Explain the importance of importing'

1
IMPORTING PROCEDURES

• Explain the importance of importing.
• Identify the four steps of importing.

2
Importance of Importing

• Product demand
• Lower costs
• Production inputs

3
Importing Activities
Step 4 Receive goods
Step 3 Finalize purchase
Step 2 Contact suppliers
Step 1 Determine demand
4
EXPORTING PROCEDURES

• Discuss the steps of the exporting process.
• Describe the exporting of services.

5
The Exporting Process
6
Sales Terms

• FOB Free on board
• CIF Cost, insurance, and freight
• CF Cost and freight

7
Export Documents

• Bill of lading
• Certificate of origin

8
Exporting Hurdles

• No company representatives in foreign country
• Products not appropriate for foreign consumers
• Insufficient production facilities to manufacture
  enough goods for exporting
• High costs of doing business in other countries
• Difficulty understanding foreign business
  procedures

9
Commonly Exported Services

• Hospitality
• Hotels, food service
• Entertainment
• Movies, television production, amusement parks
• Financial services
• Insurance, real estate

10
IMPORTANCE OF TRADE RELATIONS

• Identify the economic effects of foreign trade.
• Describe the types of trade agreements between
  countries.

11
The Economic Effect of Foreign Trade

• Balance of trade
• Balance of payments
• Trade deficit

12
Trade Agreements

• The World Trade Organization
• Economic communities
• Barter agreements
• Free-trade zones

13
THE NATURE OF COMPETITION

• List factors that affect international business
  competition.
• Explain the types of competitive market
  situations.

14
International Business Competition

• Factors affecting competition
• Number of companies
• Business costs
• Product differences
• Benefits and concerns of competition

15
Types of Competitive Situations

• Pure competition
• Many sellers
• Same product
• Monopolistic competition
• Many sellers
• Slightly different product

• Oligopoly
• Few sellers
• Slightly different product
• Monopoly
• One seller
• Usually government regulated