13.2: Improving Export Preformance Flashcards
What are the main challenges inexperienced exporters face?
Lack of knowledge about foreign markets, cultural differences, language barriers, geographical distance, and time zones. Identifying opportunities is complex with nearly 196 countries having different cultures.
How can exporters overcome the lack of knowledge and identify opportunities?
Collect information from trade associations, government agencies, commercial banks, and in Japan’s case, through the Ministry of International Trade and Industry and sogo shosha.
How does the U.S.’s export support structure compare to Germany and Japan?
Unlike Germany and Japan, the U.S. has not historically had a robust institutional structure for promoting exports, but this is changing as both imports and exports are now playing a greater role in the U.S. economy.
What is the situation for Canadian exporters seeking opportunities?
Canadian firms have been relatively blind to opportunities beyond their immediate market and have not evolved an institutional structure for export to the degree of Japan and Germany.
This is changing with the government providing resources like Innovation, Science and Economic Development Canada.
What information sources are available to Canadian exporters?
Global Affairs Canada, Innovation, Science and Economic Development Canada (ISED), and Statistics Canada offer resources on international trade. ISED provides market reports, cultural reports, strategies for culture and trade, and more.
What is the primary role of freight forwarders in international trade?
Freight forwarders orchestrate transportation for companies shipping internationally, combining smaller shipments into larger ones to minimize costs, and provide services like documentation, payment, and carrier selection.
What services do Export Management Companies (EMCs) provide?
EMCs offer a full menu of services for exporting, especially for firms new to exporting.
They handle export documents, operate as the firm’s agent and distributor, and may process sales orders.
What do export trading companies do?
They export products for other companies, identifying and working with companies in foreign countries that will market and sell the products, and provide comprehensive services including export documentation, logistics, and transportation.
How do export packaging companies assist new exporters?
They provide services to meet export packaging specifications, advise on design and materials to minimize packaging size, and help maximize the number of items that can be shipped.
What role do customs brokers play in exporting?
Customs brokers help companies navigate customs regulations, offering a complete package of services for documentation and legal requirements essential for exporting to multiple countries.
What are confirming houses and what do they do?
Also known as buying agents, they represent foreign companies that want to buy products, trying to get the lowest prices and are paid commissions by their foreign clients
What is piggyback marketing in the context of exporting?
An arrangement where one firm distributes another firm’s products to fill contract requirements, especially when it does not have all the requested products. It requires complementary products and targeting the same customer market.
What is piggyback marketing?
An arrangement where one firm distributes another firm’s products to fill a contract’s requirements, often requiring complementary products and the same customer target market.
