...slowly declining. In this case, the objective is to increase the company’s turnover, which means SEWTEX has to exports more & be the main actor on foreign market. Major commercial advantages for SEWTEX to be active in the international market: * First, it is an opportunity to dramatically increase their sales. * Increase profitability, the extent of the export price which can generate sufficient margin and the profits will grow. * Gain of notoriety worldwide * Better understanding of the competition * Better using of their production capacity. For example if SEWTEX is not working at full capacity and if its facilities are under-utilized, it will increase its production through exports * Boost business * Exporting can bring a breath of fresh air in the business and allow to leave behind any bad habits and improve on new strategies, thus, positive consequences will be saved in the working methods of the company. Arguments she can offer to explain why SEWTEX should make a commitment with foreign companies: * Easier and faster market penetration for a company limited in financial and human resources, while profiting from distribution channels already well established by local partner, thus allowing it...
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...product's success in domestic markets. If a company succeeds at selling in a domestic market, there is a good chance that it will also be successful in markets abroad, wherever similar needs and conditions exist. In markets that differ significantly from the domestic market, some products may have limited potential. Those differences may be climate and environmental factors, social and cultural factors, local availability of raw materials or product alternatives, lower wage costs, lower purchasing power, the availability of foreign exchange (hard currencies like the dollar, the British pound, and the Japanese yen), government import controls, and many other factors. If a product is successful in a domestic market, one strategy for export success may be a careful analysis of why it sells here, followed by a selection of similar markets abroad. In this way, little or no product modification is required. If a product is not new or unique, low-cost market research may already be available to help assess its overseas market potential. In addition, international trade statistics (available in many local libraries) can give a preliminary indication of overseas markets for a particular product by showing where similar or related products are already being sold in significant quantities. If a product is unique or has important features that are hard to duplicate abroad, chances are good for finding an export market. For a unique product, competition may be nonexistent or very slight, while...
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...following transactions refers to the sale of goods or services produced by a company based in one country to customers that reside in a different country? A) importing B) countertrading C) exporting D) freight forwarding Answer: C Diff: 1 Skill: Concept Objective: 1 2) Small and medium-size enterprises, such as SpinCent as seen in the opening case for chapter 13, account for ________ of all U.S. exporters. A) 38% B) 54% C) 79% D) 97% Answer: D Diff: 1 Learning Outcome: Discuss the roles of exporting, importing, and countertrade in international business Skill: Concept Objective: 1 3) Which of the following best explains why SpinCent decided to export? A) growth opportunities in Asia B) labor demands in the U.S. C) declining tariffs in the EU D) promising market locations in South America Answer: A Diff: 2 Skill: Concept Objective: 1 4) Iverson Products is a U.S. firm that is considering expanding internationally by exporting. Which of the following is the LEAST likely benefit for Iverson? A) boosting marketplace flexibility B) improving economies of scale C) facing lower business risk compared to other foreign market entry options D) requiring fairly few resources Answer: B Diff: 2 Learning Outcome: Discuss the roles of exporting, importing, and countertrade in international business Skill: Application Objective: 1 5) Which of the following transactions refers to the purchase of goods or services produced by a company based...
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...TABLE OF CONTANT CHAPTER | DESCRIPTION | PAGE NUMBER | 1 | Introduction | 2 | 2 | Company Overview | 4 | 3 | Globalization | 6 | 4 | National Differences in Political Economy | 8 | 5 | International Trade Theory | 9 | 6 | Foreign Direct Investment | 10 | 7 | Strategy of International Business | 14 | 8 | The organization of International Business | 16 | 9 | Entry Strategy and Strategic Alliance | 18 | 10 | Exporting, Importing and Counter Trade | 19 | 11 | Global Production and Logistics | 22 | 12 | Global Human Resource Management | 25 | 13 | Recommendation | 26 | 14 | Conclusion | 27 | 15 | Reference List | | Introduction PRAN-RFL GROUP is a private owned organization of Bangladesh running multiple businesses both in the national and international market. The purpose of this term paper is to analysis the international business aspect of PRAN-RFL GROUP. For preparing this report we went to PRAN-RFL GROUP for visit. There we interviewed assistant manager of export, MR. Zamaluddin Ahmed and we found out everything about their international business and also the major procedure of their business. In this report we tried to visualize the international business aspects of that organization and it is fragmented into different segments. Firstly, we gave a total overview of PRAN-RFL GROUP then we tried to show the overall environment both national and international. Then the trade theories which are related to them, FDI in their business. PRAN-RFL GROUP’s international...
