International Trade & Headlines Business Theory International Trade & Headlines

International Trade What is it? The process of buying and selling goods and services between different countries (Imports & Exports) Why is it more difficult than domestic trading? Language difficulties Exchange rates Legal system Political or Economic instability

Protectionism What is it? Why is it done? Government control of international trade by using restrictions Why is it done? Protect domestic industries Protect employment Raise revenues through tariffs Remove a balance or payment deficit Restrict dumping (selling goods at a very low price to compete with domestic industry)

Trading within the EU & Global TRading 1993 European Single Market opened free trade between member countries Four basic freedoms: Goods, Services, People, Capital Steps toward the realization of these principles: Elimination of border control goods Synchronizing taxation Abolishing VAT Synchronizing standards and certification systems The creation of Common Customs Tariff (depending on goods all nations have the same import tariff rules)

Import/Export documents Commercial Invoice Document that the exporter sends to the importer Contains: name and address of both parties, order number, description of the goods, unit and total amount, shipment details Certificate of Origin States the country of origin (necessary for determing tariffs, rules, etc.) Delivery Note Detail of goods but not prices Signed by importer to show that goods were accepted Packing List Precise detail of the goods (number of packages, weight, size, marks, invoice number)

HEADLINES Maybe the most important part of the ad Demonstrates most important benefits If it isn’t bold and clear the rest of the ad is useless

The direct & Indirect headline Simple and straightforward BUT with enthusiasm «Pure silk blouses – 30% off for one week only» Creates curiosity Forces you to read the whole ad See Volkswagon

News Headline & «How To» Focuses on recent changes or developments «Announcing the new colors of Clarion cosmetics!» Headline explains ways to do something that readers want to know «How to stop smoking in 30 days – the secrets to success!»

Question & Command headline Creates curiosity Can alienate people who aren’t interested «Is your air conditioner costing too much?» Tells the people exactly what to do «Aim high! Buy New Horizons basketball shoes.»

«Reason Why» & Testimonial Self-explanatory «Six reasons why you should join the American Aerospace Institute.» Lets customers do the selling for you. «I won a million dollars playing the Massachusetts lottery!» – Joe Layton, Salem, MA.

Tips and Advice Get attention Target the audience Deliver a complete message Draw the reader into the body copy Promise a benefit

Now it’s your turn! Let’s practice together selling a peach flavored soda drink. First, brainstorm any useful words/expressions: Fresh, pure, sugar-free, tastes like fresh peaches! Now make a headline for each category. Here are some ideas. Direct:______________________________________________________________ Ex. “Discover an orchard full of flavor in every sip of Peach Fizz.” Indirect:_____________________________________________________________ Ex. “It’s a peach.” News: ______________________________________________________________ Ex. “Announcing a new peach-flavored soda with tons of thirst-quenching flavor.” How-to:_____________________________________________________________ Ex. “How to enjoy true peach flavor with no sugar and no caffeine.” Question:____________________________________________________________ Ex. “Why settle for anything less than pure peach flavor in a soft drink.” Command: ___________________________________________________________ Ex. “Get more peach fuzz per square inch. Drink Peach Fizz.” Reason Why:__________________________________________________________ Ex. “Here’s why Peach Fizz takes the peaches.” Testimonial:___________________________________________________________ Ex. “I drink Peach Fizz because it reminds me of the orchards I used to play in.” -Dwight Larson