Define and show the significance to international marketing of the following terms:
export regulations, 437
letters of credit, 448
import regulations, 437
bills of exchange, 450
Export Administration Regulations (EAR), 438
forfeiting, 451
Export Control Classification Number (ECCN), 438
export documents, 452
Commerce Control List (CCL), 438
customs-privileged facilities, 453
Commerce Country Chart (CCC), 440
foreign-trade zone, 453
ELAIN, 442
maquiladoras, 454
STELA, 442
logistics management, 455
ERIC, 443
physical distribution system, 455
SNAP, 443
merge-in-transit, 460
terms of sale, 447
24-Hour Rule, 461
open account, 448
Explain the reasoning behind the various regulations and restrictions imposed on the exportation and importation of goods.
What determines the type of license needed for exportation? Discuss.
Discuss the most frequently encountered trade restrictions.
What is the purpose of an import license? Discuss.
Explain foreign-trade zones and illustrate how an exporter may use them. How do foreign-trade zones differ from bonded warehouses?
How do in-bond areas differ from foreign-trade zones? How would an international marketer use an in-bond area?
Explain each of the following export documents:
a. Bill of lading
b. Consular invoice
c. Commercial invoice
d. Insurance certificate
Why would an exporter use the services of a foreign-freight forwarder? Discuss.
Besides cost advantages, what are the other benefits of an effective physical distribution system?
Explain how merge-in-transit can be beneficial to all parties in the distribution process.
Discuss customs-privileged facilities. How are they used?
Why would a company engage the services of an intermodal transportation service instead of performing activities inhouse?
You are the manager of a small company that manufactures and sells various types of personal restraints (for example, handcuffs and leg irons) that you sell to law enforcement agencies, private security companies, and novelty stores. You receive a large order from an importer in Madrid. You have never done business with this importer although you have previously sold your product in Spain. Do you need a special export license? Outline the steps you would take to ensure that your transaction is legal. (Note: The solution to this problem cannot be completely answered from information in the text. Additional information needs to be obtained from sources on the Internet.)
You are the sales manager of a small company with sales in the United States. About 30 percent of your business is mail order and the remainder is from your two retail stores. You recently created an e-store on the Web and a few days later received an order from a potential customer from a city near Paris, France. The shipping charges listed on the Web are all for locations in the United States. You don’t want to lose this $350 order. You know you can use the postal service but the customer indicated she wanted the item in about a week. Air Express seems logical but how much will it cost? Consult both the FedEx homepage (www.fedex. com) and the UPS homepage (www.ups.com) to get some estimates on shipping costs. Here are some details you will need: value $350; total weight of the package, 2.5 pounds; package dimensions, 4 inches high by 6 inches wide; U.S. Zip Code, 97035; and French Zip Code, 91400. (Note: It’s not fair to call UPS or FedEx—use the Internet.)
Based on the information collected in Question 15, how practical would it be to encourage foreign sales? Your average order ranges from about $250 to $800. All prices are quoted plus shipping and handling. You handle a fairly exclusive line of Southwestern Indian jewelry that sells for about 15 to 20 percent higher in Europe than in the United States. The products are lightweight and high in value.
