International sourcing .txt

  1. What causes illegal and unethical practices in business?
    • -trade regulations
    • -lack of trade regulations
    • -lack of enforcement of trade regulations
  2. Examples of illegal and unethical practices
    • -disregarding customs' compliances
    • -violating intellectual property rights
    • -engaging in unfair business practices
    • -abandoning social responsibility
  3. Illegal transshipments
    When goods are transferred through a hird country to avoid tariffs and/or qoutas
  4. Countries transshipped
    China, Armenia, Hong Kong, Russia, Taiwan
  5. Perspectives about fair and unfair free trade
    • -creates properity that can benifit the poor as well as the rich
    • -allows the market place to determine tha flow of goods and prices
    • -funds political parties in rich countries and sponsors corruption in poor ones
    • -hurts the middle class in developed countries (job loss)
    • -allows manucturers to search out low wages, desperate workers which fosters the destruction of livelihoods, cultures and enironments
  6. Customs services activities
    • -Monitor imports and exports
    • -assess and collect tariffs
    • -report import and export against quota
    • -protect the country's borders against illegal entry
  7. Country of origin
    • Textiles- where the fabric is knitted or woven
    • Apparel- where the most important process or transportation occurs
  8. Intellectual property
    products of human intellect have commercial value
  9. Copyrights
    Literary, musical, artistic works, and software
  10. Patents
    Grants a monopoly for a limited time for the use of the invention
  11. Trade Secrets
    any formula, pattern, idea, physical device or process
  12. Trademarks
    covers words, pictures, symbols or logo
  13. A licensing contract usually includes:
    • -a description of the merchandising property
    • -a definition of the product that can bear the property
    • -a time frame
    • -the responsibilities of the licenser
    • -the responsibilities of the licensee
    • -the basis of the royalty
    • -the amount of the royalty
    • -the guarantee or minimum royalty amount
  14. WTO created:
    the Trade- Related Aspects of Intellectual Property Rights (TRIPS)
  15. A licensing contract
    transferring intellectual property right to someone else
  16. Counterfeiting
    forging, copying, or imitating something without the right to do so and with the intent to deceive or defraud
  17. Grey Market Goods
    the original goods but sold by unauthorized vendors
  18. Counterfeit goods sold everywhere:
    • -flea markets and street vendors
    • -retail shops
    • -internet
    • -organized crime has gotten involved
    • -funding terrorism
  19. Knockoffs
    • -an imitation of the original usually of lesser quality components and sold at lower prices
    • -legal imitations because they carry no trademarks or suggestions that the product is the original design or brand
  20. Social Responsibility
    • involves practices for conducting business in which firms make decisions based on how their actions affect others within the market place
    • -fair treatment of the human resources
    • -sustaining environments
    • -supporting laws
  21. Codes of Conduct
    a statement of principles and standards by which business decisions are made
  22. Worldwide Responsible Apparel Production
    • -19 organizations
    • -17 countries
    • -they do certification of factories
  23. The Fair Labor Association
    • -12 companies
    • -175 colleges & universities
Card Set
International sourcing .txt
International Sourcing Ch. 5