Part 1: Gap Filling

Unit 4:
1. Export/import financing in which a bank acts as an intermediary without
accepting financial risk is called ____
Documentary collection
2. A document ordering an importer to pay an exporter a specified sum or
money at specified time is call a/an _____
Bill of exchange/ Draft
3. Export/import financing in which the importer’s bank issues a document
stating that the bank will pay the exporter when the exporter fulfills the terms
of the document is called a (an) ____
Letter of credit
4. A contract between the exporter and carrier that specifies destination and
shipping costs of the merchandise is called a(n)____
Bill of lading
5. Export/import financing in which an exporter ships merchandise and later
bills the importer for its value is called ____
Open Account
6. Export/import financing in which an importer pays an exporter for
merchandise before it is shipped is called ____
Advance payment
THÊM
7. In the documentary collection, if the importer dishonors the bill, the exporter
may have to find an alternative buyer or ship the goods back.
8. The first step of the procedure for documentary collection, the exporter's
task is to ask his bank to draw. a bill of exchange on the overseas buyer.
9. Documentary Collection is payment by bill of exchange to which commercial
documents and sometimes a document of title are attached.
10.A document by which a buyer undertakes to pay a seller through a bank if
the seller delivers the goods according to the terms of the contract. It can be
documentary or irrevocable: L/C (letter of credit).
11.An open account is the most secure mode of payment for the importer.
12.Advance payment is the most secure mode of payment for exporters
13.In some parts of the world, banks may be slow to remit payments to the
exporter's banks.
Unit 5:
1. Efforts by a company to reach distribution channels and target customer
through communications such as personal selling, advertising, public
relations, and direct marketing are called its ____
Promotional mix/ Promotion mix
2. A promotional strategy designed to create buyer demand that will encourage
channel members to stock a company’s product is called a ____
Pull strategy
3. A ____ is a promotional strategy designed to pressure channel members to
carry a product and promote it to final users.
Push strategy
4. The process of sending promotional messages about products to target
markets is called ____
Marketing communication
5. ____ method extends the same home-market product and marketing
promotion into target markets.
Dual extension/Product-Communications Extension
6. Under ____ method, a company extends the same product into new target
markets but alerts its promotion.
Product extension Communications Adaptation
7. Under ___ method, a company adapts its product to the requirements of
international market while retaining the product’s original marketing
communication.
Product adaptation Communications Extension
8. ___ method adapts both the product and its marketing communication to
suit target market.
Dual Adaptation/ Product – Communications Adaptation
9. Planning, implementating, and controlling the physical flow of product from
its point of origin to its point of consumption is called ___
Distribution
10. The physical path that a product follows on its way to customers is called
Distribution channel
11.An ___ is one in which a manufacturer grants the right to sell its product to
only one or limited number of resellers.
Exclusive channel
12.An ___ is one in which a producer grants the right to sell its product to many
resellers.
Intensive channel
13.A/An___ refers to the number of intermediaries between the producer and the
buyer.
Channel length
14. The value of a product relative to its weight and volume is called its __
Value density
15. A pricing policy in which one selling price is established for all international
markets is called ___
World wide pricing
16.A pricing policy in which a product has a different selling price in export
markets than in the home market is called ___
Dual pricing
17.A(An)___ is the price charged for products sold between a company’s
divisions on subsidiaries.
Transfer price
18.A free-market price that unrelated parties charge one another for a specific
product is called a(n)
Arm’s length price
19.____ is the attempt to destroy unwholesome demand for products that are
considered undesirable, e.g. cigarettes, drug, handguns, or extremist political
parties.
Counter marketing
20.____ is the difficult task of reversing negative demand, eg. for dental work, or
hiring disable people.
Conversional Marketing
21.____ is necessary where there’s no demand, which often happens with new
products and services.
Stimulational Marketing
22.___ involves developing a product or service for which there is clearly a talent
demand eg. a non-polluting and fuel-efficient car.
Developmental Marketing
23.____ involves altering the time pattern of irregular demand, eg. for public
transport between rush hours, or for ski resorts in the summer.
Synchro Marketing
24.____ involves revitalizing falling demand, for example, for churches, inner city
areas, or aging film stars.
Remarketing
25.____ is the attempt (by governments rather than private businesses) to reduce
overfull demand, permanently or temporarily, eg. for some roads or bridges
during rush hours.
Demarketing
26._____ is a matter of retaining a current (may be full) level of demand, in the
face of competition.
Maintenance Marketing
Thêm
1. Points of sales are places where goods are sold to the public-shops, stores,
kiosks, market, stalls, etc.
2. The classic product life cycle is Introduction, Growth, Maturity and Decline
3. Existing customers tell their friends or colleagues about your product and
hopefully recommend it to them: Word of Mouth advertising.
4. The best form of advertising is free Word of Mouth advertising, which
occurs when satisfied customers recommend products or services to their
friends.

