Deck 17: Developing a Competitive Advantage

Question 1

What are the advantages of learning to use International English and Special English in communicating with non-native speakers of English?

Answer 1

The benefits of learning to use International English and Special English in conversing with non-native speakers of English are these forms of English facilitate and simplify communication between native and non-native English speakers. Not only do these two English forms improve communication and understanding, but they also standardize English and remove cultural references that may confuse a non-native English speaker. These forms of English create a basic foundation that promotes a universal framework for conducting business in English transnationally.

Question 2

What are the advantages of using the metric system in international commerce?

Answer 2

The benefits of using the metric system within international commerce would be that the measurements would be coordinated with essentially the whole worlds system of measurement (with the exception of U.S, Liberia, and Myanmar). The metric system possesses a well defined set of accurate measurements that have been systematically established. Also within the metric system, it is easier to move between units and there are no ambiguous conventions. Each of these benefits would greatly facilitate international trade as well as the production of goods between the U.S. and all the countries utilizing the metric system.

Question 3

What are the trade-offs between utilizing a standardized policy and remaining flexible for an exporter? You can choose either terms of payment or Incoterms to illustrate your points.

Answer 3

The trade-offs between using a standardized policy versus maintaining modifiable policies for an exporter, in terms of payment, are that an exporter could consider the use of various forms of currency in a means that would promote increased business ventures. Though there may be risks of loss of revenue due to currency fluctuation within the markets, the exporter could enjoy strategic advantage by providing quotes in the importer's currency. The exporter could utilize banking hedges to buffer any losses incurred within international currency fluctuation or through the payments of invoices.

Question 4

In your opinion, why is it important for an exporter to sell in the importer country's currency?

Question 5

What are the advantages of having an "environmentally friendly" packaging policy for an exporter?