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44 Cards in this Set
- Front
- Back
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3 Largest economies in South America?
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Brazil, Argentina, and Venezuela
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3 largest economies in Europe?
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Germany, France, and United Kingdom
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Black Market
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In contrast, a black market is the trade of goods and services that are illegal in themselves and/or distributed through illegal channels, such as the selling of stolen goods, certain drugs or unregistered handguns.
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Gray Market
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is the trade of a commodity through distribution channels which, while legal, are unofficial, unauthorized, or unintended by the original manufacturer.
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what conditions must exist for parallel importing to be profitable?
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1. Product must be avail. in diff. markets. 2.TB's and NTB's must be low. 3. price differentials must be significant.
-foreign exchange rate -cost structures -poor global integration of mnc -difference in elasticity |
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what is parallel importing? is it illegal?
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When an importer finds a cheaper price of a good or equivalent good on the world market and imports the good instead of paying higher local prices. These imports tend to be outside authorized importer channels. not illegal.
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problems with market parallel imported goods
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1. safety hazards 2. No factory warranty. 3. ingredient concerns 4. diff language 5. diff packaging 6. foreign specifications.
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if my products are being parallel imported, what can I do to stop this behavior?
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Control price, exclusive distribution rights, figure out who's selling your product.
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Universallity
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(trade identity) trademark is only seen as the source of origin of the product.
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Exhaustion
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(owner exhaust the rights when he sells) benefit of the trademark is in the selling price the seller receives.
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Territoriality
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(effective only in the country in which it is registered) owning the trademark affords the owner the right to control the trademarks distribution.
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role of a trademark
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indication of product origin, indication of product quality (assurance) Means of advertising. Establish goodwill for the product.
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Transfer price
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The price that is assumed to have been charged by one part of a company for products and services it provides to another part of the same company, in order to calculate each division's profit and loss separately.
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Who can help you adjudicate trademark disputes?
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1. United States Customs Service
2. International Trade Commission. 3. Federal Courts. |
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How are common and civil law different?
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common-whoever demonstrates the right to have it
civil-who registers first. |
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Common Law
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presumption of innocence, adversarial-trial led by lawyers with judge referee, precident based, England & colonies, first in use for patent/trademark, contract shorter
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Civil Law
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Less presumption of innocence, Accusatory-judge or panel of judges led trial, outcomes within remedies set by code, code based, roman code and Napoleonic code, first to file for patent or trademark, contracts longer. (patent flooding)
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The Paris Convention
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the oldest international treaty concerning protection of international property
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Power distance
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5) the extent to which a society allows inequalities of physical and intellectual capabilities between people to grow into differences in power and wealth
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6) Long-term orientation (according to Hofstede)
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IBM
people value actions and attitudes that affect the future: persistence/perseverance, thrift, and shame. In short term oriented societies, people value actions and attitudes that are affected by the past or the present: normative statements, immediate stability, protecting one's own face. |
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Voluntary export restraints
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11) a quota on trade imposed by the exporting country, typically at the request of the importing country’s government
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IMF
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7) established as part of the 1944 Bretton Woods Agreement, this bank lends money to nations principally to help with infrastructure development projects
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Economic diversion
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12) the shifting of consumption from a more efficient producer outside a unit of economic integration to a less efficient producer inside the same unit of economic integration.
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exchange rate
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13) fixed peg; managed float; free float; adjustable peg; etc.
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nationalization
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4) a situation in which prompt adequate and effective compensation is offered when an entire industry is taken over by a national government
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CSR
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17) social responsibility efforts undertaken by a corporation that lower profits but raise social welfare
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Parallel importing
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18) a) when products face low trade barriers; b) their price differentials are significant and c) they are available in more than one market
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19) the benefit offered by a franchising agreement but not a licensing agreement
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quality
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20) an explanation for making the British pound and the Euro base currencies
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240 pence per pound sterling
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INCO terms
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21) a set of trade related terms developed and adopted by the International Chamber of Commerce.
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adversary-makes decisions on preccedent
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22) major tenets of a common law system
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transfer pricing
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23) a way to maximize profits by varying intra-company charges of intermediate products
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Free Market Economy
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24) free flow of labor and capital
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Persistent dumping
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25) the practice of selling a service or product (outside the home country) below its cost of production—in part driven by the way fixed costs are allocated to the home market.
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base currency
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26) in a foreign exchange quote this is the first currency identified (from a pair of currencies)
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Effective tariff rate
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27) a measure of tariff protection afforded to the value added of a product
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expropriation
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28) a situation in which prompt, adequate, and effective compensation is offered when an individual company is taken over by a national government
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Trade representatives
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a trade professional who handles the issues of transportation, insurance, and customs approvals
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IMF
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30) established as part of the 1944 Bretton Woods Agreement, this bank lends money to nations principally to help stabilize currency values
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gray market
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31) these goods may not meet domestic specifications; they may use banned ingredients, they may pose safety hazards; they may offer inadequate labeling; they may not be packaged for international travel; they may be obsolete
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black market
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products that legally enter a market for which they were not intended as opposed to products that illegally enter a market
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International Fisher effect
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An economic theory that states that an expected change in the current exchange rate between any two currencies is approximately equivalent to the difference between the two countries' nominal interest rates for that time.
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Units of economic integration
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Free Trade Area- The least restrictive ex: Nafta and Efta
Customs Union-the customs union establishes a common trade policy with respect to non members. Common Market-has no barriers to trade among members and has a common external trade policy Economic Union-integration of economic policies in addition to the free movement of goods, services, and factors of production across borders |
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remember
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forward premium is explained by the interest rate differential.
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