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71 Cards in this Set
- Front
- Back
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What do you look for in initial analysis when entering a new country? |
Source of competitive advantage, transferability, consumer preferences, competitor product quality, quality standards, value chain |
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What is exporting? |
Selling home-produced product into a foreign market |
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What is direct exporting? |
Company sells product directly to foreign buyers (end users,retailers, distributors) |
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What is indirect exporting? What are the two types? |
Selling through home country agencies (Trading houses). The two types are 1) Export Merchant: Buys product from you in Canada 2) Export Agent: Sells product oversees for comission |
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What is the purpose of a sales representative? |
When direct exporting, they are an unofficial person in foreign country who can gather market info, purchase bid documents, and help clear goods from customs. |
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What is a distributor? |
A foreign merchant with exclusive sales rights in a country. |
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What are the advantages of indirect exporting? |
Better knowledge of market culture, trading house has their own contacts/distribution, you can test market quickly + cheaply, no in-house market team |
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What are the disadvantages of indirect exporting? |
Loss of profit, loss of control (reputation can be hurt), no direct access to customer feedback |
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What is licensing? |
Involves offering a foreign company the rights to use a firm's proprietary technology, patents, or brand for a fee + royalty. |
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Why would a country want FDI? |
Technology transfer to domestic workers, can be a hub for other local industries, employment for citizens, corporate taxes, import substitution, and earns foreign exchange for exports. |
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What is FDI? |
Foreign direct investment |
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What is an international joint venture? |
A legal entity distinct from its two parents. Usually has a local partner. |
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Partial Manufacturing is...? |
Goods are shipped in "knock-down". Local assembly + some form of value added to product. |
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What is the failure rate of International Joint Ventures? |
70% |
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What is an export processing zone? |
A free trade zone where manufacturing facilities exist in a foreign country. |
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What are some advantages of a Export Processing Zone? |
No import duties on raw materials. No export duties on goods exported to foreign countries. No import duties for sales in host country on the domestic value added. Sites may be fully serviced with roads, water. Local labor and local supplies are available. |
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What is included on the Request for Quotation (Tender)? |
Technical specifications, quantity, delivery date, financing, bid bond, bid closing, location |
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How can a bidder convince buyer to use their specs? |
Get there early in development process, keep a company representative close. Bring them to your facilities, and send testimonials. |
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How can a company increase their chances of winning a bid? |
Provide offsets (schools, roads), provide training for managers/employees of purchasing organization, discount spare parts, and provide option of accessing future technology. |
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What is payment on open account? |
Credit for a specified number of days, after which payment must be made. |
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What is the difference between an LC, Irrevocable LC, and Confirmed LC? |
LC: Letter of credit, substitutes credit of bank for customer. Its a document from importer's bank guaranteeing payment. Irrevocable LC: Foreign bank cannot withdraw LC if terms are followed Confirmed LC: LC is confirmed by exporter's bank and will pay if importer + importer's bank fail to do so. |
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Why would a foreign bank not be able to pay their LC debt? (3 Reasons) |
Not all banks are honest. New government policy may enforce exchange controls. Foreign bank may run out of hard currency. |
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What is the EDC? |
Export Development Canada. Provide financing/loan guarantees for major capital projects in foreign markets. |
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What is EDC Buyer Financing? |
Lends money to the importer of Canadian goods. EDC pays the domestic exporter, importer pays back the EDC after specified period of time. |
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What is a bid bond? |
Submitted amount by a company to guarantee it will not withdraw bid. Gets money back if it does not withdraw bid during bidding process. |
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What is a performance bond? |
A guarantee a piece of equipment/project performs the way it is supposed to for a specified period of time. It is returned to bidder after this pre-determined time. |
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What does a multi-lateral development bank do? |
They provide financing for infrastructure projects in LDCs (Less developed countries). |
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Who can you contact to check credit of a foreign buyer? (4 answers) |
Dunn & Bradstreet, the EDC, your local bank, or the Canadian embassy of that country. |
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What is Dunn & Bradstreet? |
A 150 year old British company that provides credit information on companies around the world. They provide credit rating, history of payments, foreign bank connections and clients |
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What determines how much water a person needs? |
Size, physical activity levels, environmental temperature, humidity of region, |
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How much of the earth's water is fresh water? |
2.5% |
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Where is most of the earth's fresh water stored? |
In glaciers/ice caps, deep groundwater. |
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What is a ground water Aquifer? |
A wet underground layer of water-bearing permeable rock, from which ground water can be extracted. |
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What is the High-Plains Ogallala Aquifer? What's happening to it? |
The largest US aquifer in Midwestern US, holds 978 trillion gallons of water. Depth and quality is declining as water is extracted faster than it is being replenished. It is essential for US farming. Used to be up to 900 feet deep, now 0-400 feet deep. |
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How much of the world's crops are irrigated? |
