Exporting

Procedures
 Indirect Exporting occurs when a company
THE sells its products in a foreign market
EXPORTING without actively seeking out those
PROCESS opportunities.
Direct Exporting is when a company is
actively seeking export opportunities.
 THE EXPORTING
PROCESS

Step1. Find Step2. Step 4. Step 5.

Potential
Step 3. Provides Complete
Meet the
Customers Needs of
Agree on Products the
Customers Sales Term and Services Transaction
Step1. Find Potential Customers

Trade leads- lists for companies planning to do

business overseas.
Step 2. Meet the Needs of Customers

Some products are standardized or sold the same

around the world.
 Step 3. Agree on Sales Term

Transportation Costs can be a major portion of the cost of exporting.

Free on Board (FOB)-selling price of the product includes the cost of loading the
exported goods onto transport vessels at the specific place.
Cost, Insurance, and Freight (CIF)- the cost of the goods, insurance, and freight are
included in the price quoted.
Cost and Freight (C&F)- indicates that the price includes the cost of the goods and
freight, but the payer must pay for the insurance separately.
 
 TRADE
RELATIONS
THE ECONOMIC
EFFECT OF FOREIGN
TRADE
 Balance of Payment
it measures the total flow of money coming into a country
minus the total flow going out. It includes exports, imports,
investments, tourist spending, and financial assistance.

Your Title Here

More..
 Your Title Here

Balance of payments

Your Title Here

Positive
More.. balance of payments
Negative balance of payments
 Trade Deficit

is the total amount a country owes to other

countries as a result of importing more
goods and services than the country is
exporting.
Your Title Here

More..
 TRADE AGREEMENTS

The World Trade

Organization
 The General Agreement on Tariffs and Trade (GATT) was negotiated in 1947 and began
operating in January 1948 when 23 countries signed the treaty agreement.
• Intended to reduce trade barriers and to promote trade
• Goal were to promote world trade through negotiation and to make world trade
secure.
Your Title Here
 1995 – GATT was replaced by WTO with over 140 member countries.
• WTO has the power to settle trade disputes and enforce the free-trade agreements
More.. between its members.
 Lowering tariffs that discourage free
trade
 Eliminating import quotas, subsidies, and
unfair technical standards that reduce
competition in the world market

 Recognizing protection for

patents, copyrights, trademarks,
and other intellectual properties
such as software

 Reducing barriers for banks, insurance

companies, and other financial services
 Assisting poor countries with trade
policies and economic growth
 Economic Communities
- It is an organization of countries that bond together to allow a free
flow of products. It also called a common market.

Expanded trade with other Lower prices for consumers

regions of the world within the group

Your Title Here

Expanded employment and Reduced tariffs for the member
More.. investment opportunities countries
 BARTER AGREEMENTS

Direct Barter Countertrade

The exchange of The exchange of
goods and products or services
services between between companies in
two parties with different countries
no money with the possibility of
involved. some currency
exchange.
 Free-Trade Zones

It is area designed by a government for

duty-free entry of nonprohibited goods.

Duties (import taxes) are imposed on the

goods only when the items pass from the
free-trade zone into an area of the
county subject to customs. Your Title Here

More..