Good morning everyone, I’m Bohao and going to share my class observation report. The class is “introduction to business”.

The professor introduced the global business standard in the lecture. We learned some terms that are using in global business.

ISO9000
The first one is ISO9000, is a quality policy. Becoming ISO 9000 certified means to pass the ISO 9000 certification audit, the company achieve International Quality Recognition. The standards covers quality, safety, reliability and efficiency etc., customers can be sure of receiving a consistently high level of service.
What does it mean? It means that the company can gain the trust from international customer.
Potential and existing customers know that the company they intend to conduct business with adheres to a set of standards that bear international recognition.

LC – Letter of Credit
A letter of credit is a document from a bank guaranteeing that a seller will receive payment as long as the delivery conditions have been met.
They are often used in international transactions to ensure that payment will be received where the buyer and seller may not know each other and are operating in different countries.

In this case the seller is exposed to a number of risks such credit risk, and legal risk caused by the distance, differing laws and difficulty in knowing each party personally. A letter of credit provides the seller with a guarantee that they will get paid as long as certain delivery conditions have been met.
For this reason the use of letters of credit has become a very important aspect of international trade.

Franchising
Franchising is an arrangement where one party (the franchiser) grants another party (the franchisee) the right to use its trademark or trade-name, to produce and market a good or service according to certain specifications.
And why it need franchising? Let have a look at one example Coco Cola Company, This is the most interesting part I learned in the lecture.

Traditional Trading
We all know the