Unit 02, Export Prerequisites

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An "ideal" exporter has four basic attributes: committed management, competitive product, adequate resources, and sound marketing methodology. How do you stack up against this ideal?

 

Management Commitment. Motivated management is the primary key to export success. Exporting takes time and perseverance to pay off. To be more than an occasional or incidental exporter, management must be willing to commit and see it through. Has your management reached this point?

 

Competitive Product. Products won't sell anywhere if they can't compete. To compete, your product must match or exceed the appeal of others -- in meeting needs, in quality, in price, etc. Are you export-competitive? You may well be without realizing it.

 Adequate Resources. Whether you are a manufacturer or export intermediary, you'll need experienced staff, a place of business, equipment to operate the business, and working capital to finance basic activities.

Sound Marketing Methods. How you enter and develop a foreign market is important. Marketing and distribution practices vary by country and are often dictated by law, custom, or necessity.

Video

Unit 02, Video, Export Prerequisites

Transcript

Unit 02, Video Transcript, Export Prerequisites

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Table of Contents

Introduction to the GTIM Network

GTIM Network Mission Statement

GTIM Network Essential Ideas

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GTIM Network, Export Process Training

Unit 01, What is Exporting

Unit 02, Export Prerequisites

GTIM Network Essential Ideas

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The GTIM Network is a “knowledge system” supporting the development of entrepreneurs in emerging economies such as  in Colombia, or Nigeria, or Vietnam. 

• “Entrepreneurs” means those businesspersons who understand that the success of their business depends,  in large part, on acquiring and applying certain management skills to the sale of their product or service.
• “Entrepreneurs” are principally responsible for the investment of time and money in continuous training regarding these management skills and, when necessary, engaging professional support services.      
  
  
• the GTIM Network “knowledge system” focuses on four relationships an entrepreneur must learn to manage in global trade and investment : imports, exports, inward investments,  and outward investments.  
   
• Each relationships requires that the same four basic management skills  be mastered: market intelligence, market promotion, market contacts, and transaction management. 

• The GTIM Network is simply that: a network. The “knowledge” it makes available to emerging entrepreneurs….about the four management skills… is provided by third parties. What the GTIM Network provides is a structured way of presenting that knowledge and the means for accessing it, emphasizing as much as possible the use of the Internet. 
• the Network itself has three components: 1) the Database; 2)a Web Portal, and ; 3) Business Service Centers.           
  
  
• Organizationally , is a fee-based, income generating activity. The very small staff of the GTIM Network will dedicate itself to a limited set of functions: 1)procuring and editing trade and investment  material for training modules ; 2) recruit Professional Service Providers to offer consulting services that build on the training; 3) maintaining an  Internet-based platform for  public access to the training modules and consulting services; 4) encouraging the creation of physical venues  (Business Service Centers) to facilitate access to the GTIM Network Web Portal and other internet resources; and ,5) actively recruit participants to the Network whether as providers of  training and services or as  commercial  users .

• The GTIM Network complements all other existing business support systems such as Chambers of Commerce and Industry and Business Associations; it competes with none of them but rather supports them. The Network will not advocate any policy positions on behalf of Network members. That important function is best served by the Chambers and Associations.

 

Unit 01, What is Exporting

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Similarities to Domestic Selling. Exporting is like domestic selling in many ways. It’s basic marketing first and foremost. 

Dissimilarities. Here are the main dissimilarities between domestic sales and exporting:

·    Exports are more often channeled through intermediaries in each       country, not directly to end-users.

·    Exports usually involve an exchange of currency to pay for the purchase.

·    Export sales use different payment methods. Exporters usually receive payment through a process handled by banks in your country and the importer's country.

·    Exporting involves more and different paperwork. Exporters must prepare a number of specialized shipping and regulatory documents.

·   Exporting involves added costs to deliver the goods from the exporter’s country to the importer’s country.

·   Exports are subject to customs duties and taxes in the importing countries.

·    Widely differing laws and business practices exist in other countries. These encompass trade, monetary and fiscal policy; pricing, distribution and promotion; treatment of intellectual property; health, safety and technical standards, etc

·   Linguistic, demographic and environmental variations are more pronounced outside your country. These differences, if ignored, can make or break your sales efforts abroad.

         

Benefits of Exporting

Exports increase sales and income. Selling more is the surest way to make more money. Exporting greatly increases your sales potential.  

Exports diversify market risk; offset lags in domestic demand. The world market offers new sales options when domestic business slows down.  

Exports extend product life cycles. As technology advances and tastes change, many products become obsolete or lose their appeal, particularly in highly industrialized markets.  

Exports use idle capacity; reduce unit costs. Increased exports put idle production capacity to work, often with the same equipment, staff and capital investment.

Video:

Video, Unit 1, What Is Exporting

Video Transcript:

Video, Unit 1, Transcript

  

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GTIM Network Mission Statement

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The mission of the Global Trade and Investment Management (GTIM) Network is to enable small and medium-sized entrepreneurs found in  developing/transitional national economies to succeed in the far larger and more competitive global economy. GTIM offers to do so: 1) through training in four core activities required for success in global trade and investment management ; and, 2) by creating opportunities to apply that training to profitable business transactions whether in importing, exporting , inward investment, or outward investment. In a word, the GTIM Network enables entrepreneurs from developing/transitional economies to "learn and earn" their way into becoming global entrepreneurs.