Tapping into New and International Markets: Exporting and Entry Methods

This article discusses the different methods of tapping into new international markets, including exporting, licensing, franchising, partnerships, and acquisitions. It explores the advantages and disadvantages of each method and the importance of product demand, cost, and insurance. The article also covers the necessary documentation and requirements for direct and indirect exporting, as well as the importance of customer satisfaction and the impact of Covid-19 on international trade.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
MAIN BODY
Part 2: Brochure
How to Start an Exporting Business
Advantages and disadvantages of the different
types of exporting processes for exporting
merchandising and services
Direct Exporting
Direct exporting is known as that kind of the exporting
when the products are being exported by the businesses
directly in the foreign market to the consumer. In this the
middleman is cut that acts as an intermediary between
the international market and the business. The direct
exporters can still export to the intermediaries in the
international market like the distributors, wholesalers and
the retailers.
Advantages of direct exporting
The direct exporting provides various kinds of the
benefits for the business along with some of the
drawbacks also.
Increased profits- Direct exporting eliminates the third
party between the business and the foreign customers,
the commission to be taken is not there because of the
absence of intermediary at the time of the export
process which also decreases the cost of business
outcome in the potential of improved profits.
Increased control- As there is absence of the
intermediary between the international market and the
business that directly means the business can have the
control on the exact ways in which the product is being
marketed as well as distributed.
Improved communication with the customers- Direct
The documentation that is required
e.g., letter of credit, packing list,
commercial invoice, terms of payment,
customs document.
Letter of credit
It is a kind of a written document which is
issued by the bank of the importer also
known as the opening bank on the behalf of
the importer. With the help of this document
there is an assurance by the exporter that the
issuing bank will pay to the exporter for the
foreign trade taking place between both of
the parties. The main features of the letter of
credit is that it is negotiable, revocable and
can be transferred and assigned. The
documents needed for the letter of credit are
the airway bill, shipping bill of lading,
commercial invoice, certificate of origin,
packing list, certificate of inspection,
insurance certificate.
Packing list
An export packing list is in a more detailed
manner as compared to the packing slip
which the business offer for the purpose of
the domestic shipments. This document can
also be used in some of the ways such as the
freight forwarder can use data on the list of
the packing in order to develop the lading

exporting permits the business in not only leveraging the
image of the brand desired but also permits in getting
the direct feedback from the consumers.
Disadvantages of direct exporting
More workload- The responsibility gets increased as the
role of the intermediary between the international market
and the business gets cut down. The logistical planning
included in the shipping of the export is very complex
and also consumes a lot of time.
Limited knowledge of marketing- The important market
research is required to take place and the strategies of
the marketing along with the campaigns are also needed
to be followed and in the same way the comprehension
of the competitors and the prices is also required.
Indirect exporting
This kind of the exporting takes place when the business
sells its product to the third party in the domestic market
only and after that it exports to the customer in the
international market.
Advantages of indirect exporting
Easy entry in market strategy- If the business is planning
to come into the international market then the indirect
exporting is the best way to do this. In this the
intermediary handles all of the complicated tasks.
Reduced financial risk- Less amount of the investments
are required to be made in the staffing and some other
aspects as there is the presence of the intermediary
whose work is to tackle with all the complex work
included in the process of export.
Enhanced market coverage- When the intermediary
have the better knowledge of the foreign market that
helps in assisting the business in order to reach the
large range of the buyers.
Disadvantages of indirect exporting
bills for the purpose of shipments. The bank
can also need the detailed packing list to be
involved in the document set to display in
order to get paid below the credit letter. This
document is also used by the custom officials
in the US along with the country of
destination to recognise the location of
particular packed items that need to be
analysed.
Commercial invoice
After the proforma invoice is being sent to the
international prospect and then getting the
order, the business is required to prepare the
goods for the purpose of shipping consisting
the paperwork that should accompany the
products. The commercial invoice includes
the major details of the complete transaction
of the export from the beginning to the
ending. This document is same as the
proforma invoice which is sent to the
customer at the initial level in order to serve
as the quote but must also include the extra
details which is not known before.
Terms of payment
The terms of payment for the export are an
important aspect of the International trade
that are on the basis of who are the importers
and the exporters that makes the decision
regarding the ways in which the final
payment needed to be made. This depends
on the two parties who decide and negotiate
the terms. There exists five types of the
terms and conditions of payment known as
the open account, documentary collection,

