International Entry Modes

Why Companies Export? Developing an Export Strategy. How do you find partners overseas? First Steps in Export/Import Personal Experience. First Steps in Export/Import Big Time. Export/Import Payments. Pros/Cons Advanced Payment. Pros/Cons Open Account. Pros/Cons Documentary Collection and Letter of Credit. Letter of Credit Process. Letter of Credit and Document Collection. The Basic Principle Step-by-Step. Forms of Countertrade. Counter-Trade. More Popular Than You Think. Counter-Trade. Direct exporting (sell to buyersIndirect exporting (sell to intermediariesFreight Forwarders. Forms of Foreign-Market Entry. Risk, Control, Experience. Wholly Owned Subsidiary. Joint Venture. Joint Venture Challenges. What is the BEST method? As everything else, it depends on.

Letter of Credit and Document Collection:The Basic Principle: Step-by-Step.

Earning extra for your connections, skills, market knowledge.

Sales representatives: hired by a company to promote the product, do not own the product, get salary or commission Distributors: own the product (buy it from the manufacturer or exporting company), earnings = retail price – price paid to manufacturer/exporter.

Agents: independent organizations or individuals that represent one or more indirect exporters in certain market Export management companies: agents with expanded duties, work with multiple products/exporters Export trading companies: a much more expanded set of services, including storage, financing, countertrade, networks (often through connections in government – my ex- employer was a congressman, big help).

Companies that help move merchandise across the border Search for transporter Contracts and other paperwork Translation Custom clearance and tariff schedules Insurance Often companies that have their own import/export business.

In the early years of my auto-trading business, I frequently helped companies move their product across the border: My language skills, knowledge of the procedures and personal contacts saved time and money for my customers.

Often it’s too difficult to find a company willing to buy your license to produce/ distribute your product. Sir Dyson first wanted to sell a license for his bag-less vacuum cleaner, but no major producer was interested (bags were a major business for them) so he had no choice but to start production.