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Lecture International Business (11/e) - Chapter 17

After studying this chapter you will be able to understand: What the components of aggregate demand (AD) are and why the AD curve slopes downward? What the components of aggregate supply (AS) are and why the AS curve slopes upward? What factors shift AD and AS? What differences exist between the short and long run? | Export and Import Practices McGraw-Hill/Irwin International Business, 11/e Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved. chapter seventeen Learning Objectives Explain why firms export and problem areas of exporting Identify the sources of export counseling and support Discuss the meaning of the various terms of sale 17- Learning Objectives Identify some sources of export financing Describe the activities of a foreign freight forwarder Understand the kinds of export documents required Identify import sources Explain the Harmonized Tariff Schedule of the United States (HTSUSA) 17- Why Export? Reasons to export To serve markets where the firm has no or limited production facilities To satisfy a host government’s requirement that the local subsidiary have exports To remain price-competitive in the home market To test foreign markets and foreign competition inexpensively 17- Reasons to export? cont’d. To offset domestic market’s cyclical sales To achieve additional sales To extend a product’s life cycle To respond strategically to foreign competitors To achieve the success the firm’s management has seen others achieve To improve the efficiency of manufacturing equipment 17- Reasons not to Export Two major reasons Preoccupation with the vast American market Reluctance to become involved in a new, unknown and therefore risky operation Not active in international markets due to Lack of knowledge Locating foreign markets Payment and financing procedures Export procedures 17- Sources of Export Counseling Trade Information Center (TIC) The federal government has to set this up as a first stop for information Visit http://www.ita.doc.gov/td/tic/ International Trade Administration (ITA) Offers a wide range of export promotion activities that include Market Access and Compliance (MAC) Trade Development U.S. and Foreign Commercial Services (US&FCS) 17- Sources of Export Counseling Small Business Administration (SBA) The office of . | Export and Import Practices McGraw-Hill/Irwin International Business, 11/e Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved. chapter seventeen Learning Objectives Explain why firms export and problem areas of exporting Identify the sources of export counseling and support Discuss the meaning of the various terms of sale 17- Learning Objectives Identify some sources of export financing Describe the activities of a foreign freight forwarder Understand the kinds of export documents required Identify import sources Explain the Harmonized Tariff Schedule of the United States (HTSUSA) 17- Why Export? Reasons to export To serve markets where the firm has no or limited production facilities To satisfy a host government’s requirement that the local subsidiary have exports To remain price-competitive in the home market To test foreign markets and foreign competition inexpensively 17- Reasons to export? cont’d. To offset domestic market’s cyclical sales To achieve