Week_7_Course_Materials

Week_7_Course_Materials - Export Import and Countertrade...

Info iconThis preview shows pages 1–15. Sign up to view the full content.

View Full Document Right Arrow Icon
Export, Import and Countertrade
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Exporting To ship to another country for sale or exchange.
Background image of page 2
Government Support for Exports www.bundesregierung.de www.miti.go.jp
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
US Export Support www.doc.gov www.ita.doc.gov
Background image of page 4
Exporting Strategy x It helps to hire an EMC or, at least, someone with experience. x Focus on one or a few markets. x Enter markets on a fairly small scale until you ‘learn the ropes’. Add new lines after initial success. x Need to recognize the time and managerial commitment. x Build strong and lasting relationships. x Hire locals to help firm establish itself. x Keep the option of local production in mind.
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Export/Import Financing x Letters of Credit (LOC) x Bank guarantee on behalf of importer to exporter assuring payment when exporter presents specified documents x Drafts (Bill of Exchange) x Written order exporter, telling an importer to pay a specified amount of money at a specified time. x Bill of Lading x Issued to exporter, by carrier. Serves as receipt, contract and document of title.
Background image of page 6
Preference of the US Exporter French Importer U.S. Exporter 1. Importer Pays for Goods 2. Exporter Ships Goods After Being Paid
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Preference of the French Importer French Importer American Exporter 1. Exporter Ships the Goods 2. Importer pays after the Goods are Received
Background image of page 8
The Use of a Third Party French Importer American Exporter 1. Importer Obtains Bank’s Promise to Pay on Importers Behalf 5. Bank Gives Merchandise to Importer Bank 6. Importer Pays Bank 3. Exporter Ships “to the Bank.” Trusting Bank’s Promise to Pay 2. Bank Promises Exporter to Pay on Behalf of Importer 4. Bank Pays Exporter
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
A Typical International Transaction French Importer American Exporter Bank of New York Bank of Paris 6. Goods Shipped to France 7. Exporter Presents Draft to Bank 10 and 11 Exporter Sells Draft to Bank 14. B of NY Presents Matured Draft and Gets Payment 12. Bank Tells Importer Documents Arrive 13. Importer Pays Bank 2. Exporter Agrees to Fill Order 1. Importer Orders Goods 3. Importer Arranges for LOC 8. B of NY Presents Draft to Bank of Paris 9. Bank of Paris Returns Accepted Draft 4. Bank of Paris Sends LOC to B of NY 5. B of NY Informs Exporter of LOC
Background image of page 10
Ex-Im Bank www.exim.gov
Background image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
The Role of Government in the Export/Import Environment x Political x Protecting jobs and industries. x National security. x Retaliation. x Economic x Develop/protect infant industry. x Strategic trade policy. First mover advantage. The ‘catch-up’ argument.
Background image of page 12
Imports x Two basic types: x Industrial and consumer goods to independent individuals and companies x Intermediate goods and services that are part of the firm’s global supply chain x Customs Agencies assess and collect duties and ensure that import regulations are followed x An import broker is an intermediary helping importers to clear customs.
Background image of page 13

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
x Two types: x Determining customs release of the shipment x Containing information for duty assessment and statistical purposes
Background image of page 14
Image of page 15
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 55

Week_7_Course_Materials - Export Import and Countertrade...

This preview shows document pages 1 - 15. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online