Business Lunch

On Tuesday, March 20, 2007 I attended to my very first business lunch. The topic of the day was “Time as an Indicator of Supplier Capability,” and the speaker was Paul D. Ericksen. The presentation was about the supply chain with emphasis on the suppliers. Paul D. Ericksen argued that time is the essence of the supply chain, and that minimizing the Manufacturing Critical-path Time (MCT) is the best way to reduce your costs. This means that the supplier has to use the “lean” approach in order to reduce the “waste” time. The longer an item is immobile, the more money is going to waste. The goal is to have constant movement on the products and minimize the storage. This is not as easy as you might imagine; collaboration between the supplier and the company is utterly important. In a perfect world, a company would receive an engine for example, right before the installation, and the supplier would ship it on arrival from the factory, while the factory assembles all the pieces in the engine with every part arriving right before the assembling. Although the world we live in is far from perfect, but we are working towards this goal.

As this was my first business lunch, or business anything for that matter, I was far more nervous than I should have been. I had a lot of time to think about the meeting and there is so much I would want to change. During the round were everybody presented themselves I actually managed to panic and do the worst possible presentation. I understand now that next time, I should do ANYTHING but what I did. What happened was probably worst case scenario for me, therefore next time I should try to relax more and be more confident.
Attending to this meeting has made me realize that I have so much more to learn, and now I have a clearer picture on what I need to work on. First of all I need to find out my strongest features and emphasis more on this during a business conversation. The part that needs the most work is that I need to learn how to let go of my mental blocks that stops me from talking. Bottom line is I have nothing to loose, so why approach this matter in a shy way? The only thing that could happen is that I go away, without anybody’s business card. Well, I have already done that so now it is time for a different approach. Next time there will be a different Daniel.

China

For centuries China stood as a leading civilization, outpacing the rest of the world in the arts and sciences, but in the 19th and early 20th centuries, the country was beset by civil unrest, major famines, military defeats, and foreign occupation. After World War II, the Communists under MAO Zedong established an autocratic socialist system that, while ensuring China's sovereignty, imposed strict controls over everyday life and cost the lives of tens of millions of people. After 1978, his successor DENG Xiaoping and other leaders focused on market-oriented economic development and by 2000 output had quadrupled. For much of the population, living standards have improved dramatically and the room for personal choice has expanded, yet political controls remain tight.

Population: 1,313,973,713 (July 2006 est.)
Natural Resources: coal, iron ore, petroleum, natural gas, mercury, tin, tungsten, antimony, manganese, molybdenum, vanadium, magnetite, aluminum, lead, zinc, uranium, hydropower potential (world's largest)
GDP (Purchasing Power Parity): $10 trillion (2006 est.)
Agricultural Products: rice, wheat, potatoes, corn, peanuts, tea, millet, barley, apples, cotton, oilseed; pork; fish
Currency: yuan (CNY); note - also referred to as the Renminbi (RMB)
Airports: 486 (2006)
Railways: total: 74,408 km
Ports and Terminals: Dalian, Guangzhou, Nanjing, Ningbo, Qingdao, Qinhuangdao, Shanghai

Common Assignment

Host Company – Gain Vigor Trading. LTD China
Mainly imports waste paper from Europe and USA.

Supply chain costs: N/A
Annual report: N/A


Host Country
China’s import and export commodities.

Import (777.9 billion f.o.b. 2006 est.)
Machinery and equipment
Oil and mineral fuels
Plastic
Optical and medical equipment
Organic chemicals
Iron and steel

Export (974 billion f.o.b. 2006 est.)
Machinery and equipment
Plastics
Optical and medical equipment
Iron and steel
https://www.cia.gov/cia/publications/factbook/geos/ch.html

China’s trade partners - amount shown in US billions, and brackets indicate changes from the year 2004.

