Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-1 International Business Environments & Operations 14e Daniels ● Radebaugh ● Sullivan
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-2 Chapter 13 Export and Import
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-3 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
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-4 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
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-5 Introduction Environmental Factors Influencing Export and Import Operations
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-6 Exporting Learning Objective 1: To introduce the idea of exporting and profile its elements
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-7 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
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-8 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
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 13-9 Characteristics of Exporters Size Large Small and medium-sized enterprises (SMEs) Management commitment Efficiency Cost structure
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Why Export? Reasons to export include Profits Productivity Diversification
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Exporters: Initiation and Development Two approaches Incremental internationalization exporting is a learning process Born global instant internationalization global focus
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Exporters: Initiation and Development Top Ten Trade Partners of the United States
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 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
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Importing Learning Objective 2: To introduce the idea of importing and profile its elements
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 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
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Characteristics of Importers Size most are also exporters Efficiency Innovation Commitment
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Why Import? Reasons to import Specialization of labor Global rivalry Local unavailability Diversification Top management outlook
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Importing and Exporting: Problems and Pitfalls Learning Objective 3: To identify the problems and pitfalls that challenge international traders
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Importing and Exporting: Problems and Pitfalls Financial risks Customer management Lack of international business experience Marketing barriers Top management commitment Trade regulations Trade documentation
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Importing and Exporting: Problems and Pitfalls Types of Export Documents
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Importing and Exporting: Resources and Assistance Learning Objective 4: To identify the resources and assistance that helps international traders
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 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
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Importing and Exporting: Resources and Assistance Trade Information by Type and Source
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 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)
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 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
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Importing and Exporting: Resources and Assistance Where the Trading is Easy – and Where it is Not
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Importing and Exporting: Resources and Assistance Freight forwarders the largest export/import intermediary in terms of value and weight of products shipped internationally
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 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
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Reconciling Opportunity and Challenge: An Export Plan Learning Objective 5: To discuss the idea of an export plan
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Reconciling Opportunity and Challenge: An Export Plan Export plan identifies useful resources, assigns responsibility, and stipulates controls
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Reconciling Opportunity and Challenge: An Export Plan An Export Plan
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Countertrade Learning Objective 6: To outline the practice of countertrade
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 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
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Countertrade Common Types of Countertrade
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Technology and International Trade Advances in technology are leveling the playing field for SMEs Online platform Software platform Logistics platform
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.