Selecting Export Markets: Guidelines To Consider


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Selecting Export Markets: Guidelines To Consider by Mind Map: Selecting Export Markets: Guidelines To Consider

1. Correctly Weigh the Factors

1.1. Establish the criteria you feel will best determine markets to pursue and accurately weigh the factors.

1.1.1. Experienced traders may expand into several markets simultaneously

1.1.2. Beginners should pursue only a few until sufficient experience is obtained.

1.2. Success is best achieved if research reveals all hidden costs

1.2.1. while the right foreign markets may exceed export expectations, the wrong markets can be extremely costly in terms of time and money.

2. Scrutinize Human and Physical Infrastructure

2.1. Does your product requires a skilled support staff?

2.1.1. If it is make certain it is available

2.1.2. If not, calculate the expense of obtaining support from other locations.

2.2. The lack of physical infrastructure also may curtail profits.

2.2.1. If the infrastructure is not up to par, consider licensing your technology.

3. Study Economic Indicators and Levels of Stability

3.1. Research how much of your product each target market produces domestically, imports and exports.

3.1.1. . If demand is increasing: Revies the per capita income Review the country’s economic growth rate

3.2. For nations with soft currencies or insufficient reserves, determine if creative financing solutions are justified.

3.2.1. If you accept foreign currencies, understand the risks as well as the costs to guard against fluctuations Keep abreast of political risks and potential civil unrest.

4. Investigate Intellectual Property Protection and Other Laws

4.1. Assess each country’s legal practices, safety and environmental regulations, and commercial code.

4.2. Investigate how piracy is handled.

4.2.1. If protection is not a priority, avoid this market.

5. Research Trade Barriers, Competition and Culture

5.1. Study competitors.

5.1.1. Their products

5.1.2. Level of after-sale service

5.1.3. Prices

5.1.4. Distribution methods

5.1.5. Consumers

5.2. Identify trade barriers that could impact your products.

5.2.1. Taxes

5.2.2. Quoutas

5.2.3. Labeling requirements

5.2.4. Health standards

5.2.5. Red tape

5.2.6. Duties

5.3. Study a culture’s character in advance,

5.3.1. Sensitivity to foreign culturesit is a good bussines