This document summarizes an international trade workshop covering topics like assessing foreign markets, finding buyers, and payment methods for international trade. The workshop discusses evaluating priority markets like Japan and Mexico for US tomato exports. It also covers using trade data, trade events, and US resources to find buyers. Regarding payments, it outlines cash-in-advance, letters of credit, open accounts, and how export credit insurance and financing programs can mitigate risks of nonpayment.
Answers to exporting questions. International trade is easy if you are prepared. Get answers to basic global business questions, by the Import Export Institute.
The given PPT consist of the details about Globalisation,international business and international marketing along with the difference between TNC's & MNC's
introduction to export marketing
features of Export Marketing;
Importance of Exports for a Nation and a Firm;
Factors influencing Export Marketing;
Problems of India’s Export Sector
Global market place, discuss barriers in marketing,
1. Looking at the Global Marketing Environment
2. Deciding Whether to Go Global:-
3. Deciding Which Markets to Enter
4. Deciding How to Enter the Market
5. Deciding on the Global Marketing Organization
In this presentation we will discuss all the methods by which we can be able to inter in the global market.........
Export marketing means marketing of goods and services beyond the national boundaries”.
Export marketing means exporting goods to other countries
of the world. It involves lengthy procedure and formalities. In export
marketing, goods are sent abroad as per the procedures framed by
the exporting country as well as by the importing country. Export 2
marketing is more complicated to domestic marketing due to
international restrictions, global competition, lengthy procedures
and formalities and so on. Moreover, when a business crossed the
borders of a nation, it becomes infinitely more complex. Along with
this, export marketing offers ample opportunities for earning huge
profits and valuable foreign exchange.
Answers to exporting questions. International trade is easy if you are prepared. Get answers to basic global business questions, by the Import Export Institute.
The given PPT consist of the details about Globalisation,international business and international marketing along with the difference between TNC's & MNC's
introduction to export marketing
features of Export Marketing;
Importance of Exports for a Nation and a Firm;
Factors influencing Export Marketing;
Problems of India’s Export Sector
Global market place, discuss barriers in marketing,
1. Looking at the Global Marketing Environment
2. Deciding Whether to Go Global:-
3. Deciding Which Markets to Enter
4. Deciding How to Enter the Market
5. Deciding on the Global Marketing Organization
In this presentation we will discuss all the methods by which we can be able to inter in the global market.........
Export marketing means marketing of goods and services beyond the national boundaries”.
Export marketing means exporting goods to other countries
of the world. It involves lengthy procedure and formalities. In export
marketing, goods are sent abroad as per the procedures framed by
the exporting country as well as by the importing country. Export 2
marketing is more complicated to domestic marketing due to
international restrictions, global competition, lengthy procedures
and formalities and so on. Moreover, when a business crossed the
borders of a nation, it becomes infinitely more complex. Along with
this, export marketing offers ample opportunities for earning huge
profits and valuable foreign exchange.
Lectures on International Marketing ManagementFarhana Akter
A multi mediia class lecture on-International Marketing Management for BBA,MBA,CA, ICMA Students and Corporate Trainees/Executives
____________________________________________
Dear Students and trainees/
Welcome you all !
This lecture is mainly prepared for the students of marketing & international business and also for the trainees who are working at corporate sectors and whose jobs are related with international marketing management.
I hope, you surely benefited from this lecture at your practical arena.
Thank you all.
International Business basic concept of international business
,
approaches to international business/ modes of ent
,
barriers to international business
,
absolute advantage and comparative advantage
Envolez-vous en Jet Privé pour assiter à la finale Messieurs de tennis Wimbledon 2015 en formule hospitalité VIP depuis Paris, Genève ou toute ville Européenne.
Lectures on International Marketing ManagementFarhana Akter
A multi mediia class lecture on-International Marketing Management for BBA,MBA,CA, ICMA Students and Corporate Trainees/Executives
____________________________________________
Dear Students and trainees/
Welcome you all !
This lecture is mainly prepared for the students of marketing & international business and also for the trainees who are working at corporate sectors and whose jobs are related with international marketing management.