Export partners (2005):
United States = $162.9 (+30%)
Hong Kong = $124.5 (+23%)
Japan = $84 (+14%)
South Korea = $35.1 (+26%)
Germany = $32.5 (+37%)
Netherlands = $25.9 (+40%)
United Kingdom = $19 (+24%)
Singapore = $16.6 (+31%)
Taiwan = $16.6 (+22%)
Russia = $13.2 (+45%)

Import partners (2005):
Japan = $100.5 (+9%)
South Korea = $76.8 (+23%)
Taiwan = $74.7 (+15%)
United States = $48.7 (+9%)
Germany = $30.7 (+1%)
Malaysia = $20.1 (+11%)
Singapore = $16.5 (+18%)
Australia = $16.2 (+40%)
Russia = $15.9 (+31%)
Thailand = $14 (+21%)
http://internationaltrade.suite101.com/article.cfm/chinas_top_trading_partners

Free Trade Zones in China

Ningbo Free Trade Zone - Ningbo Free Trade Zone

Qingdao Free Trade Zone - Qingdao Free Trade Zone - Is specialized in the processing and trade of peanuts and peanut kernels.

Shanghai City Waigaoqiao Free Trade Zone - Shanghai City Waigaoqiao Free Trede Zone - Was established conforming to the international custom.

Tianjin Port Trade Free Zone - Tianjin Port Trade Free Zone
http://www.escapeartist.com/ftz/ftz.htm

Objective

To provide China with waste paper in the direction of recycling for the booming industry, as well as increasing the profit for West Seattle Recycling and complying with the laws of both countries.

Intro

Due to the high export rate and lack of trees in China, the demand for paper is vastly high, and the market prognosis is that the demand will continue to increase in the future. I intend to fill this demand with the cooperation of West Seattle Recycling and Gain Vigor Trading in Jiangmen City, China. 60% of the containers from China return back empty, this could lower the price for shipment.

http://www.westseattlerecycling.com/index.htm
http://www.ecplaza.net/tradeleads/eunicelee.html

Export Plan

The easiest approach to exporting is to use a freight forwarder. With a freight forwarder you can choose your involvement in the transaction. A freight forwarder helps you to ensure that the goods are handled properly and arrive on time the right place, and also provide help for the documents and labeling needed. Below is information of what you need before exporting.

Documents needed for Exporting

• Shipper's Export Declaration (SED) Chinese translation needed (dual use)
• Commercial Invoice
• Certificate of Origin
• Ocean Bill of Lading
• Insurance Certificate
• Dock Receipt
• Shipper's Letter of Instruction (SLI)

Shipper’s Export Declaration (SED)

Commercial Invoice

Certificate of Origin

Ocean Bill of Lading

Insurance Certificate

Shippers Letter of Instruction (SLI)

Product Category

The ECCN is EAR99 for waste paper. It does not fall under any category listed on the homepage of Export Administration Regulation Database.
Newsprint (newspaper) Schedule B code 2007, Chapter 48, 4801000002
OCC # 11, DOSCC # 12

Incoterm and Container

FOB, meaning Free on Board, translates to the shipper (seller) having upheld his/her part of the agreement when the goods pass the ship's rails at the port of exit. The receiving party (buyer) assumes risk and costs associated with the goods once they pass the ship's rail in the seller's home port.

Ocean Freight Container, 20 foot open full container load
20' containers: 24,000 kg (52,910 lbs) according to the latest issue of ISO 668;
30, 480 kg (67,200 lbs) valid for most Hapag-Lloyd 20' containers; exceeds ISO minimum standards.

