This week we studied a variety of entry modes, but I’d like you to post your response to the following statements and respond to a class colleague.
Countertrade includes a range of barterlike agreements and may be considered a form of payment. Please identify a country of the world where a countertrade agreement may exist and explain why. Be quick though… you may not use a country that another classmate has used in their posting!
Production and Logistics (half page)
This week we analyzed and evaluated an array of topics in the area of production and logistics for the international firm. We identified and discussed countertrade, export financing, and reviewed some of the documents used to facilitate those processes.
An external link allowed you to review some of the most common documents used in export financing. Now, think about this question and post your response.
Which document used in export financing serves the following three (3) purposes:
- Receipt for services by the firm providing carriage (e.g. steamship line, airline)
- Establishes a document of title (document of title in this instance is defined as the temporary ownership of the goods needed to allow entry into the country that the goods will be sold in)
- Establishes contractual services by the firm and seller of the goods for carriage
How would you use this document?
Answer preview
The certificate of origin can be used for the three purposes. Some countries require the document for a majority, or all products hence an exporter should first find out whether the record is necessary for the buyer, freight forwarder or the Trade Information Center. The document varies in language based on the country. It is especially essential for the importation of textile products as most buyers require copies of it from the manufacturer. For countries that operate within the Free Trade Agreements (FTAs) with the United States, such as Israel and the Jordan, the document is necessary for legal purposes as a way of proving the authenticity
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