Welcome
The Abstract
Thesis Introduction
The Aim
Background to the Research Topics
The Research Topics
The Targeted Audience
Disposition
Research Approach
The Thesis in Context
Export Guide Construction
Questionnaire Construction
Information Gathering
The Export Guide
Introduction to the Export Guide
Export Guide Overview
Export Readiness
Trade Condition
Foreign Market Analysis
Questionnaire
Research Results
Export Readiness
Trade Condition
Foreign Market Analysis
Discussion
Export Readiness
Trade Condition
Foreign Market Analysis
Conclusion
Export Readiness
Trade Condition
Foreign Market Analysis
The Next Step
Supplements
Introduction to Sunfoods and Konnyaku-Chips
Site Map
The Compleste Interview Answers
Glossary
Sources
Trade Condition
Tariffs and Non-Tariff Requirements
It may be claimed that there are two broad groups of import regulations imposed by foreign countries, tariffs and nontariff barriers.(www.unzco.com/basicguide/c7.html 2003-02-21) A tariff is considered to be a type of tax imposed by a government on goods entering the country.(Cateora and Graham 1999, page 41) Non-tariff barriers may include specific limitations on trade, standards, customs and administrative entry procedures and charges on imports.(Cateora and Graham 1999, page 42) Other standard non-tariff requirements include packaging, labeling, marketing and product requirements.(Cateora and Graham 1999, page 42) Foreign government product regulations are seen as common in international trade and to enter a foreign market the company might need to modify the product to conform to government regulations.(www.unzco.com/basicguide/c7.html 2003-02-21) Government regulations might be imposed in order to protect domestic industries, to protect the health of the consumers and to protect the environment of the country etc.(www.unzco.com/basicguide/c7.html 2003-02-)
Trade Friendliness
Knowledge about political and economic trade factors, in the host country and the home country, may help the company determine how to operate in the target market.(A step-by-step guide to exporting page 16, 2003-02-18) The research may facilitate the process of making sound export marketing decisions, it can confirm whether a business opportunity actually exists in the studied market and it may increase the company's understanding of the market's characteristics.(A step-by-step guide to exporting page 16, 2003-02-18)
Foreign Market Analysis
Political, Economic and Statistical Data
It may be argued that in order to learn how to approach a new market research is necessary.(A step-by-step guide to exporting 2003-02-18, page 16) For example if a corporation want more detailed knowledge about a target market they have in mind than market research may help the company understand the market's needs and opportunities.(A step-by-step guide to exporting 2003-02-18, page 16) There are a variety of methods to research markets.(www.unzco.com/basicguide/c9.html, 2003-02-21) The political situation in the host country may be studied, in which case the most important political factor for foreign businesses is considered to be the stability of government policies.(Cateora and Graham 1999, page 144-145) It has in fact been argued that it is possible for a company to operate on any market under any type of government as long as there is some long-run predictability and stability.(Cateora and Graham 1999, page 145) (Cateora and Graham 1999, page 144-145) Per-capita income is generally considered a good indicator of the market's ability to pay.(A step-by-step guide to exporting 2003-02-18, page 25) Demographic information and other statistics regarding the host market can be considered to be important market potential indicators for the company's product.(http://www.unzco.com/basicguide/c2.html 2003-02-21)
Legal Protection
It is maintained that one imperative legal aspect to consider is intellectual right protecting, in other words the protection of inventions, works of authorship, designs etc.(www.unzco.com/basicguide/c9.html 2003-02-20) Intellectual property can be protected by trademarks, copyrights or patents and it has been argued that it is vital to carefully guard and protect ones ideas(A step-by-step guide to exporting 2003-02-18, page 46) However, foreign patents are expensive to register and maintain and it is said to be necessary to apply for patents rights in each targeted country separately as it is claimed to be no such thing as an international patent, trademark, or copyright.(www.unzco.com/basicguide/c9.html, 2003-02-21)(A step-by-step guide to exporting 2003-02-18, page 46)
Cultural Aspects
It has been asserted that cultural factors are considered essential in international marketing and that the success of operations abroad depend on an awareness of differences in cultures.(Cateora and Graham 1999, page 98) Cultural understanding of the host market may also facilitate decisions regarding how to best approach the market.(A step-by-step guide to exporting page 17, 2003-02-18)
Market Entry, Distribution and Trade Assistance
It has been claimed that the chosen marketing-channel greatly influences the pricing, how the customers perceive the product and how much control the company has over the sales process.(Kotler et al, 1999, page 556-557) Therefore marketing-channel decisions can be considered to be among the most critical decisions facing international companies.(Kotler et al, 1999, page 556) Conventional means of market entry are often grouped into the categories direct exports and indirect exports.(A step-by-step guide to exporting 2003-02-18, page 30) Direct exporting may give higher returns on investments and allow for lower prices.(A step-by-step guide to exporting 2003-02-18, page 31) Further it may involve closer contacts between the company and its customers.(A step-by-step guide to exporting 2003-02-18, page 31) Indirect exports may include selling through intermediaries such as foreign distributors or domestic trading houses.(A step-by-step guide to exporting 2003-02-18, page 31) It may also entail selling through foreign agents.(A step-by-step guide to exporting 2003-02-18, page 31) The main advantage with intermediaries is that they may smooth the flow of goods from the producer to the target market.(Kotler et al, 1999, page 557) Further, intermediaries might possess useful information about the customers and the targeted market and they may provide some of the necessary financing and lower the risk the company is exposed to.(Kotler et al, 1999, page 558-559) It has been claimed that the chosen market entry strategy need to reflect the host market, the company capabilities, and the degree of commitment the management is prepared to make.(Cateora and Graham 1999, page 325) For easily accessed markets, direct selling may be a possible choice but, for markets with complex business structures and cultural differences, it might be better to corporate with a local partner.(www.austrade.org/generic_template/0,1053,MetaRID%3DPWB1146570,00.html) Companies usually start with indirect exporting where they export through independent intermediaries, since this involves less investments and less risk compared to direct exporting. (Kotler et al 1999, page 418-419) On the other hand, the foreign distributor may reduce the company's profit.( A step-by-step guide to exporting 2003-02-18, page 33) To find the entry strategy that suits the corporation best, it may be advisable to compare company characteristics with the targeted market's characteristics.(www.austrade.org/generic_template/0,1053,MetaRID%3DPWB1146570,00.html)
The process of exporting may not appear to be easy to deal with but it may be possible to find valuable help and assistance.(A step-by-step guide to exporting 2003-02-18, page 8) The company may hire an experienced exporter, train existing personnel or contract for services of international trade experts.(A step-by-step guide to exporting 2003-02-18, page 8) Other companies may also provide support and contacts made through business colleagues and associations can prove invaluable.(www.unzco.com/basicguide/c9.html, 2003-02-21) Further sources of assistance may include trade associations, chambers of commerce, embassies, business magazines etc.(www.unzco.com/basicguide/c9.html, 2003-02-21)