ibt reviewer

Michael Eugene Porter

an American academic known for his theories on economics, business strategy, and social causes.

Competitive Rivalry, Supplier Power, Buyer Power, Threat of Substitution, Threat of New Entry

Porter’s Five Forces

Help businesses understand the competitive dynamics of their industry and make more informed strategic decisions.

Purpose of Porter's Five Forces

Trade

 concept of exchanging goods and services between two people or entities.

 International Trade

 the concept of exchanging between people or entries in two different countries.

Competitive Advantage

refers to factors that allow a company to produce goods or services better or more cheaply than its rivals.

WTO

the only global international organization dealing with the rules of trade between nations.

Location: Geneva, Switzerland

Established: 1 January 1995

Created by: Uruguay Round negotiations (1986-94)

Membership: 164 members representing 98 per cent of world trade Budget: 205 million Swiss francs for 2024 Secretariat staff: 623

Head: Ngozi Okonjo-Iweala (Director General) Functions:

Other information about WTO

International Monetary Fund

interlinking of various investment exchanges around the world that enable individuals and entities to buy and sell financial securities on an international level.

Capital Market

 a place where buyers and sellers indulge in trade (buying/selling) of financial securities like bonds, stocks, etc.

International Monetary Fund (IMF)

 an organization of 190 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

International Commercial Terms (INCOTERMS) 

a series of predefined commercial terms published by the International Chamber of Commerce relating to international commercial law. 

1. transport charges

2. Identifying and defining the place where transfer of merchandise will take place and the transport risk involved in order to justify to owner for support and the chance for damage to goods when shipped to its destination

3. Determining the obligation of both seller and the buyer

4. Identifying the cost relative to the transaction and the one who will shoulder it

5. Identifying the risk involved in the delivery of goods

6. Making international commercial transactions more to adapt to the most contemporary commercial practice.

Incoterms may be used for the following:

EX-WORKS (EXW)

 an international trade term that describes when a seller makes a product available at a designated location, and the buyer of the product must cover the transport costs.

BUYER

 to purchase goods or services from suppliers located in different geographical areas on behalf of their company. Their objective is to seek out and negotiate the best products in terms of cost, quality and delivery time.

SELLLER

any individual or entity, such as a broker or hedge fund, that engages in offering any asset or security for purchase

FREIGHT ON BOARD (FOB)

 a designation which indicated that the liability and ownership of the goods have been transferred from a seller to a buyer.

if the goods get damaged or destroyed during the shipping, the seller is not liable.

COST AND FREIGHT (CFR)

an expense associated with cargo transported by sea or inland waterways.

COST, INSURANCE AND FREIGHT (CIF)

It's an international shipping agreement, which represents the charges paid by a seller to cover the costs, insurance, and freight of a buyer's order while the cargo is in transit.

CARRIAGE PAID TO (CPT)

an international trade term that means the seller delivers the goods at their expense to a carrier or another person nominated by the seller.

The seller assumes all risks, including loss, until the goods are in the care of the nominated party.

CARRIAGE AND INSURANCE PAID TO (CIP)

signifies that the seller will pay freight and insurance in sending goods to someone chosen by the seller at a mutually agreeable location.

 seller must insure the goods being sent for 110% of their contract value.

DELIVER AT FRONTIER (DAF)

 a term used in international shipping contracts that requires a seller to deliver goods to a border location. 

DELIVERED EX QUAY (DEQ)

a contract specification where the seller had to deliver the goods to the quay or wharf at the destination port. 

DELIVERED DUTY UNPAID(DDU)

an international trade term indicating that the seller is responsible for ensuring that goods arrive safely at a destination.

DELIVERED DUTY PAID (DDP)

indicates that the seller must cover duties, import clearance, and any taxes.

DELIVERY DUTY PAID (DDP)

 a delivery agreement whereby the seller assumes all of the responsibility, risk, and costs associated with transporting goods until the buyer receives or transfers them at the destination port.

VESSEL

a large ship or boat used for carrying goods.

INTERNATIONAL MARKETING

the marketing of products or services outside of your brand's domestic audience. Think of it as a type of international trade. 

key objective of international marketing

 create a global brand presence while tailoring marketing strategies to each specific region's culture, demographics, and consumer behavior.

1. Large Scale Operation

2. Dominance of Multinationals

3. International Restrictions and Trading Blocks

4. Sensitive Character

5. Need for Marketing Research

6. Importance of Advanced Technology 

7. Intense Competition

8. Need    for   Specialized Institutions

9. Need for Long Term Planning

10. Develop   Cultural     Relations and Maintain World Peace

NATURE OF INTERNATIONAL MARKETING

1. Exporting 

2. Globalization

3. Partnership

4. Licensing Agreements

5. Consultancy Services

6. International Commerce

7. Importing 

8. Internationalization

SCOPE OF INTERNATIONAL MARKETING

GLOBAL MARKETING

allows you to sell more products, attract more customers and enlarge your market share in different countries.

market seeking, economic, and strategic

 reasons and motivations for internationalization can be categorized into three