International Business

Front 1

What is the 10% Rule?

Back 1

No customer should ever be more than 10% of your business

Ex. Smucker's had 40% of its business invested into Walmart

Front 2

What is Containerization?

Back 2

1. Containers have standardized dimensions.

2. They can be loaded and unloaded, stacked, and transported over long distances

3. They can be transported by container ships, railway, and semi-trucks without being opened

4. Containerization reduced congestion in ports, shipping times and losses from damage and theft.

Front 3

Who invented the idea of Containerization?

Back 3

Malcom MacClean

Front 4

How big are shipping containers?

Back 4

L x W x H:

20' x 8 1/2' x 8 1/2'

or

40' x 8 1/2' x 8 1/2'

Front 5

What are the three most known currencies?

Back 5

1. Dollar (US)

2. Euro (Europe)

3. Yen (Japan)

Front 6

What percentage of US Dollars are outside of the United States?

Back 6

85%

Front 7

What is known about foreign currencies?

Back 7

Foreign currencies ALWAYS change!

They change quickly and dramatically

Front 8

Internation Business is ___________?

Back 8

Complex

Front 9

What makes international business complex?

Back 9

1. Distance (geography, time zones, costs)

2. Cultural

3. Language

4. Political

5. Legal - laws and regulations

6. Currency

Front 10

What does it mean to float currency?

Back 10

Price of currency is being determined by the International Currency Exchange Market

Government doesn't control the value

Front 11

What website can you visit to find out what people and organizations it is illegal to do business with?

Back 11

United States Department of Treasury

www.USTreas.gov

Front 12

True or False:

Are the best customers the ones that buy the most from you?

Back 12

False!

Volume (size) of business does not matter

Front 13

What percentages of customers are

transactional, preferred, or strategic?

Back 13

Transactional: 60%

Preferred: 30%

Strategic: 10%

Front 14

Table for transactional, preferred, or strategic customers:

Back 14

Front 15

In Latin, what does COMPANY mean?

Back 15

Com: Came Together

Pany: Bread

"Come together to break bread"

Front 16

What is Walmart built on?

Back 16

Getting the lowest price!

They squeeze everyone for the lowest price

Screw suppliers, Screw employees, Go to China

Front 17

How is oil measured?

What did it cost in 2007 compared to today?

Back 17

1.) 55 gal barrels

2.) 2007: $144 / barrel and 2016: $50 / barrel

Front 18

Exchange Rate

Back 18

the value of one currency for the purpose of conversion to another currency

Ex. USD : Euro = $1 : $0.93

Front 19

Foreign Exchange Risk

Back 19

Foreign exchange risk typically affects business that export/ import their products and investors making international investments.

Ex. If money must be converted to another currency to make a certain investment, then any changes in the currency exchange rate will cause that investment's value to either decrease or increase when the investment is sold and converted back into the original currency.

Front 20

Capital Flight

Back 20

In economics, occurs when assets or money rapidly flow out of a country, due to an event of economic consequence.

Front 21

Strategy

Back 21

actions (managers take) to attain the firms goal

Front 22

Core Competence

Back 22

firms skills that competitors cannot easily match or imiate

Front 23

Economy of Scale

Back 23

a proportionate saving in costs gained by an increased level of production.

EX. the greater the quantity of a good produced, the lower the per-unit fixed cost because these costs are spread out over a larger number of goods.

Front 24

Localization

Back 24

increasing profitability by customizing the firms goods and services so that they provide a good match to tastes and preferences in different markets

Front 25

International Strategy

Back 25

is a global plan specific to a company (or conglomerate) where a model for global expansion and commerce is the ultimate goal.

Front 26

Channel Length

Back 26

number of individual entities comprising the channel of distribution between the product and the consumer

Front 27

Channel Quality

Back 27

the expertise, competencies, and skills of established retailers in a nation and their ability to sell and support the products of international business

Front 28

First Mover Advantage

Back 28

competitive advantage a business obtains by being the first to bring a specific product or service to market.

Enables a company to establish strong brand recognition and customer loyalty before other entrants to the market arise.

Another advantage is the additional time a first mover business has to perfect or improve its product or service.

Front 29

Joint Venture

Back 29

arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it.

Front 30

Franchising

Back 30

Arrangement where one party (the franchiser) grants another party (the franchisee) the right to use its trademark or trade-name as well as certain business systems and processes, to produce and market a good or service according to certain specifications.

Front 31

Exporting

Back 31

a commodity, article, or service that is sold in another country

Front 32

Off Shoring

Back 32

the practice of basing some of a company's processes or services overseas, so as to take advantage of lower costs.

Front 33

Mass Customization

Back 33

is a marketing and manufacturing technique that combines the flexibility and personalization of custom-made products with the low unit costs associated with mass production

Front 34

Global Distribution

Back 34

allows customization of products for delivery to worldwide wholesalers or retailers, or directly to consumers anywhere in the world