Exam Review

1. Introduction Complexities and challenges of exporting

Increased costs you may have to modify packaging, or your products or services, and account for short-term costs such as extra travel, production of new marketing materials and additional staff to adapt to markets abroad.

Level of commitment it takes time, willingness, effort and resources to establish and maintain yourself in foreign markets. Staying in for the long haul while exporting holds great economic promise for most companies, months or even several years can pass before you see a significant return on your export investment.

Language and cultural differences familiarize yourself with the differences in language, culture and business practices so you dont inadvertently offend your potential customer and lose a sale.

Paperwork theres no way around it, both Canadian and foreign governments require a lot of documentation from exporters of products and services. Accessibility you have to be easily available to your foreign clients. Competition you must be sure youre thoroughly familiar with the competition in your target market.

Process and parties

Exporter, importer, customs and excise, carriers/freight forwarders, exporters bank, importers bank Canada Trade Agenda

FTA free trade negotiations TPP trans-pacific partnership Stagnant growth, high unemployment, and rising debt The Asian miracle The Trans-Pacific Partnership Japan-Canada Bilateral FTA

US, Asia, Western Europe EDC doc. Priorities

2. Readiness Evaluation (finances Resources, HR, Domestic success, Marketing Skills etc.) Support for institutions, (funds, advising etc.) Readiness assessment Why Export? ( challenges, pros and cons) 1. Increased sales 2. Higher profits 3. Economies of scale 4. Reduced vulnerability 5. New knowledge and experience 6. Global competitiveness 7. Domestic competitiveness Dealing with challenges: 1. Increased costs 2. Level of commitment 3. Staying in for the long haul 4. Language and cultural differences 5. Paperwork 6. Accessibility 7. Competition Expectations

Science and technology

Move beyond exporting natural resources and commodities S&T department as major economic priority Global value chain R&D collaboration with an overseas company

3. Export Plan

 Components (Step 3) 4. Finding Opportunities Sources of products /services Regulatory agencies 5. External Assistance; Names Purposes Value External Resources (federal, provincial, Municipal, NGOs,/private 6. Adapting the product packing Type of regulations that products need to adapt to export, Services (licences, permits etc. Culture preferences; adapt the product/service to the wants and needs of other cultures Reasons of the adaptation product/service How are you going to export direct and indirect explain? Indirect exporting 1. Agents 2. Jobbers 3. Commission trading house 4. Export by implications 5. Export for foreign aid Direct exporting 1. Direct Internet marketing 2. Distributor 3. Import/export manager 4. Import/export consortium 5. International sales company 6. Strategic alliances (franchising, licensing, joint ventures)

How find trust with foreign partners Letter of Credit Process (whole thing)

Letter of Credit ,L/C)

The mechanics of a Letter of Credit are easily understood when separated into the following three steps: Issuance Flow of Goods Flow of Documents & Payment

After the trading parties agree on a sale of goods where payment is made by Letter of Credit, the Importer requests that its bank (the Issuing Bank) issue a Letter of Credit in favour of the Exporter (Beneficiary). The Issuing Bank then sends the Letter of Credit to the Advising Bank. A request may be included for the Advising Bank to add its confirmation. The Advising Bank is usually located in the country where the Exporter does business and may be the Exporters bank, but does not have to be. Next, the Advising/Confirming Bank verifies the Letter of Credit for authenticity and sends it to the Exporter. Upon receipt of the Letter of Credit, the Exporter reviews the Letter of Credit to ensure that it corresponds to the terms and conditions in the purchase and sales agreement; that the documents stipulated in the Letter of Credit can be produced; and that the terms and conditions of the Letter of Credit can be fulfilled. Assuming the Exporter is in agreement with the above, it arranges for shipment of the goods. After the goods are shipped, the Exporter presents the documents specified in the Letter of Credit to the Advising/ Confirming Bank. Once the documents are checked and found to comply with the Letter of Credit (i.e. without discrepancies), the Advising/ Confirming Bank forwards these documents to the Issuing Bank. The drawing is negotiated, paid or accepted as the case may be

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BDC document (I am not sure if is BDC or EDC I could copy wrong) ask teacher Ready to Export? Step by step export plan 1. DFAIT, Ontario Exports, EDC, BDC, CCC, CME, TFO, IE Canada, and FITT