Editing Entering Target Markets
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= Theme 1 - Methods of internationalization = | = Theme 1 - Methods of internationalization = | ||
* A '''[[w:market entry strategy|market entry strategy]]''' is the planned method of delivering [[w:good (economics)|goods]] or [[w:Service (economics)|services]] to a new '''[[w:target market|target market]]''' and distributing them there. ( Wikipedia ) | * A '''[[w:market entry strategy|market entry strategy]]''' is the planned method of delivering [[w:good (economics)|goods]] or [[w:Service (economics)|services]] to a new '''[[w:target market|target market]]''' and distributing them there. ( Wikipedia ) | ||
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== | == Export entry modes == | ||
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== | == Requirements for internationalization == | ||
* '''[[w:Internationalization|Internationalization]]''' has been viewed as a process of increasing involvement of enterprises in international markets. ( Wikipedia ) | * '''[[w:Internationalization|Internationalization]]''' has been viewed as a process of increasing involvement of enterprises in international markets. ( Wikipedia ) | ||
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:*in some jurisdictions [[w:trade secret|trade secret]]s. ( Wikipedia ) | :*in some jurisdictions [[w:trade secret|trade secret]]s. ( Wikipedia ) | ||
== | == Licensing and franchising == | ||
* The verb '''[[w:license|license]]''' or grant license means to give permission. The noun license refers to that permission as well as to the document recording that permission. ( Wikipedia ) | * The verb '''[[w:license|license]]''' or grant license means to give permission. The noun license refers to that permission as well as to the document recording that permission. ( Wikipedia ) | ||
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* How does the licensor make money? How does the [[w:licensee|licensee]] make money? | * How does the licensor make money? How does the [[w:licensee|licensee]] make money? | ||
== | == Foreign direct investment == | ||
* '''[[w:Foreign direct investment|Foreign direct investment]]''' ('''FDI''') is a direct investment into production or business in a country by an individual or company of another country, either by buying a company in the target country or by expanding operations of an existing business in that country. Foreign direct investment is in contrast to [[w:portfolio investment|portfolio investment]] which is a passive investment in the securities of another country such as [[w:stock|stock]]s and [[w:Bond (finance)|bonds]]. ( Wikipedia ) | * '''[[w:Foreign direct investment|Foreign direct investment]]''' ('''FDI''') is a direct investment into production or business in a country by an individual or company of another country, either by buying a company in the target country or by expanding operations of an existing business in that country. Foreign direct investment is in contrast to [[w:portfolio investment|portfolio investment]] which is a passive investment in the securities of another country such as [[w:stock|stock]]s and [[w:Bond (finance)|bonds]]. ( Wikipedia ) | ||
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* '''[[w:Consolidation (business)|Consolidation]]''' of an industry or sector occurs when widespread M&A activity concentrates the resources of many small companies into a few larger ones, such as occurred with the [[w:automotive industry|automotive industry]] between 1910 and 1940. ( Wikipedia on Mergers and acquisitions ) | * '''[[w:Consolidation (business)|Consolidation]]''' of an industry or sector occurs when widespread M&A activity concentrates the resources of many small companies into a few larger ones, such as occurred with the [[w:automotive industry|automotive industry]] between 1910 and 1940. ( Wikipedia on Mergers and acquisitions ) | ||
= Theme 2 | = Theme 2 Export and import practicalities = | ||
* '''[[w:International trade|International trade]]''' is the exchange of [[w:Capital (economics)|capital]], [[w:good (economics)|goods]], and [[w:Service (economics)|services]] across [[w:international borders|international borders]] or territories. ( Wikipedia ) | |||
* '''[[w:International trade|International trade]]''' | |||
* '''[[w:Import|Import]]''' / '''[[w:export|export]]''' | * '''[[w:Import|Import]]''' / '''[[w:export|export]]''' | ||
== | == Lesson 1 - Basics of import/export == | ||
* A '''[[w:letter of credit|letter of credit]]''' is a document issued by a financial institution, or a similar party, assuring payment to a seller of goods and/or services provided certain documents have been presented to the bank. ( Wikipedia ) | * A '''[[w:letter of credit|letter of credit]]''' is a document issued by a financial institution, or a similar party, assuring payment to a seller of goods and/or services provided certain documents have been presented to the bank. ( Wikipedia ) | ||
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* A '''[[w:contract of sale|contract of sale]]''' is a legal [[w:contract|contract]] an exchange of goods, services or property to be exchanged from seller (or vendor) to buyer (or purchaser) for an agreed upon value in money (or money equivalent) paid or the promise to pay same. ( Wikipedia ) | * A '''[[w:contract of sale|contract of sale]]''' is a legal [[w:contract|contract]] an exchange of goods, services or property to be exchanged from seller (or vendor) to buyer (or purchaser) for an agreed upon value in money (or money equivalent) paid or the promise to pay same. ( Wikipedia ) | ||
== Lesson 2 - Good sales quotations and Incoterms == | |||
== | |||
'''Recap from [[Business Negotiations and Contracts]]''' | '''Recap from [[Business Negotiations and Contracts]]''' | ||
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* Interest rate risk | * Interest rate risk | ||
* A '''[[w:documentary collection|documentary collection]]''' is a process, in which the [[w:seller|seller]] instructs his [[w:bank|bank]] to forward [[w:document|document]]s related to the [[w:export|export]] of goods to the [[w:buyer|buyer]]'s bank with a request to present these documents to the buyer for [[w:payment|payment]], indicating when and on what conditions these documents can be released to the buyer. ( Wikipedia ) | |||
