8/2/2019 Export Related Co1

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Export Related Cot: >The cost of modifying>Operational Cost>costsincurred in entering the foreign markets. How to overcome thesecost>Recongnize the channel of distribution:Ex;restructuredroute;produrecer-importing company processing &pack, distributioncenter, retailer>Adapt the product;Ex;Paper produce by differentmaterials>Use of c ommercial tarrif;Ex;U.S customs service ruled thatmultipurpose vehicles were light tr uck& therefore, subject to 25%tariffs.britains land rover hat to argue that its 7500+lusury vehicle, thearrange rover,ws not a truck.>Produce overseas:Ex;mports zippers f romchina that are sewn into the companys jackets & jeans in the U.S .Terms:EXW;apply only at the point of argin.>FCA;Inland carrier at namedinland point of departure>FAS;saler handale the all cost without insuran>FOB;the seller quotes a price covering all expenses up to & including,delivery of goods on an overseas vessel provide by or for thebuyer.>CFR;to a named overseas port of imort,the seller quotes a price f orthe good,including, dncluding the cost of transportation to the named portof debarkation>CIF; all cost bear by seller>DDP;seller delivers the good,with import duties paid>DDU; only the destination customs duty & taxesare paid by the consignee.LC process:1)LC opened by foreign customerat local bank & sent to U.S bank.2)LC confirmed by U.S bank & sent toexporter.3) Exporter approves terms & conditions of LC. Exporter shis

good against LC.4)Exp sends shipping documents to US bank & daraft forpayment. 5)Bank examines document for discrepancies. 6) If documentsmatch terms & conditions of LC, US bank pays exporter for goods.

Export Related Cot: >The cost of modifying>Operational Cost>costs incurred inentering the foreign markets. How to overcome these cost >Recongnize thechannel of distribution:Ex;restructured route;produrecer-importing companyprocessing &pack, distribution center, retailer>Adapt the product;Ex;Paperproduce by different materials>Use of commercial tarrif;Ex;U.S customs serviceruled that multipurpose vehicles were light truck& therefore, subject to 25%tariffs.britains land rover hat to argue that its 7500+lusury vehicle, the arr angerover,ws not a truck.>Produce overseas:Ex;mports zippers from china that aresewn into the companys jackets & jeans in the U.S. Terms:EXW;apply only at thepoint of argin.>FCA;Inland carrier at named inland point of departure>FAS;salerhandale the all cost without insuran> FOB;the seller quotes a price covering allexpenses up to & including, delivery of goods on an overseas vessel provide byor for the buyer.>CFR;to a named overseas port of imort,the seller quotes a pricefor the good,including, dncluding the cost of transportation to the named port ofdebarkation>CIF; all cost bear by seller>DDP;seller delivers the good, with importduties paid>DDU; only the destination customs duty & taxes are paid by theconsignee.LC process:1)LC opened by foreign customer at local bank & sent toU.S bank.2)LC confirmed by U.S bank & sent to exporter.3) Exporter approvesterms & conditions of LC. Exporter shis good against LC.4)Exp sends shippingdocuments to US bank & daraft for payment. 5)Bank examines document fordiscrepancies. 6) If documents match terms & conditions of LC, US bank paysexporter for goods.

Stages of the Negotiation process:Five stage>offer>informal meetings>strategy formulation >negotiations >implementations.EX-many

European buyers may be skittish about dealing with a u.s exporter,given the number of u.s companies that are perceived to be focused onshort term gains or that leave immediately when the businessenvironment turns sour. How to Negotiate in other country:> Tea,assistance> Traditions and customs>Language capability>Determination of authority> patience> negotiation ethics>silence>persistence> holistic view> the meaning of agreements. PromotionalMix:>Adv>personal selling>publici>sales pro>sponso. CommunicationalTools: Business Journals and directories>Direct Mar>Inter. Trade showsand Missions: 1)some products,by their very nature are difficult tomarket without providing the potential customer a chance to examinethem. 2)An appearance at a show produces ]goodwill and allows forperiodic cultivation of contacts. 3) The opportunity to find anintermediary may be one of the best reasons to attend a trade show. 4)attendance is one of the best wat to contact government officials anddecision makers, especially in china 5) exporter are able to reach asizable number of sales prospects in brief time period at a reasonablecost per contact.

Stages of the Negotiation process:Five stage>offer>informal meetings> strategyformulation >negotiations >implementations.EX-many European buyers may beskittish about dealing with a u.s exporter, given the number of u.s companiesthat are perceived to be focused on short term gains or that leave immediatelywhen the business environment turns sour. How to Negotiate in othercountry:> Tea, assistance> Traditions and customs>Language capability>Determination of authority> patience> negotiation ethics>silence> persistence>holistic view> the meaning of agr eements. Promotional Mix:>Adv>personalselling>publici>sales pro>sponso. Communicational Tools: Business Journals anddirectories>Direct Mar>Inter. Trade shows and Missions: 1)some products,bytheir very nature are difficult to market without providing the potentialcustomer a chance to examine them. 2)An appearance at a show produces]goodwill and allows for periodic cultivation of contacts. 3) The opportunity tofind an intermediary may be one of the best reasons to attend a trade show. 4)

attendance is one of the best wat to contact government officials and decisionmakers, especially in china 5) exporter are able to reach a sizable number ofsales prospects in brief time period at a reasonable cost per contact.