Term
| What are the four critical elements to selling overseas? |
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Definition
-pricing properly
-complete accurate quotations
-terms of sale
-payment method |
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Term
| What are the considerations that will help you determine the best price for your product overseas? |
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Definition
-market positioning
-competitive?
-type of discount
-differ by segment
-foreign govnt view reasonable or exploitative
-antidumping laws |
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Term
| Why pricing is important? |
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Definition
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Term
| What are the traditional components of pricing? |
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Definition
-costs
-market demand
-competition |
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Term
| What are the Strategies that affect pricing? |
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Definition
-penetrate
-long term growth
-outlet surplus or outmoded products |
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Term
| What is the cost-plus method? |
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Definition
Starts with domestic manufacturing cost
-administration
-r&d
-overhead
-freight forwarding
-distributor margins
-customs charges
-profit |
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Term
| What are the characteristics of marginal cost pricing? |
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Definition
-competitive
-out of pocket expenses
-prices cannot be without incurring a loss
-costs may decrease |
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Term
| How should pricing be determined according to market demand? |
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Definition
-per capita income
-simplify product
-fluctuations in currencies |
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Term
| What is pro forma invoice? |
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Definition
Quotation prepared in format of invoice
-not used for payment
-certify invoice is true and correct
-country of origin
-state clearly "pro forma invoice" |
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Term
| What is quotation invoice? |
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Definition
Detailed description of the product
-product, price, shipment, terms of sale, payment |
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Term
| What are the characteristics of the terms of sale? |
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Definition
-defines obligations, risks, costs of the buyer and seller
-terms of delivery
-terms have different meaning than domestic business |
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Term
| What do Incoterms formally define? |
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Definition
-tasks will be performed by exporter and importer
-activities will be paid by exporter ind importer
-when the transfer of responsibilities takes place |
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Term
| Why choosing the correct incoterm is important? |
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Definition
-type of product
-method of shipment
-ability to perform tasks
-amount of trust |
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