GB 370 Unit 4

letter of credit

between global companies when trade. they trust bank but not each other so written document outlining trade terms

transnational strategy

combine benefits of efficiency from global corporation with benefits of local responsiveness of domestic corp.

World Trade Organization (WTO)

controls worldwide trade and tariffs. not great for farmers

worldwide learning

multinational corporations (MNC's) give other operating environments new ideas

global efficiencies

location, economics of scale, economics of scope

global strategy

marketplace is viewed as single market. Goal is to make goods for the needs of the customers worldwide

21 percent

amount of US economy that is based on trade

foreign credit insurance association

give export credit insurance to companies. financial aid for imports and exports

bill of lading

given to exporter by transporter. it is a receipt, contract, and document of title

economics of scale

global efficiencies, larger facilities = lower costs

economics of scope

global efficiency, broadening product lines

location

global efficiency, cheaper input areas

multimarket flexibility

international businesses implement change in one country, based on change in another

multi-domestic strategy

large corporations use their smaller firms to meet needs of local environment

Trans Pacific Partnership (TPP)

largest free trade agreement

local content requirements

part of good has to be made locally. Good for domestic producers bad for consumers cause more expensive

bill of exchange / draft

payment export transition. tells importer how much to pay and when. there are sight and time ones

home replication

using competitive advantage from home in other international markets