Review

Steven Tolliver

Review of Materials

GATT: General Agreement on Tariffs and Trade:

97% of world’s countries are members, participants or in process to participate.

Largest country not participating is Iran.

The (almost) Global Trading System

International Management - Strategy

International Management - Strategy

Population, Aging and Economic Growth, David E. Bloom, David Canning, and Günther Fink, 2008

Sales Quotation / Pro Forma Invoice

1. Seller’s and buyer’s names and addresses2. Buyer’s reference number and date of inquiry3. Listing of requested products and a brief description4. Price of each item (It is advisable to indicate whether items are new or

used and to quote the price in U.S. dollars to reduce foreign exchange risk.)5. Appropriate total cubic volume and dimensions packed for export6. Appropriate gross and net shipping weight7. Trade discount (if applicable)8. Delivery point9. Terms of sale10.Terms of payment11.Insurance and shipping costs12.Validity period for quotation13.Total charges to be paid by customer14.Estimated shipping date from port or airport or export15.Currency of sale

A Basic Guide to Exporting, Unz & Co. (Division of WTS Corporation), 2010

INCOTERMS

INCOTERMSEXW: Ex-works: Supplier prepares and loads shipping container. Buyer takes possession at supplier’s location.

FOB: Free onboard vessel: Supplier prepares and loads shipping container, deliveres to port of export and arranges for loading on shipping vessel. Buyer takes possession once shipment is onboard.

CIF: Cost, insurance and freight: Supplier prepares and loads shipping container, arranges for export shipment and insurance. Buyer takes possession once shipment is arrives on port of destination. All charges for off-loading, customs duty, etc. are for the buyer.

Payment methods

Wire transfer in advance

Bill of Exchange (documentary drafts)

Letter of Credit

Consignment

Countertrade

High-context vs. Low-contextEdward T. Hall, Beyond Culture, New York: Anchor Books,1976.

High context: communication draws on shared culture, fewer words need to suggest meaning.

Low-context: communication is more direct and explicit

High-context vs. Low-contextHigh context:•Less verbally explicit communication•More internalized understandings •Long term relationships •Strong boundaries- insider vs outsider•Knowledge is situational, relational. •Decisions and activities focus around personal face-to-face relationships, often around a central person who has authority.

High-context vs. Low-contextLow-context:•Rule oriented.•More knowledge is codified, public, external, and accessible. •Sequencing, separation--of time, of space, of activities, of relationships •Knowledge is more often transferable •Task-centered.

The Hofstede culture matrix

Geert Hofstede, sociologistFramework for Assessing Culture:

•Small vs. large power distance•Individualism vs. Collectivism•Masculinity vs. Femininity (Achievement vs. Quality of Life)•Weak vs. strong uncertainty avoidance•Long vs. short term orientation