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International Business Transactions Outline Essay

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IBT OUTLINE—Karamanian, Spring 2008 I. Modern Forms and Patterns of IBT a. Types of IBTs, categorized by penetration: i. export-import transaction ii. agent or distributor sells goods abroad iii. licensing to a foreign entity to manufacture and distribute products abroad iv. Joint ventures b. Forms of Trade i. Goods ii. Services iii. FDI iv. Knowledge/Technology Transfer c. MNE i. DEFINITION: a number of affiliated businesses which function simultaneously in different countries, are joined together by ties of common ownership of control, and are responsible to a common …show more content…

minimum coverage = K cost plus 10% (110% coverage) 4. Must have a negotiable B/L a. in CIF, the goods are delivered past the ship’s rail, but S does not possess them until the port of destination. This is distinct from the FOB where delivery and possession occur at same time. 5. Buyer has a right to inspect before shipment (unlike FOB) 6. only for waterway transport iv. Biddell Brothers v. E. Clemens Horst Company (Ct. Ap. King’s Bench, 1911) 1. Kennedy, Dissent(even though the K does not require payment against documents, it is necessarily implied by the term CIF, because otherwise the S would give up the goods, while B would still be able to reject them at the port of delivery, or would have to hold the B/L until goods were accepted, in violation of the K. This view was taken upon appeal to H of Lords. 2. Reference Parker v. Schuller (1901) in which Seller sues Buyer under a CIF K for not shipping the goods. The sellers lost on appeal b/c they should have argued that the breach occurred when B failed to ship the documents, b/c the documents could not have been shipped without shipping the goods. 3. SIG: a. CIF(duty to deliver documents to S, goods to carrier. b. Buyer has no right to inspect at port of

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