4.6 International Contracting

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.

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

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)

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

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).