Unit 6:
1. ____ is the process related to the storage and movement of the final product and
the related information flows from the end of the production line to the end
user.
Outbound logistics
2. ____ is the flow, or management, of goods into a production unit or
warehouse.
Inbound logistics
3. _____ is the management of the flow of goods, information and other
resources, between the point of origin and the point of consumption.
Logistics
4. _____ is a network of facilities that performs the function of procurement of
materials, transformation of these materials into finished products, and the
distribution of these products to customers.
Supply Chain
5. _____ is a part of supply chain management, which plans, implements, and
controls the flow and storage of goods between the point of origin and the
point of consumption.
Logistics Management
6. _____ is the act of passing goods through customs so that they can enter or
leave the country.
Customs Clearance
7. _____ contains the raw materials, the work in process and all the finished
products of a supply chain.
Inventory
8. _____ is the movement of product from one location to another as it makes
its way from the beginning of a supply chain to the customer’s handle.
Transportation
9. _____ is the management of materials, information, and finances as they move
in a process from supplier to consumer.
Supply Chain Management
10. _____ is the process of moving products from end-user back to the origin to
recover value or for proper disposal
Reverse Logistics

Unit 7:
1. The company will ____ the policy-holder against loss of or damage to the
insured vehicle.
Indemnify
2. Ship’s cargoes are covered by ____ insurance policies.
Marine
3. ____ is a standard form contract between the insured and the insurer, which
determines the claims that the insurer is legally required to pay.
Insurance policy
4. ____ is payment to the insurance company to buy a policy and to keep it in
force.
Premium
5. ____ is the losses/damages caused by special expenses and sacrifices that
intentionally and reasonably conducted to save the vessel, cargo and freight
from a threat in the common ocean voyage.
General Average
6. The party to an insurance agreement who undertakes to indemnity for losses
is the ___
Insurer/ Underwriter
7. _____ is the person or entity buying the insurance and receiving indemnity on
happening of unforeseen events.
Insured/ Policy Holder
8. The person, group, or property for which an insurance policy is issued is ___
Subject matter insured
9. ____ is a contract whereby, in return for the payment of premium by the
insured, the insurers pay the financial losses suffered by the insured as a
result of the occurrence of unforeseen events.
Insurance
10. ____ covers the loss or damage of ships, cargo, terminals, and any transport
or property by which cargo is transferred, acquired, or held between the points
of origin and final destination.
Marine Insurance
Thêm
11.The most complete insurance is against _______
all risks

Unit 9
1. A ____ is a combination of two or more firms, often comparable in size, in
which all but one ceases to exist legally.
Merger
2. Firms are merged in the same industries ____ or different industries ____ and
one their positions in the corporate value chain ____
Horizontal/Conglomerate/Vertical
3. A ____ is when a company merges with another company in an immediately –
related stage of production and distribution.
Vertical Merger
4. The acquisition of a food products firm by a computer firm would be
considered a ____ acquisition.
Conglomerate
5. The combination of Coca-Cola and Pepsi would be a ____ merger.
Horizontal
6. A acquisition of a target company by an acquirer/bidder with the consent or
approval of the management and board of directors of the target company is
called ___
Friendly Acquisition
7. Unfriendly takeover attempt by a company or raider that is strongly resisted
by the management and the board of directors of the target firm is called ___
Hostile
8. ____ means that a smaller firm will acquire management control of a larger
and/or longer-established company and retain the name of the latter for the
post-acquisition combined.
Reverse
Part 2: Questions
Unit 4:
1. What are roles of banks in the four common payment methods?
Active Role: Banks get involved in the payment process/, supporting both Im &
Ex-L/C- check the accuracy of does and/ guarantee payment
Passive Role: transfer docs and funds- Documentary Collection, open account,
advance payment

