Global Marketing

Global
Marketing
Global Market Entry Strategies:
Warren J. Keegan Mark C. Green
Importing, Exporting and Sourcing
Chapter 9 Part 1 Market Entry
Global
Strategies: Licensing,
Investment and
Strategic Alliances
Chapter 9

Copyright 2013, Pearson Education Inc., Publishing as Prentice-Hall

 Key Export Participants
• Foreign Purchasing Agent- these agents operate on behalf of, and are
compensated by, an overseas customer known as a principal
• Export Brokers- receives a fee for bringing together the seller and the
overseas buyer. Although this fee is usually paid by the seller, sometimes the
buyer pays it
• Export Merchants- these marketing intermediaries identify market
opportunities in one country or region and make purchases in other countries
to fill these needs
• Export Distributor- the export distributor usually has the exclusive right to sell
a manufacturer’s products in all or some markets outside the country of
origin
• Freight Forwarders- licensed specialists in traffic operations, customs
clearance, and shipping tariffs and schedules; simply put, they can be thought
of as travel agents for freight
• Direct market representation- enables decisions concerning program
development, resource allocation, or price changes to be implemented
unilaterally
Copyright 2013, Pearson Education Inc., Publishing as Prentice-Hall
 Trade Financing and Payment Methods

• Cash with order- presents the least transaction risk to the exporter. In this
payment arrangement, the exporter sends the importer a pro-forma invoice
with the details and costs of a future shipment
• Open account- In this arrangement, the importer sends a purchase order to
the exporter, which then produces, ships, and subsequently invoices the
importer for the shipment
• Letter of credit (L/C)- An L/C substitutes a bank’s creditworthiness for that of
the importer. From the exporter’s perspective, if it ships and “performs”
under an L/C, it can rely on the full faith and credit of that bank for payment
—not the creditworthiness of the buyer
– Irrevocable L/C- even if the importer subsequently cancels the order or fails to pay
for the merchandise, the opening bank remains obligated to pay the exporter so
long as the exporter has fulfilled the terms given in the L/C

Copyright 2013, Pearson Education Inc., Publishing as Prentice-Hall

Share of US Apparel Market by Exporting Country, 2016
 Governmental Actions to Discourage Imports
• Quotas
• Tariffs
• Discriminatory procurement policies (local content requirements)
• Administrative policies and technical regulations
• Subsidies to local companies

Copyright 2013, Pearson Education Inc., Publishing as Prentice-Hall