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61 Cards in this Set
- Front
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Commerce Control List (CCL)
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A directory, organized by a series of Export control Classification Numbers, that indicates US rules for the exportability of items. Exporters must use the list to determine if there are end-use restrictions on certain items, such as uses in nuclear, chemical, and biological weapons, and determine if a product has dual use-that is, both in commercial and restricted applications
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Export Control Classification Number (ECCN)
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Under the provisions of the US Export Administration Regulations (EAR), a classification number that a US exporter must select for an item to be exported; the number corresponds to a description in the Commerce Control List, which indicates the exportability of the item
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Commerce Country Chart (CCC)
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a directory of info that a US exporter needs to consult, along with the commerce Control List, to determine if the exporter needs a license to export or reexport a product to a particular destination
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export regulations
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restrictions placed by countries on the selling of goods abroad; among reasons they may be imposed are to conserve scarce goods for home consumption and to control the flow of strategic goods actual or potential enemies
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import regulations
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restrictions placed by countries on the sale of goods from outside markets; among the reasons they are imposed are to protect health, conserve foreign exchange, serve as economic reprisals, protect home industry, and provide revenue from tariffs; exporters to markets under such regulations may have to go through various steps to comply with them
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Export Administrative Regulations (EAR)
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a set of rules issued by the US Department of Commerce, designed to alleviate many of the problems and confusions of exporting; they are intended to speed up the process of granting export licenses by concentrating license contrl on a list of specific items, most of which involve national security. Exporters must ensure that their trade activities do not violate the provisions of EAR
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logistics management
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a total system approach to management of the distribution process that includes all activities involved in physically moving raw material, in-process inventory, and finished goods inventory from the point of origin to the point of use or consumption
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letter of credit
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financing devices that, when opened by a buyer of goods, allow the seller to draw a draft against the bank issuing the credit and receive dollars by presenting proper shipping document. Except for cash in advance, letters of credit afford the seller the greatest degree of protection
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bill of exchange
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a form of international commercial payment drawn by sellers on foreign buyers; in transaction based on ____, the seller assumes all risk until the actual dollars are received, making them riskier for the seller than letters of credit
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24-hour rule
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a US requirement, part of the Cargo and Container Security Initiative, mandating that sea carriers and NVOCCs (Non-Vessel Operating common Carriers) provide US Customs with detailed descriptions (manifests) of the contents of containers bound for the US 24 hours before a container is loaded on board a vessel
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C-TPAT (Customs-Trade Partnership Against Terrorism)
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a joint initiative between government and business designed to augment the 24-hour rule by extending security procedures throughout the supply chain; requires importers to establish a documented program for security-risk assessment of overseas suppliers throughout the supply chain; therefore, companies ensure a more secure supply chain for their employees, suppliers, and customers, thus improving the flow of trade
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CSI (Cargo and Container Security Initiative)
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requires sea carriers and NVOCC to provide US Customs with detailed descriptions of the contents of containers bound for the US 24 hours before a container is loaded on board a vessel
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RFID (radio frequency identification)
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a form of electronic tracking
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bill of lading
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the most important document required for establishing legal ownership and facilitating financial transactions; serves the following purposes: 1) as a contract for shipment between the carrier and shipper, 2) as a receipt from the carrier for shipment, and 3) as a certificate of ownership or title to the goods
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commercial invoice
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required by every international transaction; a bill or statement for the goods sold; often serves several purposes; some countries require a copy for customs clearance, and it is one of the financial documents required in international commercial payments
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customs-privileged facilities
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areas, as in international transactions, where goods can be imported for storage and/or processing with tariffs and quota limits postponed until the products leave the designated areas
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foreign-trade zone
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regions or ports that act as holding areas for goods before quotas or customs duties area applied. In the US, more than 150 ___ allow companies to land imported goods for storage or various processing such as cleaning or packaging before the goods are officially brought into the US or reexported to another country
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maquiladoras
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also known as in-bond companies or twin plants, a type of customs-privileged facility that originated in Mexico in the 1970s and provided US companies with a favorable means to use low-cost Mexican labor. They operate through an agreement with the Mexican government allowing US companies to import parts and materials into Mexico without import taxes provided the finished products are reexported to the US or another country
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forfaiting
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a financing technique tht may be used in an international transaction in which the seller makes a one-time arrangement with a bank or other financial institution to take over responsibility for collecting the account receivable
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physical distribution system
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the overall network for the physical g=movement of goods, including plants and warehousing, transportation mode, inventory quantities, and packaging
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merge-in-transit
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a distribution method in which goods shipped from several supply locations are consolidated into one final customer delivery point while they are in transit and then shipped as a unit to the customer
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SNAP (Simplified Network Application Process)
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an electronic service offered by the US Department of Commerce as an alternative to paper license submissions that enables an exporter to submit export and reexport applications, high-performance computer notices, and commodity classification requests via the Internet
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ELAIN (Export License Application and Information Network)
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an electronic service the enables authorized exporters to submit license applications via the Internet for all commodities except supercomputers and to all free-world destinations
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STELA (System for Tracking Export License Application)
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an automated voice response system for exporters that enables license applicants to track the status of their license and classification applications with US authorities
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ERIC (Electronic Request for Item Classification)
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a supplementary service to ELAIN that allows an exporter to submit commodity classification requests via the Internet to the Bureau of Export administration
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consular invoice
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also known as a certificate of origin; some countries require ____ to be obtained from the country's consulate and returned with two to eight copies in the language of the country, along with copies of other required documents before certification is granted
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CIF
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cost, insurance, and freight to a named overseas port of import; a ___ quote is more meaningful to the overseas buyer because it includes the costs of goods, insurance, and all transportation and miscellaneous charges to the named place of debarkation
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C&F
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cost and freight to a named overseas port; the price includes the cost of the goods and the transportation costs to the named place of debarkation; the cost of insurance is borne by the buyer