2. What is the difference between documents against payment (D/P) and

documents against acceptance (D/A)?
- D/P: The B can only receive the documents once he has paid the sight draft. The S
retains title to and control over the Goods until he gets payment
- D/A: The B can get the documents just by accepting payment on a future date. The
B writes the word "ACCEPTED" on the draft and signs it.

3. How does a documentary collection differ from a letter of credit as a

means of financing international trade?
- Documentary Collection: The bank acts as an intermediary. The Banks do
not verify the documents, take risks, nor guarantee payment. The banks just
control the flow of documents
- L/C provides increased assurance to both Ex and Im so long as they fulfill
their obligations, The bank not only verifies the document accuracy and
authenticity, but also guarantees payment

4. When do people use the 4 payment methods?

- Open account: 2 sides have long-established trading relation
- Advance Payment: 2 sides are unfamiliar
- L/C: the I's credit rating is questionable. The E needs an L/C to obtain
financing
- Collection: there is ongoing biz relation between the Parties
5. Why would an exporter ask for a confirmed L/C (Thêm)
The risks of issuing a bank are borne by the confirming bank. If the I bank
gets out of biz, the confirming is obliged to pay the L/C

Unit 5:
1. What is the difference between selling concept and marketing concept?
- Selling: Persuading the customers to buy products that you already have, rather
than producing new products which customers may want
- Marketing: finding out what kinds of products customers want and then producing
them. Finding wants and filling them.

2. Distinguish need, want, demand?

- Needs are basic human requirements
- Wants are needs directed to specific objects which might satisfy the need
- Demands are wants for specific products backed by an ability to pay

3. Identify at least four factors that influence a company’s product policies

in international markets.
- Companies undertake mandatory product adaptation in response to a target
market's laws and regulations.
- Companies also adapt their products to suit cultural differences
- Although companies keep their brand names consistent across markets, they often
create new product names or modify existing ones to suit local preferences.
- The image of a nation where a company is located that designs, manufactures, or
assembles a product influences buyers' perceptions of quality and reliability.
- Counterfeit goods can damage buyers' image of a brand when the counterfeits are
of inferior quality.
- Shortened product life cycles are affecting the timing of when to market
internationally

4. Briefly describe the difference between a push strategy and a pull

strategy. What are some factors that affect the choice of an appropriate
strategy?
- Pull strategy: A promotional strategy designed to create buyer demand that will
encourage channel members to stock a company's product.
Eg: Creating consumer demand through direct marketing techniques is a common
example of a pull strategy
- Push strategy: A promotional strategy designed to pressure channel members to
carry a product and promote it to final users of the product.
Eg: A push strategy is often used by manufacturers of all sorts of products
commonly sold through department and grocery stores

What are some factors that affect the choice of an appropriate strategy?
Nature of the Product: Complex or technical products may benefit from a
push strategy where direct explanation and demonstration are necessary,
while more straightforward products might thrive with a pull strategy driven
by consumer demand.
Target Market: Understanding the preferences, behavior, and purchasing
habits of the target market can influence the choice of strategy. Some
 markets may respond better to push tactics, while others may be more
receptive to pull strategies.
Competition: The competitive landscape can dictate the need for
differentiation. In a saturated market, a pull strategy might be necessary to
stand out and attract consumers. In contrast, in markets where competition is
low, a push strategy might suffice to gain distribution and market share.
Distribution Channels: The type of distribution channels available and
their efficiency play a significant role. Push strategies often work well when
there's a limited number of distribution channels, while pull strategies may
be more effective in markets with extensive distribution networks.
Budget and Resources: The financial resources available for marketing and
promotional activities can influence the choice of strategy. Push strategies
often require more resources for promotional campaigns, while pull
strategies may demand investments in branding and advertising.
Product Life Cycle: Different stages of the product life cycle may require
different strategies. For instance, during the introduction stage, a push
strategy might be necessary to create awareness, while during the growth
stage, a pull strategy may be more effective to sustain momentum and
expand market share.
Market Conditions: External factors such as economic conditions,
regulatory environment, and cultural factors can also impact the choice of
strategy. Adapting to changes in these conditions may require shifting
between push and pull strategies accordingly.

