A Benefit of Contracting with Export Trading Companies Is

question 30

Multiple Choice

A benefit of contracting with export trading companies is:

• A) They are the experts in establishing trading partners abroad, and negotiating all the details in retaining customers.
• B) They are experts in staying out of the financial transactions of establishing new markets.
• C) They will always assume the risk if your product does not sell to the foreign customer.
• D) They keep you legal because they serve as the franchisor and make certain that your products meet ISO requirements.

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Definitions:

Purchase Order

A formal document sent from a buyer to a supplier with a request to purchase specified products or services at agreed upon terms.

Withdrawal Kanban

A signaling system within the Just-in-Time (JIT) manufacturing process that indicates when to withdraw parts or materials from the supply chain to the production line.

Activity-Based Costing

A method of allocating overhead and indirect costs to specific activities, providing more accurate product or service costing.

Production Stage

A specific phase in the manufacturing process where raw materials are transformed into finished goods.