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Mata Kuliah Bisnis Internasional Chapter 15 Resume "Exporting, Importing, & Countertrade" Nama: Syamil Jihad NPM: 1906387436

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MATA KULIAH BISNIS INTERNASIONAL

CHAPTER 15 RESUME
“Exporting, Importing, & Countertrade"

Nama : Syamil Jihad


NPM : 1906387436

Exporting
Promise
- Large revenue and profit opportunities are to be found in foreign markets
- Actually, medium-sized and small-sized enterprises reacts to this
- Medium: wait until the market is saturated then decide to export the market
because of the emergence of excess productive capacity (opportunity)
- Small: wait for the world to come to them

Pitfalls
- Poor market analysis: novice exporters tend to underestimate the time and expertise
- Voluminous paperwork, Complex formalities, Potential delays, and errors

Improving Export Performance


- An international comparison
- Information resources
- Utilizing export management companies (EMCs)
- Export strategy
1. Hire EMC or experienced export consultant
2. Focus on one market rather than many markets
3. Enter on a small scale to reduce failure
4. Recognize the time and managerial commitment
5. Build strong and enduring relationships with local distributors/customers
6. Hire local personnel (likely to have better sense)
7. Be proactive on seeking for export opportunities
8. Hold the option of local production (start production in foreign countries when
the exported goods are sufficient)
Export & Import Financing
- Lack of trust
- Letter of credit
- Draft/Bill of exchange
- Bill of loading
- Export-import banks
- Export credit insurance

Countertrade
Definition: Barterlike agreements, to trade goods and services for other goods and sevices
when they can't be traded for money.

Types of Countertrade
1. Barter: direct exchange of goods/services without cash transaction (not common
because of the problems).
2. Counterpurchase: reciprocal agreement (when a firm agrees to purchase a certain
amount of materials back from a country in which a different sales is made).
3. Offset: one party agrees to purchase goods and services with a specified percentage
from the original sale.
4. Switch trading: the use of a specialized third-party trading house in a countertrade
agreement.
5. Compensation or Buyback: a firm builds a plant in a country (or supplies
technology) and agrees to take a certain percentage of the plant’s output as partial
payment of the contract.

Pros and Cons of Countertrade


Pros
- A way to finance an export deal
- Give an export opportunity
Cons
- Countertrade may involve the exchange of poor quality goods
- Firms may prefer to be paid in hard currency
- Requires firm to invest an in-house trading department that is time and money consuming
Lampiran

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