5. What are the five generic strategies for blending product and
promotional policies for international markets? Describe each briefly.
- Product/communications extension (dual extension) extends the same
home-market product and marketing promotion into target markets.
- Product extension, communications adaptation extends the same product into new
target markets but alters its promotion.
- Product adaptation, communications extension adapts a product to the
requirements of the international market while retaining the product's original
marketing communication.
- Product/communications adaptation (dual adaptation) adapts both the product and
its marketing communication to suit the target market.
- Product invention requires that an entirely new product be developed for the target
market; dealerships cannot normally sell Toyotas and Chrysler dealers cannot sell
Fords.
 6. What is the difference between exclusive and intensive channels of
distribution? Give an example of a product sold through each.
- An exclusive channel is one in which a manufacturer grants the right to sell its
product to only one or a limited number of resellers.
Eg: New car dealerships, for example, in most countries reflect exclusive distribution.
Thus Honda dealerships cannot normally sell Toyotas and Chrysler dealers cannot sell
Fords,
- An intensive channel is one in which a producer grants the right to sell its product
to many resellers
Eg: Large companies whose products are sold through grocery stores and department
stores typically take an Intensive channel approach to distribution.

Unit 6:
1. What are the major benefits of efficient logistics operations?
- Cost-savings
- Faster fulfillment of orders
- Improved cash flows
- Optimized distribution

2. What may cargo handling services include?

- Cargo collection and consolidation
- Cargo forwarding
- Transit Warehousing
- Cargo tracking and tracing
- Documentation Handling
- Customs Clearance

3. What are the five major logistics activities?

- Demand forecasting/planning
- Material handling
- Inventory management
- Logistics communications
- Customer service

4. What business functions does the supply chain involve?

These functions include not only logistics, transportation, and warehousing, but
also sourcing and procurement, manufacturing, materials handling, forecasting,
order processing, inventory management and customer service
Unit 7:
1. Why is marine insurance required?
- Exporters and importers face all the time uncertainties of loss of their goods.
- Insurance is used to protect their financial interests against such risks and actual
losses
- Without adequate insurance and protection of the interests of those with goods in
transit, international trade would be negatively affected. I
- Liability of carriers to the goods is very limited.
+ High probability of risks occurring in voyage
+ Carrier's liability is very limited
+ Marine cargo insurance is a customs in international trade
+ It provides insurance cover in respect of loss or damage to goods during
transit

2. What are the risks excluded from a marine insurance policy?

- Delay
- Wear and tear
- Inherence vice
- Ullage
- Willful misconduct of the assured

3. What documents are typically requested for marine insurance claims?

- Original policy or certificate.
- Invoices and packing specifications.
- Original bill of lading or other transport document.
- Survey report or other evidence of loss or damage.
- Landing account/weight notes at destination.
- Any correspondence with the carrier/other parties.

