TABLE OF CONTENTS THE INTERNATI0NAL TRADE ENVIR0NMENT Globalisation and the "Global Market" 11 Benefıts of Exporting 12 Risks and Challenges 13 Rules and Regulations 14 lnternational Trade Agreements 25 Sources on [nternational Trade Regulations 30 GLOBAL VALUE CHAIN What is a Value Chain? 35 What are the Consequences on the Enterprise of the Value Chain it Operates in? 36 How can an Enterprise lncrease its Bargaining Power within a Global Value Chain? 37 STRA TEGY F0R EXP0RTS Why are you in Business? 41 Your Business: the Means to an End 42 The Objectives ofa Business 43 Business Objectives and Competitiveness 44 Management.· Buı·1d·ıng a, Competı·tı·ve Busı·ness . 46 Tasks: the Parts ofa Business 48 Why Design a Strategy? 49 Defıning your Business 50 Selecting a Business Defınition 51 Designing a Strategy 53 Simplifying Management with a Business Defınition anda Strategy 55 Connectı.ng Stı., ategy and CapabıTıtı.es . . 56 Cond uctı·ng Busı.ness T. ı·ansactı·ons . 58 Putting it ali Together: from Export Strategy to Export Transactions 59 The Business Management System 60 Appendix: the Tasks of the Business Management System 6l MARKET RESEARCH The Importance of Export Market Research 67 Managing the Research Process 70 Kı. nds of Data.· Q uantı. tatı. ve and Q ua ı·ıtatı·ve ·Data . 74 International Trade Centre 3 ACCESS! Export Course Getting the Global Picture: Strategic Information 83 Setting Objectives ··. · · · · · ·· · ·· · · · · · ·· · · · · ·· · ·· · · · ·· · · · · · · ·· · · · · · · · · · · · · · ·· · · · · ·· · · · · · · ·· ·. · · · · · · · · · · · · · · · · · · · 89 Using the Internet in Market Research 92 BUILDING PRODUCTION CAPBILITIES Key Considerations in Building Production Capabilities 97 Key Production Capabilities 97 Producing the Required Quantities 98 Facility Location 1 O 1 Modifying a Production Facility 102 Engineering the Production Process 104 Producing at the Required Level of Quality 106 Producing on Time l 07 Purchasing l 09 Cost asa Competitive Factor 111 Cost Reduction Methods ı ı 3 SETTING UP DISTRIBUTION CHANNELS Building Your Distribution Capability ı ı 7 Understanding the Distribution Chain 118 Distributing Products and Services in a Foreign Market 120 Finding Buyers, Distributors, Wholesalers, Agents and Sales Representatives 122 Representational Agreements 124 Consumer Cooperatives and Fair Trade 125 INCOTERMS Jmportance of lncoterms 135 Jncoterms: Risk, Cost and Responsibility 136 Types of lncoterıns · · · · · · · · · · · · · · · · · · · · ·· · · · · · 13 7 Seller and Buyer Obligations 138 Description of the 13 lncoterms ············ ·········· 139 COSTING AND PRICING Finding the Right Price ································ · 157 Pricing Objectives 158 Elements of Pricing ········ 159 Pricing Methods 162 Determining Export Prices 172 Export Costing Sheets 183

PROMPTING CUSTOMERS Introduction 189 Trade Fairs - Preparation 190 Trade Fa irs - Before, During and After 194 Advertising and Prornotion 206 RESONDING TO ENQUJRJES Making a Sales Proposal 215 Developing a Sales Letter 215 Writing an Effective Sal es Letter 218 Formatting and Mailing the Sales Letter.. 222 Sales Letters Via e-mail and on the Web 225 Sal es Offer 226 NEGOTIATJONS .lntroduction 233 Understanding the Deal 234 Building Relationships 239 The First / Opening Offer 239 Assessing Negotiating Strengths and Weaknesses 243 Sealing the Deal 246 COMMUNJCATION SKILLS Global Cornmunication 249 Business Culture in Export Markets 250 Building the Relationship 262 Resources for Further .lnforrnation 266 CONTRACTING AND LEGAL ASPECTS Introduction 269 General Characteristics 270 Scope of Application 271 Applicable Law 272 Modifications to be confırmed in Writing 272 Shipment and Delivery Conditions 273 Tiıne of Delivery 273 Paynıent Conditions 274 Documents to be provided by the Seller 274 Retention of Title 276 Internationa! Trade Centre 5 ACCESS ! Export Course Warranty to Consumers 276 Limitations of Liability 277 Termination ofContract by the Buyer in Case ofBreach of Contract.. 278 "Force Majeure" 279 Resolution of Disputes 279 The ICC Model Sales Contract 279 EXPORT FINANCING AND PA YMENT Ensuring Payment 289 Different Types of Financing 290 Sources for Financial Assistance 291 Factoring 292 Forfaiting 293 Main Methods of Payment 294 Cash in Advance 296 Docurnentary Credits 297 Bank Collections 304 CASH FLOW MANAGEMENT Money Matters 311 Improving Cash Flow 31 1 Cash Flow Forecasting 313 How Should you Organise your Forecast? 320 Conducting a Self-audit of your Cash Flow 322 Lets Make a Cash Flow Statement! 323 PACKAGING AND LABELLING Irnportance of Packaging 331 Protective Packaging Requirernents 332 Point of Sale Packaging 337 Labelling 338 EXPORTDOCUMENTATION The Jrnportance of Export Documentation 345 Export Docurnentation Flow Chart 347 The Cornrnercial lnvoice 348 The Proforma Invoice 350 Transport Docurnents 353 lntemational Trade Centre 6 ACCESS ! Export Course TRANSPORTATION Modes of Transportation 367 Freight Forwarders 368 The Transport Process 369 Sea Freight. 3 7 I Airfreight 378 Road Freight 380 Rail Freight. 382 EXPORTING YOUR SERVICES The Growing Irnportance of the Service Sector. 387 Skills, Knowledge and Expertise 388 Exporting a Service is Different.. 389 Modes of Delivery 391 Your Value Proposition :. 392 Market Research 394 Marketing Your Services 396 Partner.·ıng . 397 Relationship Building 399 Travel Tips and Tools for Service Firms 400 INFORMATION AND COMMUNICATION TECHNOLOGY Information Technology Boosts lnternational Business 403 Advantages and Constraints of Using I'T 406 The Value of lnforrnation 407 Knowledge Workers 409 Types of Software 41 O The I nternet and the World Wide Web 414