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