I hope, you surely benefited from this lecture at your practical arena.
Thank you all.
International Business basic concept of international business
,
approaches to international business/ modes of ent
,
barriers to international business
,
absolute advantage and comparative advantage
Envolez-vous en Jet Privé pour assiter à la finale Messieurs de tennis Wimbledon 2015 en formule hospitalité VIP depuis Paris, Genève ou toute ville Européenne.
Rendez-vous AFUP autour de "mini conférences PHP" le jeudi 26 janvier 2017, dès 18h30 dans les locaux de Deezer.
Présentation sur l'utilisation de Logs, de librairies loggers tels que Log4php, Monolog, KLogger et Analog et cas pratique d'utilisations avec des outils. (SPLUNK, KIBANA et AppDynamics)
Global marketing - international marketing definedRECONNECT
This is the lecture of course "Global Marketing"
This slideshare network of RECONNECT will provide all the presentation related to case studies, project presentations, educational, motivational slides & much more.
Follow Reconnect on slide share.
Official fb page: facebook.com/reconnectt
Official fb group: facebook.com/groups/reconnecting.tech/
Rights are reserved for this presentation. Please inbox 1st to get permission to use this
International business; competitive advantages; evolution; nature of international business; reasons and stages of internationalisation; approaches and theories of international business; comparative cost advantage and problems of international business.
bal market place
Agenda 1. Looking at the Global Marketing Environment 2. Deciding Whether to Go Global:- 3. Deciding Which Markets to Enter 5. Deciding on the Global Marketing Organization 4. Deciding How to Enter the Market 4
5. Looking at the Global Marketing Environment • Before deciding whether to operate internationally, a company must understand the international marketing environment.
This ppt covers evolution & nature, various stages, benefits, comparison between Domestic & International Marketing along with description of controllable and uncontrollable elements.
Introduction to International BusinessAshwin Kumar
Introduction to International Business is a comprehensive study of the various aspects of International Business. This presentation will provide better insights into the definition, nature, scope, characteristics, approaches, reasons, advantages and disadvantages.
Presentation slides from CCI's Malaga Business Workshop, Top strategies for growth in 2015.
Gain insight into a range of practical and easy to implement growth and turnaround strategies which will help you continue to build your business and thrive in turbulent times.
These slides provide practical advice and insights into the following key areas:
- Critical market insights for the Malaga area and WA manufacturing sector.
- Growth opportunities that you can implement and exploit right now.
- Advice on cash flow management and business turn around.
For more information please visit our website www.cciwa.com
Use this comprehensive primer to simplify exporting, discover exportable products and services, and determine and select the best target market entry alternative while ensuring that you get paid. See the book on Amazon and learn more at www.raymondhopkins.net.
Similar to Presentation - Trade Beyond the USA (20)
Presentation 5 steps for doing business with the City and County of DenverCecilia Rivas Schuermann
This is a basic introduction on how to sell to the City and County of Denver. Find answers to agency targeting, how do agencies post solicitations, buying jurisdiction per agency, procurement dollar spending limits, procurement methods, opportunities for Small, Minority and Women Business Enterprises, and certification benefits.
Presentation - USA Exporters Importers and Foreign Investors
Presentation - Trade Beyond the USA
1. Trade Beyond the USA
Cecilia Rivas Schuermann, International Trade Specialist
schuermannc@cochise.edu
2. Workshop Content
• Are you ready to export?
• Why look beyond the USA?
• Assessing and prioritizing world markets
• Market research - Finding import/export data on
your industry, free and fee based
• Finding buyers & making contact
3. Workshop Content – Part 2
• Payment methods in international trade
– Cash-in-advance
– Letters of credit
– Open account
• Trade Financing
– Development programs backed by SBA, Ex-Im Bank
– Working Capital Programs
– Export Credit Insurance
– Foreign Buyer Guarantee
• Questions
4. Are you ready to export
beyond the USA?
• Do you have the additional capacity, financial
resources, and above all commitment to look
beyond the USA markets?