Unit 9:
1. Why is there a high percentage of failure in mergers and acquisitions?
- Overpayment due to over -estimating synergy
- Slow pace of integration
- Poor strategy
- Differences in culture: cultural barriers, clash of cultures
- Over-optimism: managers are just too optimistic about prospects for the enlarged
group
- Unrealistic expectations about the futures success of the new company
- The way the two companies are combined
 2. What are the reasons behind a horizontal merger?
- To reduce competition
- To increase market share
- To acquire additional plants and equipment
- To achieve synergy and economies of scales

3. What are the reasons behind a vertical merger?

- To guarantee the apply and coat of raw materials and components
- To be closer to the customers, by cutting out the wholesaler for example and
dealing directly with the retail trade

Part 3: Essay – Writing

Unit 4: Why is letter of credit the commonest method of
payment in international trade?
Title: The Significance of Letters of Credit in International Trade

(8.0 - Huy Công) In the realm of international trade, where transactions span across
borders and involve numerous parties, letters of credit (LCs) emerge as pivotal
instruments facilitating secure and efficient payment mechanisms. This essay
delves into the significance of LCs in international trade, elucidating their
multifaceted roles and contributions.
Firstly, LCs serve as potent risk mitigation tools, assuaging concerns for both
buyers and sellers. Given the geographical and cultural divides inherent in
international commerce, parties often grapple with trust issues. LCs, backed by
reputable financial institutions, provide a semblance of assurance by guaranteeing
payment upon compliance with predetermined terms and conditions. Consequently,
they engender trust and foster smoother transactions.
Moreover, LCs furnish legal sanctity to international trade dealings. As legally
binding documents, they delineate the rights and obligations of involved parties,
ensuring adherence to mutually agreed-upon terms. This legal framework not only
safeguards the interests of buyers and sellers but also facilitates recourse in the
event of disputes, thereby bolstering the integrity of international trade.
Furthermore, LCs offer a degree of flexibility, accommodating diverse payment
preferences and transactional intricacies. Whether revocable or irrevocable,
transferable or non-transferable, LCs can be tailored to suit the specific
requirements of parties involved. Such adaptability enhances the efficacy of
international trade operations, catering to the diverse needs of stakeholders.
Additionally, LCs streamline compliance with regulatory frameworks governing
international trade. By mandating the submission of requisite documents, such as
invoices and bills of lading, LCs ensure adherence to trade regulations and
standards. This not only facilitates customs clearance but also mitigates risks
associated with non-compliance, thereby fortifying the legality and legitimacy of
transactions.
In conclusion, the pervasive adoption of letters of credit underscores their
indispensable role in facilitating secure and seamless international trade. By
mitigating risks, providing legal protection, accommodating flexibility, and
ensuring regulatory compliance, LCs emerge as linchpins of global commerce,
fostering trust and propelling economic integration on a transnational scale.
(8.0 - Mai Khanh) The letter of credit (LC) is widely considered the most prevalent
method of payment in international trade due to its numerous advantages. One key
reason is the high level of security it offers to both buyers and sellers. When an LC
is established, the buyer's bank guarantees payment to the seller upon the
presentation of specified documents that comply with the agreed-upon terms and
conditions. This minimizes the risk of non-payment and non-delivery, which are
common concerns in cross-border trade.
Another significant advantage of the LC is its ability to establish trust between
unfamiliar parties. By involving a trusted financial institution as an intermediary,
the LC ensures that the buyer's payment is only released to the seller once the
agreed-upon conditions have been met. This reduces the chances of fraud or
disputes arising from the transaction, fostering confidence and reliability in
international trade.
Additionally, the LC facilitates trade by providing financing options. Buyers can
benefit from deferred payment terms, allowing them to receive and sell the goods
before making the payment. On the other hand, sellers can utilize the LC as
collateral to secure financing from their bank, enabling them to fulfill large orders
and expand their business operations.
Furthermore, the widespread acceptance of the LC globally contributes to its
popularity. It is governed by internationally recognized rules and guidelines, such
as the Uniform Customs and Practice for Documentary Credits (UCP 600). This
standardization ensures consistency and reliability in trade transactions,
promoting the smooth flow of goods and services across borders.
In conclusion, the LC's prevalence in international trade can be attributed to its
security, trust-building capabilities, financing options, and global acceptance. By
mitigating risks, facilitating trade, and providing a standardized framework, the
LC has become an indispensable tool for businesses engaged in cross-border
transactions.

Unit 5: How important is Marketing to the Society?

