International Logistics

International Logistics - INTERNATIONAL LOGISTICS LOGISTICS...

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INTERNATIONAL INTERNATIONAL LOGISTICS LOGISTICS
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12-2 International Business and Logistics Global sourcing is increasing. More and more companies are engaged in or exploring global markets. Global sourcing and distribution puts greater demands on logistics systems and requires a high level of supply chain cooperation and coordination.
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12-3 Global Markets Trade barriers continue to fall, accelerating global business activity. Global markets result from the general homogenization of global needs and wants, but local consumer preferences still differ (e.g., LEGO example). Indicators of U.S. role in global economy on next slides
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12-4 Top U.S. Trading Partners – 2005 Totals Total $’s in Trade Total in Billions of U.S. $ Canada $ 499.29 Mexico $ 290.25 China $ 285.30 Japan $ 193.50 Germany $ 118.96 United Kingdom $ 89.69 Korea, South $ 71.45 France $ 56.25 Taiwan $ 56.89 Malaysia $ 44.15 Trade Deficit Total in Millions of U.S. $ China $(201,625.79) Japan $ (82,681.59) Canada $ (76,449.76) Germany $ (50,663.33) Mexico $ (50,148.97) Venezuela $ (27,556.41) Nigeria $ (22,573.30) Malaysia $ (23,252.23) Saudi Arabia $ (20,398.02) Ireland $ (19,285.67)
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12-5 U.S. Container Traffic in TEUs 2000 30,000,000 2001 31,000,000 2002 33,000,000 2003 36,500,000 2004 38,500,000 2005 42,000,000 2006 44,500,000
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12-6 Role of Currency Valuation The exchange rate of dollars to other international currencies affects both the volume and direction of global trade. The effects of weak or strong dollar positions carry through to marketing and logistics.
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12-7 Effect of Currency on Exports and Imports Scenario U.S. $ Value In Japanese Yen U.S. $ Cost of 5000-Yen Item Yen Cost of U.S. $1,000 Item A 100 $ 50.00 100,000 yen B 120 $ 41.67 120,000 yen C 130 $ 38.46 130,000 yen
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12-8 Logistics for Global Markets Logistics activities must be operated as an efficient system to provide a countervailing force to longer lead-time and inventory increase (i.e., rising costs!). Logistics channels are quite different around the world.
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12-9 Documentation requirements are extensive, and sales terms differ greatly from domestic Push-type logistics systems are not common because international credit system is not well developed Irrevocable letter of credit
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12-10 Terms of Sale— Incoterms 2000 EX-Works (EXW) FCA (Free Carrier) FAS (Free Alongside
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This note was uploaded on 03/05/2010 for the course LSCM 360 taught by Professor Martins during the Fall '08 term at Iowa State.

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International Logistics - INTERNATIONAL LOGISTICS LOGISTICS...

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