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FAS
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free alongside at a named US port of export; the price includes cost of goods and charges for delivery of the goods alongside the shipping vessel. the buyer is responsible for the cost of loading onto the vessel, transportation and insurance
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FOB
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free on board at a named inland point, at a named port of exportation, or at a named vessel and port of export; the price includes the cost of the goods and delivery to the place named
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EX
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named port of origin; the price quoted covers costs only at the point of origin; all other charges are the buyer's concern
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integrated marketing communications (IMCs)
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The collective arrangement of efforts and methods to sell a product or service, including advertising, sales promotions, trade shows, personal selling, direct selling, and public relations
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advertising
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for most countries, the major component in the marketing communications mix
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public relations (PR)
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the effort made by companies to create positive relationships with the popular press and general media and to communicate messages to their public, including customers, the general public, and government regulators
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sales promotions
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marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation
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noise
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the term for an impairment to communications process comprising external influences, such as competitive advertising, other sales personnel, and confusion at the "receiving end." Can disrupt any step of the communications process and is frequently beyond the control of the sender or the receiver
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relationship marketing
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the aspect of marketing products that depends on long-term associations with customers; an important factor in business-to-business contexts and especially important in most international markets, where culture dictates strong ties between people and companies
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expatriate
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a person living away from his or her own country; in international sales, ____ from the selling company's home country may be the best choice for the sales force when products are highly technical or when selling requires an extensive knowledge of the company and its product line
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local nationals
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persons living in their home country; historically the persons preferred by expatriate managers to form the sales force; are more knowledgeable about a country's business structure than an expatriate would be, and they are generally less expensive to field and maintain
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TCN (Third-Country Nationals)
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expatriates from one country working for a foreign company in a third country
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repatriation
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an expatriate's return to their own country and the adjustments that need to be made
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separation allowance
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payments of overseas premiums to employees who take on short-term foreign assignments and travel without their families; generally compensate for all excess expenses and any tax differential
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dumping
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an export practice, generally prohibited by laws and subject to penalties and fines, defined by some as the selling of products in foreign markets, below the cost of production and by others as the selling of products at below prices of the same goods in the home market
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parallel imports
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international transactions in which importers buy products from distributors in one country and sell them in another to distributors that are not part of the manufacturer's regular distribution system
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exclusive distribution
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a practice in which a company restricts which retailers can carry its product; often used by companies to maintain high retail margins, to maintain the exclusive-quality image of a product, and to encourage retailers to provide extra service to customers
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administered pricing
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the attempt to establish prices for an entire market through the cooperation of competitors, through national, state, or local governments, or by international agreement. Its legality differs from country to country and from time to time
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variable-cost pricing
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a method of pricing goods in foreign markets in which a company is concerned only with the marginal or incremental costs of producing goods for sale in those markets. Firms using ____ take the view that foreign sales are bonus sales
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full-cost pricing
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a method of pricing based on the view that no unit of a similar product is different from any other unit of a similar product and that each unit must bear its full share of the total fixed and variable cost, whether sold in the home market or abroad
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skimming
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a method of pricing, generally used for foreign markets, in which a company seeks to reach a segment of the market that is relatively price insensitive and thus willing to pay a premium price for the value received; may be used to sell a new or innovative product to maximize profits until a competitor forces a lower price
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price escalation
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the pricing disparity in which goods are priced higher in a foreign market than in the home market; caused by the added costs involved in exporting products from one country to another
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barter
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the direct exchange of goods between two parties in a transaction
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countervailing duty
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a fee that may, under World Trade Organization rules, be imposed on foreign goods benefiting from subsidies, whether in production, export, or transportation; may be applied in conjunction with minimum access volume, which restricts the amount of goods a country will import
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compensation deal
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transactions that involve payment in both goods and cash
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cartel
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an arrangement in which various companies producing similar products or services work together to control markets for the goods and services they produce; the organization of petroleum exporting countries is the best-known one
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counterpurchase
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a type of countertrade in which a seller receives payment in cash but agrees in a contract to buy goods from the buyer for the total monetary amount involved in the first transaction or for a set percentage of the amount; also known as offset trade
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transfer pricing
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the pricing of goods transferred from a company's operations or sales units in one country to its unit elsewhere; also known as intracompany pricing; prices may be adjusted to enhance the ultimate profit of the company as a whole
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advanced pricing agreement
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an agreement made between a company and the internal revenue service covering transfer pricing methods used by the company; without such an agreement, if the IRS charges the company wiht underreporting income through its transactions with affiliates, the burden of proof that a transfer price was fair rests with the company
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countertrade
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a type of transaction in which goods are imported and sold by a company from a country in exchange for the right or ability to manufacture and/or sell goods in that country; can subsitute for cash entirely or partially and is used extensively in trade between US firms and the former Soviet bloc, along with other emerging markets
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BATNA
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Acronym for "best alternative to a negotiated agreement" a notion discussed in Getting to Yes, by Fisher, Ury, and Patton
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nontask sounding
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The part of the negotiation process in which conversation covers topics other than the business at hand; commonly a preliminary phase and precedes task-related information exchange
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task-related information exchange
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the point in the negotiation process at which nontask communication, or nontask sounding, is completed and substancial negotiations begin
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