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...1. Export capital for production abroad Exporting capital is the removal of capital from the country in which it is originally held and it’s transfer for investment in an importing country willing to meet the demands of the company. (encyclopedia2.freedicitionary.com). At the basic definition of this practice, I take a libertarian way of thinking on this. If this is what a company needs to do to be profitable, government should not have the ability to interfere with this system. However, this is not how exporting capital happens in today’s world or at any time in history for that matter. Companies are getting away with low wages, long hours, little to know regulation on labor laws and unfavorable working conditions. For these reason, I do believe constraints are not the answer because exporting capital is good for both parties when executed in an ethical way. Taking the utilitarian theory, this is finding the greatest good over bad for the majority of the people. Exporting helps companies remain profitable and help the people and the economy of the country receiving the export. If both side benefit and there are no extremes to either side then exporting can be beneficial to all parties. 2. Export commodities which have been banned from sale in the United States I believe there should a ban on commodities that are banned in the United States simply because it is a dangerous practice. If it’s not safe for citizens in the US then it is not safe for citizens anywhere...
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...product's success in domestic markets. If a company succeeds at selling in a domestic market, there is a good chance that it will also be successful in markets abroad, wherever similar needs and conditions exist. In markets that differ significantly from the domestic market, some products may have limited potential. Those differences may be climate and environmental factors, social and cultural factors, local availability of raw materials or product alternatives, lower wage costs, lower purchasing power, the availability of foreign exchange (hard currencies like the dollar, the British pound, and the Japanese yen), government import controls, and many other factors. If a product is successful in a domestic market, one strategy for export success may be a careful analysis of why it sells here, followed by a selection of similar markets abroad. In this way, little or no product modification is required. If a product is not new or unique, low-cost market research may already be available to help assess its overseas market potential. In addition, international trade statistics (available in many local libraries) can give a preliminary indication of overseas markets for a particular product by showing where similar or related products are already being sold in significant quantities. If a product is unique or has important features that are hard to duplicate abroad, chances are good for finding an export market. For a unique product, competition may be nonexistent or very slight, while...
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...into exporting, its definitions and other international business transactions, it goes on discussing the different strategies available to a firm internationalizing for the first time, and these include both direct and indirect strategies available, and provides examples of firms that use export strategies. It also gives the advantages and disadvantages of such strategies. At the end of the report it provides a conclusion and recommendations to what strategies a firm can adopt depending on the situation. 2.0 INTRODUCTION AND BACKGROUND The most conventional forms of international business transactions are international trade and investment. International trade refers to an exchange of products and services across borders. Exchange can be through exporting, importing or countertrade. Exporting is an entry strategy involving the sale of products and services to customers located abroad from the home base or third country. Importing is the buying of products abroad and bringing them to the home market. Countertrade is a business transaction where all or partial payments are made in kind rather than cash. Both finished and intermediate goods, such as raw materials and components are subject to trade. While on the other hand international investment refers to the transfer of assets to another country, or acquisition of assets in that country through foreign direct investment and contractual agreements, Cavusgil (2008). Among the organizations arrangements for exporting are Indirect...
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...Mode of Entry Decision Criteria for Mode of Entry: * Market Size and Growth * Risk * Government Regulations * Competitive Environment/Cultural Distance * Local Infrastructure Classification of Markets: * Platform Countries (Singapore & Hong Kong) * Emerging Countries (Vietnam & the Philippines) * Growth Countries (China & India) * Maturing and established countries (examples: South Korea, Taiwan & Japan) Key criteria for choosing entry modes: * Company Objectives * Need for Control * Internal Resources, Assets and Capabilities * Flexibility Mode of Entry Choice: A Transaction Cost Explanation * Regarding entry modes, companies normally face a tradeoff between the benefits of increased control and the costs of resource commitment and risk. * Transaction Cost Analysis (TCA) perspective * Transaction-Specific Assets (assets...
