Now we fly it in one day, send instant emails everywhere and watch the final match of the World Cup with billions of others. The purpose of this fourth edition of Import/Export: How to Take Your Business Beyond Borders is to unlock the mysteries of international trade for everyone so that you too can be part of the exciting changes that globalization is bringing.
The Book’s Approach
It explains how to take advantage of what's new on the Internet (Chapter 4: Selling with E-Commerce) and how to do business in the integrated America (Chapter 10), as well as in the changing Europe (Chapter 11) and the growing opportunities in Africa (Chapter 12). The focus is on the profitable business with the underlying concept that it is not enough to just understand exports or imports.
Who Is the Book For?
There are more than 12 million women-owned businesses in the United States—30 percent of all small firms—earning more than $950 billion in 2002, up 22 percent since 1997. Growth Rate for women-owned businesses it was 20 percent. while minority-owned businesses increased by 67 percent.
What’s in the Book?
Many students (even those who have obtained an advanced degree in business administration) who want to start and pursue a career in one or more stages of international trade read this book to learn the practical application of their theoretical work. As the total number has increased, so too has it increased proportionally to those involved in international trade.
The Commonalities
The Differences
Doing Business
For example, Chapter 9 explains how to take advantage of the world trade centers in most of the world's major cities. And of course the book would be incomplete if it did not include discussions of how to do business in Africa (chapter 12), and China and India (chapter 13).
What’s New About This Edition?
Because regionalism is a concept whose day has come, Chapter 10 is about doing business in integrated economies like the Americas with their expanded NAFTA.
How to Use the Book
But you are unlikely to be ready to start trading until you have organized your business to do so. Therefore, Chapter 6 shows you how to set up and manage your business, and then use the basic principles to operate profitably in the import/export business environment.
Summary
COMMONALITIES
WINNING THE TR ADE GA ME
Global Opportunities
S. Deficits and Surpluses
What Is an Import/Export Business?
Whether you operate your business from your home or as an extension of an existing domestic manufacturing business, an import/export business often requires little capital investment to start up. An import/export business also provides great opportunities to travel and enjoy the prestige of working with clients from all over the world.
Where Do Importers and Exporters Trade?
The World Trade Organization (WTO)
Cyber Trading
World Trade Centers Association (WTCA)
Trade Integrations
The EU is now expanding to include some of the newly independent states of Central and Eastern Europe. The latest emphasis on world trade is focused on the countries of the African continent, especially those south of the Sahara where there are large untapped resources and a need for modernization and economic development.
Why Get into Trade?
Tigers” (South Korea, Taiwan, Hong Kong, Singapore and Thailand) are the countries that offer the greatest trade opportunities today. China and India are the two most populous countries and are making special progress in international trade.
Success Stories
The unique concentration of telecom and biomedical companies in the San Diego region is known worldwide and ensures that a high-tech company like Palomar can immediately compete with credibility. Since its founding in the mid-1980s, it has offered services expanding into Mexico and Latin America.
LAUNCHING A PROFITABLE
TR ANSACTION
Terminology
Homework
Choosing the Product or Service
The Personal Decision
The Technical Marketing Decisions
The United Nations considers forty-nine of the world's poorest countries to be least developed countries. That's why it's important to check your products for compliance. Assess the life cycle stage your export/import product is at.
What Is World Class?
In the life cycle of product innovation, new products are typically introduced first to developed countries, providing an opportunity for sales of earlier models to least developed countries. Haiti is the only country in the Western Hemisphere that has been classified as "least developed" by the United Nations.
Making Contacts
Start with the nearest consulate and then contact the international chamber of commerce of that country. In addition, you can make direct contact with the government of the country in which you have an interest.
Market Research
A firm that: (1) sells directly for a manufacturer, usually on an exclusive basis for a specified territory, and (2) maintains an inventory of the manufacturer's goods. Your industry association will know when and where the appropriate trade shows are taking place.
