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Lecture Global business today (8/e): Chapter 14 - Charles W.L. Hill

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Chapter 14 - Exporting, importing, and countertrade. In this chapter, the learning objectives are: Explain the promises and risks associated with exporting, identify the steps managers can take to improve their firm's export performance, identify information sources and government programs that exist to help exporters,. | Global Business Today 8e by Charles W.L. Hill Chapter 14 Exporting, Importing, and Countertrade Introduction Question: Who benefits from exporting? Both large and small firms can benefit from exporting The volume of export activity in the world economy is increasing as exporting has become easier thanks to: The decline in trade barriers under the WTO Regional economic agreements such as the EU and NAFTA Introduction Question: What do firms that want to export need to do? Firms wishing to export must: Identify export opportunities Avoid a host of unanticipated problems associated with doing business in a foreign market Become familiar with the mechanics of export and import financing Learn where to get financing and export credit insurance Learn how to deal with foreign exchange risk Promise and Pitfalls of Exporting Question: What are the benefits of exporting? The benefits from exporting can be great--the rest of the world is a much larger market than the domestic market Larger firms may be proactive in seeking out new export opportunities, but many smaller firms take a reactive approach to exporting Many novice exporters have run into significant problems when first trying to do business abroad, souring them on following up on subsequent opportunities Improving Export Performance Question: How can exporters improve performance? To improve their success, exporters should: Acquire more knowledge of foreign market opportunities Consider using an export management company (EMC) Adopt a successful export strategy Hire an EMC to identify opportunities and navigate paperwork and regulations Focus on just few markets Enter a foreign market on a small scale Improving Export Performance Exporters should also: Recognize the time and managerial commitment involved in building export sales Devote attention to building strong and enduring relationships with local distributors and customers Hire local personnel to help the firm establish itself in a foreign market Keep the . | Global Business Today 8e by Charles W.L. Hill Chapter 14 Exporting, Importing, and Countertrade Introduction Question: Who benefits from exporting? Both large and small firms can benefit from exporting The volume of export activity in the world economy is increasing as exporting has become easier thanks to: The decline in trade barriers under the WTO Regional economic agreements such as the EU and NAFTA Introduction Question: What do firms that want to export need to do? Firms wishing to export must: Identify export opportunities Avoid a host of unanticipated problems associated with doing business in a foreign market Become familiar with the mechanics of export and import financing Learn where to get financing and export credit insurance Learn how to deal with foreign exchange risk Promise and Pitfalls of Exporting Question: What are the benefits of exporting? The benefits from exporting can be great--the rest of the world is a much larger market than the domestic market Larger firms

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