International Trade and Export Management Reviewer

Comprehensive vocabulary flashcards covering the core concepts, organizations, entry modes, Incoterms, and marketing strategies in international trade and exporting.

World Trade Organization (WTO)

An international organization established on January 1, 1995, as a result of the Uruguay Round of trade negotiations (replacing GATT), that facilitates and liberalizes international trade by providing common rules among countries.

Most Favored Nation (MFN)

A non-discrimination principle of the WTO requiring that a member country generally treats WTO trading partners equally.

National Treatment (NT)

A WTO non-discrimination principle stating that imported products should generally receive treatment comparable to domestic products after entering the market.

Free Trade Area (FTA)

A regional arrangement where member countries eliminate or reduce trade barriers (particularly tariffs) among themselves, while each member maintains its own external trade policy toward non-member countries (e.g., AFTA).

Customs Union

An economic arrangement where member countries eliminate or reduce internal trade barriers among themselves and adopt a Common External Tariff (CET) toward non-member countries.

Common Market

An economic arrangement that includes customs union features and allows the free movement of factors of production, particularly goods, services, capital, and labor/persons.

Full Economic Union

A deep level of economic integration combining common market characteristics with the coordination or harmonization of economic policies, such as fiscal, monetary, tax, and regulatory policies.

International Monetary Fund (IMF)

An international financial institution that promotes international monetary cooperation, financial stability, and sustainable economic growth, assisting countries facing economic and financial challenges.

Surveillance (IMF Activity)

An IMF activity where the organization monitors and assesses the economic and financial conditions of member countries to identify potential economic problems and provide policy advice.

Technical Assistance (IMF Activity)

An IMF activity that provides guidance, training, and institutional strengthening to member governments in areas such as tax administration, public financial management, and central banking.

Lending (IMF Activity)

An IMF activity that provides financial assistance to member countries experiencing balance-of-payments problems or external financing needs to help stabilize their economies and restore financial stability.

Entry Mode

The specific method a company uses to enter and conduct business in a foreign market.

Franchising

An entry mode in which the franchisor allows a foreign franchisee to use its brand name, business model, products, and operating system in exchange for fees, royalties, or other payments.

Licensing

An entry mode where a company (licensor) grants a foreign company (licensee) permission to use intellectual property (such as trademarks, patents, copyrights, technology, or know-how) in exchange for payment.

Assembly Plant

A foreign manufacturing facility where an international company puts together components or parts into finished or semi-finished products.

Contract Manufacturing

An entry mode where an international company hires an independent foreign manufacturer to produce goods according to specifications, while retaining control of the brand and marketing.

Joint Venture

A partnership where two or more companies (often a foreign company and a local firm) agree to establish, co-invest in, and jointly own a new business in the target market.

Wholly-Owned Plan

A foreign manufacturing facility that is 100% owned and controlled by an international company, established either by building a new facility or by acquiring an existing one.

Management Contracts

An entry mode where an international company provides management expertise and operational services to a foreign-owned enterprise for a contracted fee.

Exporting

An international entry mode in which a company produces goods in its domestic market and sells them directly or indirectly to customers or distributors abroad.

Incoterms

International Commercial Terms published by the International Chamber of Commerce (first established in 1936) that provide standardized interpretations defining responsibilities, costs, and risk transfers between buyers and sellers.

Ex Works (EXW)

An Incoterm where the seller makes goods available at their own premises, and the buyer assumes all costs, risks, and transport logistics from the factory collection point forward.

Free Carrier (FCA)

An Incoterm for any mode of transport where the seller delivers the goods to the named carrier or agreed location, at which point risk transfers to the buyer.

Carriage Paid To (CPT)

An Incoterm where the seller pays for carriage to the named destination, but risk transfers to the buyer upon delivering the goods to the carrier at the origin point.

Carriage and Insurance Paid To (CIP)

An Incoterm similar to CPT where the seller arranges transport to the destination and also provides cargo insurance coverage for the buyer's risk during carriage.