Exporter Checklist
What is the location of the market; what is its size and population. Note that people in major urban areas generally have more money than people elsewhere.). What is the country's economy, its gross national product (GNP), major industries and sources of income.
Importer Checklist
What’s the Bottom Line?
Initial Quotations
This provisional invoice is forwarded by the seller of goods prior to an intended shipment; it advises the buyer of the types and quantities of goods to be shipped, their value and important specifications (weight, size, etc.). Keep in mind that everything in a pro forma invoice is negotiable, so think carefully through any terms affixed to this document.
Terms of Sale
These terms mean that the seller agrees to pay all costs of placing the goods with a. The seller delivers when the goods are made available to the buyer on the arriving means of transport.
The Market Channel
Specific delivery point. A point in sales quotations that specifically indicates where and within what geographic location the goods will be delivered at the cost and responsibility of the seller (eg FAS-designated vessel at named port of export). A seller quotes this term for the price of goods which includes costs for delivery alongside a vessel at port.
Pricing for Profit
Depending on the amount and value of the transaction, the buyer and seller can mutually agree on which currency they want to use. The most important questions are the price of the product and the number of units (sales.
PLANNING AND
NEGOTIATING TO WIN
The Market Plan
Segmenting the Market
Macro Segmentation
Micro Segmentation
Your market plan and planning should cover a period of three to five years, depending on the type of product(s) you are marketing, your competitor(s) and your target market(s). Only if it is in writing will it receive proper attention and sufficient funds be allocated.
Executing the Market Plan
An import micro segmentation can take the data from your market research effort and identify where wholesalers are located.
Personal Sales
Trade Shows (Fairs)
Trade Missions
Special Missions
Seminar Missions
Industry-Organized, Government-Approved Trade Missions
Catalog Shows and Video/Catalog Exhibitions
Trade Show Central
Advertising
Distributors
Overseas Trader’s Checklist
Trading Partner’s Checklist
This is not recommended because: (1) it is time consuming, and (2) it results in goods being impounded or sold at auction when the buyer does not know his or her own trade regulations. Security that the product will not be taken away once it is established in the area.
Negotiations
Preparations
Pay particular attention to the importance of protecting face for the people in the country where you will be negotiating. Make sure that the final contract specifies the terms regarding the cost, quality and delivery of the product.
Agreeing to a Contract
See Chapters 7 and 8, respectively, for an explanation of the freight forwarder and customs broker.). Two types of penalties can be imposed for violating the FCPA, criminal and civil.
Tips and Traps of Culture
What Is Culture?
They learn how to penetrate foreign markets by sending their managers to live and study in “the other person's shoes.” Their mission is to develop relationships with contemporaries that will last for years to come. The Japanese are not trying to change the way of life in the other country; they learn about it.
The Nine Elements of Business Culture
It's the first form of communication you learn, and you use it every day to tell other people how you feel about yourself and them. Social stratification is the hierarchy of classes within a society: the relative power, social priorities, privileges, and income of those classes.
Practical Applications
There are still great gaps between the most advanced nations and those that are still what we call "traditional societies". As a result, you may need to consider things like the training needs for technology transfer and the impact of that transfer on social settings. When faced with such a system of socio-religious rank, it is imperative that you learn how to deal with it—.
Tips for Women
A position in which your hands are crossed in front of your chest can give the impression that you are resisting the other person's ideas.
About Jokes
Intellectual Property Rights
How to apply for patent From original creation From use From use From use from security. Requirements Useful/novel Nonfunctional Fantastic and not confusing Weird, Original unknown creation that stands out from others Nonfunctional.
Patent Registration
In May 2004, however, an impasse was reached and the prospect of a single patent across the European Union is diminishing. The EPC provides a legal framework for the granting of European patents through a single, harmonized procedure before the European Patent Office.