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...[pic] Name Karamjit kaur Student id 13454 Executive summary The Purpose of this report was analyze the business product report from New Zealand to India and I interested to write about kiwi fruit product what are the benefit of kiwi Fruit Product if we will start growing of kiwi fruit in India. Many Companies exporting the Kiwi fruit to other countries and increasing their business day by day. Furthermore the price of kiwi fruit is pretty good. Whether the price of kiwi fruit according to types of kiwifruit. Some time Companies gives the special offer for exporter.There are many companies which were interesting to want to do work on this business. There are many benefits of growing kiwi fruit because with the help of it many companies can increase their company profit and earn more and more money. There are many products made from Kiwi Fruit like beauty products, wine and etc. Terms of references On Friday, 27 July 2012 Mr. jamali, Lecturer ICL business school, requested make a report to describe a product or business which import and export from your country. 1. Back Ground of the Study Kiwi Fruit is a New Zealand product. It is a very famous fruit product in the New Zealand but now a day’s kiwi fruit a famous to world wide. New Zealand won the many prices for kiwi fruit business. In 1904 kiwi fruit was first time grown in New Zealand but first time it found in china. There are many kinds of kiwi fruits like green, gold and Organic like the many more. Now...
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...Expansion into foreign markets can be achieved via the following mechanisms: Exporting is the process of selling of goods and services produced in one country to other countries. There are two types of exporting: direct and indirect. Direct exports Direct exports represent the most basic mode of exporting made by a (holding) company, capitalizing on economies of scale in production concentrated in the home country and affording better control over distribution. Direct export works the best if the volumes are small. Large volumes of export may trigger protectionism. Types Sales representatives Sales representatives represent foreign suppliers/manufacturers in their local markets for an established commission on sales. Provide support services to a manufacturer regarding local advertising, local sales presentations, customs clearance formalities, legal requirements. Manufacturers of highly technical services or products such as production machinery, benefit the most form sales representation. Importing distributors Importing distributors purchase product in their own right and resell it in their local markets to wholesalers, retailers, or both. Importing distributors are a good market entry strategy for products that are carried in inventory, such as toys, appliances, prepared food. Advantages • Control over selection of foreign markets and choice of foreign representative companies • Good information feedback from target market • Better protection of trademarks, patents...
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...CHAPTER ONE 1.0 INTRODUCTION Exporting is the practice of sending or carrying merchandise to a foreign country for trade or sale. (Branch, Alan E. Elements of Export Marketing and Management. Chapman and Hall, 1990). International business is a potentially lucrative area of many businesses, but the small business owner should be aware that establishing one self in a foreign market is a complex, and time consuming task. Many small businesses in Ghana have dramatically improved their financial fortunes by pursuing export opportunities, but the vast majority of enterprises that have been successful in this regard did not enter the world of international trade until they had fully researched both their own exporting capabilities in various business conditions in the target market(s) abroad indeed, they are wide range of factors to consider when assessing a company’s readiness to expand its business these include company export readiness, potential foreign markets, product distribution options, legal factors, operating cost and profit margin, financing resources. There are many good reasons why countries export. And these includes gaining economies of scale, increased revenue and profit, increased productivity ,spread risk base of business ,smoothing effect on order book ,Offset lack of demand for seasonal products ,New product ideas and Additional markets. Just because exporting is a good idea, a firm or a country should not jump into it unless: * It is has an export plan ...
