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International Business
Environments & Operations
14e
Daniels ● Radebaugh ● Sullivan
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Chapter 13
Export and Import
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Learning Objectives To introduce the idea of exporting and
profile its elements To introduce the idea of importing and
profile its elements To identify the problems and pitfalls that
challenge international traders To identify the resources and assistance
that helps international traders To discuss the idea of an export plan To outline the practice of countertrade
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Introduction Exporting and importing are the most
common modes of international business Exporting and importing are one of the
fastest growing activities in the world
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IntroductionEnvironmental Factors Influencing Export and Import Operations
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ExportingLearning Objective 1: To introduce the idea of exporting and profile its elements
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Exporting Exporting
the sale of goods or services produced by a company based in one country to customers that reside in a different country
Types of exporters Non-exporter Occasional exporter Regular exporter
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Exporting Entry mode is influenced by Ownership advantages
the firm’s core competencies Location advantages
the combination of sales opportunity and investment risk that creates favorable locations in foreign markets
Internalization advantages reflect companies’ response to market
imperfections that often create uncertainties
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Characteristics of Exporters
Size Large Small and medium-sized enterprises
(SMEs) Management commitment Efficiency Cost structure
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Why Export? Reasons to export include
Profits Productivity Diversification
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Exporters: Initiation and Development
Two approaches Incremental internationalization
exporting is a learning process Born global
instant internationalization global focus
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Exporters: Initiation and DevelopmentTop Ten Trade Partners of the United States
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Approaches to Exporting Export approaches include
Direct exporting involves independent representatives,
distributors, or retailers outside of the exporter’s home country
Indirect exporting products are sold to an intermediary in the
domestic market, which then exports them Passively filling orders from domestic buyers
who then export the product Selling to domestic buyers who represent
foreign end users or customers
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Importing Learning Objective 2: To introduce the idea of importing and profile its elements
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Importing Importing
the purchase of a good or service by a buyer in one country from a seller in another
Types of importers Input optimizers Opportunistic Arbitrageurs
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Characteristics of Importers
Size most are also exporters
Efficiency Innovation Commitment
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Why Import? Reasons to import
Specialization of labor Global rivalry Local unavailability Diversification Top management outlook
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Importing and Exporting: Problems and Pitfalls
Learning Objective 3: To identify the problems and pitfalls that challenge international traders
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Importing and Exporting: Problems and Pitfalls
Financial risks Customer management Lack of international business experience Marketing barriers Top management commitment Trade regulations Trade documentation
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Importing and Exporting: Problems and Pitfalls
Types of Export Documents
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Importing and Exporting: Resources and AssistanceLearning Objective 4: To identify the resources and assistance that helps international traders
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Importing and Exporting: Resources and Assistance
Companies can get resources and assistance from Government agencies The U.S. Department of Commerce
International Trade Administration The Small Business Administration
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Importing and Exporting: Resources and Assistance
Trade Information by Type and Source
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Importing and Exporting: Resources and Assistance
Export intermediaries third party firms that market products and
services abroad on behalf of manufacturers, farm groups, and distributors
Export management company (EMC) Export trade companies (ETC)
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Importing and Exporting: Resources and Assistance
Customs agents enforce the rules of trade for a particular
country Customs brokers
help importers navigate the regulations imposed by customs agencies
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Importing and Exporting: Resources and Assistance
Where the Trading is Easy – and Where it is Not
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Importing and Exporting: Resources and Assistance
Freight forwarders the largest export/import intermediary in terms
of value and weight of products shipped internationally
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Importing and Exporting: Resources and Assistance
Third party logistics (3PLs) move cargo and provide a range of
logistics options work in partnership with manufacturers,
shippers, and retailers
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Reconciling Opportunity and Challenge: An Export
Plan Learning Objective 5: To discuss the idea of an export plan
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Reconciling Opportunity and Challenge: An Export
Plan Export plan
identifies useful resources, assigns responsibility, and stipulates controls
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Reconciling Opportunity and Challenge: An Export
PlanAn Export Plan
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CountertradeLearning Objective 6: To outline the practice of countertrade
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Countertrade Countertrade
different arrangements that parties use to trade products via transactions that use limited or no currency or credit
Costs inefficient risky cumbersome
Benefits build mutually beneficial relationships
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CountertradeCommon Types of Countertrade
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Technology and International Trade
Advances in technology are leveling the playing field for SMEs Online platform Software platform Logistics platform
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