Chapter THIRTEEN
Export and Import Strategies

Objectives

• To introduce the ideas of export and import
• To identify the elements of export and exporting strategies
• To compare direct and indirect selling of exporting
• To identify the elements of import and import strategies
• To discuss the types and roles of third-party intermediaries in exporting
• To discuss the role of countertrade in international business

Chapter Overview

The first part of Chapter Thirteen is devoted to an examination of export and import strategies. Table 13.1 identifies the steps to consider when developing an export (or import) business plan. Next, the roles of a wide variety of third-party intermediaries are discussed. The chapter concludes with a discussion of the major issues related to export financing, including the use of countertrade as a form of payment mechanism.

Chapter Outline

OPENING CASE: Grieve Corporation—A Small Business Export Strategy

A small firm located near Chicago, Grieve Corporation manufactures laboratory and industrial ovens, furnaces, and heat processing systems for the U.S. market. Grieve began losing business as (i) foreign competitors began to penetrate the U.S. market and (ii) its customers began to move overseas and started sourcing locally. With the help of the International Trade Administration of the U.S. Department of Commerce, Grieve was able to identify potential Asian distributors. During a business trip to Asia, the president of Grieve met with potential candidates and successfully recruited exclusive agents for each country visited. Once Grieve had gained sufficient experience in the Asian market, export activities were expanded to other regions. Moving into international markets has proved to be a major factor in the firm’s continued growth and success.

Teaching Tip: Review the PowerPoint slides