International
Business
Environments & Operations
15e
Daniels
Radebaugh
Copyright 2015 Pearson Education, Inc.
Sullivan
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Chapter 14
Export and Import
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Learning Objectives
Explain the idea of exporting and profile its
elements
Explain the idea of importing and profile
its elements
Evaluate the relative benefits and
drawbacks of the export and import of ewaste
Describe the problems and pitfalls that
challenge international traders
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Learning Objectives
Define the idea of an export plan
Discuss the practice of countertrade
Describe the resources and assistance for
international traders
Identify and discuss the platforms that
support expanding international trade
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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
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World Trade 1960-2010
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Introduction
Environmental Factors Influencing Export and Import Operations
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Exporting
Learning Objective:
Explain the idea of exporting and profile its
elements
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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
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Exporting
Entry mode is influenced by
Ownership advantages
Location advantages
the firms core competencies
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
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Characteristics of Exporters
Size
Large
Small and medium-sized enterprises
(SMEs)
Management commitment
Efficiency
Cost structure
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Why Export?
Reasons to export include
Profits
Productivity
Diversification
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Exporters: Initiation
and Development
Two approaches
Incremental internationalization
exporting is a learning process
Born global
instant internationalization
global focus
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Exporters: Initiation
and Development
Top Trade Partners of the United States: Exports and Imports
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Approaches to Exporting
Export approaches include
Direct exporting
involves independent representatives,
distributors, or retailers outside of the
exporters 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
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Importing
Learning Objective:
Explain the idea of importing and profile
its elements
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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
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Why Import?
Reasons
to import
Specialization of labor
Global rivalry
Local unavailability
Diversification
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Importing and Exporting:
Problems and Pitfalls
Learning Objective:
Describe the problems and pitfalls that
challenge international traders
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Importing and Exporting:
Problems and Pitfalls
Financial risks
Customer management
Lack of international business experience
Marketing challenges
Top management commitment
Government regulation
Trade documentation
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Importing and Exporting:
Problems and Pitfalls
Types of Export Documents
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Importing and Exporting:
Resources and Assistance
Learning Objective:
Describe the resources and assistance for
international traders
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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
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Importing and Exporting:
Resources and Assistance
Trade Assistance by Type and Source
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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)
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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
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Importing and Exporting:
Resources and Assistance
Where the Trading is Easy and Where it is Not
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Importing and Exporting:
Resources and Assistance
Freight forwarders
the largest export/import intermediary in
terms of value and weight of products shipped
internationally
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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
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Reconciling Opportunity and
Challenge: An Export Plan
Learning Objective:
Define the idea of an export plan
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Reconciling Opportunity and
Challenge: An Export Plan
Export plan
identifies useful resources, assigns
responsibility, and stipulates controls
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Reconciling Opportunity and
Challenge: An Export Plan
An Export Plan
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Countertrade
Learning Objective:
Discuss the practice of countertrade
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Countertrade
Countertrade
Costs
different arrangements that parties use to
trade products via transactions that use limited
or no currency or credit
inefficient
risky
cumbersome
Benefits
build mutually beneficial relationships
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Countertrade
Common Types of Countertrade
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Technology and
International Trade
Advances in technology are leveling the
playing field for SMEs
Online platform
Software platform
Logistics platform
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