Global Sourcing Logistics: How to Manage Risk and Gain Competitive Advantage in a Worldwide Marketplace

Hazmat: Hazardous materials regulated by various gov-

ernment agencies, DOT/CFR Title 49, IATA, IMCO, Coast

Guard, etc. Personnel who interface with hazmat cargoes

need to be certified to do so.

Hedging: A mechanism that allows an exporter to take a

position in a foreign currency to protect against losses due

to wide fluctuations in currency exchange rates.

Hold: The space below deck inside an ocean-going vessel.

International Air Transportation Association (IATA):

Agency that regulates and promotes safe, reliable, secure,

and economical air services for travelers and air freight.

In bond: Transportation of merchandise under custody of

a bonded carrier

Irrevocable letter of credit: A letter of credit in which the

specified payment is guaranteed by the bank if all terms

and conditions are met by the drawee (buyer). See also

Revocable letter of credit.

ISO 9000: Issued in 1987 by the International

Organization for Standardization, ISO 9000 is a series of

five international standards that establish requirements

for the quality control systems of companies selling

goods in the European Community. It now includes

many additional countries and companies throughout

the world.

Joint venture: A business undertaking in which more

than one company shares ownership and control.

Letter of credit: A document issued by a bank per instruc-

tions from a buyer of goods that authorizes the seller to

draw a specified sum of money under specified terms, usu-

ally on the receipt by the bank of certain documents

within a given period of time.

Licensing: A business arrangement in which the manu-

facturer of a product (or a company with proprietary

rights over certain technology, trademarks, etc.) grants

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