Fluent Essays

The three terms that you find in the video need to be found falso in the chapters that I gave you if you find all the terms in just one chapter that good for me  VIDEO CASE ANALYSIS QUESTIONS and GUIDELINES Video case: “Budding Biz - David Wernick video interview with Ralph Gazitua This video is an interview that examines the founding and growth of WTDC, a leading Miami-based logistics infrastructure company founded by the Gazitua family in the 1970s. WTDC President and CEO Ralph Gazitua explains how and why his family started the company, the various challenges his company has faced over time and how he has adapted his business model to meet the demands of the marketplace.  The 15-minute video includes a tour of WTDCs warehouse and a brief interview with WTDCs marketing manager. INSTRUCTIONS: 1. Watch the 15-minute video, available at the links below. Note that the video is in two parts. You must watch both parts:  Part 1: https://www.youtube.com/watch?v=DNRnF58Bu94     Part 2:  https://www.youtube.com/watch?v=x0QaVG4f0G0  2. After watching the video, answer the following two questions: a. Identify three specific terms from the chapters/notes that Mr. Gazitua mentioned in the video. In your own words, briefly explain what each term means. (40 pts)  WARNING: Past students have included the terms fixed expense, variable expense, accommodation of troop movements, cross-docking, EDI, bar coding and scanning in their answers to this question and others. These are inaccurate answers and are key indicators that you have plagiarized your paper by copying and pasting from internet. You will receive a “0” for your paper in such a case.  b. Since the video was recorded, Mr. Gazitua’s son, Sean, has taken over as CEO. Assume that Sean has decided to expand WTDC’s global reach by seeking customers in Peru.  He assigned you the task of developing a strategy to accomplish the company’s expansion objective. Identify any trade agreement(s) between the U.S. and Peru that you think would benefit Sean. How does any such agreement help the company? Are there any products that would be eligible (be specific)? Be sure to support your answer with terms and concepts from the Notes/Chapter. (60 pts) 3. Submission Instructions: a. Answer the case in a Word doc.  The paper must be turned in as a Word doc attachment in the Video Case Analysis Dropbox link in Canvas.  Continued  b. Answer each question in a separate paragraph. Please number the question you are answering.   c. Answer all questions in a narrative format, using complete sentences. NO BULLETS!!!  Points will be deducted for using a bulleted/numbered list format.   The paper should be approximately 500 words (total) excluding the questions.4673 – Chap 2 Page 7 of 7 CHAPTER 2 – LAUNCHING A PROFITABLE TRANSACTION A. THE TECHNICAL MARKETING DECISIONS Factors to consider include: 1. Product standards and characteristics – Product may be subject to national or international standards, e.g. U.S. federal standards, International Organization for Standardization (ISO)*, etc. a. ISO Standards i. ISO - overview · Founded 1947 (London) · Members in 164 countries · Voluntary participation · Almost 23,000 standards covering most aspects of business and technology. ii. ISO Standards include, for example: · ISO 9000 (quality management) · ISO 9001 – lays out the criteria for a quality management system · ISO 9004 – how to make a quality management system more efficient and effective · ISO 14000 – environmental management · ISO 50001 – energy management 2. Technical specifications and codes a. Specifications (electrical requirements/voltage, weights and measures) vary from country to country. b. Product may need to be altered to suit foreign markets. B. ASSESSING THE MARKET 1. Contacts – Two categories of contacts include: a. Sourcing i. Used to find/locate manufacturer or provider of product or service ii. Typical Sources of contacts: · Trade associations · Industry publications · Chambers of Commerce · Government B. ASSESSING THE MARKET (continued) 1. Contacts – (continued) b. Marketing i. Used in selling product or service ii. Sources of Marketing leads: · Internet · Trade shows/fairs/expos – (usually most effective source) · Agents · Distributors · Manufacturers’ Reps · Wholesalers · Retailers · Government agencies (e.g., Dept of Commerce) c. Visit the country 2. Market Research Knowledge of the market is critical. a. Exporter Checklist – see pp. 22-23. b. Importer Checklist – see p. 24. C. THE PROFIT STRUCTURE OF INTERNATIONAL TRADE 1. Initial Quotation a. Initiated by: i. Importer (buyer) sending request for quote (e.g. via email) to exporter (seller). ii. Unsolicited offer from exporter. b. Pro forma Invoice (sample on p. 27) i. Provisional, negotiable document used to begin the negotiations ii. Sent by exporter to importer iii. Typically includes: · Type (including size, weight) and quantity of goods · Price/value · Payment terms · Shipping terms (method, costs) · Delivery timeframe C. THE PROFIT STRUCTURE OF INTERNATIONAL TRADE (continued) 2. Terms of Sale a. Defined as: The pricing terms used in international trade to define geographical point at which risk and costs of the exporter and importer begin and end. b. Pricing terms used developed by International Chamber of Commerce (ICC) using Incoterms (See Section D below) c. International Chamber of Commerce (ICC) (iccwbo.org) i. Founded 1919 (Paris) ii. Operates in over 100 countries iii. Hundreds of thousands of members including small, medium and large MNEs and o4673 – Chap 5 Page 7 of 7 CHAPTER 5 – COMPLETING A SUCCESSFUL TRANSACTION A. FORMS OF BANK FINANCING Two primary categories 1. Secured Financing: a. Defined as: Financing secured by collateral b. Types of collateral include: i. Advanced funds ii. Shipment documents iii. Banker’s acceptance (BA) time draft where bank guarantees payment at a future date. BAs are negotiable, tradable instruments 2. Unsecured financing a. Uncollaterized financing available to customers with excellent, established relationships with the bank. OMIT “FACTORS” p. 98 B. SOURCES OF FINANCING 1. Private Export Funding Corp (PEFCO) a. Founded 1970 b. Operates in conjunction with EXIM Bank, DFC/OPIC, SBA c. Loans guaranteed by EXIM and SBA d. Typical loan minimum of $1m 2. U.S. International Development Finance Corporation (formerly Overseas Private Investment Corp [OPIC]) a. U.S. government’s development finance institution b. Works with private sector (via private capital) to promote economic growth c. Programs include i. Financing (e.g. to SMEs) ii. Political risk insurance iii. Investment Funds 3. Small Business Administration – loans and support services to small businesses 4. Export Import Bank (EXIM Bank) a. US Government agency b. Has funds to provide credit (loans, guarantees, etc) to support US exports. CONTINUED B. SOURCS OF FINANCING (continued) 5. Agency for International Development (USAID) a. An agency of US State Dept b. Provides economic and humanitarian assistance (e.g. grants and loans) to lesser developed countries OMIT “INTERNATIONAL DEVELOPMENT COOPERATION AGENCY” p. 101 C. RISKS IN IMPORT/EXPORT INDUSTRY Types of risk include 1. Commercial Risk a. Defined as: Risk resulting from miscommunication, fraud, etc between seller and buyer b. Major concern(s): i. Seller – not getting paid ii. Buyer – goods not received on time (or at all) incorrect goods received c. How to avoid: i. Written sales contract ii. Check buyer’s credit iii. Check reputation of all parties NOTE: Payment methods covered later in chapter 2. Shipping Risk a. Defined as: Risk of loss or damage during transportation b. Major concern(s): i. Limited liability of carriers · ocean limited to $500 per package (or freight unit) · regulated by U.S. Carriage of Goods by Sea (COGSA) 1936 · Air limited to US$9.07 per lb (gross weight) or US$20/kg · regulated by the Warsaw Convention c. How to avoid: i. Obtain cargo/marine insurance · covers warehouse-to-warehouse (e.g. inland marine insurance – land based; ocean marine insurance – ocean) · rates based on product, destination, loss history, shipping method 3. Political risk a. Defined as: the likelihood that a company’s investment will be constrained by the actions of a foreign government b. Major concern(s): i. Wars ii. Expropriation iii. Expulsion iv. FX controls4673 – Chap 8 Page 4 of 6 CHAPTER 8 – HOW TO IMPORT INTO THE U.S. A. INTERNATIONAL CUSTOMS ORGANIZATIONS 1. World Customs Organization (WCO) a. Created and administers Harmonized System Convention b. Works with U.S. CBP and other international customs organizations 2. Homeland Security/Immigration and Customs Enforcement (ICE) a. Law enforcement/Focus on anti-terrorism 3. Customs and Border Protection (CBP) a. Does not support imports to extent that Dept of Commerce promotes exports. b. Duties include: i. anti-terrorism activities (e.g. weapons trafficking) ii. border security iii. facilitation of lawful international trade and travel iv. enforcement of US laws (including immigration and drug laws) v. collection of duties vi. processing entry of passengers/travelers B. CUSTOMS OPERATIONS 1. Customs House Broker a. Defined as: private company acting as a liaison/agent between US Customs and importers b. Licensed by US Treasury c. Use of broker not required but importer must post bond if one is not used. d. Duties include: i. Advises on technical aspects of importing (e.g. product classification, admissibility of product, quotas) ii. Preparation and filing of Customs paperwork (i.e. formal entry documents) for importers iii. Obtaining customs bonds iv. Paying duties v. Arranging release of merchandise vi. Arranging delivery to importer’s warehouse/facility 2. Surety Bonds a. Defined as: A deposit required with US Customs to ensure payment of duties, taxes, or other charges associated with the entry. b. Features of bonds: i. Types include · Single Entry – valid for one entry for a specific transaction · Continuous · used for entries at multiple ports and/or several imports · valid for one year · automatically renewable ii. Required for entries over $2,000 iii. Bond amounts · Single – typically three times (3x) value of shipment (plus duties, taxes, customs) costs · Continuous – generally $50,000 or 10\% of total amount of taxes and fees paid in last 12 months 3. Drawback a. Defined as: refunding of duties paid on imported goods and their derivatives if subsequently exported 4. Automated Broker Interface (ABI) a. Automated system allowing large-volume importers to communicate with Customs b. Allows filing of documents in advance of shipment/arrival of cargo 5. How to Become a Broker – omit (p. 202-204) C. CUSTOMS ENTRY PROCESS 1. Requirements for entry - Not legally “imported” until i. Goods enter port of entry ii. Duties paid iii. Customs authorizes delivery of goods Continued C. CUSTOMS ENTRY PROCESS (continued) 2. FOUR-STEP ENTRY PROCESS – Owner’s responsibility a. Entry i. Entry for consumption, or to be placed in bonded warehouse? Owner must decide within 24 hours of arrival ii. If consumption – must file certain documents, including · Entry manifest (Form 7533) · Pro-forma or Com