5. Why look beyond the USA?
• Made in the USA is a valuable brand - U.S. goods
and services are the gold standard of innovation,
quality, and safety abroad
• Foreign demand is growing: 95% of potential
customers live outside of the USA & 75% of
purchasing power is outside the USA
• Some foreign markets are growing
4-8% per year
11. Assessing and prioritizing
world markets
Example: USA tomato grower has excess capacity,
financial resources, and committed to expand
abroad. What are the top markets/countries to
consider?
12. Assessing and prioritizing
world markets
$-
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
Canada Mexico
Tomatoes Export Trends 2013-2011 in USA Dollars
2013 2012 2011
13. Assessing and prioritizing
world markets
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
Bahamas Trinidad & Tobago China Japan
Tomatoes Export Trends 2013-2011
2013 2012 2011
14. Second Step – Assessing Markets
What are you looking for?
• Growth trends, clues for fertile ground
• Preconditions for sales activity
• Even shrinking or stagnant economies might be
great markets depending on your strategy
15. Second Step – Assessing Markets
Investigative Areas
• Definition of country attributes
• Key industry indicators
• Ease of doing business
• Presence of competitors
• How goods are found or sold in market
16. Tomato Market–
Country Selection Process
• All countries, 100%
• Priority Markets, 5%
• Deep Dive Markets, 1%
• Countries of interest, 15%
17. Tomato Market–
Country Selection Results
Deep Dive Markets
Japan
Priority Markets
Trinidad and Tobago
Bahamas
México
Countries of Interest
China
Canada
19. Tomato Market – Japan
● Annual production fell by 15% from 2000 to 2010
and further affected by 2011 tsunami
• Most tomatoes are grown in greenhouses
tomatoes with high gel and brix content
tomatoes unsuitable for burgers, sandwiches
● Fresh tomato shortages are common particularly
during the winter season
20. Tomato Market – Japan
● Japan is the largest food importer in the world
• Japanese households spend 23 % of disposable
income, per capita on food, which is higher than
anywhere else on earth; USA averages 14%
• Japanese value high quality and convenience and
are willing to pay extra
• Japan remains the world‘s third-largest economy,
after the United States and China, with a GDP of
roughly $5.8 trillion
21. Tomato Market – Japan
Ease of doing business in Japan
Ranked in position #27 out of 189 countries;
Singapore ranked #1; USA #4; and México #53
22. Picking your market/Trade Research
Statistics
• The Census Bureau’s Foreign Trade Division
collects, compiles and disseminates official
U.S. export and import statistics,
• www.usatradeonline.gov provides detailed
information on over 18,000 commodities on
exports and imports
23. Picking your market/Trade Research
Follow market access negotiations
• The United States Trade Representative (USTR)
Office’s web site www.ustr.gov to find out
about new and developing trade negotiations
• The USTR negotiates agreements to open
markets for US exports and to enforce trade
agreements to level the playing field
24. Picking your market/Trade Research
Market Research Library
• www.export.gov contains an extensive research
library that gives you access to reports on
countries, industries, and commercial
development
• Country Commercial Guides have up-to-date
information on doing business in most countries:
the economic environment, leading sectors, trade
regulations, customs and standards, and much
more
25. Picking your market/Trade Research
The FTA Tariff Tool
• The US negotiates trade agreements with
partnering countries to eliminate tariffs,
remove nontariff barriers, and secure non-
discriminatory treatment of US goods and
services
• www.export.gov/fta/tarifftool, go to find
search for tariff information on specific goods
covered under Free Trade Agreements (FTA)
• The USA has 20 partner countries
27. Tariff reductions open markets
0
2
4
6
8
10
12
14
16
18
U.S. Orange Juice Growth in South Korea
2014 2013 2011
Current 13.2 million gallons
account only for January to
April 2014 purchases .