Lesser profit margins- The profit margin becomes low
because some part of the profit will be given to the
intermediary.
No consumer contact- The intermediary contacts with
the customers of the foreign countries which means the
business will not receive the direct feedback.
cash in advance and the letter of credit.
Customs document
The customs documents needed for the
exports customs clearance are the proforma
invoice, customs packing list, country of
origin or the certificate of COO, shipping bill,
bill of lading or bill of airway, bill of exchange,
health certificates, warehouse receipt, export
license, bill of exchange, letter of credit and
the bill of sight. The process of the customs
clearance typically includes the preparation
of the documents that can be submitted in an
electronic or physical mode along with the
consignment.
An evaluation of the different methods of
tapping into new international markets,
including its limitations and benefits.
Exporting
It is one of the easiest method to enter into the new
international market and that is the reason most of
businesses start their expansion internationally with the
help of using this method of entry. Exporting is known as
the sale of the services along with the products in the
foreign nations which are being acquired from the
domestic country itself. The main benefit of this method
is that the expenses can be avoided by the firms of
developing the operations in the new nation. The
business must keep in mind the thought of the
packaging, labelling and the pricing the providing in a
correct manner for the market. In aspects of the
promotion and marketing the business also require to
make the potential buyers know about their offerings
with the help of the trade shows, advertising and the
local sales force.
Justified recommendations on
appropriate methods and countries to
meet specific business requirements.
Importance of place
At the time of exporting the products, one
most important thing that should not be
avoided at all is the place where the business
want to export their product. The rate of the
economic growth of the latest market must be
taken into account as an important factor at
the time of exporting with the
competitiveness in the industry where the
goods are needed to be exported.
Description of product
The product which is needed to be exported
must not be prohibited. Also there exists
some of the products like the dangerous
chemicals known for being strictly banned in
the market in Europe.

Licensing and franchising
Both the licensing as well as franchising are the most
specialised methods of the entry. Those companies who
want to create a retail presence in the international
market with lesser amount of the risk then the best
option is the licensing and franchising which permits the
other person or the business predict the risk on the side
of the company. In this method the business based in
foreign will pay the business the commission or royalty in
order to use the name of the brand, process of
manufacturing, trademarks, products as well as other
intellectual properties.
Partnerships and strategic alliances
Another great method to enter into the new market is by
making a strategic alliance with the partner that is local.
The strategic alliance includes a contractual agreement
between more than two or only two businesses keeping
in account that the included parties will be able to help in
a particular manner for a specific period of time in order
to attain a common goal or objective.
The strategic alliance is a kind of a benefit for the small
entrepreneurial businesses which can be very small in
order to make the required investments for the purpose
of entering into the new international markets.
Acquisitions
An acquisition is simply a kind of a transaction in which
the business takes the control of some other firm by
purchasing the stock, stock exchange on its own and in
the case of the private business making payments to the
owners of the purchase price. In the past few years the
cross border acquisitions have reached upto 60 percent
among all of the acquisitions across the globe, These
acquisitions are becoming attractive to the businesses
because they offer the company with fast as well
Customer Satisfaction
It is necessary for any type of the business to
decrease the starting expectations and to
emphasize on creating itself by acquiring the
confidence and the trust of the consumers. In
the European nation there exists various
products offering the similar kinds of the
needs and the business is needed to
maintain the consistency and the proving of
the value of the good or product to the people
of Europe.
Product demand
The opportunities must be taken by the
people at the time of exporting their goods to
other nations as the demand of any kind of
the product can assist in development of the
product to be successful. Also the product
can only survive in the international market
for a longer period of the time when it is able
to adjust in the ever changing demands of
the market.
Cost of the product
The product cost is necessary in drawing in
the people because /the cost creates an
impact on the decision making of the
individuals. The products which the business
want to get export can also violate some of
the rights related to the intellectual property
along with the international union that can
also prohibit the product from the industry of
marker on this basis.
Insurance of business
The business must be insured as the product
can also get destroyed or damaged at the

developed access to the latest market. Although, this
method is way too expensive that can witnessed in the
past when they were considered as out of the reach
strategy for the businesses in the lesser developed
globe to continue.
time of its journey to the foreign country
because of the natural calamity or some
other reason. There exists different suppliers
in the international market and the
business .can also contact the suppliers in
order to get a basic idea about the conditions
of the market.
Capital and resource requirement
Exporting to the international market is not an
easy work as it consist of an ample amount
of the capital along with the use of the
resources that is not being done properly
then it can result into the exploitation of
opportunity to create the product in the
international market. The product must also
not violate the rights related to the intellectual
property as it can result into the damaging of
the imported products in the international
markets. Most of the things are needed to be
kept in mind at the time of exporting the
products alo9ng with the services to the
international market. The capital, resources,
transportation, cost along with the product
are the important factors which must be
provided with equal attention at the time of
exporting to the international boundaries.
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CONCLUSION
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REFERENCES
Books and Journals