BUSN 70 Lecture Notes - Lecture 53: Offshoring, Multinational Corporation, Insourcing

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Countertrade agreement is a foreign trade agreement that involves bartering products for other products instead of currency. Export agents are middlemen that help companies by handling their international transactions. A firm that buys goods in one country and sells them to buyers of another country. Handles all trade activities; similar to export agents but their role is broader. An attractive alternative to direct investment when political stability is in doubt. Allows companies to enter international marketplace without spending a lot. The hiring of a foreign company to produce a specified volume of the initiating company"s product to specification; the final product carries the domestic firm"s name. For example, reebok uses contract manufacturers to produce many of its shoes. As defined earlier is transferring tasks to other countries where costs are lower. Insourcing, where foreign companies transfer tasks to u. s. companies, happens. The relocation of business processes by a company or subsidiary to another.

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