A connection between the consumer and the producer which brings new items to retail
stores/shops-from where the consumers can buy them.
Through marketing campaigns, people are better informed of the products and services
available on market, thus making good choices with regard to..... to satisfy their needs
(Without M. bizes cannot create awareness alt their products or build their brands and
consumers cannot have a wide variety of choices to make the best purchasing decisions
for themselves) => M creates a win-win situation for both bizes, who can increase their
sales and profits and consumers who can satisfy their needs with the most suitable
products
M enhances employment opportunities - For continuous production, continuous
marketing is needed. Increased activities provide more jobs for many people. (Eg.
Nowadays M is regarded as a separate field itself with various career paths such as
advertising, sales, public relations, customer services. Almost companies have their own
M depts, with different positions, providing jobs for millions of people.)
M helps in selling surplus items abroad/ to other countries, raising the national income
and generating government revenue. (This is because advertising creates demand for
products and services, which results in increased exports and even foreign exchange
earnings.)

Unit 6: What are the benefits of supply chain management?

Customer Satisfaction
With effective SCM, companies are able to respond to customers' needs and to make
punctual deliveries
A streamlined SC process can improve the total order cycle time (the a/m of time b/t an
order being placed and when it is delivered to a customer)
This not only pulls new customers but also influences the Co's brand loyalty
Effective/Controlled Inventory Management
- The right SCM system ensures that Cos have a well-organized warehousing and
inventory control system in place to reduce holding costs on excess inventory
while still meeting customers’ needs
- This mitigates potential risks of late shipments and increases customer retention
Improved Quality Assurance
- SCM incorporates quality techniques to improve operation such as quality -
management systems
- SC professionals incorporates regular audits of their vendors and raw materials
into the SCM process to enhance the consistent level of product quality
Reduced Costs
The SCM enables the manufacturers to assess their current manufacturing processes,
identifying flaws and inefficiencies and determine the best course of action to address the
issues
The smooth process of production reduces costs and increase profits
Shipping Optimization
Recognizing the most efficient shipping methods for small packages, large bulk orders
and other shipping scenarios helps cos deliver orders to customers faster while keeping
costs minimum

Unit 7: Why do businesses insure their goods against risks?

Protect against financial loss
Marine cargo insurance provides financial security in the event of damage to the
products. A lot of risks or damage may occur in transit fire, explosion, natural disasters,
theft, pilferage, rough handling, pirates, collision and contact of vessel, washing
overboard, entry of water into the vessel, place of storage -> insure their goods in transit
A legal requirement for international trade
Marine insurance may be required by law, particularly for int'l trade Compliance with
these regulations can ensure smooth and legal shipment of goods
Share the risks to others (the insurance co/underwriters) receive the premium
Peace of mind for hiz
Gives biz a sense of satisfaction knowing that their goods are protected in the event of
loss or damage. Biz can focus on their biz operations

Unit 9: What are the reasons for companies to merger with

each other?
To Gain Market shares
To reduce costs of production (economics of scale)
Larger companies enjoy cost savings and competitive advantages that smaller
companies usually don't
Acquire new technologies/ expertise
Acquisition of knowledge in the forms of intellectual property in technology
companies
Companies are often on the lookout to acquire other companies which give them
new technologies and expertise.
In the next decade, as the energy transition continues, we can expect many of the
oil and gas majors to begin investing in renewable energy firms, for example
Over the course of the last decade, Google has acquired over 30 artificial
intelligence (AI) startups, acquiring a range of capabilities in a technology that is set to
be hugely influential in the years ahead.
Synergies
 - market expansion, production diversification, and R&D activities are only a few
factors that can create revenue synergies
- A successful merger may result in economics of scale, access to new technologies,
and even elimination of certain costs. All these events may improve the cost
structure of a company.
Increase efficiency and profits
Grow revenues
- a consolidated entity will secure a higher financial capacity that can be
employed in further business development processes
Taxation purpose
If a company generates significant taxable income, it can merge with a company
with substantial carry for tax losses. After the merger, the total tax liability of the
consolidated company will be much lower than the tax liability of the Independent
company