The document discusses various methods that companies can use to export their products internationally. It describes indirect exporting, where a company uses intermediaries to export without directly dealing with foreign customers, and direct exporting, where a company directly sells abroad through their own affiliates, branches, or export department. It also outlines challenges that small companies face with exporting and provides an example of Colombia's flower exports for Valentine's Day.

1. EXPORTING
ANGELA MARIA ÑUSTES ALVAREZ
KAREM ANDREA GALVIS FORERO

2.  The process of
exporting is sending a
firm’s products or
services to
international
destinations.

3. The company may choose various ways to
export its products:
 1. sometimes the company does nothing more
than supply the products for export.
 2. sells abroad through its own affiliates or
branches.
 3. could sell through an export commision
house or through an export buyer acting as a
purchasing agent for various foreign buyers

5.  Indirectly involvement: the firm participates
through an intermediary and does not deal
with foreign customers or firm.
 Direct involvement: the firm works with and
develops a relationship with foreign
customers, suppliers or markets.

6.  CHARACTERISTICS: Firms don’t have the cost
efficiencies, scale economies, or foreign knowledge to
export directly.
 This firms may contract with another
enterprise that having the experience and
knowledge in the export such as
combination export manager or a
manufacturer’s export agent.

7.  We can find a combination export manager
(CEM), is an independent firm that acts as
the export department of the company.
 A manufacturer’s export agent, unlike the
CEM, doesn’t make sales in the name of
each manufacturer it represents but retains
its own identity by operating in its own
name

8.  Direct exports are goods and services that are sold to
an independent party outside of the exporter’s home
country
 The direct approach involves more expense and
detail than the indirect method
 The company takes responsibility to sell its products
without intermediary, to an importer or buyer located
in a market abroad.
 The company creates an export department to
enable its own staff to concentrate on developing
new markets abroad.

9.  Companies that want to separate international
marketing from its domestic counterpart may
form a separate sales subsidiary.
 Companies that feel the need for closer
supervision over the sales of their products in a
certain market may choose to establish their own
selling offices abroad functioning as foreign
sales branches of the home company.
 In time, the foreign sales branch may be
incorporated by the company as a foreign sales
subsidiary.

10.  Both direct and indirect exporters frequently
make use of intermediaries who can assist
with troublesome such as
 DOCUMENTATION
 FINANCING
 TRANSPORTATION

11. Evaluacion of
credit
Personal Local sales worthiness of
contract with network buyers
potencial
customers
Intermediary (Export
management
companies/ trading
companies ) Transportation
Market and and logistics
competitive expertise
knowledge
Assistence in
Documentation obtaining
and financing
administrative
assistence

12.  Exporting requires significantly lower level of
investment than other modes of international
expansion, such as FDI.
 International experience and the ability to
develop either low-cost or differentiated
products within the contacts of its value
chain.
 Increasing sales
 Increasing profits
 Diversifying income streams

13.  For Small-and-Medium Enterprises (SME) with
less than 250 employees, selling goods and
services to foreign markets seems to be more
difficult than serving the domestic market.
 The lack of knowledge for trade
regulations, cultural differences, different
languages and foreign-exchange situations
as well as the strain of resources and staff
interact like a block for exporting

14.  EXAMPLE
 Colombia exported 500 million flowers for
valentine’s day.
 for the past few months, more than 200,000
Colombians directly or indirectly in the flower
industry worked diligently to get ready for the
most important season of the year, which
generated approximately 12% of sales.

15.  Colombia sent more than 500 million flowers
on 28 daily flights, destined for many
international markets, particulary
U.S.A, CANADA and some EUROPEAN
countries