Describe regional trade agreements that influence global trade... The sale of products produced in a foreign country to customers in your home country Consider importing to… Se
Trang 1Entrepreneurship and Small
Business Management
Chapter 10
Marketing Globally
Trang 2Ch 10 Performance
Objectives
Identify the reasons for ventures to market
globally.
Understand the various strategic options for
global ventures.
Explore the challenges to international trade.
Learn about the types of support that are
available for global ventures.
Describe regional trade agreements that
influence global trade.
Trang 3Reasons to Market Globally
Expand market opportunities.
Acquire access to resources that are
scarce or more competitive.
Reduce costs for materials, labor, etc.
Utilize advantages in a specific location such as skilled artisans, tax breaks, etc.
Improve product/service quality levels.
Trang 4 The sale of products produced in a foreign
country to customers in your home country
Consider importing to…
Sell a product not produced at home
Take advantage of better cost/quality factors
Remain competitive
Some information resources:
Foreign embassies and consulates
National Customs Brokers and Forwarders
Association of America
Trang 5 Selling goods or services produced
domestically to foreign customers
Higher growth rates and lower failure rates
reported by companies that export, compared
to those that do not
Trade intermediaries—serve as contract
distributors of products between countries;
have extensive trading networks and contacts
Trang 6Reasons to Export
Enhance competitiveness
Increase sales and profits
Gain global market share
Reduce dependence on
existing markets
Exploit corporate
technology and know-how
Extend sales potential of
existing products
Stabilize seasonal market fluctuations
Enhance potential for corporate expansion
Sell excess production capacity
Gain information about foreign competition
Trang 7Exporting May Require You To:
Subordinate short-term
profits to long-term gains
Hire staff to launch the
export expansion
Modify products or
packaging
Develop new promotional
material
Incur added
administrative costs
Dedicate personnel for traveling
Wait longer for payments
Apply for additional financing
Obtain special export licenses
Trang 8Strategic Global Alliances
Strategic alliance—partnership between
two or more firms in which each one provides
a particular set of skills or resources
International strategic alliance—partners
from at least two countries; one partner is
located in the targeted geographic area
Benefits include:
Reduced risks
Greater potential rewards
Trang 9Other Global Venture Strategies
License products and processes globally
to get the greatest benefits from
intellectual property.
Sell franchise units on an international
scale to enter new, profitable markets.
Operate international facilities to create
better supply to regional customers.
Trang 10Economic Risk of Global Trade
Changes in a foreign country’s
economy may cause financial or other harm to your business.
Examples:
Failure of payment by foreign customers
Exchange-rate risk
Trang 11Political Risk of Global Trade
Changes in a foreign country’s political structure and policies may negatively
impact your business.
Examples:
A ban on imports
Prohibition of foreign direct investment
Government seizure of foreign assets
Regulations which reveal trade secrets
Trang 12Organizational Capacity
Will your firm have enough capacity to
participate in international trade?
Factors to consider:
Management’s expectations and objectives
Previous global trade experiences
Personnel requirements (time and talent)
Production capacity
Financial capacity
Trang 13Legal and Regulatory Barriers
Tariffs—taxes or duties on goods and services
imported into a country
Quotas—limits on the amounts of specific
products that can be imported into a country
Embargo—a ban on the import of all products
(or specific ones) from a particular nation
Laws against dumping: When companies price
products below cost and sell large quantities in
foreign markets, it can harm domestic firms.
Trang 14Cultural and Ethnic Considerations
Culture—the values, perspectives, beliefs,
and norms shared by a group of people
An acceptable business practice in one
country might be considered rude and
inappropriate in another.
Other factors include foreign peoples’…
Language differences
Perceived importance of personal relationships
Expectations of product/service quality
Trang 15Sources of Global Trade Support
U.S Department of Commerce
International Trade Administration
Export portal (http://www.export.gov)
U.S and Foreign Commercial Services
Small Business Development Centers
U.S Export Assistance Centers
District Export Councils
Publications such as International Trade
Forum and World Trade Magazine
Trang 16Resources for Trade Leads
The Federation of International Trade
Associations has list of no-fee Web sites.
Fee-based services will develop leads.
Trade missions provide travel
opportunities to countries of interest.
Trade intermediaries can help with initial marketing and communications.
Trang 17Forms of Financial Assistance
Letters of credit
Working Capital Loan Program (EWCP)
Export Express Loan Program
International Trade Loan Program
Ex-Im Bank’s Export Working Capital Program
Export Medium-Term Delegated Authority
Program
Ex-Im Bank’s Loan Guarantee Program
Trang 18Trade Agreements
Regional Trade Agreements (RTAs)
Regulate trade between participating
countries called Member States
Help facilitate trade on a regional basis by
cutting tariffs and reducing border barriers
Regional Free Trade Agreements (RFTAs)
Go beyond RTAs to increase market access
Simplify regulations and reduce tariffs to zero
Trang 19Significant RTAs and RFTAs
European Union (EU or EC)
European Free Trade Association (EFTA)
North American Free Trade Agreement
(NAFTA)
Southern Common Market (Mercosur)
Association of Southeast Asian Nations
(ASEAN) Free Trade Area (AFTA)
Common Market of Eastern and Southern
Africa (COMESA)