IIB345 ch 14-
At six sigmas production process would be 99.9966% accurate creating only _ per million units (423)
3.4
Refers to the quality and belief that a country should be self-sufficient and avoid trade and/or external assistance with other nations (399)
Autarky
When a *time draft* is drawn on and *accepted by a bank* it is called a _ (407)
Banker's Acceptance
Is the direct exchange of goods and/or services between two parties without a cash transaction, is the simplest arrangement of countertrade
Bartering
Is issued *to the exporter by the common carrier transporting the merchandise.* It serves as a receipt, a contract, and a document of title
Bill of Landing
In many countries it is important to devote a lot of attention to _ (404)
Building strong relationships with the local distributors and/or customers
Occurs when a firm builds a plant in a country, or supplies technology, equipment, training or other services to the country, and agrees to take a certain percentage of the plant's output as partial payment for the contract
Buyback
Developed to fill the interorganizational connections that ERP cannot fill
CPFR (Collaborative Planning Forecasting and Replenishing)
Implies that the relationship between the firm and its supplier is rather strategic in nature often involves the top suppliers in a particular product or component category
Co-sourcing
When a multinational corporation *uses both its own employees from inside the firm and and an external supplier to perform certain tasks, often in concert with each other.* Applies to all four forms of purchasing strategy.
Co-sourcing
A retail system with a few retailers supply most of market
Concentrated
As a _, the Bill of Landing specifies the carrier is obligated to provide a transportation service in return for a certain charge (408)
Contract
Factory that serves a specific country or world region
Contributor Factory
Is a reciprocal buying agreement. Occurs when a firm agrees to purchase a certain amount of materials back from a country to which a sale is made. For example: U.S. relations with China
Counterpurchase
Occurs when a third-party trading house buys the firms _ and sells them to another firm that can better use them
Counterpurchase credits
When a firm enters a counterpurchase or offset agreement with a country, if often ends up with what are called _, which can be used to purchase goods from that country.
Counterpurchase credits
Includes a range of barter like agreements. Is primarily used when a firm exports to a country whose currency is not freely convertiblea nd may lack the foreign exchange reserves required to purchase imports
Countertrade
Is most attractive to large, diverse multinational enterprises that can use their worldwide network of contacts to dispose of goods acquired by it (413)
Countertrade
The main advantage of _ is that it gives a firm a way to finance an export deal when other means are unavailable
Countertrade
The trade of goods/services for other goods/services
Countertrade
What type of factors include: Differences in {Political economy, culture, factor costs, trade barriers, location externalities, exchange rates}
Country Factors
In the U.S. a number of institutions, the most important which is the _ which helps firms gather information in the matchmaking process. Export management companies can also help i.d. export opportunities
Department of Commerce
As a _, the Bill of Landing can be used to obtain payment or a written promise of payment before the merchandise is released to the importer (408)
Document of Title
Example of what: Buyer -> Customer -> Client
Downstream
Includes all the organizations (e.g. wholesale, retailer) that are involved in the portion of the supply chain from the production facility to the end customer sometimes also called the *outbound* supply chain (422)
Downstream
The portion of supply chain from the production facility to the end customer -sometimes also called the *outbound* supply chain
Downstream
*Is the instrument normally used in international commerce to effect payment. It is an order written by an exporter* instructing the importer *to pay a specified amount of money at a specified time*
Drafts
Is used to settle trade transactions (407)
Drafts
A wide ranging business planning and control system that includes chain related subsystems
ERP (Enterprise Resource Planning)
Export specialists who act as an export marketing department for client firms
Export Management Company
One drawback of relying on _ is that that the company can fail to develop its own exporting capabilities (403)
Export Management Company
Several studies have suggested the firm needs to be proactive about seeking _ (404)
Export opportunities
Agency of the U.S. government whose mission is to provide aid in financing and facilitates exports and imports
Export-Import Bank
U.S. exporters can draw on twp types of government backed assistance to help finance their exports: *Loans* from _ or *Export Credit Insurance* from _
Export-Import Bank; FCIA
T || F: Many economists believe autarky as an ideal and practical goal for countries
False
Manufacturing technology designed to improve job scheduling, reduce setup time, and improve quality control
Flexible Manufacturing Technology || Lean Production
A retail system there there a many retailers, no one of which has a major share of the market
Fragmented
The way to overcome ignorance is to _
Gather information
A facility that positions and allows customization of products for delivery to worldwide wholesalers or retailers, or directly to consumers anywhere in the world
Global Distribution Center
The flow of skills and product offerings from foreign subsidiary to home country and from foreign subsidiary to foreign subsidiary
Global Learning
The idea that valuable knowledge does not reside in just the firm's domestic operations but also may be found in its foreign subsidiaries
Global Learning
*High employee turnover*, *shoddy workmanship*, *poor product quality*, and *low productivity* are all examples of what in some outsourcing locations
Hidden costs
Certification process that requires certain quality standards must be met
ISO 9000
When a multinational corporation buys products or services from one of its suppliers *and instead starts to produce them internally*
Insourcing
A segment of customers that spans multiple countries, transcending national borders
Intermarket Segment
Two departments within the Department of Commerce (401)
International Trade Administration; U.S. Commercial Service
Inventory logistics system designed to deliver parts to a production process as they are needed, not before
Just in Time (JIT)
Factory that is intended to create new processes, products, and technologies that can be used throughout the global firm in all parts of the world
Lead Factory
*Is issued by the bank at the request of importer;* states that the bank promises to pay a beneficiary (normally exporter) on the *presentation of documents specified in the letter
Letter of Credit (L/C)
An exporter may find having a _ will facilitate obtaining pre-exporting financing (407)
