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

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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