IBM 416 - Final Study Guide Amir (1) (1) - Article 1 How to Start an Import\/Export Business(Nicole Link http\/www.entrepreneur.com\/article\/41846-1 What

IBM 416 - Final Study Guide Amir (1) (1) - Article 1 How to...

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Article 1: How to Start an Import/Export Business (Nicole) Link: · What is the total export of U.S. in dollars? - $772 billion · How many countries did U.S. export to ? - 150 · What percent of exporters are small businesses? - 96% · What are the three main reasons that importing is such a big business in the United States and around the world? - availability, cachet, price · What are the two factors that make one product less expensive for a nation to manufacture than another? - resource and technology What are the types of import/export businesses discussed in the article? - EMC, ETC, Import/export merchant, · What are their characteristics ?- EMC he EMC does it all--hiring dealers, distributors and representatives; handling advertising, marketing and promotions; overseeing marking and packaging; arranging shipping; and sometimes arranging financing. In some cases, the EMC even takes title to the goods, in essence becoming its own distributor. EMCs usually specialize by product, foreign market or both, and--unless they've taken title--are paid by commission, salary or retainer plus commission. Export trading company (ETC) : While an EMC has merchandise to sell and is using its energies to seek out buyers, an ETC attacks the other side of the trading coin. It identifies what foreign buyers want to spend their money on and then hunts down domestic sources willing to export. An ETC sometimes takes title to the goods and sometimes works on a commission basis. Import/export merchant: This international entrepreneur is a sort of free agent. He has no specific client base, and he doesn't specialize in any one industry or line of products. Instead, he purchases goods directly from a domestic or foreign manufacturer and then packs, ships and resells the goods on his own. This means, of course, that unlike the EMC, he assumes all the risks (as well as all the profits). · What is the main difference between import/export merchant and the EMC? - the EMC, he assumes all the risks (as well as all the profits · What are the middlemen described in the article? Manufacturer's representative: a salesperson who specializes in a type of product or line of complementary products; for example, home electronics: televisions, radios, CD players and sound systems. He often provides additional product assistance, such as warehousing and technical service. Distributor or wholesale distributor: a company that buys the product you've imported and sells it to a retailer or other agent for further distribution until it gets to the end user Representative: a savvy salesperson who pitches your product to wholesale or retail buyers, then passes the sale on to you; differs from a manufacturer's representative in that he doesn't necessarily specialize in a particular product or group of products Retailer: the tail end of the trade channel where the merchandise smacks into the consumer; as yet another variation on a theme, if the end user is not Joan Q. Public but an original equipment
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