Calculating even monthly
growth: 240%
28. Tariff reductions open markets
• South Korean orange juice consumption has
remained constant over the last three years
• Brazil had been their main supplier due to low
production costs until the USA and South
Korea signed a trade deal eliminating a 54%
tariff in effect until 2012
29. Finding Buyers/Making Contact at
Trade Events
Trade events: go to www.export.gov and tab
“trade show” and “trade missions” for upcoming
events; events include:
• Foreign trade missions- one-on-one meetings
with potential business partners,
• Foreign buyer delegations at US trade shows –
match buyers with US exhibitors
30. Finding Buyers/Making Contact at
Trade Events
• Major foreign trade shows – showcase your
products or services, often in US exhibitor
pavilions
• Reverse trade missions – foreign delegates
come to the US to see products and
technologies
31. Finding Buyers/Commercial News USA
• Commercial News USA – advertise worldwide
for $499 per issue: magazine reaches an
estimated 250,000 readers in 178 countries
worldwide, in print and online
• To advertise, contact export@thinkglobal.us ,
1-800-581-8533
32. Finding Buyers/Global B2B Platform
• www.thinkglobal.us is a trade leads for
importing and exporting
• Search for Buyers, Sellers & Service Providers
• You can: post a free profile, request a quote,
and upload videos
• Free
33. Finding Buyers/Making Contact – Local
US Export Assistance
• The US Commercial Service has offices in 108 US
cities and US Embassies and Consulates in more
than 70 countries,
• Offices in Tucson and Phoenix,
• Services offered:
– Customized services – wide range of services
– Trade counseling – develop effective market entry
strategies
34. Finding Buyers/Making Contact – Local
US Export Assistance
• Services offered, continuation:
– Business matchmaking – connect with pre-
screened potential foreign buyers, participate in
trade events, and meet with industry and
government officials in your target market(s)
– Market intelligence – analyze market potential and
foreign competition
35. Finding Buyers/Making Contact –
SBDC’s Network of the America’s
International SBDC Expansion Countries:
México, Guatemala, Belize, El Salvador,
Honduras, Costa Rica, Panama,
Colombia, Jamaica, Dominican Republic,
Barbados, St. Lucía, Dominica
Brazil has an agreement to use
SBDCGlobal.com
36. Finding Buyers/Making Contact –
Small Business Development Centers
• www.sbdcglobal.com is an internet selling and
buying platform, similar to alibaba.com, where
SBDC of the America’s clients can post their
products and services and search for items
wanted
• SBDCGlobal.com can help: increase sales,
lower costs, reduce risk, and build trade
expertise
• Platform is by invitation only, with client’s
analyst extending invitation
37. Payment Methods-International Trade
For exporters, any sale is a
gift until payment is received
For importers, any payment is a
donation until the goods are
received
38. Payment Methods-
International Trade
• Cash-in-Advance – the exporter can avoid credit risk
because payment is received before the ownership of
the goods is transferred. This is the least attractive
option for buyers and can lead to reduced sales if
competitor offers terms.
39. Payment Methods-Cash-in-Advance
Applicability
Recommended for use in high-risk trade relationships or
export markets and ideal for internet-based businesses
Risk
Exporter is exposed to virtually no risk as the burden of risk
is placed nearly completely on the importer
Pros
• Payment before shipment
• Eliminates risk of non-payment
Cons
• May lose customers to competitors over payment terms
• No additional earnings through financing operations
40. Payment Methods-International Trade
• Letters of Credit (LCs) – one of the most secure
instruments available to international traders when
used properly. An LC is a commitment by a bank on
behalf of the buyer that payment will be made to
the exporter, provided that the terms and
conditions stated in the LC have been met, as
verified through the presentation of all required
documents.
• Ensure letter of credit matches risk with INCOTERMS
41. Payment Methods-International Trade
Example matching letter of credit with INCOTERMS
Seller sells goods to an established client using Ex-
Works Incoterms terms and with a letter of credit
requiring seller to submit bill of lading to confirm
shipment of goods. The seller was wondering why
payment was being delayed since past payments were
always prompt. The seller contacted the bank and bank
asked for bill of lading; however such document is in
the buyer’s possession. Buyer has received goods and
is not inclined to forward required document.
