Modes of Trading Internationally

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Modes of Trading Internationally by Mind Map: Modes of Trading Internationally

1. Exporting

1.1. Sale produced based in one country to customers from a different one

1.2. Types of businesses

1.2.1. Non-exporter

1.2.2. Occasional exporter

1.2.3. Regular exporter

1.3. Entry mode intro another country depends on

1.3.1. Ownership advantages

1.3.2. Location advantages

1.3.3. International advantages

1.4. Exporters

1.4.1. Characteristics Management commitment Efficiency Cost structure Size Large Small and medium

1.4.2. Initiation and development approaches Incremental internationalization Exporting is a learning process Born global Instant internationalization with a global focus

1.5. Why export?

1.5.1. Profits

1.5.2. Productivity

1.5.3. Diversification

1.6. Approaches to exporting

1.6.1. Direct exporting Independent representatives outside of the exporter's home country

1.6.2. Indirect exporting The products are sold to an intermediary, wich then exports them Selling to domestic buyers who represent foreign end users, or who then export the product

2. Importing

2.1. The purchase of a good by a buyer in one country from a seller in another

2.2. Importers

2.2.1. Types Input optimizers Opportunistic Arbitrageurs

2.3. Why import?

2.3.1. Specialization of labor

2.3.2. Global rivalry-costs of inputs

2.3.3. Local unavailability

2.3.4. Diversification

3. Importing and Exporting

3.1. Problems and Pitfalls

3.1.1. Financial risks

3.1.2. Customer management

3.1.3. Lack of international business experience

3.1.4. Marketing challenges

3.1.5. Top management commitment

3.1.6. Government regulation

3.1.7. Trade documentation

3.1.8. Types of Export Documents Pro Forma Invoice Shipper's Export Declaration Bill of Lading Consular Invoice Certificate of Origin Export-Packing List Commercial Invoice

3.2. Resources and Assistance

3.2.1. Trade assistance by type and source Government agencies Trade associations Trade intermediaries

3.2.2. Export intermediaries EMC Export Management Company ETC Export Trade Companies

3.2.3. Customs agents Enforce the rules of trade for a particular country

3.2.4. Customs brokers Help importers navigate the regulations imposed by customs agencies

3.2.5. Freight forwarders The largest export/import intermediary in terms of value and weight of products shipped globally

3.2.6. Third party logistics 3PLs Move cargo and provide a range of logistics

4. Reconciling Opportunity and Challenge: An Export Plan

4.1. Export plan: Identifies resources, assigns responsability and stipulates controls

4.2. Technology and International Trade

4.2.1. Advances are leveling the playing field for small and medium enterprises Online platform Software platform Logistics platform

5. Countertrade

5.1. They are arrangements used by parties to trade products

5.2. Costs

5.2.1. Inneficient

5.2.2. Risky

5.2.3. Cumbersome

5.3. Benefits

5.3.1. Build mutually beneficial relationships

5.4. Common types

5.4.1. Barter

5.4.2. Buyback

5.4.3. Offset

5.4.4. Switch/Swap trading

5.4.5. Counter purchase