BBB Aspects of International Business – ASPECTS OF INTERNATIONAL BUSINESS

BBB Aspects of International Business 2 INTERNATIONAL TRADE Manufactured goods must meet the standards of the country to which they are shipped (cars – pollution guidelines)

BBB Aspects of International Business 3 IMPORTING Purchasing products/services from foreign countries to satisfy the needs and wants of their own country’s consumers Why Import? –products are only available abroad –more conveniently and economically obtained abroad –better quality products

BBB Aspects of International Business 4 Steps to Importing: 1.Canadian importer must ensure Canadian demand for a product 2.Importer must contact foreign suppliers 3.Purchase must be finalized a.Who will pay for shipping? b.When will the items be delivered? c.How will payment be made?

BBB Aspects of International Business 5 1.Importer needs to check the order when it arrives to ensure that everything is included and that there is no damage

BBB Aspects of International Business 6 Important for foreign companies to know exactly what Canadian consumers want (quality, features, etc.) or money would have been wasted and reputation potentially soiled

BBB Aspects of International Business 7 EXPORTING Exporting - Selling products to foreign companies, organizations, or governments Steps to Exporting: 1.Exporter find potential foreign businesses or individuals with demand for a Canadian product 2.Meet the needs of those consumers 3.Agree on sales terms with the buyer 4.Provide the products or services to the buyer 5.Complete the transaction

BBB Aspects of International Business 8 Exporting challenges: –Establishing a company presence in the foreign country (competition may already exist) –Developing sufficient production capacity to manufacture goods for export (domestic and foreign market) –Coping with high costs of doing business in other countries (tariffs, shipping, etc.) –Understanding the way that business is done in the target country (cultural norms/expectations)

BBB Aspects of International Business 9 The faster the product is shipped and the more care that must be taken with it, the more it will cost Top three exports from Ontario: –Automotive products –Machinery and equipment –Industrial goods

BBB Aspects of International Business 10 TRADE MISSIONS Visits to a country by foreign buyers and investors, designed to increase the visitor’s knowledge of Canada as a potential source of supply and a place to invest or arrange a joint venture Outgoing – Canadian firms  target foreign market Incoming – Foreign firms  Canadian market

BBB Aspects of International Business 11 Team Canada –a government-sponsored trade mission that promotes Canada as a good place to do business –led by the Canadian prime minister along with other federal, provincial, and territorial government leaders, and representatives from Canadian businesses that are interested in importing or exporting –has helped over 2800 Canadian business people generate over $30 B in new business through its missions to various countries

BBB Aspects of International Business 12 TRADE SHOWS Allows a potential foreign purchaser to communicate with suppliers in Canada Potential/newly established exporters have an opportunity to: –promote their products and services –identify potential sales opportunities –develop valuable business contacts –locate agents and distributors