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InternationalBusiness

Environments & Operations

15e

Daniels !ade"augh #ulli$an

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Chapter 14

E%port and I&port

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Learning ObjectivesE%plain the idea o( e%porting and pro(ile itsele&entsE%plain the idea o( i&porting and pro(ile

its ele&entsE$aluate the relati$e "ene(its anddra)"ac*s o( the e%port and i&port o( e-)aste

Descri"e the pro"le&s and pit(alls thatchallenge international traders

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Learning ObjectivesDe(ine the idea o( an e%port planDiscuss the practice o( countertradeDescri"e the resources and assistance (orinternational tradersIdenti(y and discuss the plat(or&s thatsupport e%panding international trade

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IntroductionE%porting and i&porting are the &ostco&&on &odes o( international "usinessE%porting and i&porting are one o( the(astest gro)ing acti$ities in the )orld

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World Trade 1960- 010

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IntroductionEn$iron&ental actors In(luencing E%port and I&port perations

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E!portingLearning Objective:E%plain the idea o( e%porting and pro(ile itsele&ents

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E!portingExporting

the sale o( goods or ser$ices produced "y aco&pany "ased in one country to custo&ers

that reside in a di((erent countryypes o( e%porters

on-e%porterccasional e%porter!egular e%porter

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E!portingEntry &ode is in(luenced "yOwnership advantages

the (ir&3s core co&petencies

Location advantagesthe co&"ination o( sales opportunity andin$est&ent ris* that creates (a$ora"le locationsin (oreign &ar*ets

Internalization advantages re(lect co&panies3 response to &ar*eti&per(ections that o(ten create uncertainties

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"#aracteristics o$ E!porters#i e

arge#&all and &ediu&-si ed enterprises6#7Es8

7anage&ent co&&it&entE((iciency

Cost structure

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W#% E!port!easons to e%port include

Pro(itsProducti$ityDi$ersi(ication

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E!porters' Initiationand (evelopment

)o approachesIncremental internationalization

e%porting is a learning processBorn global

instant internationali ationglo"al (ocus

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E!porters' Initiationand (evelopment

op rade Partners o( the 9nited #tates: E%ports and I&ports

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)pproac#es to E!portingE%port approaches include

Direct exportingin$ol$es independent representati$es,distri"utors, or retailers outside o( thee%porter3s ho&e country

Indirect exportingproducts are sold to an inter&ediary in thedo&estic &ar*et, )hich then e%ports the&

Passi$ely (illing orders (ro& do&estic "uyers)ho then e%port the product#elling to do&estic "uyers )ho represent(oreign end users or custo&ers

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ImportingLearning Objective:E%plain the idea o( i&porting and pro(ileits ele&ents

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ImportingImporting

the purchase o( a good or ser$ice "y a "uyer inone country (ro& a seller in another

ypes o( i&portersInput opti&i erspportunistic;r"itrageurs

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W#% Import!easons to i&port

#peciali ation o( la"or

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Importing and E!porting'*roblems and *it$alls

Learning Objective:Descri"e the pro"le&s and pit(alls thatchallenge international traders

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Importing and E!porting'*roblems and *it$alls

inancial ris*sCusto&er &anage&entac* o( international "usiness e%perience7ar*eting challengesop &anage&ent co&&it&ent

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Importing and E!porting'*roblems and *it$alls

ypes o( E%port Docu&ents

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Importing and E!porting'+esources and )ssistance

Learning Objective:Descri"e the resources and assistance (orinternational traders

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Importing and E!porting'+esources and )ssistance

Co&panies can get resources andassistance (ro&

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Importing and E!porting'+esources and )ssistance

rade ;ssistance "y ype and #ource

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Importing and E!porting'+esources and )ssistance

Export intermediariesthird party (ir&s that &ar*et products andser$ices a"road on "ehal( o( &anu(acturers,(ar& groups, and distri"utors

E%port &anage&ent co&pany 6E7C8E%port trade co&panies 6E C8

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Importing and E!porting'+esources and )ssistance

Customs agentsen(orce the rules o( trade (or a particularcountry

Customs bro ershelp i&porters na$igate the regulationsi&posed "y custo&s agencies

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Importing and E!porting'+esources and )ssistance

>here the rading is Easy ? and >here it is ot

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Importing and E!porting'+esources and )ssistance

!reight "orwardersthe largest e%port@i&port inter&ediary inter&s o( $alue and )eight o( products shippedinternationally

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Importing and E!porting'+esources and )ssistance

#hird part$ logistics %&'Ls(&o$e cargo and pro$ide a range o(logistics options

)or* in partnership )ith &anu(acturers,shippers, and retailers

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+econciling Opportunit% and"#allenge' )n E!port *lan

Learning Objective:De(ine the idea o( an e%port plan

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+econciling Opportunit% and"#allenge' )n E!port *lan

Export planidenti(ies use(ul resources, assignsresponsi"ility, and stipulates controls

l d

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+econciling Opportunit% and"#allenge' )n E!port *lan

;n E%port Plan

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"ountertradeLearning Objective:Discuss the practice o( countertrade

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"ountertradeCountertrade

di((erent arrange&ents that parties use totrade products $ia transactions that use li&itedor no currency or credit

Costsine((icientris*y

cu&"erso&e=ene(its

"uild &utually "ene(icial relationships

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"ountertradeCo&&on ypes o( Countertrade

T # l % d

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Tec#nolog% andInternational Trade

;d$ances in technology are le$eling theplaying (ield (or #7Es

nline plat(or&

#o(t)are plat(or&ogistics plat(or&

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)ll rights reserved* +o part o" this publication ma$ be reproduced, stored ina retrieval s$stem, or transmitted, in an$ "orm or b$ an$ means, electronic,mechanical, photocop$ing, recording, or otherwise, without the priorwritten permission o" the publisher* 'rinted in the -nited .tates o" )merica*