Shipping

Specific marking and labeling is used on export shipping cartons and containers to:
Meet shipping regulations;
Ensure proper handling;
Conceal the identity of the contents;
Help receivers identify shipments;
Insure compliance with environmental safety standards.
The overseas buyer usually specifies which export marks should appear on the cargo for easy identification by receivers. Products can require many markings on for shipment. For example, exporters need to put the following markings on carton to be shipped:
Shipper’s mark;
Country of origin (U.S.A);
Weight marking (in pounds and in kilograms)
Number of packages and size of cases (in inches and centimeters);
Handling marks (international pictorial symbols);
Cautionary markings, such as “This Side Up” or “Use No Hooks” (in English and the language of the country of destination);
Labels for hazardous materials (universal symbols adapted by the International Airi Transport Association and the International Maritime Organization);
Ingredients (if applicable, also included in the language of the destination country)
Packages should be clearly marked to prevent misunderstanding and delays in shipping. Letters are generally stenciled onto packages and containers in waterproof ink. Markings should appear on three faces of the container, preferable on the top and on the two ends or the two sides. Any old markings must be completely removed from previously used packaging.

Ocean Route

PNW: Pacific Northwest Service
Port Rotation: Seattle - Vancouver - Pusan - Kwangyang - Kaohsiung - Yantian - Hong Kong - Shanghai Highlights: Connect to China's Bohai Rim via dedicated relay at Pusan to Dalian and Xingang

http://www.apl.com/routes/html/asia_north_america.html

Starbucks Takes Over Instead of Wal-Mart

After further researching about walmart I hit a huge unbreakable brick wall, and I was forced to take a different approach. After doing more research about Sweden I realized that they have far too many small businesses for the government to accept walmart into Sweden. Therefore I had to start all over again, but after careful consideration I found another company that would have great success in Sweden, a company named Startbucks.

Starbucks offers an experience that envolves coffe of different blends, and has been successful all over the world. Since Sweden is a booming country that means that the pace is changing into a faster and faster rythm. This is where Starbucks fits in. Starbucks could offer the Swedish people different blends of coffe on the go however they like it. Right now Sweden does have some coffe places to go, but they are rather rare and only exists in the big cities in general. Cutlurally, coffe is one of the most important beverages to the Swedish people. And another reason I think it would work is because Sweden is slowly changing towards a more Americanized society. Some people even think that obiesity is soon to come with it as well.

Empty Shelf at Walm-Mart

Let’s assume that you purchase a flashlight at Wal-Mart. The cash register reads the bar code price tag and reportedly within fourteen seconds, the Wal-Mart central warehouse is notified that the Wal-Mart retail store needs a new flashlight for the shelf to replenish the purchased item. Further, the manufacturer is also notified that the Wal-Mart central warehouse needs a new flashlight. Even the raw material suppliers are notified that the manufacturer now needs a little more raw materials (plastic housing, switch, light bulb, etc), and so it goes – all the way up the supply chain.
Wal-Mart’s legendary supply chain technology has allowed them to break the three-day barrier that some economists in the eighties felt was largely unbreakable. In other words, Wal-Mart is often able to replenish items on the Wal-Mart shelf in less than three days – not from the central warehouse to the shelf, but from the manufacturer to the shelf. With quick and reliable 2-day turn around, Wal-Mart is able to maintain lower levels of inventory and still meet customer demand. These lower inventory levels result in either a reduced floor plan with lower carrying costs and lower interest expense – or a greater diversity of products on the store shelves.



http://www.asaresearch.com/ecommerce/supplychain.htm

Short about Wal-Mart in Germany

Clearly dominating the US retail market, Wal-Mart expanded into Germany (and Europe)
in late 1997. Wal-Mart’s attempt to apply the company’s proven US success formula
in an unmodified manner to the German market, however, turned out to be nothing
short of a fiasco. Upon closer inspection, the circumstances of the company’s failure to
establish itself in Germany give reason to believe that it pursued a fundamentally
flawed internationalization strategy due to an incredible degree of ignorance of the
specific features of the extremely competitive German retail market. Moreover, instead
of attracting consumers with an innovative approach to retailing, as it has done in the
USA, in Germany the company does not seem to be able to offer customers any compelling
value proposition in comparison with its local competitors. Wal-Mart Germany’s
future looks bleak indeed