42. Payment Methods- Characteristics LCs
Applicability
Recommended for use in new or less-established trade relationships
when the exporter is satisfied with the creditworthiness of the buyer’s
bank
Risk
Risk is evenly spread between seller and buyer, provided that all terms
and conditions are adhered to
Pros
• Payment made after shipment
• A variety of payment, financing, and risk mitigation options
available
Cons
• Complex and labor-intensive process
• Relatively expensive method in terms of transaction costs
43. Payment Methods- Different LCs
• Confirmed LCs – a greater degree of protection for
the exporter when an LC issued by a foreign bank (the
importer’s issuing bank) is confirmed by a US bank.
Confirmation means that the US bank adds its
engagement to pay the exporter to that of the foreign
bank.
• Transferable LCs – the payment obligation under the
original LC can be transferred to one or more “second
beneficiaries”
• Standby LCs – not intended as a means of payment
but can be drawn upon in the event of a contractual
default
44. Payment Methods- Tips for Exporters & LCs
• Consult with your bank before the importer applies for
an LC and determine if all LC terms can be met within
the prescribed time limits
• Consider whether a confirmed LC is needed
• Ensure that all the documents are consistent with the
terms and conditions of the LC
• Beware of many discrepancy opportunities that may
cause non-payment or delayed payment
45. Payment Methods-International Trade
• Open Account – transaction is a sale where the goods
are shipped and delivered before payment is due, which
is usually in 30 to 90 days. Most advantageous to the
importer in terms of cash flow and cost and the highest
risk option to the exporter. Exporters agree to this
option often because of intense competition and fear of
losing the sale. Exporter can mitigate risk by buying
export credit insurance.
46. Payment Methods- Characteristics Open Account
Applicability
Recommended for use (a) in low-risk trading relationships or markets
and (b) in competitive markets to win customers with the use of one or
more appropriate trade finance techniques
Risk
Significant risk to exporter because the buyer could default on
payment obligation after shipment of the goods
Pros
• Boosts competitiveness in the global market
• Helps establish and maintain a successful trade relationship
Cons
• Significant exposure to the risk of non-payment
• Additional costs associated with risk mitigation measures
47. Payment Methods- How best to offer an Open
Account
• Export Working Capital Financing
• Guarantee Export Working Capital Programs -
guaranteed by SBA and Ex-Im Bank
• Export Credit Insurance
• Export Factoring – discounting of short-term
receivables, up to 180 days
48. SBA Financing Export Development
• The Export Express Program from the SBA
provides financing up to $500K; eligibility
requirements:
– Companies need to have been in business for at
least 12 months or have personnel with exporting
experience and prior business success
49. SBA Financing Export Development
• The Export Express Program eligibility
requirements continuation:
– Companies need to demonstrate that the loan
proceeds will support export activity such as:
participating in a foreign trade show, translating
product literature , financing specific export
orders, or financing fixed assets used in the
production of goods or services for export.
50. SBA Financing Export Development
• The International Trade Loan provides loans
for up to $5 Million with a 90% guarantee to
lenders for business modernization or
expanding facilities in order to meet growing
export demand.
51. Financing Export Working Capital
Programs
Both the SBA and the Export-Import Bank (Ex-
Im) offer export working capital loan programs
52. Characteristics Working Capital Programs
Applicability
Used to purchase raw materials, supplies, and equipment to fulfill a
large export sales order or many small sales orders
Risk
Significant risk of non-payment for exporters unless proper risk
mitigation measures are used
Pros
• Allows fulfillment of export sales orders
• Allows exporter to offer open account terms to remain
competitive
Cons
• Generally available only to SMEs with access to strong personal
guarantees, assets, or high-value receivables
• Additional costs associated with risk
mitigation measures
53. Financing Export Working Capital
Programs
• SBA’s Export Working Capital Program (EWCP)
provides loans with up to 90% guarantee on
export loans of up to $5 Million as a credit
enhancement. You can apply for EWCP loans
before finalizing an export sale or contract to
give you greater flexibility to negotiate export
payment terms.
54. Financing Export Working Capital
Programs
• Ex-Im Bank’s Working Capital Guarantee
Program companies must have been in
business for at least one year and have a
positive net worth. Products must be shipped
from the US and have at least 50% US content.
Services must be performed by US based
personnel.
