9: Exporting, Importing, and Global Sourcing
- Page ID
- 16707
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)- 9.0: Chapter Introduction
- This page explains the basics of international trade, including importing, exporting, countertrade, and global sourcing. It reviews the history, risks, and financing of exporting, illustrated by Q-Cells' experiences in global markets. The company faced cost disadvantages in Germany against Asian rivals but adapted through outsourcing and joint ventures. The text encourages critical thinking through exercises related to Q-Cells' financial challenges and prospects in the solar sector.
- 9.1: What is Importing and Exporting?
- This page explores importing and exporting, emphasizing their historical significance and importance in modern business. It contrasts exporting and importing, discusses reasons for companies to export, and outlines benefits and risks. It also covers alternative market entry methods like licensing, franchising, and joint ventures, noting their varying levels of risk and reward.
- 9.2: Countertrade
- This page discusses countertrade, a method where companies exchange goods and services instead of currency, often due to profit repatriation restrictions. Companies like PepsiCo and BHEL use it to manage currency risk. Structured through barter and counterpurchase models, countertrade allows trade without cash.
- 9.3: Global Sourcing and Its Role in Business
- This page covers global sourcing and outsourcing, focusing on the acquisition of materials and services from abroad to improve cost efficiency and quality. It highlights challenges like quality assurance, where ISO 9000 certification is crucial, and environmental concerns like carbon footprints.
- 9.4: Managing Export and Import
- This page outlines the roles of key participants in international trade, including exporters, importers, carriers, and customs administrations, highlighting the significance of documentation and regulations post-9/11. It discusses how trade agreements like NAFTA and WTO membership can affect local industries and enhance trade.
- 9.5: What Options Do Companies Have for Export and Import Financing?
- This page reviews payment and financing methods in export/import transactions, emphasizing critical documents like letters of credit and bills of lading. It discusses financial support from various organizations, including OPIC, Ex-Im Bank, PEFCO, and DBJ, that assist exporters with loans and insurance in challenging markets. The page also highlights the importance of the Automated Export System (AES) for efficient documentation and outlines various payment methods available to entrepreneurs.
- 9.6: Tips in Your Walkabout Toolkit
- This page emphasizes the importance of understanding cultural nuances in international business negotiations. It highlights the need to respect unique communication styles, perceptions of time, and decision-making processes. Building relationships is crucial, and adaptability in navigating diverse methods and ensuring precise legal agreements is necessary. Patience and creativity are essential for achieving success in different cultural environments.
- 9.7: End-of-Chapter Questions and Exercises
- This page outlines exercises on international business practices aligned with AACSB standards, covering topics like expansion into Asia, countertrade, cost-reduction for manufacturing, roles of business organizations, and financing for exporters. It also presents ethical dilemmas regarding bribery and child labor in developing nations, encouraging a consideration of local contexts versus U.S. legal and ethical standards.