Presentation on theme: "TAKE YOUR BUSINESS GLOBAL International Trade. Why Should You Export?"— Presentation transcript:
TAKE YOUR BUSINESS GLOBAL International Trade
Why Should You Export?
Expanding World Markets Nearly 96 percent of consumers live outside the U.S. Over two-thirds of the world’s purchasing power resides outside the U.S. There is a significant opportunity for companies to increase sales by exporting Made in the USA still a powerful message
Exporting Myths Getting paid is cumbersome Exporting is too risky and complicated My business is too small to go global
Exporting Advantages Increase sales and profit Lower costs for transportation and communications Stabilize seasonal market/sales fluctuations Diversify sources of customers and revenue
Federal Government Exporting Assistance Global access to business opportunities Trade expertise to succeed in markets around the world Export training and education resources online or in- class for beginner or advanced exporters
Are You Ready to Export? Is exporting consistent with your company vision? Are your products and services successful domestically? Why will they be successful in international markets? Do you have the commitment, persistence and resources to support exporting?
Take a Free Export Readiness Self-Assessment to Get Started Complete online questionnaire at www.export.gov/begin Receive feedback to assess export readiness Take online training courses to get you started Contact local export professionals for continued development
Create an Export Business Plan Define your company’s present status, internal goals & commitment Assemble facts Define constraints Identify specific goals and objectives
Conduct Market Research Use market research to identify foreign market product potential Learn about common business practices Market Research Library—U.S. government information on foreign opportunities Trade Stats Express—U.S. government information to identify target markets
Find Foreign Buyers Look for export events matching U.S. sellers with foreign buyers Meet foreign buyers at U.s. trade shows Sign up for a foreign trade mission or attend a foreign trade shows Investigate the Gold Key Matching Service, a fee- based customized buyer-finding solution offered by the U.S. Commercial Service
Legal Considerations Copyrights Trademarks Patents Protecting small business rights
How To Finance Your Sales
Methods of International Payments Cash in advance Letters of credit Open account
Cash in Advance Ideal for exporter but may not be competitive – Wire transfer is best approach – Checks should not be used for international transactions Credit Cards – Many exporters accept credit cards – Beware – increase in fraudulent uses and stolen cards
Letters of Credit Payment made after verification of all documents and terms are satisfied Sales terms/contracts are basis for letter of credit Requires knowledge of the process to prevent errors
Open Account Convenient and competitive method of payment for well-established buyer with good credit Lack of documents and banking channels may make it difficult to pursue legal enforcement of claims Best combined with export credit risk insurance
International Finance Government programs to finance export transactions and capital to undertake export operations Working capital loans for American exporters and financing for foreign buyers
Private Sources of Financing Commercial banks Private export finance companies Export management and export trading companies Factoring houses
Insurance and Risk Mitigation Policies Export transactions and for overseas investments. Coverage includes losses for non-payment, currency inconvertibility, asset expropriation and other political risks.
Grants for U.S. firms conduct feasibility studies on infrastructure projects train the foreign business community and government officials on U.S. business practices, regulatory reform and other economic development activities
Need More Answers? Export.gov—provides government online resources and links to local assistance United States Export Assistance Centers—located throughout the U.S., provides information for all federal export promotion and finance programs Look for export training programs offered in your area