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International

Business
Environments & Operations
15e
Daniels

Radebaugh

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Sullivan

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Chapter 14
Export and Import

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Learning Objectives
Explain the idea of exporting and profile its
elements
Explain the idea of importing and profile
its elements
Evaluate the relative benefits and
drawbacks of the export and import of ewaste
Describe the problems and pitfalls that
challenge international traders

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Learning Objectives
Define the idea of an export plan
Discuss the practice of countertrade
Describe the resources and assistance for
international traders
Identify and discuss the platforms that
support expanding international trade

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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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World Trade 1960-2010

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Introduction
Environmental Factors Influencing Export and Import Operations

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Exporting
Learning Objective:
Explain 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

Location advantages

the firms core competencies


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 Development
Top Trade Partners of the United States: Exports and Imports

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Approaches to Exporting

Export approaches include

Direct exporting
involves independent representatives,
distributors, or retailers outside of the
exporters 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:
Explain 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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Why Import?
Reasons

to import

Specialization of labor
Global rivalry
Local unavailability
Diversification

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Importing and Exporting:


Problems and Pitfalls
Learning Objective:
Describe 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 challenges
Top management commitment
Government regulation
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 Assistance
Learning Objective:
Describe the resources and assistance for
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 Assistance 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:
Define 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 Plan
An Export Plan

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Countertrade
Learning Objective:
Discuss the practice of countertrade

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Countertrade

Countertrade

Costs

different arrangements that parties use to


trade products via transactions that use limited
or no currency or credit
inefficient
risky
cumbersome

Benefits

build mutually beneficial relationships


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Countertrade
Common 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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mechanical, photocopying, recording, or otherwise, without the prior
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