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Exporting 101: Process and Fundamentals. Tekle Sebhatu Ph.D. November 4, 2011 http://www.stcinternational.us [email protected] Exporting 101:Export Process and Fundamentals Agenda. Why exporting/Barriers Essentials for Export Success The Export Process Export market research

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Exporting 101 process and fundamentals

Exporting 101: Process and Fundamentals

TekleSebhatu Ph.D.

November 4, 2011

http://www.stcinternational.us

[email protected]


Exporting 101 export process and fundamentals agenda

Exporting 101:Export Process and Fundamentals Agenda

  • Why exporting/Barriers

  • Essentials for Export Success

  • The Export Process

  • Export market research

  • Identifying Countries and Products

  • Mistakes Made by Exporters

  • Resources

  • Q & A


Exporting 101 process and fundamentals

Exportingis not a right, it is a privilege, which can be revoked if rules and regulations are not followed.


Why exporting

Why Exporting

95%of the world’s consumers are outside of the U.S.

97%of U.S. exporters are SMEs

75% of exporters have less than 20 employees

63% of SMEs sell to only to 1 Market

Exporting = Jobs


Exporting barriers

Exporting Barriers

  • Fear of the Unknown

  • Lack of finance

  • Export controls/License

  • Insufficient foreign market research

  • Lack of distribution channels

  • Unexpected costs of exporting


Exporting 101 process and fundamentals

Essentials for Export Success

Planning

Commitment

(Long Term)

Export

Success

Knowledge

(Documents, payments,

shipping, insuring,

financing)

Relationship

(Culture, Understand

Business Practice)


The export process

The Export Process

5. Exporter ships

Importer

Claims

Goods

7

U. S Exporter

Brazilian Importer

1. Negotiation

6.Exporter presents Docs.

4. Exporter notified

2. Importer Pays/arranges

3. Sends docs

U.S. Bank

Brazilian Bank

Figure 15-3


Exporting 101 process and fundamentals

Step 1 . Identify potential

market

Four Steps of Market Research Process

Step 2. Assess targeted

market

3 to 5 most promising countries

Statistics & MKT research report

Travel or use export assistance

Focus:

Step 3. Draw Conclusion

Focus:

Conduct SWOTT Analysis

Export Control/Tariff

Examine competitive products

Step 4. Test Market

Target 2 to 3 countries

Get help for more insights

Focus :

Focus:

Focus:

Online (Trade leads)

Participate trade show/mission


Exporting 101 process and fundamentals

Trade Stat Express (DOC-ITA)http://tse.export.gov/TSE/TSEHome.aspx


Exporting 101 process and fundamentals

Trade Map

http://www.trademap.org/Index.aspx


Exporting 101 process and fundamentals

Which Countries To Enter?


Practical market selection

Practical Market Selection

  • What is the size of the market?

  • Can your company price profitably?

  • What are legal restraints?

  • What distribution options are available?

  • How can your company promote our offering?

  • How will the competition respond?

  • How easy is it to get paid?


Emerging markets from bem s to bric s

BEM

Emerging MarketsFrom BEM’s To BRIC’s

BRIC

Brazil

Russia

India

China

Argentina

Brazil

China (Economic area)

Indonesia

India

Mexico

South Africa

Turkey

South Korea

Poland (Now EU)


Bric and bem countries

BRIC and BEM Countries

  • Large population

  • Fast growing middle class

  • Fastest growing/Liberalizing economies.

  • Regional economic powerhouse.

  • No longer producers of low-cost/tech products.


Finding products to export

FindingProducts to Export

  • Local/National Trade Associations Directories

  • Local Export Assistance Centers (Programs)

  • Country Specific Publications

  • Travel

  • Trade shows

  • Internet


Role of freight forwarders

Role Of Freight Forwarders

  • International documentation and packaging

  • Carrier and routing information

  • Export license assistance

  • Marine insurance rates and coverage

  • Warehouse and distribution services

  • Hazardous materials shipping compliance info


Export power of attorney types

Export Power of Attorney Types

Export shipment to be handled by a Freight Forwarder requires Power of Attorney

  • Blanket Use (multi-shipment use)

    • Unlimited Duration (no ending date)

    • Limited Duration (stated ending date)

  • Single Shipment Use

    • Shipper’s Letter of Instruction/SLI

    • Signed statement on Invoice


  • Common mistakes made by exporters

    Common Mistakes Made By Exporters

    • Lack of export business plan

    • Failure to obtain export assistance (counseling)

    • Lack of sufficient commitment

    • Insufficient care when selecting agent/distributors

    • Chasing multiple orders

    • Failure to modify product to meet market demand.


    Exporting 101 process and fundamentals

    Thank You for participating!


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