20% |
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What are salt water incursions? |
Fingers of salt water move into an aquifer, causing water to become brackish (salty) and unusable. |
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What is central pivot irrigation? Where is it common? |
Circulation irrigation sprinkler. Water rolls in large circles (crop circles). Found in Saudi Arabia. |
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Why is Canal Irrigation so inefficient? |
Water sits on the ground surface in the hot sun and evaporates. |
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What is the Aral Sea? Why is it important? |
Was once the 4th largest inland sea, now mostly desert. Was diverted by USSR in 1960's for cotton production. |
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What is chemical soup? What are the effects? |
As water levels decrease, chemicals such as fertilizer/pollution in water become concentrated becoming foamy and thick. Fish die, animals die, and it causes cancer and miscarriages in people. Salt/dust storms become common, extreme weather and drought. |
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How many countries does the Nile River link? Who owns most of it? |
10 countries, Ethiopia owns 86%. |
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What is the significance of the Tigris-Euphrates river? |
Turkey owns it, and controls 80% of Syria's water, and most of Iraq's. |
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What is America's dilemma regarding water use? |
Pumping aquifers dry, too much human/animal water use, large beef industry uses too much water, population growth in desert areas, and human wastage is prevalent. |
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What is the "Great Lakes Annex 2001"? |
Standards to be applied in regards to all new/increasing water use proposals. |
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What is BC doing with its water? |
Selling it to China & Japan for water bottling production. |
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What are the benefits of drip irrigation? |
Water is transferred through tubes directly to plants, far less wastage and more efficiency. |
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What is cloud seeding? |
Uses rockets/planes/cannons to fire particles such as silver iodide into the clouds to encourage rain. Water vapor gathers around the particles and falls as rain |
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What is hunger? |
Not having enough food, possibly leading to malnutrition. |
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What is Malnutrition? What are the two types? |
Lack of nutritional elements for human health. 1) Protein Energy Malnutrition 2) Micro-Nutrient Deficiency |
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What is Protein Energy Malnutrition (PEM)? |
A lack of calories and protein which prevents muscle function/development. Most lethal type of malnutrition. |
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What are the main causes of hunger? |
Poverty, Harmful political/economic systems, conflict such as war |
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What are IDPs? |
Internally Displaced Persons, internal refugees of a country usually as a result of war. |
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What are UN initiatives for world hunger? |
School meals Food for assets (pay in food) AIDS/HIV food support Purchase for progress (buy agriculture from poor farmers at full market price). |
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Why are hunger initiatives primarily focused on women? |
They are more likely to go hungry, make up backbone of food production, and food given to women is more likely to be shared with children. |
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What is GMO food? |
Food created through gene splicing, merging DNA of other species. |
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What are the benefits of GMO food? |
Pest resistant, herbicide tolerant, disease resistant, cold tolerance, drought tolerance, added nutritional content |
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What is "golden rice"? Why is it beneficial? |
GMO rice with added Vitamin A content from Carrots. Its important as some people only can afford to eat rice, and it adds nutritional content to their diet. |
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Who are the top 5 producers of GMO food? |
China, India, Brazil, Argentina, South Africa |
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What are three concerns of GMO food? |
Unintended harm to other species, reduced effectiveness of pesticides, creation or spread of new allergies |
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What is Global Warming? |
Term used to describe the rise in average temperature of the earth's atmosphere and oceans |
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Where is Carbon stored and released? |
It is stored in atmosphere and all around us, in plants, soil etc. Released through activities such as burning fossil fuels, which traps more carbon in the atmosphere. |
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What is the greenhouse effect? |
Carbon is released and stored in the earth's atmosphere, which allows heat from the sun to be trapped within our ozone layer. |
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What are the major sources of carbon release (two)? |
Energy use/production (fossil fuels), transportation |
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What are carbon sinks? |
Natural systems that suck up/store carbon such as plants, oceans, soil |
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What are the major effects of climate change? |
Extreme weather, flooding, storms, water level rises, ice caps melt |
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What is happening to the great barrier reef? What is bleaching? |
95% is showing bleaching. Bleaching is when a rise in temperature or other irritant to the coral causes it to expel its algae (which gives it color). If algae does not return to the coral, the coral will die. |
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What is the IPCC? What do they do? |
Intergovernmental Panel on Climate Change. They assess scientific, and socio-economic info relevant to climate change. |
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What is the goal of the Paris Climate Agreement? |
Strengthen global response to climate change, and keep temperature rise this century below 2 degrees (and possibly lower to 1.5). |
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How is the Paris Climate Agreement planning to slow down global warming? |
Provide appropriate financial flows, new technology framework, and enhanced capacity framework, particularly to developing nations. The rich will help the poor countries meet their environmental goals. Countries will set targets, report progress, and do environmental stock takes every 5 years. |
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What are some potential solutions to global warming? |
Don't use fossil fuels, use electric vehicles, fewer flights, walk/cycle more, reforestation, carbon tax, purchase/support locally grown food. |
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Who is your favorite student in GMS400? (See author name) |
Chris Alfar |
