BUSI 4344 Exam 4 - Exporting, Countertrade, and Supply Chain Management

These flashcards cover key vocabulary and concepts related to exporting, countertrade, and supply chain management, preparing you for Exam 4 in BUSI 4344.

Exporting

Producing goods at home and selling them to a foreign market.

Freight Forwarders

Service providers that combine smaller shipments into a larger shipment to minimize costs.

Export Management Companies (EMC)

Companies that act as an export marketing department for client firms.

Letter of Credit

A document issued by a bank guaranteeing payment to an exporter upon presentation of specified documents.

Bill of Lading

A document that serves as a receipt, a contract, and a document of title for the shipment of goods.

Countertrade

An alternative means of structuring an international sale when conventional payment methods are not available.

Barter

Direct exchange of goods and/or services between two parties without a cash transaction.

Counterpurchase

A reciprocal buying agreement where two parties agree to purchase each other's goods.

Offset

An agreement that stipulates a purchase of goods or services using a specified percentage of proceeds from a sale.

Just-in-Time Inventory

An inventory logistics system designed to deliver parts only when needed in the production process.

Six Sigma

A management philosophy focused on reducing defects and improving quality through statistical methods.

TQM (Total Quality Management)

A management philosophy centered on continuous improvement in quality of products and services.

Value Creation Activities

Activities involved in producing a product that add value to the end customer.

Market Entry Strategy

The approach taken to enter a new foreign market, often starting small to reduce risk.

Local Distributors

Partners in foreign markets that help businesses distribute their products successfully.

Cultural Myopia

A lack of understanding of different cultural perspectives that may hinder business effectiveness.

Make-or-Buy Decisions

Strategic decisions regarding whether to manufacture a product in-house or purchase it from an external supplier.

Compensation Package

Comprises salary, allowances, and benefits provided to expatriates for working abroad.

Expatiate Failure

The premature return of an expatriate from a foreign assignment due to various personal or professional challenges.

Supply Chain Management (SCM)

The coordination of logistics, purchasing, operations, and market channels to enhance product delivery.

Economies of Scale

Cost advantages obtained when production becomes efficient as the scale of output increases.

Export Financing

Various financial mechanisms to support exporters in managing payments and risks.

Trade Barriers

Regulations or policies designed to restrict international trade between countries.

Universal Needs

Products that have the same demand across different geographies and cultures.

Transportation Costs

Expenses incurred to transport goods, heavily influenced by the value-to-weight ratio.

Foreign Service Premium

Additional compensation given to expatriates to incentivize them for taking international assignments.

Export-Import Bank

A U.S. government agency that provides financing for exports and supports U.S. employment.

Flexibility of Technology

The ability of production technology to adapt to different types of products or processes.

Inventory Holding Costs

Expenses related to storing unsold goods, which just-in-time systems aim to minimize.

Strategic Staffing Approach

The method used to fill key positions in an organization that aligns with global business strategies.

Bill of Lading's Functions

Serves as a receipt, a contract for transport, and a document of title.

Primary Packaging

The packaging that contains the product itself, essential for protecting and marketing the item.

Compensation for Expatriates

Includes base salary, foreign service premiums, and allowances to ensure a comparable lifestyle abroad.