizes “God” in the home religion and uses a lower case “god” for foreign religions!). They come form cultures that have different standards for honoring obligations to other persons and different ways to settle disputes. They both know that if they default on an obligation, the other party will have a hard time catching up to seek redress. Although it might be too harsh to say they don’t trust one another, each has perfectly valid reasons for being very cautious in dealing with the other. Because of the distance between the two, it is not possible to simultaneously hand over goods with one hand and accept payment with the other. 2. Basic documents of trade. What are the three basic documents used in trade with unrelated parties? The fundamental dilemma of being unwilling to trust a stranger in a foreign land is solved by using a highly respected bank as intermediary. A greatly simplified view is described in Exhibit...
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...Import Export Pakistan Legislation Terms and Definition Posted on June 19, 2008 by Imran [pic][pic][pic] Bill of Lading for Import Export Pakistan A bill of lading (also referred to as a BOL or B/L) is a document issued by a carrier , e.g. a ship’s master or by a company’s shipping department, acknowledging that specified goods have been received on board as cargo for conveyance to a named place for delivery to the consignee who is usually identified. Care (Customers Administrative) for Import Export Pakistan Care stands for Customs Administrative Reforms and it is a project of the Central Board of Revenue overseeing reforms in Pakistan Customs. The project was initiated in February 2002. Since its inception CARE has carried out research and development work to enhance the efficiency of the department. Cost and Freight (CFR) for Import Export Pakistan Cost and Freight (CFR) means that the seller pays for transportation to the Port of Loading (POL), loading and freight . The buyer pays for the insurance and transportation of the goods from the Port of Discharge (POD) to his factory . The passing of risk occurs when the goods pass the ship ’s rail at the port of shipment which means that this term cannot be used for airfreight or land transport and also is inappropriate for most containerised sea shipments. Cost, Insurance and Freight (CIF) for Import Export Pakistan Cost, Insurance and Freight (CIF) is a common term in a sales contract that may be encountered in international...
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...BUSN 8 3 The World Marketplace: Business Without Borders Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LEARNING OUTCOMES 1 Discuss business opportunities in the world economy 2 Explain the key reasons for international trade 3 Describe the tools for measuring international trade 4 Analyze strategies for reaching global markets 5 Discuss barriers to international trade and strategies to surmount them 6 Describe the free-trade movement and discuss key benefits and criticisms Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. BUSN8 | CH3 2 1 Business Opportunities • Advancement in technology and reduction of barriers to trade have made the individual economies interdependent • Results in better communication with increased competition and shifting opportunities Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. BUSN8 | CH3 3 Reasons for International Trade • Access to factors of production • International trade helps even out some of the resource imbalances among nations • Reduced risk • Global trade reduces dependence on one economy, lowering the risk for multinational firms • Inflow...
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...[pic] COURSE OUTLINE |Course Code |MKT-403 |Title |International Business | |Credit Hours |3 |Semester |Spring 2014 | |Course |This course is an interdisciplinary and systematic introduction to international business with an emphasis on the:| |Objective |drivers, patterns and trends of globalization | | |national differences in political economy | | |international trade theories and patterns of international trade | | |political economy of international trade and investment | | |implications of regional economic integration | | |global monetary system | | |strategies and structures of international business | | |foreign market entry strategies and international...
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...\ eighth edition Global Business Today CharlesW. L Hill University of Washington McGraw-Hill Irwin contents PREFACE xiii PART ONE Chapter One Introduction 4 What Is Globalization? 6 The Globalization of Markets 6 The Globalization of Production 7 The Emergence of Global Institutions 9 Drivers of Globalization 11 Declining Trade and Investmen t Barriers 11 The Role of Technological Change 14 The Changing Demographics of the Global Economy 16 The Changing World Output and World Trade Picture 16 The Changing Foreign Direct Investment Picture 18 The Changing Nature of the Multinational Enterprise 19 The Changing World Order 22 The Global Economy of the Twenty-First Century 23 The Globalization Debate 24 Antiglobalization Protests 24 Globalization, Jobs, and Income 26 Globalization, Labor Policies, and the Environment 28 Globalization and,National Sovereignty 29 Globalization and the World's Poor 30 Managing in the Global Marketplace 31 Key Terms 33 Chapter Summary 33 Critical Thinking and Discussion Questions 34 Research Task 34 Closing Case: Legal Outsourcing 35 Introduction and Overview 2 Globalization 3 PART TWO Chapter Two Country Differences 36 National Differences in Political Economy 37 Opening Case: Ghana: An African Dynamo 37 Introduction 38 Political Systems 39 Collectivism and Individualism 39 Democracy and Totalitarianism 42 Economic Systems 44 Market Economy 44 Command Economy 45 Mixed Economy 45 Legal Systems 46 Different Legal Systems 46 Differences...
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