Delivered at Place (DAP)

An Incoterm where the seller bears all risks and costs to bring goods to the named destination, placed at the buyer's disposal on the arriving transport ready for unloading.

Delivered at Place Unloaded (DPU)

An Incoterm where the seller is responsible for shipping the goods and completing their mechanical unloading at the destination dock or place, where risk officially transfers.

Delivered Duty Paid (DDP)

An Incoterm representing maximum seller obligation, where the seller bears all transport costs, risks, customs export/import clearance, tariffs, and taxes until goods are at the destination.

Free Alongside Ship (FAS)

A maritime Incoterm where the seller clears goods for export and places them alongside the ship on the quay or barge, transferring risk to the buyer at that point.

Free On Board (FOB)

A maritime Incoterm where the seller loads goods onto the buyer's designated vessel; risk transfers to the buyer the moment the goods cross the ship's rail and are on board.

Cost and Freight (CFR)

A maritime Incoterm where the seller pays the ocean freight to bring goods to the destination port, but transit risk transfers to the buyer as soon as the goods are loaded on board at origin.

Cost, Insurance and Freight (CIF)

A maritime Incoterm where the seller loads goods on board, pays sea freight, and procures minimum marine insurance, with risk passing to the buyer once goods are on board at origin.

Export Merchandiser

A middleman or link who matches buyer preferences to supplier capabilities across international borders, negotiates terms, and ensures orders align with marketing and profitability plans.

Market Access

The legal, administrative, and economic conditions under which a foreign government permits goods to cross its borders.

Tariff Barriers

Taxes, duties, or customs fees levied on imported goods that directly increase the final selling price of the foreign product in the target market.

Non-Tariff Barriers

Non-tax quantitative or regulatory restrictions on imports, such as quotas, complex licensing regimes, packaging rules, and mandatory certifications (e.g., Halal or CE markings).

Landed Cost

The total baseline cost calculation required to get a product into a foreign market, including manufacturing, international freight, insurance, customs duties, and local logistics.

Core Product

The fundamental problem-solving benefit that a buyer receives from purchasing a product, answering the core question: 'What is the buyer really buying?'

Actual Product

The tangible attributes and features that embody the core benefit, including the product's brand name, quality level, packaging, design, and styling.

Augmented Product

The additional consumer services and post-purchase benefits provided alongside a product, including warranties, repair services, post-sales support, and toll-free assistance lines.

Straight Extension

An international product strategy that markets an existing domestic product to a foreign market using the domestic promotion strategy without altering the product or the message.

Communication Adaptation

A global marketing strategy where the physical product remains the same, but the promotional messaging and advertising campaigns are adapted to local consumer norms.

Product Adaptation

An international strategy that alters the physical product to fit foreign tastes, requirements, or local conditions while retaining the original promotion strategy.

Dual Adaptation

A strategy in which both the physical product and its promotional marketing campaign are modified to meet the distinct conditions and demands of a target foreign market.

Product Invention

The creation of an entirely new product designed from scratch to satisfy an unmet need or untapped demand within an international market.

Product Development and Design Center of the Philippines (PDDCP)

An agency under the Department of Trade and Industry (DTI) that promotes product development, design services, and technical support to enhance the competitiveness of Philippine goods.

Export Packing

The protective packaging measures employed to safeguard goods against physical stress, climatic variations, handling damage, and pilferage during international transit.

Export Marking

The standardized identification, handling, and destination symbols marked clearly on shipping containers to facilitate handling, logistics tracking, and customs clearance.

Informational Labeling

Labeling intended to assist consumers in making informed purchase choices by detailing factual product features, care instructions, durability, and construction standards.

Persuasive Labeling

Labeling designed to attract consumers through promotional claims, prominent branding, and buzzwords such as 'super,' 'improved,' or 'new.'

Product Life Cycle

The sequential stages of a product's market journey influenced by shifting market environments that require changes in marketing strategies and the marketing mix.