Letter of Credit (L/C)
Stands at the center of international commercial transactions (406)
Letter of Credit (L/C)
It is important to hire _ to help the firm establish itself in a foreign market as they will have a much greter sense of how to do business in the given country (404)
Local personnel
It is important for the exporter to *retain* the option of _ (404)
Local production
The more fragmented the retail system the _ the channel length
Longer
Japan's Ministry of International Trade and Industry
MITI
The strategic decision concerning whether to produce an item in-house or purchase it from an outside supplier
Make-or-Buy Decision
Many of the *pitfalls* associated with exporting can be avoided if a company hires an experienced export _
Management company, consultant, and adopts the the correct strategy
The production of a variety of end products at a unit cost that could once be achieved only through mass production of a standardized output
Mass Customization
The level of output at which most plant level scale economies are exhausted
Minimum Efficient Scale
When a multinational corporation *transfers business or information technology processes to supplier in a nearby country, often one that shares a border with the firm's own country*
Nearshoring
Type of exporters that often become discouraged or frustrated with exporting process because they encounter many problems, delays, and pitfalls
Neophyte Exporters
Throughout history countries that have tried to achieve autarky soon discovered that they could
Not produce the wide range of products/services customers in their population wanted or needed
Where one party agrees to purchase goods and services with a specified percentage of the proceeds from the original sale
Offset
Factory that is developed and set up mainly for producing component parts or finished goods at a lower cost than producing them at home or in any other market
Offshore Factory
When a multinational corporation buys products or services from one of its suppliers *in a country other than the one which the product is manufactured or the service is developed*
Offshore Outsourcing
When a multinational corporation buys products or services from one of its suppliers *that produces them somewhere globally*
Offshoring
Factory that can be viewed as an intelligence-gathering unit
Outpost Factory
When a multinational corporation buys products or services from one of its suppliers *that produces them somewhere else, whether domestically or globally*
Outsourcing
While many large firms tend to be _ about seeking opportunities for exporting, many medium and small sized firms tend to be (399)
Proactive; Reactive
What type of factors include: Value to Weight Ratio, Serves Universal needs
Product Factors
As a _, the Bill of Landing indicates that the carrier has received the merchandise described on the face front of the document (408)
Receipt
The main disadvantage of countertrade is that the firm may _
Receive unusable || poor quality goods that cannot be disposed of profitably
Quality means _ in the supply chain and should be integrated into both upstream and downstream (422)
Reliability
An example of the type of third party (mediator) who is trusted by both exporters and importers to confront both sides conflicts could be a(n)
Reputable Bank
The process of moving inventory from the point of consumption to the point of origin in supply chains for the purpose of recapturing value or proper disposal
Reverse Logistics
The ultimate goal of what is to optimize the after-market activity or make it more efficient thus saving money and environmental resources
Reverse Logistics
Factory linked into the global supply chain for a global firm to supply specific country or regional market around the glob
Server Factory
A draft payable on *presentation* to the drawee
Sight Draft
Statistically based methodology for improving product quality, is the successor from TQM
Six Sigma
It often makes sense to enter a foreign market on a _ to reduce time and opportunity to learn about the foreign country (404)
Small scale
Japanese trading companies, a key part of the *keiretsu*, the large Japanese industrial groups
Sogo Shosha
Factory that should be located where production costs are low, infrastructure is well developed, and where it is relatively easy to find a knowledgeable and skilled workforce to make the products
Source Factory
Factory where the managers have more say in the certain decisions *e.g. purchasing raw materials, component parts, strategic input into production planning, process changes, logistics issues, product customization, and implementation of newer designs*.
Source Factory
Factory who is centrally at the top of standards in the global supply chain and are used and treated just like nay factory in the the global firm's home country
Source Factory
The integration and coordination of logistics, purchasing, operations, and market channels activities from raw material to the end-customer
Supply Chain Management
Refers to the use of a specialized third party trading house in a countertrade agreement
Switch Trading
Management philosophy that takes its central focus the need to improve the quality of a company's products and services
TQM (Total Quality Mgt)
What type of factors include: Fixed costs, minimum efficient scale, flexible manufacturing technology
Technological Factors
Typically reactive firms do not even consider exporting until (399)
The domestic market is saturated
A draft that is the promise to pay by the accepting party at some future date
Time Draft
What type of drafts are negotiable instruments; that is once the draft is stamped with an acceptance, the marker can sell the draft to an investor at a discount from its face value (407)
Time Draft
When a *time draft* is drawn on and *accepted by a business firm* it is called a _ (407)
Trade Acceptance
Firms engaged in international trade must do business with people they cannot _ and people who may be difficult to track down if they default on obligation. Due to this lack of _ each party to an international transaction has a different set of preferences regarding the configuration of the transaction
Trust
Example of what: Vendor -> Supplier -> Partner
Upstream
Includes all the organizations (e.g. suppliers) and resources that are involved in the portion of the supply chain from materials to the production facility (422)
Upstream
The portion of the supply chain from raw materials to the production facility -sometimes also called the *inbound* supply chain
Upstream
The problems arising from the *lack of trust* between exporters and importers can be solved by _
Using a third party (mediator) who is trusted by both
Allows for a holistic view of the supply chain with a single point of control for all inventory management
VMI (Vendor Mgt. Inventory)
A firm that insists on being paid in hard currency may be at a competitive disadvantage _ one that is willing to engage in countertrade
Vis-á-vis
One big impediment to *exporting* is _ of the foreign market
ignorance
