Resumen Capítulo 16 Global Marketing Management De Masaaki Kotabe

Summary Chapter 16: Export and Import Management

Chapter Overview
1. Organizing for Exports
2. Indirect Exporting
3. Direct Exporting
4. Mechanics of Exporting
5. Role of the Government in Promoting Exports
6. Managing Imports—the Other Side of the Coin
7. Mechanics of Importing
8. Gray Markets

Introduction
* Exporting is the most popular way for many companies to becomeinternational.
* Exporting is usually the first mode of foreign entry used by companies.
* Selling to foreign markets involves numerous high risks, arising from a lack of knowledge about and unfamiliarity with foreign environments, which can be heterogeneous, sophisticated, and turbulent.
* Manufactured goods accounted for almost 60 percent of the exports of developing countries.* Because of every export transaction, there is, by definition, an import transaction as well.
* Aside from differences between the procedure and rationale for exports and imports, both are largely the same the world over.
* For successful development of export activities, systematic collection of information is critical.

1. Organizing for Exports
* Research for Exports: The firststep is to use available secondary data to research potential markets.
The identification of an appropriate overseas market involves the following criteria:
1. Socioeconomic characteristics
2. Political and legal characteristics
3. Consumer variables (lifestyle, preferences, culture, taste, purchase behavior)
4. Financial conditions

* Export Market Segments
* Homogeneous marketsegments and clusters
* Geographical and psychographic segments
* Issues of standardization vs. adaptation

2. Indirect Exporting
* Indirect exporting involves the use of independent middlemen to market the firm’s products overseas.
* Combination Export Manager (CEM)
* Export Merchants
* Export Broker
* Export Commission House
* Trading Companies
* PiggybackExporting

3. Direct Exporting
* Direct exporting occurs when a manufacturer or exporter sells directly to an importer or buyer located in a foreign market.
* Export Department
* Export Sales Subsidiary
* Foreign Sales Branch

4. Mechanics of Exporting
* The Automated Export System (AES) on the Internet
* In the U.S., the AES which was launched in October 1999, enablesexporters to file export information at no cost over the Internet. AES is a nationwide system operational at all ports.
* Legality of Exports
* Export license (general or validated license)
* Export Transactions
* The terms of sale
* Monitoring the transportation and delivery of the goods to the assigned party
* Shipping and obtaining the bill of lading* Bill of lading
* A straight bill of lading
* A shipper’s order bill of lading
* Commercial invoice
* Freight forwarders
* Terms of Shipment and Sale
* INCOTERMS 2000 (International Commercial Terms)
* Terms of Shipment
* Ex-Works (EXW) at the point of origin
* Free Alongside Ship (FAS)
* Freeon Board (FOB)
* Cost and Freight (CFR)
* Carriage Paid To (CPT)
* Cost, Insurance and Freight (CIF)
* Payment Terms
* Advanced Payment
* Confirmed irrevocable letter of credit
* Unconfirmed irrevocable letter of credit
* Documents Against Payment (D/P)
* Documents Against Acceptance (D/A)* Open account
* Consignment
* Currency Hedging:
* It is done through a banker or the firm’s treasury in case there is a foreign risk in the export transaction.

5. Role of the Government in Promoting Exports
* Export promotion activities generally comprise:
* Export service programs
* Market development programs
* Export Enhancement Act of...