Lecture International business (9e): Chapter 16 - Charles W.L. Hill - Trường Đại học Công nghiệp Thực phẩm Tp. Hồ Chí Minh

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International Business

9e

By Charles W.L. Hill

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Chapter 16

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16­3

Why Export?



_{Exporting is a way to increase market size and}

profits



_{Large firms often proactively seek new export}

opportunities, but many smaller firms export

reactively

_{often intimidated by the complexities of exporting}



_{Exporting firms need to}

_{identify market opportunities}
_{deal with foreign exchange risk}

_{navigate import and export financing}

_{understand the challenges of doing business in a}

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What Are The 

Pitfalls Of Exporting?



_{Common pitfalls include}

_{poor market analysis}

_{poor understanding of competitive conditions}
_{a lack of customization for local markets}

_{a poor distribution program}

_{poorly executed promotional campaigns}
_{problems securing financing}

_{a general underestimation of the differences and}

expertise required for foreign market penetration

_{an underestimation of the amount of paperwork and}

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16­5

Where Can U.S. Firms Get 

Export Information?



_{The U.S. Department of Commerce}

_{the most comprehensive source of export information}

for U.S. firms



_{The International Trade Administration and the}

United States and Foreign Commercial Service

Agency

_{“best prospects” lists for firms}



_{The Department of Commerce}

_{organizes various trade events to help firms make}

foreign contacts and explore export opportunities

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What Are Export 

Management Companies?



_{Export management companies (EMCs)}

_are

export specialists that act as the export

marketing department or international

department for client firms



_{Two types of assignments are common}

1. EMCs start export operations with the understanding

that the firm will take over after they are established

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16­7

How Can Firms Reduce 

The Risks Of Exporting?



_{To reduce the risks of exporting, firms should}

_{hire an EMC or export consultant to identify}

opportunities and navigate paperwork and regulations

_{focus on one, or a few markets at first}

_{enter a foreign market on a small scale in order to}

reduce the costs of any subsequent failures

_{recognize the time and managerial commitment}

involved

_{develop a good relationship with local distributors and}

customers

_{hire locals to help establish a presence in the market}
_{be proactive}

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