Practical Aspects in Doing International Business

Running a business on an international scale requires not only a substantial body of knowledge but also the ability to apply it in practice. That is why our textbook, with a vast collection of practical examples, discusses a wide variety of pertinent issues connected with business operations in international markets, from international market analysis, drafting business plans, concluding business transactions and the insurance of goods through to customs clearance procedures and professional etiquette. We also explain the specificity of doing business online. The book is addressed primarily to students of courses in economics and management. We hope it will also make interesting reading for entrepreneurs and people indirectly involved in international business, who work in its immediate environment in banks, chambers of commerce and consulting companies and those who have dealings with public administration at different levels in foreign countries.

Preface 9 Chapter 1. Business etiquette (Janusz Świerkocki) 11 1.1. What is etiquette and why do you need to know and observe it? 11 1.2. Greeting someone and saying hello. Saying goodbye 13 1.3. Introducing people 16 1.4. Visiting cards 16 1.5. Having a conversation 19 1.6. Correspondence 21 1.7. Business events and receptions 23 1.7.1. Invitations 24 1.7.2. Cocktail party 25 1.7.3. Seated parties 27 1.8. Personal appearance and dress code 30 Questions and assignments 32 Literature 33 Chapter 2. Business plan (Tomasz Dorożyński, Wojciech Urbaniak) 34 2.1. Notion 34 2.2. Characteristics 35 2.3. Using a business plan 38 2.4. Contents 42 2.4.1. Executive summary 43 2.4.2. Business description 44 2.4.3. Short description of the project 45 2.4.4. Products and services covered by the project 45 2.4.5. Business location 46 2.4.6. Initial outlays 46 2.4.7. Financing initial outlays 47 2.4.8. Market analysis 48 2.4.9. Market activities plan 50 2.4.10. Human resources 53 2.4.11. Supplies of materials for production (services) 53 2.4.12. Other operating costs of production and their forecast 54 2.4.13. Project timetable 55 2.4.14. Financial forecast 56 2.4.15. Risk factor 57 Questions and assignments 59 Literature 59 Appendices 60 Appendix 1. Simplified Balance Sheet 61 Appendix 2. Profit and Loss Account 62 Appendix 3. Cash Flow Forecast 63 Chapter 3. Foreign market research (Tomasz Dorożyński, Wojciech Urbaniak) 64 3.1. Notion 64 3.2. Characteristics 67 3.3. The role of market research in selecting foreign outlet marketplaces 69 3.4. Geographic market research 70 3.5. Goods and services market research 73 3.6. Stages of foreign market research 77 3.7. Research methods 79 3.8. Sources of information about foreign markets 83 Questions and assingements 85 Literature 85 Chapter 4. International business transactions (Bogdan Buczkowski) 87 4.1. Foreign market entry modes 87 4.1.1. Non-capital forms of operating on the international market 89 4.1.2. Forms of operating on the international market with capital involve- ment 94 4.2. Preparation and conclusion of commercial transactions 96 4.2.1. Inquiry, offer, order and contracts 96 4.2.2. Law applicable to the contract 97 4.2.3. Commercial jurisdiction and enforcement of judgements 100 4.2.4. Commercial uses, customs and contractual clauses 102 4.4.5. Additional contract clauses 110 4.3. Settlements of international business transactions 113 Questions and assignments 116 Literature 117 Chapter 5. Insurance in international business transactions (Bogdan Buczkow- ski) 119 5.1. Classification of risks and risk management 119 5.2. Liability of carriers in international transport 124 5.2.1. Liability of carriers in maritime transport 124 5.2.2. Liability of carriers in road transport 125 5.2.3. Liability of carriers in rail transport 125 5.2.4. Liability of carriers in air transport 126 5.3. Methods for mitigation of risk 127 5.4. Types of insurance contracts 127 5.5. Policy insurance conditions 131 5.6. Procedures for settlement of claims 133 Questions and assignments 135 Literature 135 Chapter 6. Customs procedures in foreign trade (Bogdan Buczkowski) 136 6.1. European Union Customs Code 137 6.2. TARIC – Integrated Tariff of the European Union 137 6.3. Documenting the origin of goods in foreign trade 139 6.4. Customs value of goods as a basis for determining the charges due 140 6.5. Incurrence of the customs debt and guarantees 145 6.5.1. Customs debt on import 145 6.5.2. Customs debt on export 146 6. 6. Customs-approved use of goods 146 6.6.1. Entering the goods into customs free zones or customs warehouses ... 148 6.6.2 Abandonment of goods for the benefit of the state 150 6.6.3. Re-export 150 6.6.4. Destruction of goods 150 6.7. Placing of goods under customs procedures 151 6.7.1. Customs warehouse 151 6.7.2. Processing under customs control 155 6.7.3. Temporary importation or exportation 156 6.7.4. Inward processing 158 6.7.5. Outward processing 160 6.7.6. Release into free circulation 160 6.7.7. External and internal transit 161 6.7.8. Exports 163 6.7.9. Customs declaration with the use of the SAD 165 Questions and assignments 166 Literature 167 Chapter 7. Electronic business (Anetta Kuna-Marszałek) 169 7.1. The substance of the “new” economy 169 7.2. Definition of e-business and related terms 173 7.3. The Internet as an e-business environment 177 7.4. E-business models 180 Questions and assignments 187 Literature 187 List of tables 190 List of figures 191