Chapter 13a Exporting, Importing, & Countertrade

Chapter 13a Exporting, Importing, & Countertrade -...

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Unformatted text preview: 13-1Click to edit Master subtitle styleChapter 13Exporting, Importing, and Countertrade13-2IntroductionQuestion:What type of firm benefits from exporting?Both large and small firms can benefit from exporting The volume of export activity in the world economy is increasing as exporting has become easier thanks to the decline in trade barriers under the WTOregional economic agreements such as the European Union and the North American Free Trade Agreement13-3The Promise and Pitfalls of ExportingExport. Gov http://www.export.gov/exportbasics/exp_001602.asp13-4IntroductionQuestion:What do firms that want to export need to do?Firms wishing to export must identify export opportunitiesavoid a host of unanticipated problems associated with doing business in a foreign marketbecome familiar with the mechanics of exportand import financinglearn where to get financing and export creditinsurancelearn how to deal with foreign exchange risk 13-5The Promise and Pitfalls of ExportingQuestion:What are the benefits of exporting?The benefits from exporting can be great--the rest of the world is a much larger market than the domestic marketLarger firms may be proactive in seeking out new export opportunities, but many smaller firms take a reactive approach to exportingMany novice exporters have run into significant problems when first trying to do business abroad, souring them on following up on subsequent opportunities13-6The Promise and Pitfalls of ExportingQuestion:What are the pitfalls facing exporters?Common pitfalls for exporters includepoor market analysispoor understanding of competitive conditionsa lack of customization for local markets, poor distribution arrangements, bad promotional campaignsa general underestimation of the differences and expertise required for foreign market penetration difficulty dealing with the tremendous paperwork and formalities involved13-7Improving Export PerformanceQuestion:How can exporters improve their performance? To improve their success, exporters shouldacquire more knowledge of foreign market opportunitiesconsider using an export management companyadopt a successful export strategy 13-8An International ComparisonMany firms fail to consider export opportunities simply because they lack knowledge of the opportunities availableBoth Germany and Japan have developed extensive institutional structures for promoting exportsJapanese exporters can also take advantage of the knowledge and contacts of sogo shosha, the countrys great trading houses13-9Information SourcesThe U.S. Department of Commerce is the most comprehensive source of information for U.S. firmsFirms can get a best prospects list of potential foreign distributorsFirms can also participate in trade fairs or get assistance from the Small Business Administration13-10Information SourcesDept. of Commerce- International Trade AdministrationExport. GovSBA- 13-11Utilizing Export Management...
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Chapter 13a Exporting, Importing, & Countertrade -...

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