Increasing importance of international markets has been the result of a number of interrelated factors namely, 1. There has been a continuing lowering of barriers to trade and investment 2. Improvements in transportation and logistics have further lowered the cost of exporting and importing 3. Technological improvement have resulted in the development of new goods and services 4. Major advance in communications and the emergence of e-commerce 5. Companies and industries in different countries have become increasingly linked and interdependent 6. Capital market have become more international 7. World trade has continued to expand more rapidly than world gross national product. The business activities that must be carried out in marketing and adjusted to accommodate differences in the international market, include: 1. Analysis of markets and potential markets 2. Planning and development of products and services that consumers want 3. Distribution of products through channels that provide the services or conveniences demanded by purchasers.
[...] General provision provide for when and how the agreement goes into effect if the agreement is to be effective upon receipt of first order how disputes are to be handled provide for the termination of the agreement For most exporters, the 3 most important aspects of their agreement with foreign representatives are: sole or exclusive rights competitive lines termination of the agreement Selecting a foreign representative The exporter generally wants an agreement that is easy to cancel in the event that a foreign representative does a bad job in selling the exporter's product(s) The internet and e-commerce The internet is used more as a source of information than as a place to buy Advantage: low capital investment small size makes no difference updates are easy and immediate translating can be less expensive more reliable audit trail The internet is the base for international e-commerce. [...]
[...] Chapter 14 Organization of international marketing activities 14.1 Introduction 14.2 Main considerations of being organized internationally 14.3 Organizational structures Chapter 1 International Marketing and Export Increasing importance of international markets has been the result of a number of interrelated factors: 1. There has been a continuous lowering of barriers to trade and investment 2. Improvements in transportation and logistics have further lowered the cost of exporting and importing 3. Technological improvement have resulted in the development of new goods and services 4. [...]
[...] They are 2 broad alternatives available to the manufacturer wanting to export indirectly: Using international marketing organizations Exporting through a cooperative organization Marketing organizations There are two basic types of independent wholesale marketing intermediaries merchants and agent. The distinction between the two is that the merchant takes title to the product to be sold, while the agent does not Export merchant The domestic-based export merchant buys and sells on his own account. Generally engaged in both exporting and importing, it operates in a manner similar to a regular domestic wholesaler. [...]
[...] The BCG portfolio analysis centers on 2 determinants of marketing strategy: Market strength: the relative market share (unit sales of the company's product divided by unit sales of the major competitor) Market attractiveness: market growth rate The traditional models don't incorporate considerations such as: Costs of entry to various countries and markets Shared costs in international and export marketing The risk involved in foreign business operations. The BCG portfolio assumes that market dominance (measured by relative market share) is associated with high profitability explained by the existence of experience effects. [...]
[...] Chapter 11 Financing and Methods of Payment 11.1 Introduction Financing and Payment are issues directly tied to export pricing Export prices are not set in isolation, but must consider how payment is to be made Telecommunications have had a substantial impact on both interbank operations and in the interfaces with their customers The often used “wire transfer” as method of international transfer of funds is nowadays seldom used Personal relations of customers and banks are still important, but routine transactions are mostly done online 11.2 Export financing methods/terms of payment Financing methods are mostly determined by: Æ Degree of control the exporter wants to retain over the goods Æ Time limit that has been placed upon the extension of the credit In exporting there are 7 different ways in which credit is extended and payments made The 7 ways are discussed in their order of security (from least secure to most secure (from the seller's/exporter's point of view) regarding the risk of nonpayment They are also in order of costs (for the importer) from least to most expensive Most times, importer prefers the cheapest way and exporter the most expensive Æ Compromises have to be found Consignment Using this method, payment is usually made by means of a “clean draft” This is drawn on the consignee (by the exporter) without any other attached documents Payment is usually made after the importer has resold the products Very convenient way for the buyer to pay The exact time and procedure of payment depend on prior arrangements This could be: immediate payment after the goods have been resold or periodic payments The actual payments is made either by check, bank draft or wire transfer In some countries, a consignment could be dangerous Æ Law is not always clear on the ownership of the merchandise Æ It's difficult to watch over merchandise, when it's in a far away country Æ Exchange controls may preclude payment by the consignee Open Account Open Account business in export is handled in the same way than domestic trade An exporter would use this method only, when he has confidence in the trustworthiness of the buyer Example: Factoring = purchase of a company's accounts by a financial institution (factor), usually a bank or specialized institution Exporter will go to factor BEFORE any contract is signed and/or shipment made, to make sure that factor is willing to buy the receivable Factor will check the credit ranking etc. [...]
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