This document provides an overview of international business and exporting. It defines exporting as the sale of products and services made in one country to foreign markets. Exporting is described as an effective entry strategy for small-to-mid-sized companies due to its low costs and risks compared to other strategies. The benefits of exporting include access to new markets and revenues, foreign currencies, and lower manufacturing costs from higher production volumes. The document also outlines various documentation like bills of lading, invoices, and letters of credit used in international trade as well as the export procedure.
2. Prepared By
Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com
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3. Introduction
• Exporting is defined as
the sale of products and
services in foreign
countries that are
sourced or made in the
home country.
4. Introduction
• Exporting is an effective
entry strategy for companies
that are just beginning to
enter a new foreign market.
It’s a low-cost, low-risk
option compared to the
other strategies. These same
reasons make exporting a
good strategy for small and
midsize companies that can’t
or won’t make significant
financial investment in the
international market.
5. Why Do Companies Export?
• Companies export
because it’s the easiest
way to participate in
global trade, it’s a less
costly investment than
the other entry strategies,
and it’s much easier to
simply stop exporting
than it is to extricate
oneself from the other
entry modes.
6. Benefits of Exporting
• Market -The company has
access to a new market,
which has brought added
revenues.
• Money - Not only will
company earned more
revenue, but it has also gain
access to foreign currency,
which benefits companies
located in certain regions of
the world.
7. Benefits of Exporting
• Manufacturing - The
cost to manufacture a
given unit decreased
because company can
manufacture products
at higher volumes and
buy source materials in
higher volumes, thus
benefitting from volume
discounts.
8. Specialized Entry Modes: Contractual
• Two main contractual
entry modes
– Licensing
– Franchising.
9. Specialized Entry Modes: Investment
• Beyond contractual
relationships, firms can
also enter a foreign
market through one of
two investment
strategies:
– Joint venture
– Wholly owned subsidiary.
10. Various forms of documentation
• The bill of lading is the
contract between the
exporter and the carrier
(e.g., UPS or FedEx),
authorizing the carrier
to transport the goods
to the buyer’s
destination. The bill of
lading acts as proof that
the shipment was made
and that the goods have
been received.
11. Various forms of documentation
• A commercial or customs
invoice is the bill for the
goods shipped from the
exporter to the importer
or buyer. Exporters send
invoices to receive
payment, and
governments use these
invoices to determine the
value of the goods for
customs-valuation
purposes.
12. Various forms of documentation
• The letter of credit is a
legal document issued
by a bank at the
importer’s (or buyer’s)
request. The importer
promises to pay a
specified amount of
money when the bank
receives documents
about the shipment.
13. Export Procedure
1. Registration.
2. Processing of Shipping Bill.
3. Quota Allocation and Other certification for Export Goods.
4. Arrival of Goods at Docks.
5. System Appraisal of Shipping Bills.
6. Status of Shipping Bill.
7. Customs Examination of Export Cargo.
8. Variation Between the Declaration & Physical
Examination.
9. Stuffing / Loading of Goods in Containers.
10. Drawal of Samples.
11. Generation of Shipping Bills.
12. Export General Manifest.
