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Lecture International business: Competing in the global marketplace (9/e): Chapter 16 - Charles W. L. Hill

In this chapter, the learning objectives are: Explain the promises and risks associated with exporting, identify the steps managers can take to improve their firm's export performance, identify information sources and government programs that exist to help exporters, recognize the basic steps involved in export financing, describe how countertrade can be used to facilitate exporting. | International Business 9e By Charles W.L. Hill McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 16 Exporting, Importing, and Countertrade Why Export? Exporting is a way to increase market size and profits Large firms often proactively seek new export opportunities, but many smaller firms export reactively often intimidated by the complexities of exporting Exporting firms need to identify market opportunities deal with foreign exchange risk navigate import and export financing understand the challenges of doing business in a foreign market LO1:Explain the promises and risks associated with exporting. LO2: Identify the steps that managers can take to improve their firm’s export performance. What Are The Pitfalls Of Exporting? Common pitfalls include poor market analysis poor understanding of competitive conditions a lack of customization for local markets a poor distribution program poorly executed promotional campaigns problems securing financing a general underestimation of the differences and expertise required for foreign market penetration an underestimation of the amount of paperwork and formalities involved LO1:Explain the promises and risks associated with exporting. Where Can U.S. Firms Get Export Information? The U.S. Department of Commerce the most comprehensive source of export information for U.S. firms The International Trade Administration and the United States and Foreign Commercial Service Agency “best prospects” lists for firms The Department of Commerce organizes various trade events to help firms make foreign contacts and explore export opportunities The Small Business Administration Local and state governments LO3: Identify information sources and government programs that exist to help exporters. What Are Export Management Companies? Export management companies (EMCs) are export specialists that act as the export marketing department or international department for client firms Two types of . | International Business 9e By Charles W.L. Hill McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 16 Exporting, Importing, and Countertrade Why Export? Exporting is a way to increase market size and profits Large firms often proactively seek new export opportunities, but many smaller firms export reactively often intimidated by the complexities of exporting Exporting firms need to identify market opportunities deal with foreign exchange risk navigate import and export financing understand the challenges of doing business in a foreign market LO1:Explain the promises and risks associated with exporting. LO2: Identify the steps that managers can take to improve their firm’s export performance. What Are The Pitfalls Of Exporting? Common pitfalls include poor market analysis poor understanding of competitive conditions a lack of customization for local markets a poor distribution program poorly executed promotional campaigns problems .