What does the term “Triad” refer to? What is meant by Quad?
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The term Triad refers to the three richest regions of the world the United States, the European Union and Japan that offer the most important business opportunities. Some people extend the scope of Triad to include Canada and name the broadened grouping Quad.
What is the most common form of non-tariff barriers? Explain it in a few words.
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Quotas or quantitative restrictions are the most common form of non-tariff barriers. A quota limits the imports or exports of a commodity during a given period of time.
What are the major factors that may influence the exchange rate?
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a. international balance of payment. It has a direct bearing on the supply and demand of foreign exchange. b. Inflation. It is closely related to the real value of the currency and the competitiveness of the commodity. c. Interest rate. Under specific conditions, high interest rate will attract short term international fund, increasing the exchange rate of one’s own currency and vice versa. The above factors may work alone or collectively.
MFN means most-favored-nation which is a tariff treatment. It is bilaterally given and provides for the lowest tariff in the tariff code. It is important to understand that the term most-favored-nation gives the impression that the tariffs involved are the lowest, it is in fact not the cast. MFN is not really special but is just normal trading status. GSP(generalized system of preferences) establishes even lower tariffs than MFN.
The freight system includes several distinct forms of transportation, called modes. The modes differ in terms of operating characteristics and capabilities, giving them comparative advantages and disadvantages. Each mode enjoys what might be called natural product provinces
Sometimes the exporter may require a confirmed letter of credit either because the credit mount is too large, or because he does not fully trust the opening bank.
Although the day-to-day running of corporate operations maybe decentralized to the affiliates, the major decisions, such as those on corporate goals, new investments and their location, are made by the parent company.
International business first took the form of commodity trade, i.e. exporting and importing goods produced or manufactured in one country for consumption or resale in another.