By: Andreas Knorr and Andreas Arndt

Information about the EU and the Pacific Northwest

COPENHAGEN EUROPEAN COUNCIL
Membership criteria require that the candidate country must have achieved:
· Stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities;
· The existence of a functioning market economy as well as the capacity to cope with competitive pressure and market forces within the Union;
· The ability to take on the obligations of membership including adherence to the aims of political, economic & monetary union.
MADRID EUROPEAN COUNCIL
Membership criteria also require that the candidate country mush have created the conditions for its integration through the adjustment of its administrative structures, as under lined by the Madrid European Council in December 1995. While it is important that European Community legislation is transposed into national legislation, it is even more important that the legislation is implemented effectively through appropriate administrative and judicial structures. This is a prerequisite of the mutual trust required by the EU membership.
http://ec.europa.eu/enlargement/archives/pdf/historic_opportunity_2003_en.pdf

The first pillar is the European Communities.
EC
Customs Union and single market
Agricultural policy
Structural policy
Trade policy
New or amended Provisions on:
· EU citizenship
· Education and culture
· Trans-European networks
· Consumer protection
· Health
· Research and environment
· Social policy
· Asylum policy
· External borders
· Immigration policy
The second pillar is common foreign and security policy.
Foreign policy
· Cooperation, common positions and measures
· Peacekeeping
· Human rights
· Democracy
· Aid to non-member countries
Security policy
· Drawing on the WEU: questions concerning the security of the EU
· Disarmament
· Financial aspects of defense
· Long-term: Europe’s security framework

The third Pillar is cooperation in justice in home affairs.
· Cooperation between judicial authorities in civil and criminal law
· Police cooperation
· Combating racism and xenophobia
· Fighting drugs and the arms trade
· Fighting organized crime
· Fighting terrorism
· Criminal act against children, trafficking in human being
http://europa.eu.int/eur-lex/en/about/abc/abc_12.html

The “economic and monetary union” is the development of a unitary economy across the member states of European Union with a single currency, single market, and harmonized interest and taxation rates. EU member governments run their economies according to similar principles of economic management. They coordinate their policies in order to deliver steady growth; more jobs and a competitive economy across the EU, one which will at the same time preserve the European social model and protect the environment.

Characteristics for the single market in European Union
Lower prices for the consumer
Greater choice of goods and services
The four freedom of movement are for goods, services, people and capital
http://europa.eu/pol/singl/overview_en.htm

The major cities in the Pacific Northwest region are Seattle, Portland, Spokane, Boise, Victoria and Vancouver. The US and the EU together are responsible for two fifths of the world trade. The EU and the US is the “world’s two largest economies account for a combined total of 57% of world GDP.” (http://ec.europa.eu/trade/issues/bilateral/countries/usa/index_en.htm) “The two economies are interdependent to a high degree. Close to a quarter of all EU-US trade consists of transactions within firms based on their investments on either side of the Atlantic. The transatlantic relationship defines the shape of the global economy as a whole as either the EU or the US is also the largest trade and investment partner for almost all other countries.” The EU and the US are part of Transatlantic Economic Partnership (TEP). The goal is to create stronger bonds economically between the regions. Together they are account for half of the entire worlds GDP.

Quiz DrugIX

1. The first step is initiating market research, for if there is no market for the product money will be wasted without any profit at all. Research is critical for success in any business, but even more important when it comes to exporting a good. Things that are to be research are:
· The infrastructure (if there are roads, ports and transportation availability)
· Political stand (if the government are at peace or if the nation is corrupted)
· Trade Agreements
· Free Trade Zones
· Cost
· A Translator (for translating documents into at least one more language)
· Tariffs and quotas
·

2. It means that the seller pays for transportation of the goods to the port of shipment, plus loading costs. The buyer pays freight, insurance, unloading costs and transportation from the port of destination to the factory. The passing of risks occurs when the goods pass the ship's rail at the port of shipment. Internationally the term specifies the port of loading, e.g. "FOB Miami" or "FOB Vancouver".

