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a. State the basic elements of an export sales
contract.
b. What is a TNC ? Why do firms become transnational?
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Answer Posted / prabhu
Basic elements or terms present in Export sales contract:
Contract period, Parment terms and modes(L/c, Advance etc),
Tentative quantity, Rates based on Incoterms (FOB, CIF
etc), Customs clearance party name, Dispute solving
procedure, Packing and Labelling conditions, Approx.
delivering date etc.
TNC:Transnational Company nothing but MNC.
Why MNC: To improve market share, to gain Economies of
scale, brand popularity, Govt.Incentives and to avoid
marketing outsourcing cost.
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