Assessing and Selecting the Product for Export

Although the basic functions of exporting and domestic selling are the same, international markets differ widely because of great variations in certain uncontrollable environmental forces. These include currency exchange controls/risks, taxation, tariffs, and inflation, which happen to originate outside the business enterprise. Such variations require managers who are aware of global threats and opportunities.

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International Market Research

International market research deals with how business organizations engaged in interna­tional trade make decisions that lead to the allocation of resources in markets with the greatest potential for sales (Ball et al., 2013). This process of market screening helps to maxi­mize sales and profits by identifying and selecting the most desirable markets. Why Conduct

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International Market Assessment

International market assessment is a form of environmental scanning that permits a firm to select a small number of desirable markets on the basis of broad variables. Companies must determine where to sell their products or services because they seldom have enough resources to take advantage of all opportunities. Not using scanning techniques may

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Developing an International Business Plan for Export

A business plan involves a process in which an entity puts together a given set of resources (people, capital, materials) to achieve defined goals and objectives over a specific period of time. In addition to providing the direction necessary for success, a sound business plan should be flexible to take advantage of new opportunities

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Export Counseling and Assistance

A number of assistance sources are available to U.S. exporters. 1. The U.S. Department of Commerce Through the local district office, the exporter has access to all assistance available through the International Trade Administration (ITA) and to trade information gathered overseas by the U.S. and foreign commercial services. The U.S. Trade Information Center serves

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Overseas Travel and Trade Promotion

Once market research is conducted and the target countries are selected, the next step is to visit the countries in order to locate and cultivate new customers or to develop and maintain relationships with foreign distributors. As we enter the twenty-first century, the world has become one market, and this has naturally given rise

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Developing Export Markets

A recent survey by Babson College and the London Business School on entre­preneurship noted that middle-income countries have a larger share of individu­als engaged in business ventures with high growth potential than high-income countries. The study also noted that the countries have higher percentages of people starting businesses. This is partly attributed to the

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Strategies for Entering New Markets

A. Picking the right country Select a country that understands the value of your product. Target a country with growth potential. Start with homogeneous markets or markets of strong trading partners. Target a country where you can sell at a competitive price. B. Understanding the overseas market Be flexible and open minded in establishing

Indirect Export Channels

With indirect channels, the firm exports through an independent local middleman that as­sumes responsibility for moving the product overseas. Indirect exporting entails reliance on another firm to act as a sales intermediary and to assume responsibility for marketing and shipping the product overseas. The manufacturer incurs no start-up cost, and this method provides small

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Direct Export Channels

With direct channels, the firm sells directly to foreign distributors, retailers, or trading com­panies. Direct sales can also be made through agents located in a foreign country. Direct exporting can also be expensive and time consuming. However, it offers manufacturers op­portunities to learn about their markets and customers in order to forge better relationships

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Locating, Contacting, and Evaluating Export Agents and Distributors

Once the firm has identified markets in which to use agents and distributors, it can locate these intermediaries by using various sources: government trade offices (the Department of Commerce in the United States), chambers of commerce, trade shows, international banks and other firms, trade and professional associations, and advertisements in foreign trade publications. After

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Contracts with Foreign Agents and Distributors (Representatives)

It is estimated that about 50 percent of global trade is handled through overseas agents and distributors. Laws governing agents and distributors are complex and vary from country to country. In certain countries, protective legislation favors local representatives with respect to such matters as market exclusivity and duration or termination of contracts. In the

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Major Clauses in Representation Agreements

1. Definition of Territory The contract should define the geographical scope of the territory to be represented by the agent or distributor and whether the representative has sole marketing rights. In exclusive contracts, the agreement has to clearly specify whether the firm reserves the right to sell certain product lines to a specific class

Maintaining and Motivating Overseas Representatives

Agents and distributors can be motivated in many ways to do the best possible job of market­ing and promoting the firm’s product. This could be accomplished by, for example, develop­ing good communications through regular visits from the home office, the organization of conferences, or provision of inexpensive free trips for representatives during a given

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Export Channel Decisions of Two U.S. Companies

1. Wayne Engineering Wayne Engineering is a leading manufacturer of side loaders, recycling vehicles, and recycling and garbage trucks. It uses Tradesur Inc. to handle the promotion, marketing, and distribution of its products in overseas markets. TradeSur is an export management company (EMC) located in San Diego, California, with more than eighteen years of

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The Internet and Exporting: A Focus on Developing Countries

A business that would like to succeed in export markets needs information about market prospects and must continually fine-tune its marketing skills, which in­cludes the use of the Internet and Web-based resources to sell and promote products as well as generate new clients. For example, an export company that plans to participate in an

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International Logistics

Logistics is a total systems approach to management of the distribution process that includes the cost-effective flow and storage of materials or products and related information from point of origin to point of use or consumption. There are two categories of business logistics: Materials management: In the context of export-import trade, logistics applies to

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External Influences on Logistics Functions in International Trade

A number of external factors influence international logistics decisions: regulations, compe­tition, and technology. 1. Regulations Governments in many countries encourage their domestic carriers to handle their exports or imports since the provision of such transportation services contributes to the nation’s bal­ance of payments. This can be illustrated by U.S.-China trade, which is mostly transported

Typical Logistics Problems and Solutions in International Trade

Each export-import firm must use a logistics system that best fits its product line and cho­sen competitive strategy (see Table 6.1 for differences between domestic and international logistics). Example 1 Arturo Imports Incorporated, a firm based in Boca Raton, Florida, specializes in the importation of gift articles from South America and the Caribbean. It

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The International Logistics Proces

In export-import transactions, the following steps represent the approximate order of physi­cal movement and distribution of goods to a foreign buyer. Step 1 As a result of previous correspondence between the prospective seller and buyer, the prospec­tive customer (buyer) places an order to purchase the desired merchandise, including such essential items as terms of

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