3. The documents that are needed are:
Purchase of order
Bill of lading
Waybill
Insurance
Invoice
Title
Certificate of origin
Sanitary
Carnet certificate
Export declaration (SED)
Receipt from shipment
Contract of carriage

4. If the papers are not properly prepared the shipment could be:
Delayed
Stuck into a warehouse for some time (in which you have to pay the fee for warehousing the goods.)
Discarded
Seized by government

Facts about Sweden

A military power during the 17th century, Sweden has not participated in any war in almost two centuries. An armed neutrality was preserved in both World Wars. Sweden's long-successful economic formula of a capitalist system interlarded with substantial welfare elements was challenged in the 1990s by high unemployment and in 2000-02 by the global economic downturn, but fiscal discipline over the past several years has allowed the country to weather economic vagaries. Sweden joined the EU in 1995, but the public rejected the introduction of the euro in a 2003 referendum.

• Climate: temperate in south with cold, cloudy winters and cool, partly cloudy summers; subarctic in north


• Terrain: mostly flat or gently rolling lowlands; mountains in west


• Natural Resources:iron ore, copper, lead, zinc, gold, silver, tungsten, uranium, arsenic, feldspar, timber, hydropower


• Population: 9,016,596 (July 2006 est.)


• International Organization Participation: AfDB, Arctic Council, AsDB, Australia Group, BIS, CBSS, CE, CERN, EAPC, EBRD, EIB, ESA, EU, FAO, G- 6, G- 9, G-10, IADB, IAEA, IBRD, ICAO, ICC, ICCt, ICRM, IDA, IEA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO, ITU, ITUC, MIGA, MONUC, NAM (guest), NC, NEA, NIB, NSG, OAS (observer), OECD, OPCW, OSCE, Paris Club, PCA, PFP, UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNMEE, UNMIL, UNMIS, UNMOGIP, UNOMIG, UNRWA, UNTSO, UPU, WCO, WEU (observer), WFTU, WHO, WIPO, WMO, WTO, ZC
• Foreign Trade Zones: Marstrand (17th century) Saint-Barthélemy (1785-1878)
• GDP, Purchasing Power Parity:$285.1 billion (2006 est.)

• Exports: $173.9 billion f.o.b. (2006 est.)


• Export Commodities: machinery 35%, motor vehicles, paper products, pulp and wood, iron and steel products, chemicals


• Export Partners: US 10.6%, Germany 10.2%, Norway 8.7%, UK 7.3%, Denmark 6.5%, Finland 5.7%, France 4.9%, Netherlands 4.5%, Belgium 4.3% (2005)


• Import: $151.8 billion f.o.b. (2006 est.)


• Import Commodities: machinery, petroleum and petroleum products, chemicals, motor vehicles, iron and steel; foodstuffs, clothing


• Import Partners: Germany 17.6%, Denmark 8.9%, Norway 7.8%, UK 6.6%, Netherlands 6.2%, Finland 5.8%, France 5% (2005)


• Currency (code): Swedish krona (SEK)


• Exchange Rates: Swedish kronor per US dollar - 7.43321 (2006), 7.4731 (2005), 7.3489 (2004), 8.0863 (2003), 9.7371 (2002)

• Airports: 255 (2006)


• Railways: total: 11,481 km standard gauge: 11,481 km 1.435-m gauge (9,400 km electrified) (2005)


• Roadways: total: 424,947 km paved: 129,651 km (including 1,591 km of expressways) unpaved: 295,296 km (2004)


• Waterways: 2,052 km (2005)


• Port and Terminals: Goteborg, Helsingborg, Karlshamn, Lulea, Malmo, Oxelosund, Stenungsund, Stockholm, Trelleborg

Facts taken from the CIA World Factbook

What Is Wal-mart?

