Podcast
Questions and Answers
What are imports?
What are imports?
Services or products bought by a company or government from businesses in other countries.
Which of the following is NOT a reason for the importance of importing?
Which of the following is NOT a reason for the importance of importing?
Imported goods can sometimes be more expensive than domestically made goods.
Imported goods can sometimes be more expensive than domestically made goods.
True
The four steps for importing are: Determine demand, Contact suppliers, Finalize purchase, and _______.
The four steps for importing are: Determine demand, Contact suppliers, Finalize purchase, and _______.
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What is one typical example of an imported product mentioned?
What is one typical example of an imported product mentioned?
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Which organization is NOT mentioned as providing import assistance?
Which organization is NOT mentioned as providing import assistance?
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What might cause imported clothing to be unsuccessful in the market?
What might cause imported clothing to be unsuccessful in the market?
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Study Notes
Chapter 6: Importing, Exporting, and Trade Relations
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Importing, exporting, and international trade relations are covered
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Sections include importing procedures, exporting procedures, the importance of trade relations, and the nature of competition
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Importing is buying services or products from businesses in other countries
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Goals for importing include explaining its importance and identifying steps in the process
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Key reasons to import include product demand, lower costs, and production inputs
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Product demand: Customers want unique items or high-quality products foreign-made
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Lower costs: Goods or services in certain countries are cheaper than in other countries. (e.g., electronic goods from Asia)
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Production inputs: Companies buy raw materials from other countries for production or assembly (e.g., car parts from other countries)
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Steps to importing:
- Determining demand
- Contacting suppliers
- Finalizing the purchase
- Receiving the goods
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Types of import assistance include Customs and Border Protection (CBP), Food and Drug Administration (FDA), and U.S. Department of Agriculture (USDA).
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Case studies to predict success of imports in the Philippines - Shampoo with foreign labels - Clothing with inconsistent sizes - Dinner entrée with blue pasta
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Exporting Procedures:
- Identifying the steps in the exporting process
- Describing the exporting of services
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Steps to exporting:
- Finding potential customers
- Meeting customer needs
- Agreeing on sales terms
- Delivering products or services
- Completing the transaction
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Types of sales terms include FOB, CIF, and C&F
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Export documents include bills of lading and certificates of origin
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Obstacles to exporting include lack of foreign representatives, inappropriate products for foreign consumers, insufficient production facilities, high business costs abroad and problems with payment from foreign customers
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Commonly Exported Services:
- Hospitality
- Hotels, food services
- Entertainment (movies, music, television, theme parks)
- Financial services (insurance, real estate)
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Importance of trade relations:
- Identifying the economic effects of foreign trade
- Describing different trade agreements between countries
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Economic effects of foreign trade include:
- Balance of trade (trade deficit or trade surplus)
- Balance of payments (positive or negative)
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Trade agreements encourage economic development and promote international business
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The World Trade Organization (WTO) deals with trade rules and encourages international trade.
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Regional cooperation includes:
- Economic community
- Common market
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Barter agreements:
- Direct barter
- Countertrade
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Free trade zones are designated areas for duty-free entry into a country.
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The nature of competition:
- Identifying factors affecting international business competition
- Explaining different competitive market situations
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Factors affecting international business competition:
- Number of companies
- Business costs
- Product differences
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Different market structures:
- Pure competition
- Monopolistic competition
- Oligopoly
- Monopoly
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Key characteristics of each market structure is provided in the notes.
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Description
This quiz focuses on Chapter 6, which covers the crucial aspects of importing, exporting, and trade relations. You'll explore the steps involved in importing products, the significance of trade relations, and the competitive landscape of international trade. Test your knowledge on the importance of product demand, cost factors, and the procedures for successful importing.
