4.6 international contracting. international contracting the policies and procedures that govern the...
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4.6 International Contracting
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International Contracting• The policies and procedures that govern the acquisition and
sale of goods and services with foreign nationals and governments.
• Can sometimes result in lower costs and improved quality for buyers and increased sales and profitability for sellers.
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Differences btw domestic and international markets
• Currency differences• Different meaning of common business terms• Different processes• Export/Import issues• Language• Legal processes• Location• Political climate• Social customs• Tax implications • Third-party involvement• Entry into a foreign county by expatriates
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Agreements & Restrictions• Agreements exist among US and its trading partners• General Agreement on Tariffs and Trade (GATT)• GATT Government Procurement Code• North American Free Trade Agreement (NAFTA)
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• Free trade agreement – a treaty between two or more countries that do not impose tariffs for commerce conducted across their borders
• Export Administration Regulation (EAR) – provides specific instructions on the use and types of export licenses required for certain commodities, software and technology
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• International Commercial Terms (Incoterms) – provides internationally accepted definitions and rules of interpretation for most common commercial terms
• International Traffic in Arms Regulation (ITAR) - a set of US government regulations that control the export and import of defense-related articles and services on the United States Munitions List (USML).