Studysheet #2

NOTE: Underlined items on this page are hotlinked to web sites via the Web version of this Studysheet on the instructor’Äôs webpage

SOCIOCULTURAL ENVIRONMENT

culture shock

ethnocentrism

high-context vs. low-context cultures

Hofstede’Äôs cultural dimensions

questionable payments

conflict of interest

Foreign Corrupt Practices Act of l977

Transparency International

l. List some prevalent American (U.S.) values, attitudes, beliefs and behavior? How can these influence crossborder

business dealings?

 

INTERNATIONAL LEGAL ENVIRONMENT

legal systems

political systems

extraterritorial enforcement of law

bilateral commercial treaties

national treatment

sovereign immunity

expropriation

political risk

nationalism

intellectual property rights

WIPO and WIPO treaties

International Chamber of Commerce (Paris)

arbitration clause

jurisdiction clause

performance requirements for FDI

investment climate indicators

bilateral investment treaties

MNC codes of conduct

OPIC

2. What major legal issues pertain to doing business across borders? Describe the international legal framework for

(a) protection of intellectual property, (b) resolution of business disputes, (c) questionable payments

3. From the viewpoint of a host country, discuss the benefits and costs of inward foreign direct investment?

4. What major country/region factors should a company consider when deciding whether and where to expand abroad?

5. List/discuss sources and effects of political risk. How can companies reduce their exposure to political risk?

 

MODES OF OPERATING ABROAD

licensing agreement

technical aid agreement

franchising

management contract

contract manufacturing

turnkey project

co-production agreement

direct investment

joint venture

consortium

strategic alliance

branch

subsidiary

6. Distinguish from among alternative modes (forms) of international business; what factors can influence choosing

from among them? Explain.

 

EXPORTING

agent and merchant intermediaries

export management company (EMC)

general trading company

customs broker

U.S. Export-Import Bank (Eximbank)

credit risk

Vienna Convention (CISG)

Foreign Credit Insurance Association (FCIA)

shippers export declaration form

export license

bill-of-exchange (draft)

export letter-of-credit

certificate-of-origin

duty drawback

ATA Carnet

types of duty-free zones

foreign trade zone

maquiladora program (Mexico)

countertrade

7. What are some pragmatic reasons to export? What export-related services are available from intermediaries?

List/discuss key sources of export-related information.

 

TRANSPORTATION/COMMUNICATIONS

bilateral transportation treaties

ocean shipping conferences

IATA

Chicago Convention on "freedoms of the air" (1944)

’Äúopen skies’Äù agreement

foreign freight forwarder

bill-of-lading

common carrier

Incoterms

Journal of Commerce

supply-chain logistics

8. From the viewpoint of a business, list/discuss alternative channels of transportation and communications and some criteria for

choosing from among them.