Global operation

Section 1 (Part 1) Global Operation Management
YARA Y. FIENGO, MBA LCI-004 2- 2011

Global Sourcing
 To understand International the

high demand for logistic and transportation the companyhas to ask:
Why

go international? Why import and export goods?
Yara Y. Fiengo

A few good reasons:
 International customers: There is way to avoid

international customers to buy yourproducts. If customers are international, there is a strong incentive to follow them into their markets. Is better for customers have their suppliers as close as possible.  International competition: Ifa company´s competitors are international, it maybe necessary to match them and go international.

Yara Y. Fiengo

Why…
 Regulations: The law sometimes difficult the

produce of certainproducts, and then it would need to be imported. Environmental regulations are a common example, there are strong rules against some production and also incentive to import those products.  New markets:When you have control of domestic market is necessary to expand your market international. Sometime local market is saturated and go international is crucial.
Yara Y. Fiengo

Why…
 Economicscale:

A company can gain greater economies of the scale by producing more while supplying foreign markets.

Yara Y. Fiengo

International Organizations for Trade and Commerce
PA R T 2

Yara Y.Fiengo

World Trade Organization
 WTO deals with the rules of trade between

nations at a global or near-global level. But there is more to it than that.  There are a number of ways oflooking at the WTO. It’s an organization for liberalizing trade. It’s a forum for governments to negotiate trade agreements. It’s a place for them to settle trade disputes. It operates a system of traderules.

Yara Y. Fiengo

Background
 The WTO began life on 1 January 1995, but its trading

system is half a century older. Since 1948, the General Agreement on Tariffs and Trade (GATT) had...