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...United Arab Emirates (UAE) Modes of Entry 1. Exporting -Indirect exporting means that the company does not deal with foreign customers or companies by itself but uses intermediates such as export companies, export agents, or export partner network to take care of all export activity. Indirect exporting should be taken into consideration if a company’s own prerequisites in international business are not enough and if the intermediate’s resources as well as the know-how benefit the company. This entry alternative has quite low risks for the exporter. However, indirect exporting is expensive since each intermediate takes their compensation and it adds up to the final price of the product. Other hindrances are the missed opportunities to develop relationships and a company might only have minor contacts to foreign markets and customers. (Vahvaselkä 2009, 73-74.) In direct exporting the company takes care of the exporting activity by itself. The company is in contact with the intermediates in the target market such as import agents, retailers, or brokers. It is essential for the company to know the markets, pick the agent or distributor carefully and posses the knowledge in marketing as well as exporting routines. Direct exporting requires professional personnel and a company’s own export organization as well as more risk taking and better exporting knowledge than indirect exporting. Benefits in direct exporting are shorter distribution channels, smaller distribution expenses...
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... DATE17TH MARCH 2012 Modes of entry used by international firms to enter into new markets. Introduction A mode of entry into an international market is the channel which an organization employs to gain entry to a new international market. International firms use several entry modes to expand their businesses globally, and to enter into new markets, there are some basic decisions that the firm must takes before foreign expansion like: first they determine which markets to enter, when to enter those markets, and on what scale. The decision on which foreign markets to enteris based on the nation’s long run profit potential.-The international firm looks in detail at economic and political factors which influence foreign markets.-Long run benefits of doing business in a country depends on following factors:- Size of market (in terms of demographics)- The present wealth of consumer markets (purchasing power)- Nature of competition. By considering such factors firm can rank countries in terms of their attractiveness andlong-run profit. The time of entry is an important factor to be considered. Entry is early when an international business enters a foreign market before other foreign firms and late when it enters after other international businesses. The advantage is when firms enter early in the foreign market commonly known as first-mover advantages which include; it’s the ability to prevent rivals and capture demand by establishing a strong brand name; Ability to build sales volume...
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...you will be consider modes of entry into international markets such as the Internet, Exporting, Licensing, International Agents, International Distributors, Strategic Alliances, Joint Ventures, Overseas Manufacture and International Sales Subsidiaries. Finally we consider the Stages of Internationalization. It is worth noting that not all authorities on international marketing agree as to which mode of entry sits where. For example, some see franchising as a stand alone mode, whilst others see franchising as part of licensing. In reality, the most important point is that you consider all useful modes of entry into international markets - over and above which pigeon-hole it fits into. If in doubt, always clarify your tutor's preferred view. The Internet The Internet is a new channel for some organizations and the sole channel for a large number of innovative new organizations. The eMarketing space consists of new Internet companies that have emerged as the Internet has developed, as well as those pre-existing companies that now employ eMarketing approaches as part of their overall marketing plan. For some companies the Internet is an additional channel that enhances or replaces their traditional channel(s). For others the Internet has provided the opportunity for a new online company. More Exporting There are direct and indirect approaches to exporting to other nations. Direct exporting is straightforward. Essentially the organization makes a commitment to market overseas...
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...Chapter THIRTEEN Export and Import Strategies Objectives • To introduce the ideas of export and import • To identify the elements of export and exporting strategies • To compare direct and indirect selling of exporting • To identify the elements of import and import strategies • To discuss the types and roles of third-party intermediaries in exporting • To discuss the role of countertrade in international business Chapter Overview The first part of Chapter Thirteen is devoted to an examination of export and import strategies. Table 13.1 identifies the steps to consider when developing an export (or import) business plan. Next, the roles of a wide variety of third-party intermediaries are discussed. The chapter concludes with a discussion of the major issues related to export financing, including the use of countertrade as a form of payment mechanism. Chapter Outline OPENING CASE: Grieve Corporation—A Small Business Export Strategy A small firm located near Chicago, Grieve Corporation manufactures laboratory and industrial ovens, furnaces, and heat processing systems for the U.S. market. Grieve began losing business as (i) foreign competitors began to penetrate the U.S. market and (ii) its customers began to move overseas and started sourcing locally. With the help of the International Trade Administration of the U.S. Department of Commerce, Grieve was able to identify potential Asian distributors. During a business trip to Asia, the...
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