2006 - Annual Report

Net Sales $312,427
Cost of Sales $240,391
Net Income $ 11,231
Operating, selling, general and administrative expenses 56,733
Inventories 32,191
Property, equipment and capital lease assets, net 79,290



View a complete list of annual reports on the link below:
http://walmartstores.com/GlobalWMStoresWeb/navigate.do?catg=453&contId=5700


Walmart has currently established 2700 stores in 14 countries internationally (and still growing).
Countries with Walmart:

• Mexico (774 Units)
• Puerto Rico (54)
• Canada (263)
• Argentina (11)
• Brazil (295)
• China (56)
• South Korea (16)
• United Kingdom (315)
• Costa Rica (124)
• El Salvador (57)
• Guatemala (120)
• Honduras (32)
• Nicaragua (30)
• Japan (15)
• India (0)

http://en.wikipedia.org/wiki/Wal-Mart#Wal-Mart_International

The Good Side of Walmart

In 2004, Wal-Mart, the largest retail chain in the world was also the world's largest company with a turnover of $256.3 billion. Each year, roughly 80% of American households made at least one purchase at Wal-Mart. Starting off in a small way, under the leadership of the legendary Sam Walton, Wal-Mart had emerged as a global player with operations in North America, Asia, Europe and South America. Wal-Mart symbolized operational excellence and cost leadership. According to rough estimates, US customers had saved $20 billion through shopping at Wal-Mart in 2002 alone . Some economists even argued that the 'Wal-Mart effect' had reduced inflation and improved productivity in the US economy year after year!

The Wal-Mart formula emphasized on selling good quality, yet modestly priced merchandise in a clean, no frills setting that offered one-stop family shopping. Wal-Mart believed in an 'every day' low price philosophy. This pricing policy cut advertising costs and reduced overheads. It also created an image of dependability and fair play in the minds of customers. Wal-Mart had also leveraged its business model to extend its market leadership to new categories. After entering the food business in the mid-1990s, by the early 2000s Wal-Mart had become the largest grocery retailer in the US. In 2002, the retail chain had an estimated market share of 32% in disposable diapers, 30% in hair care, 26% in toothpaste, 20% in pet food, 13% in home textiles, 15% in CDs, Videos and DVDs and 15% in magazines. Wal-Mart was also emerging as a major force in retailing books.

The success of Wal-Mart's business model was reflected in the company's operational and financial performance. In 1955, when Fortune began to publish its list of top 500 companies, Wal-Mart did not even exist. By 2002, it had moved to the top of the list. From May 1997 to May 2002, the stock jumped by an estimated 400%. Wal-Mart had close to 1.2 million employees. In mid-2003, it had about 4750 stores worldwide. During the period 1992-2002, Wal-Mart's sales had grown at a rate of 17%.

http://www.icmr.icfai.org/casestudies/catalogue/Business%20Strategy3/BSTA112.htm

___________________________________________________________________

Is Walmart Bad for the Economy? - by Faisal Laljee

Walmart is accused of unjust labor practices - this includes giving their workers minimum wage and not providing health insurance. My take on this - minimum wages are set by the federal and state governments. There are many companies, both small and large, that give only minimum wage to their employees. Now on the positive side, Walmart saves an average of over $2000 per year for those who shop there regularly. These shoppers who save so much, include the same demographic that works at Walmart. As for health care, Walmart is disadvantaged only by the fact that it is the largest retailer in the world. If that were not the case, this would not be an issue. Aside from Starbucks, no large employer I know of gives health insurance to part time employees, and this is due to the high cost of health care, which in turn is due to the high cost of insurance that doctors/hospitals must purchase to fend off lawsuits, which in turn .... I could go on and on. There are CEO's that make millions, yet are often caught golfing in the afternoon - and thats fine by me - but then I ask those who accuse Walmart of unfair labor practices, why they don't ask United Health or Aetna to cut down their executive salaries by 75%? They can then afford to cut down insurance premiums, which would then bring down the cost of healthcare.

