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14.1 Discuss some of the key political restrictions on crossborder trade.
1. Many nations ban certain types of shipments that might
jeopardize their national security.
o United States does not ship military equipment or strategic
materials to certain nations as Iran and North Korea.
2. Tariffs taxes that governments place on the importation of
certain items
3. Nontariff barriers refer to restrictions other than tariffs that are
placed on imported products
o Import quota limits the amount or product (either in units
or by value) that may be imported from any one country
during a period of time
o Health safety of a country
o If a material is found to be infested, it cannot enter the
country unit it is cleaned
o A product that does not meet safety standards
4. Embargoes the prohibition of trade between particular
countries
o Political tensions
5. The degree of federal government involvement in cross-border
trade
6. Federal governments are often more involved with international
transportation
7. Federal government involvement in cross-border trade is that
many nations provide subsidies, train their own merchant marine
officers, absorb portions of the costs of building commercial
vessels, and engage in other activities to promote their own
merchant fleets
Murphy,Jr., Paul R.; Wood, Donald Michael (2014-01-14). Contemporary
Logistics (11th Edition) (Page 252-254). Prentice Hall. Kindle Edition.
14.2 How might a particular countrys government be involved
in international trade?
Businesses involved in foreign trade find that a federal governments
roles is more significant than in domestic transitions, and as a result
the buying and selling parties are not always free to contract the terms
to suit their needs.
2. Payment for the goods, freight charges, and the insurance for the
in-transit goods (the financing channel)
3. Legal title to the goods (the ownership channel)
4. Required documentation (the documentation channel)
5. Responsibility for controlling or caring for the goods in transit,
say, in the case of livestock (the logistics channel).
Transfer can be specified in terms of calendar time, geographic
location, or completion of some tasks. One must think in terms of both
time and location.
Incoterms: implemented at the beginning of a new decade, such as
Incoterms 1990 and Incoterms 2000.
Two key changes with Incoterms 2010 involve (1) organizing the terms
by modes of transport and (2) using the terms in both international and
domestic transportation.
Murphy,Jr., Paul R.; Wood, Donald Michael (2014-01-14).
Contemporary Logistics (11th Edition) (Page 258). Prentice Hall.
Kindle Edition.
14.8 Name the four methods of payment for international
shipments. Which method is riskiest for the buyer? For the
seller?
Cash in advance extremely risk to the buyer
Letter of credit
Bills of exchange
Open account tremendous potential risk for the seller
Murphy,Jr., Paul R.; Wood, Donald Michael (2014-01-14). Contemporary
Logistics (11th Edition) (Page 261). Prentice Hall. Kindle Edition.
14.9 Discuss four possible functions that might be performed
by international freight forwarders.
Advising on acceptance of letter of credit
- When a client receives a letter of credit, the document contains
many conditions that the seller must meet. The forwarder
determines whether the client can meet these conditions, and, if
not, it will advise the client that the letter of credit must be
amended. The buyer and buyers bank must be notified before
the order can be processed.
Booking space on carriers