Trademark Registration
Communications
Although most businesses still maintain some form of faxing capability, the technology seems increasingly outdated in the world of the Internet. Today, the Internet is the fastest growing and most exciting place to do business (see Chapter 4).
Travel
The fee charged for the carnet depends on the value of the goods to be covered. Further information can be found in the informative book published by the council entitled Carnet: Move Goods Duty-Free through Customs.
The Internet and Your Business
The real value of the Internet and the World Wide Web that resides there is that it is borderless. Most importantly, the Internet knows no borders—it can reach potential customers in any corner of the world, wherever a person can surf the web.
Getting Started
The home page is like a book cover to the rest of your website for its content. Use your home page to make some essential points, such as who you are, what you offer, and what's on the rest of the pages.
Blogging
The short form, blog, was coined by Peter Merholz, who in April or May 1999 jokingly broke the word Weblogin into the phrase we blog in the sidebar of his blog Peterme.com. It was quickly adopted as both a noun and verb (“to blog,” meaning “to edit one's weblog or to post to one's weblog”).
You Can Create Your Own Web Site
Too many companies hand off the task of creating a website to an old-school marketing director who never gets past email. The trick is to get your domain name at the top of the search engine list.
Getting Out There
The trick is to get your address as high on the search engine list as possible. For example, the term "international business" will bring domain names like internationalbusiness.com or international-business.com or internationalbusiness.org to the top of the list.
Finding Foreign Markets
Finding Foreign Buyers
Government Procurement
Pricing and Marketing Your Product
Marketing Techniques
If you don't have an email address, you might as well pack up and move to the South Pole.
Getting Paid
Keeping in Touch
What About the Future?
This author does not claim to be an expert in this field, but encourages those involved in this important area of world trade to familiarize themselves with the latest methods.
Further Readings
This chapter covers the remaining common features, that is, paying for the goods and physically moving them from one country to another. Are you now ready for the steps required to complete an import or export transaction?
Financing
An internet banking customer accesses their accounts from a browser - the software that runs the internet banking programs that are installed around the bank's world. The credit recipient must confirm that there is no duplication. draw) to a creditor to whom money is owed (draw bills of exchange).
Factors
Other Private Sources of Financing
The Export-Import Bank of the United States is a federal agency to help finance the export of US long-term loans and guarantees are provided for more than seven years, but not usually more than 10 years.
Avoiding Risk
Although this method costs less than the letter of credit (defined below), it carries greater risk because the importer may refuse to honor the draft. The cost of a futures contract is small - the difference between the cost of the spot market (today's cost of money) and the cost of the futures market.
Agency/Distributor Agreements
Hedging or hedging is the use of the foreign exchange futures market to hedge foreign currency risk. The best business decision for an importer/exporter is to hedge or hedge in the forward market when there is a risk of exposure.
Physical Distribution (Shipping and Packing)
State expressly the rights and obligations of the parties. The agency contract should contain a description of the rights and obligations of each party, the nature and duration of the relationship, and the reasons why the agreement can be terminated. The advantages are (1) the speed of delivery, which gets perishable cargoes to their destination in good condition;. 2) the ability to respond to unpredictable product requirements; and (3) the rapid movement of repair parts.
Documentation
Remember warning signs such as, "this side" or "handle with care" in both the source language and the destination language.
The Documents
It is obtained from the commercial attache or through the consular office of the country in question at the port of export. Commercial attache. The commercial expert of the diplomatic staff of his or her country's embassy or consulate in a foreign country.
The Mechanics of Start-Up
Commandments of Starting an Overseas Business
Focus all available resources on two or three products or objectives within a given time period. Walk on two legs.” Choose a good freight forwarder or customs house broker to go along with your banker.
The Business Plan
If you've done your homework as discussed in Chapter 2 and applied the marketing concepts provided in Chapter 3, this part of the business plan should be easy. Your business plan provides a timeline, but it's a test of whether it will work.
THE DIFFERENCES
