Terms and Conditions of Purchase or Sale
Unit 5.1- Terms and Conditions of Purchase or Sale
An international manager may encounter different approaches in working with international customers. Companies may use agents or manufacture representatives, while other companies utilize distributors or wholesalers. These relationships are commonly referred to as the modes of entry. The terms and conditions of the purchase or sale or goods that have been agreed to along with their advantages and disadvantages are important applications in the sales transaction process.
There are three steps:
1. To understand the different modes of entry
2. To learn the commonly used terms of sale including the methods of payment
3. To understand the ways they work within commercial contracts.
Unit Objective
The goal of this material is to introduce you to the terms and conditions associated with a purchase/ sale in international business and their effect on the different relationships that are established between parties to the transaction, including agents, sales representatives, distributors, licensing, franchising and joint venture partnerships. By the end of this unit you will be able to
- identify terms of purchase/sale.
- identify advantages and disadvantages of terms of purchase/sale.
- identify the different relationships that can be established between buyers and sellers.
Unit Outline
- Introduction
- Modes of Entry-Relationships
- Terms of Sale – the Advantages and Disadvantages
- Applying your Knowledge of the Advantages and Disadvantages
- Components and Implications of Commercial Agreements
- Summary
- Resources
- Activities
- Assessment
Correlation: Materials from this unit correlate with NASBITE CGCP's Knowledge Statement 04/05/01: Knowledge of terms and conditions of purchase or sale.