1. International Trade & Headlines
Business Theory
International Trade & Headlines

2. 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

3. 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)

4. 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)

5. 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)

6. 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

7. 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

8. 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!»

9. 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.»

10. «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.

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

12. 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