:::Documentary Collections facilitate [[w:import|import]]/export operations. ''They do not provide the same level of security as '''[[w:Letters of credit|Letters of Credit]]''', but, as a result, the costs are lower.'' ( Wikipedia ) | |||
:::Unlike the Letters of Credit, for a Documentary Collection the bank acts as a channel for the documents but does not issue any [[w:payment covenant|payment covenant]]s (does not guarantee payment). The bank that has received a documentary collection may [[w:debit|debit]] the buyer's account and make payment only if authorised by the buyer. ( Wikipedia ) | |||
== | |||
* '''Documentary credit''' redirects to '''[[w:L/C|L/C]]''' as L/C as it is done with L/C( jubo-jubo ) | |||
== Lesson 3 NO CLASS == | |||
== Lesson 4 - Documents and payments in international business == | |||
* '''[[w:International monetary systems|International monetary systems]]''' are sets of internationally agreed rules, conventions and supporting institutions, that facilitate [[w:international trade|international trade]], [[w:foreign investment|cross border investment]] and generally the [[w:redistribution (economics)|reallocation of capital]] between [[w:nation state|nation state]]s. They provide means of payment acceptable between buyers and sellers of different nationality, including deferred payment. To operate successfully, they need to inspire confidence, to provide sufficient liquidity for fluctuating levels of trade and to provide means by which global imbalances can be corrected. ( Wikipedia ) | * '''[[w:International monetary systems|International monetary systems]]''' are sets of internationally agreed rules, conventions and supporting institutions, that facilitate [[w:international trade|international trade]], [[w:foreign investment|cross border investment]] and generally the [[w:redistribution (economics)|reallocation of capital]] between [[w:nation state|nation state]]s. They provide means of payment acceptable between buyers and sellers of different nationality, including deferred payment. To operate successfully, they need to inspire confidence, to provide sufficient liquidity for fluctuating levels of trade and to provide means by which global imbalances can be corrected. ( Wikipedia ) | ||
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* The '''[[w:International Bank Account Number|International Bank Account Number]]''' ('''[[w:IBAN|IBAN]]''') is an internationally agreed means of identifying [[w:bank account|bank account]]s across national borders with a reduced risk of [[w:transcription error|transcription error]]s. ( Wikipedia ) | * The '''[[w:International Bank Account Number|International Bank Account Number]]''' ('''[[w:IBAN|IBAN]]''') is an internationally agreed means of identifying [[w:bank account|bank account]]s across national borders with a reduced risk of [[w:transcription error|transcription error]]s. ( Wikipedia ) | ||
'''[[w:Document|Document]]s in [[w:international trade|international trade]]''' (from teacher's slides): | |||
[[w:Exporter|Exporter]]: | [[w:Exporter|Exporter]]: | ||
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:* [[w:Purchase order|Purchase order]] | :* [[w:Purchase order|Purchase order]] | ||
:* [[w:Letter of Credit|Letter of Credit]] application | :* [[w:Letter of Credit|Letter of Credit]] application | ||
:* [[w:Import|Import]] declaration | :* [[w:Import|Import]] declaration | ||
'''Methods of [[w:payment|payment]]''' | |||
* '''Open account''' | * '''Open account''' | ||
* '''[[w:Documentary collection|Documentary collection]]''' is a process, in which the [[w:seller|seller]] instructs his [[w:bank|bank]] to forward [[w:document|document]]s related to the [[w:export|export]] of goods to the [[w:buyer|buyer]]'s bank with a request to present these documents to the buyer for [[w:payment|payment]], indicating when and on what conditions these documents can be released to the buyer. ( Wikipedia ) | |||
* '''[[w:Documentary credit|Documentary credit]]''' -> L/C | |||
* '''[[w:Documentary collection|Documentary | * '''[[w:Advance payment|Advance payment]]''' | ||
* '''[[w:Multimodal transport|Multimodal transport]]''' (also known as combined transport) is the transportation of goods under a single contract, but performed with at least two different means of [[w:transport|transport]]; the carrier is liable (in a legal sense) for the entire carriage, even though it is performed by several different modes of transport (by rail, sea and road, for example). ( Wikipedia ) | |||
== | == Lesson 5 - NO CLASS == | ||
== | == Lesson 6 - Customs, risk management and currency questions == | ||
* '''[[w:Customs|Customs]]''' is an [[w:authority|authority]] or [[w:Government agency|agency]] in a country responsible for collecting [[w:Duty (economics)|customs duties]] and for controlling the flow of goods, including animals, transports, personal effects, and [[w:hazard|hazard]]ous items, into and out of a country. ( Wikipedia ) | * '''[[w:Customs|Customs]]''' is an [[w:authority|authority]] or [[w:Government agency|agency]] in a country responsible for collecting [[w:Duty (economics)|customs duties]] and for controlling the flow of goods, including animals, transports, personal effects, and [[w:hazard|hazard]]ous items, into and out of a country. ( Wikipedia ) | ||
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* '''[[w:Foreign exchange risk|Foreign exchange risk]]''' (also known as '''exchange rate risk''' or '''currency risk''') is a [[w:financial risk|financial risk]] that exists when a financial transaction is denominated in a [[w:currency|currency]] other than that of the base currency of the company. ( Wikipedia ) | * '''[[w:Foreign exchange risk|Foreign exchange risk]]''' (also known as '''exchange rate risk''' or '''currency risk''') is a [[w:financial risk|financial risk]] that exists when a financial transaction is denominated in a [[w:currency|currency]] other than that of the base currency of the company. ( Wikipedia ) | ||
== | == Lesson 7 - Costs in import/export == | ||