ch 16 book notes u4 int business

Exporting

The process of selling goods or services from one country to another.

Importing

The process of buying goods or services from another country.

Countertrade

A trade transaction where payment is made through goods and services instead of money.

SME (Small and Medium-sized Enterprises)

Firms whose personnel numbers fall below certain limits; they make up a significant portion of companies exporting.

USMCA

United States-Mexico-Canada Agreement, a trade agreement that replaced NAFTA.

E-commerce

Commercial transactions conducted electronically on the internet.

Trade barriers

Government-imposed restrictions on international trade.

World Trade Organization (WTO)

An intergovernmental organization that regulates international trade.

Logistics

The detailed organization and implementation of a complex operation, such as the shipping of goods.

Export financing

Financial products and services that facilitate exporting and importing.

Letter of credit

A bank document guaranteeing payment to an exporter, provided certain conditions are met.

Bill of lading

A document issued by a carrier indicating the receipt of goods for shipment.

Draft (Bill of Exchange)

A financial document that orders one party to pay a fixed sum to another party.

Sight draft

A draft that is payable on demand upon presentation.

Time draft

A draft that allows for delayed payment; payable at a specified future date.

Freight forwarder

An agent who helps arrange the transport of goods internationally.

Export management company (EMC)

A firm that provides services to handle the exporting process for other companies.

Customs broker

An expert who helps importers and exporters complete their customs documentation.

Export trading company

A business that acts as an intermediary in international trade transactions.

Barter

A direct exchange of goods and services without using money.

Counterpurchase agreement

A reciprocal arrangement where one party agrees to purchase goods from a supplier after selling goods to them.

Offset agreement

An agreement where one party must purchase a percentage of goods from the country to which they are exporting.

Switch trading

The use of a third party to buy and sell countertrade credits.

Buyback agreement

An arrangement where a firm agrees to receive a portion of its payment in goods produced by a facility it has established.

Trade associations

Organizations that promote the interests of businesses in specific industries.

U.S. Department of Commerce

The U.S. government department responsible for promoting American business domestically and internationally.

Small Business Administration (SBA)

A U.S. government agency that provides assistance to small businesses.

Export Credit Insurance

Insurance that protects exporters against the risk of non-payment by foreign buyers.

Economic Processing Zones (EPZs)

Areas designated for exporting and importing goods to encourage international trade.

Direct lending operation

A program in which the EXIM Bank lends directly to foreign buyers purchasing U.S. products.

Management resources

The personnel and administrative capabilities necessary to manage a business.

Proactive exporting

A strategy where firms actively seek out international trade opportunities.

Volatility in foreign markets

The degree of variation in trading prices over time in foreign markets.

Foreign market opportunities

Potential avenues for sales in markets outside of a company’s home country.

Market entry strategy

A planned method a company uses to enter a new foreign market.

Export operations

The processes involved in the selling and shipping of goods to foreign markets.

Cultural barriers in exporting

Differences in culture that can hinder successful international trade relationships.

Diverse multinational enterprises

Large companies operating in multiple countries with the capacity to manage diverse operations.

Foreign exchange risk

The potential risk of loss from fluctuations in the currency exchange rates.

Documentary requirements in export transactions

The necessary paperwork and documentation required to facilitate export transactions.

Strategic marketing weapon

A competitive advantage gained through specific marketing strategies.

Global market dynamics

The factors, forces, and conditions that affect the global marketplace.

Sogo shosha

Japanese trading companies that engage in international trade and support exporters.

Competitive conditions in foreign markets

The level of competition found within a particular foreign market.

Distribution channels

The path through which goods and services flow from the producer to the consumer.

Trade events

Gatherings organized to connect businesses with foreign markets.

Government embassies

Official government representatives residing in a foreign nation that assist businesses.

Export documentation

The paperwork required for exporting goods, including invoices and shipping documents.

Importance of face-to-face negotiations

The necessity of direct interactions to close deals in international trade.

Negotiation strategies

Techniques for effectively negotiating deals in international markets.

Adaptation to global marketplace

The process by which firms modify their strategies and operations to compete internationally.

Opportunities for local production

Possibilities for establishing production facilities abroad to serve foreign markets.

Financing aid for exporters

Financial assistance programs available to support exporters.