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Global Trade Exam 2

Terms in this set (67)

supply chain
the global network of organizations and activities involved in designing, transforming, consuming, and disposing of goods and services
supply chain management
management of the processes and relationships in a supply chain
codes of conduct
the ethical obligation of businesses to value and support the well-being of their employees, customers, and suppliers and the resources, environments, and laws in countries in which they operate
sustainability
integrates economic, political, environmental, and cultural dimensions and solidarity among the people and generations in its supply chain
social responsibility
the obligation of someone's well-being
environmental responsibility
obligation for protecting nature and resources management
code of conduct
a statement of principles and standards by which business decisions are made
Worldwide Responsible Accredited Production
most widely used social and environmental compliance certification program for the apparel industry
5-step process of WRAP
application, self-assessment, monitoring, evaluation, certification
fair trade
seeks greater equity in international trade
ethics
a system or code of morals of a particular person, group, or profession
morals
the degree of conformity with generally accepted or prescribed standards of goodness or rightness
Human Development Index
incorporates GDP per capita, life expectancy at birth, adult literacy
labor union
an association of workers with the purpose of bargaining with employers on behalf of workers about terms and conditions of employment
sourcing
determining the most cost-efficient vendor of services, materials, production, or finished goods, or a combination of these, at a specified quality and service level for delivery within an identified time frame
CMT
original sourcing company (customer) bears all the costs, does development, sources the fabric, delivers the fabric to the vendor, and pays duties and transportation costs; production contractor provides the expertise and equipment for the actual production of the garments
full package
the vendor must contribute to and finance most of the manufacturing process, including product development and sourcing
private brand
reflects the ownership of an exclusive label by a brand manager or retailer
private brand importer
if the retailer contracts production of these products off shore
branded importer
many traditional importers practice the process of outsourcing much of their production to offshore facilities that they either own wholly or operate as joint ventures
sourcing agent
provides services related to finding materials vendors, product development services and production capacity and finished products for other firms
agile manufacturing
a manufacturing philosophy that was first promoted as tools contributing to flexibility and speed on the production floor
lean manufacturing
a manufacturing philosophy emphasizing efficiency and strives to eliminate waste of time and materials throughout the entire process, while also improving quality
manufacturing control and vendor compliance
the customer's established set of rules provides manufacturing control and defines standards for vendor compliance
quality assurance
a commitment to product quality that utilizes error prevention as integral to the entire product development process
standards
the basic characteristics used to determine acceptability of the quality and resulting performance and appearance of products and services
tariff costs
rates of duty charged on products to gain their entry into a country
harmonized tariff schedule
HTS, each classification is given a 10-digit number
incoterms
three-letter trade terms intended to clearly communicate the tasks, costs, and risks associated with the transportation and delivery of goods
free carrier assistant
FCA -- named place
free on board
FOB -- named port of shipment
cost, insurance and freight
CIF -- named port of destination
delivered duty paid
DDP -- named place of destination
specifications
detailed graphic and written descriptions of styling, materials, dimension, production procedures, and finishing instructions for garment style
letter of credit
payment for imported merchandise is often done
consolidator
combines cargo from a number of shippers going to the same destination into one container to reduce shipping rates
marine insurance
protects merchandise when it is in port or being shipped
inland insurance
covers the shipment at other times, such as on a truck, airline, or other conveyance
clearing customs
shipper must provide bill of lading, commercial invoice, and packing list
trade
buying and selling or bartering of goods and services
trade policy
determines export policy, import policy, protectionism, and free trade
protected trade
protects domestic companies from having to compete with foreign companies in their own domestic markets and makes competition fairer in international markets
specific tariff
a fixed amount of money per physical unit of product
physical units of goods x specific duty rate = duty due
ad valorem tariff
tariffs are a fixed % of the value of the product
total value of the product x specific duty rate = duty due
combined tariff
total duty due = specific duty + ad valorem duty
transaction value
the price that is actually paid or payable for the goods when sold for export
customs and border protection
evaluators in the US have traditionally used the FOB import values
free trade zone
defined as a site within a nation designated for duty-free entry of selected goods to be displayed, stored, or used for manufacturing
foreign trade zone
a free trade zone that allows manufacturing for export
qualified industrial zone
a special type of foreign trade zone that involves more than one nation
non-tariff trade barriers
restrict trade by some means other than applying a tax on products
exchange rates
determine the ratio of which one currency can be traded with another
quotas
restrict quantities of goods for import or export
voluntary export restraints
restrict trade, but are not formalized into international law
normal trade relations
specifics that a party granting a trade advantage to one country must grant the same advantage to all contracting parties
multifiber arrangement
a general framework for determining the conditions under which the textile and apparel trade could be controlled
world trade organization
trade protection weakens the global economy and freer trade strengthens the global economy
free trade agreement
treaty between two or more countries that do not impose tariffs for commerce conducted across their borders
preferential trade agreements
extend special trading advantages by reducing tariffs for certain products to the countries who sign the agreement
central america-dominican republic free trade agreement
eliminated tariffs, opened markets, reduced barriers to services and promoted transparency including el salvador, nicaragua, honduras, guatemala, dominican republic, costa rica
colombia trade promotion agreement
eliminates tariffs and other barriers to US exports; good must be originating; most of the goods from this country enter duty free
north american free trade agreement
created the world's largest trade area (US, canada, and mexico) no duty for products that meet the rule of origin
rule of origin
yarn forward, which means goods must be produced from yarn made in a NAFTA country to benefit from preferential treatment
peru trade agreement
the first trade agreement in force that incorporates provisions concerning the protection of the environment and labor rights
egypt QIZ and jordan QIZ
goods must contain a small portion of israeli input, be substantially transformed in the manufacturing process, processing costs must total minimum 35% of the appraised value of the product
african growth and opportunity act
objective of expanding US trade and investment with sub-saharan africa, to stimulate economic growth, and to facilitate sub-saharan africa's integration into the global economy
fair labor association
dedicated to improving labor conditions around the world
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