Busieess Essay

4076 Words Apr 25th, 2014 17 Pages
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
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For additional visual summaries of key chapter points, also review the figures and tables in the text.

I. INTRODUCTION Whereas exporting represent goods and services flowing out of a country, importing represent goods and services flowing into a country. Exports result in receipts and imports result in payments. Although export and import activities are a natural extension of distribution strategy, they also include elements of product, promotion and pricing factors, and decisions. Both exporting and importing entail a lower level of risk than foreign direct investment, but while exporting offers less control over the marketing function, importing offers less control over the production function. This chapter will focus primarily on the issue of a company’s motivations for and development of an export strategy (Figure 13.1).

II. EXPORT STRATEGY

A firm’s choice of entry mode depends on various factors, such as the ownership advantages of the firm, the location advantages of the market and the internalization advantages of specific assets, international experience and/or the ability to develop differentiated products. In general, firms that possess few ownership advantages either do not enter foreign markets, or they use the lower-risk entry modes of exporting and licensing. Still in all, the decision to export must fit a company’s overall strategy and take into account global concentration (the presence of relatively few major players), synergies

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