GEB Exam 5

Chapters 14-16

MITI (ministry of international trade and industry)

Japan, looks out for export opportunities

sogo shosha

Japanese trading company, key part of keiretsin (large Japanese industrial groups)

EMC (export management company)

export specialist that acts as an export marketing department for client firms, offers services for those who have never exported before, COUNTRY KNOWLEDGE, can be someone to blame if project fails

letter of credit

issued by a bank, indicating that the bank will make payments under specific circumstances

bill of exchange

order written by exported, tells importer to pay a specific amount of money at a specific time

draft

order from exporter to importer about what and when to pay

slight draft

draft payable when presented

time draft

promise to pay at some future date

bill of lading

given to exporter by common carrier transporting merchandise, receipt, contract, document of title

EXIM bank

export import bank, US government agency, provide aid in financing and facilitating imports and exports

countertrade

trade of goods for other goods

barter

direct exchange between two parties without cash

counterpurchase

reciprocal buying agreement

offset

agreement to purchase goods with specified percentage of proceeds from original sale

switch trading

uses third party trading house

buy back

accept percentage of plant’s output as payment for contract to build a plant

unfamiliarity

one of the biggest problems in expanding

piggyback services

EMC, a logistics method where a truck carries a smaller vehicle or load, like a trailer, for efficient transportation

EPZ (enterprise processing zone)

EMC, best way to bring products into a country, sometimes duty free

FTZ (foreign trade zones)

EMC, a secured, designated area, allows businesses to store, manufacture, or process goods, delaying or eliminating duties on imports

bonding

EMC, insurance on stolen goods, storage under customers control without immediate payment of duties

cross docking

EMC, goods from an incoming supplier or manufacturer are transferred directly to outbound vehicles with little or no storage time in between

freight

EMC, can your product travel with other products?

target markets

must be identifiable, reachable, and profitable

3M keys to success

enter new markets small, use an EMC, add additional lines (products), hire local, produce local when volume dictates

production

activities involved in creating a product

supply chain management

integration/coordination of logistics, purchasing, operations, and market channel activities

purchasing

worldwide buying of raw materials, parts, and products used in the company’s prodcuts

logistics

plans, implements, and controls effective flows and inventory of raw material, parts, etc. used in manufacturing

upstream

from raw materials to production facility

downstream

from production facility to end customer

total quality management (TQM)

need to improve product quality in top priority

six sigma

from TQM, stats-based method for improving product quality

ISO 9000

certification process that requires certain quality standards

minimum efficient scale (MES)

level of output where plant-level scale economies are exhausted, the larger the MES of a plant (relative to global demand), the greater the argument for centralizing production

flexible manufacturing technology (FMT)

improve job scheduling, reduce setup time, and improve quality control, lean production

mass customization

production of variety of end products at a unit cost that could once be achieved only through mass production of a standardized output, FMT

flexible machine cells

group of various machines, a common materials handler, and a centralized cell controller that produce a whole family of products, FMT

production factors

product features, locating production facilities, and strategic roles for production facilities

global learning

flow of skills and products from foreign subsidiary to one country and from foreign subsidiary to foreign subsidiary

offshore factory

developed and set up for producing component part and finished goods at a lower cost than producing them in home country

source factory

drive down costs in global supply chain

server factory

global firm supplies specific country/region

contributor factory

serves specific country/region

outpost factory

viewed as an intelligence-gathering unit

lead factory

intended to create new processes, products, and tech that can be used throughout the global firm

make or buy decision

whether to produce item in-house or purchase it from outside supplier

global distribution center/warehouse

positions and allows customization of products for worldwide delivery to wholesalers/retailers/consumers

packaging

container that holds product, primary, secondary, transit, to perform, protect, and inform

transportation

movement of inventory through supply chain

reverse logistics

process of moving inventory from point of consumption to point of origin in supply chain, tries to recapture value or proper disposal

just in time inventory (JIT)

logistic system designed to deliver parts to production process as they are needed, not before

just in case

strategy where firm holds larger buffer of stocks of critically important inventory to protect from supply chain disruptions

blockchain technology

database mechanism allows for transparent sharing of info with business network (supply chain)

global supply chain coordination

shared decision making opportunities and operational collaboration of key global supply chain activities