55. Export Credit Insurance
• Ex-Im Bank Export Credit Insurance (ECI) can
protect you against the political and commercial
risk of a foreign buyer defaulting on payment. You
can obtain insurance policies for single or
repetitive export sales. Short-term policies
generally cover 90% of the principal for political
and commercial risk.
• Insurance is also available from private commercial
risk insurance companies
56. Coverage Export Credit Insurance
Short term ECI, which provides 90-95% coverage against
commercial and political risk that results in buyer
payment defaults normally covers
(1) consumer goods, materials, and services up
to 180 days, and
(2) small capital goods, consumer durables, and
bulk commodities up to 360 days
57. Coverage Export Credit Insurance by Ex-Im
• Coverage is available in riskier emerging foreign
markets where private insurers may not operate
• Enhanced support is offered for environmentally
beneficial exports
• Products must be shipped from the US & have at least
50% US content
• Ex-Im does not cover support military products or
purchases made by foreign military entities
58. Coverage Export Credit Insurance
Medium term ECI, which provides 85% coverage of the
net contract value, usually covers large capital equipment
up to 5 years. It is recommended that ECI’s cost be
incorporated into the selling price as a cost of doing
business and exporter should buy it before a customer
becomes a problem.
59. Foreign Buyer Guarantee
Ex-Im Bank provides guarantee of commercial loans
to foreign buyer of US goods or services against
both political and commercial risk of nonpayment.
This can service as financing aid since you can
arrange attractive financing through your lender by
using insured foreign receivables as additional
collateral
60. Foreign Buyer Guarantee
• Ex-Im Bank Medium-Term Guarantees cover
the sale of capital goods such as trucks and
construction equipment, scientific apparatus,
food processing machinery, medical equipment,
or project-related services – including
architectural, industrial design, and engineering
services.
61. Foreign Buyer Guarantee
• Ex-Im Bank Long-Term Guarantees are
available for major projects, large capital goods,
and/or project-related services.
Guarantees and medium-term insurance cover
85% of the contract price (100% of the financed
portion). The foreign buyer is required to make a
15% cash payment.
62. Characteristics Foreign Buyer Guarantee
Applicability
Suitable for the export of high-value capital goods or services or large-
scale projects that require extended-term financing
Risk
Risk is transferred to Ex-Im Bank and to the foreign buyer who is
required to make a 15% down payment to the exporter
Pros
• Buyer financing as part of an attractive sales package
• Cash payment upon shipment of the goods or services
Cons
• Subject to certain restrictions for US government policy reasons
• Possible lengthy process of approving financing
63. Foreign Exchange (FX) Risk Management
• FX risk is the exposure to potential financial
losses due to devaluation of the foreign
currency against the US dollar
• Exporter’s insistence on selling only in US
dollars might mean lost opportunities
• Most foreign buyers prefer to trade in their
local currencies to avoid FX risk exposure
64. Characteristics Foreign Currency
Dominated Export Sale
Applicability
Recommended for use in competitive markets and when foreign
buyers insist on trading in their local currencies
Risk
Exporter exposed to the risk of currency exchange loss unless a proper
FX risk management technique in used
Pros
• Enhances export sales terms to help exporters remain competitive
• Reduces non-payment risk because of local currency devaluation
Cons
• Cost of using some FX risk management techniques
• Burden of FX risk management
65. FX Risk Management Options
• Non-hedging FX – simple non-hedging
technique is to price the sale in a foreign
currency and cash in advance; the current
spot market rate will determine the US dollar
value of the foreign proceeds
• FX Forward Hedges – a forward contract
enables the exporter to sell a set amount of
foreign currency at a pre-agreed exchange rate
with a delivery date from 3 days to 1 year into
the future
66. FX Risk Management Options
• FX Option Hedges – worthwhile considering
when a sale will be completed; here the
exporter acquires the right, but not the
obligation, to deliver an agreed amount of
foreign currency to the lender in exchange for
dollars at a specified rate on or before the
expiration date of the option. If the value of
the foreign currency goes down, the exporter
is protected from loss; more flexible and more
costly than FX forward hedges