Walmart is also accused of harming smaller "mom and pop" businesses through pricing power. Yes - I believe it is called free market capitalism. People accused Microsoft of pricing power through monopoly too. Has anyone ever really done a detailed analysis of how much Walmart has hurt these small businesses and compared it against how much money it has saved shoppers? I bet the latter number is heavier. Most small shops that offer good products and service at reasonable prices should be able to survive the Walmart threat.

It is said that Walmart brings down property values in surrounding areas by its sheer presence. That is ridiculous. Whats next? Should we shut down the Salvation Army drop offices because they attract low income shoppers? Should we also discriminate against Denny's and IHop's? On the flip side, golf courses and high rises drive up the price of surrounding properties, making those areas unaffordable for middle America. Why not lobby against those too?

Walmart is hiring illegal immigrants. Again, its sheer size gets in the way of Walmart. Every car wash I know of in Southern California, and believe me there are plenty of them, hire illegal immigrants. I think we need to be fair here. Most American's complain about minimum wages being too low, so really the only people willing to work for such low wages are illegal immigrants. On one hand we complain about low wages, but we also complain about those who are willing to work for these low wages.

The affect of Walmart on our economy is significant. From employing hundreds of thousands of people to saving customers a lot of money to ensuring that competitors like Target (TGT) and KMart (SHLD) keep their prices in check (thereby inadvertently also saving money for those who don't shop Walmart), this giant retailer needs to focus on its core business to make money for its shareholders and to save money for their customers rather than fight off controversy. I say let them do their job. Perhaps they might have provided their employees with health insurance if they didn't have to dish out the legal fees for these battles.

http://stocksadvice.blogspot.com/2006/12/is-walmart-bad-for-economy.html

Glossary

Cabotage - transport of goods or passengers between two points in the same country

Procurement - Purchasing (buying departments of a company)

FOB - Free On Board

Intermediaries - 3rd party (Agent)

Re-Export - Shipment of an US origin from one foreign country to another

Incoterms - a set of trade terms to describe their rights and liabilities with regards to the sale and transport of goods, set by The International trade of commerce

Postponement - manufacturing process starts by making a generic or family product that is later differentiated into a specific end-product

Localization - localization is the adaptation of an object to a locality

Process - Seguent of task or activities

Freight Forwarding - is an individual or company that dispatches shipments via asset based carriers and books or otherwise arranges space for those shipments. Common carrier types could include waterborne vessels, airplanes, trucks or railroads

EAR - Export Administration Regulations

Dumping - Selling merchandise in another country at a price below the price at which the same merchandise is sold in the home market or selling such merchandise below the costs incurred in production and shipment

Free Trade Zone - A port designated by the government of a country for duty-free entry of anmy nonprohibited goods. Merchandise may be stored, displayed, used for manufacturing etc., within the zone and reexported without duties being paid. Duties are imposed on the merchandise only when the goods pass from the zone into an area of the country subject to the customs authority.

Marine Insurance - Insurance that compensates the owners of goods transported overseas in the event of loss that cannot be legally recovered from the carrier. Also covers air shipments.

Quota - The quantity of goods of a specific kind that a country permits to be imported without restriction or imposition of additional duties.

Liquidity - ability to buy or sell an asset quickly and in large volume without substantially affecting the asset's price. Shares in large blue-chip stocks like General Motors or General Electric are liquid, because they are actively traded and therefore the stock price will not be dramatically moved by a few buy or sell orders.

Hedging - A strategy in which investment risk and thus the volatility of a portfolio is reduced by the use of call and put options, short selling or futures contracts. The hedge can lock in existing profits

NVOCC - Non-Vessel Operating Common Carrier. A company who buys space from shipping lines and sells it to smaller shippers. The NVOCC issues bills of lading.

TEU - Ton Equivalent Unit