Presentation Transcript

1. 8 International Marketing Channels 8.02 Exporting and Logistics

2. Warmup--Logistics Connect to each of these videos (in order) to use as a warm-
up (approx. 20 min.): http://www.youtube.com/watch?
v=qDbnx6nLrQo&feature=related http://www.youtube.com/watch?
v=Wlrf32iU9pc&feature=relmfu Chapter 8
3. Lesson 8.2Exporting and Logistics Goals • Explain what is involved in the
exporting process. • Discuss the importance of having an efficient logistical
system. Chapter 8
4. Terms • exporting • importing • indirect exporting • direct exporting • customs •
customs broker • intermodal transport Chapter 8
5. EXPORTING • Exporting • The process of shipping a product to another part of the
world for trade or sale • Includes: • Identification of customers • Preparing
products for shipment • Arranging documentation • Clearing customs • Planning
shipping/delivery of products Chapter 8
6. EXPORTING (continued) • Indirect exporting • For a company not fully committed
to international marketing • Uses a broker or agent to help find customers and
export products • Extra middle-men can increase total cost Chapter 8
7. EXPORTING (continued) • Direct exporting • For a company fully committed to
foreign markets • a company actively controls finding markets and exporting
products • Importing • receiving products exported from another country Chapter
8
8. Intermediaries that assist in exporting: • Export trading company • Buy and sell
products • Conduct market research • Overseas distribution • Provide funding and
financing • Coordinate shippers, suppliers, and manufacturers • International
freight forwarder • Travel agent for cargo • Ships products directly to foreign
customers Chapter 8
9. Documentation for clearing customs • Customs • immigration control for
products entering the country • Inspect shipments to insure proper
documentation • Collect customs fees • Insure restricted products do not enter •
E.g., dangerous items, embargoed products, fake products, endangered species
products Chapter 8
10. Documentation for clearing customs (cont.) • Customs broker • An
intermediary that specializes in moving products through customs • Licensed by
U.S. Department of Treasury • May also work with Dept. of Agriculture,
Environmental Protection Agency, or Food & Drug Administration Chapter 8
11. Documentation requirements • Bill of lading • Issued by carrier (transporter) to
shipper (exporter) acknowledging receipt of goods • Describes type and quantity
of goods • Describes how goods will be shipped • Identifies destination •
http://www.youtube.com/watch?v=nmosREOfkXw • Bill of lading video Chapter 8
12. Documentation requirements • Certificate of origin • Document that identifies
the country in which exported goods are obtained, produced, or processed •
Helps determine import duties or whether the products may be legally imported,
depending on country of origin Chapter 8
13. Foreign Trade Zone • Foreign Trade Zone (FTZ) • an area designated by a country
as a specialized zone where products may be exempt from duties • Products in
FTZ’s may be stored, modified, displayed without paying duties • Products
exported out of FTZ’s no import duties are paid where the FTZ is located •
http://www.youtube.com/watch?v=uFxTKV7_LLM •
http://www.youtube.com/watch?v=w2rmuKHlU3A • Foreign trade zone videos
and china Chapter 8
14. INTERNATIONAL LOGISTICS • Logistics involve the transportation and storage of
products between producer and consumer • Modern technology makes logistics
easier than in the past: • GPS allows ships to avoid bad weather • Easy to track
individual shipments Chapter 8
15. Logistics and the Total Cost Concept • Transportation costs are a major portion
of total exporting costs • Other cost factors to consider: • Products shipped by
water or land arrive with less certainty than by air • Greater chances for spoilage,
loss, or obsolescence • Warehousing and insurance costs may be higher • Air
freight enhances security, limits shipping time, assures faster delivery Chapter 8
16. Logistics and the Total Cost Concept • Other costs factors to consider (cont.): •
Free on board (FOB)—determines where the shipper pays the transportation
costs • FOB destination—seller pays shipping costs to the buyer’s delivery point •
FOB Origin—buyer pays shipping costs from the seller’s departure point • May
include cost, insurance, and freight (CIF) Chapter 8
17. Transportation Modes • Water transportation • Within a continent—utilize rivers
and lakes • Cargo containers used for overseas shipping • Good for bulk items
such as grain or minerals • Half of all U.S. imports arrive via cargo container—over
9 million containers yearly Chapter 8
18. Transportation Modes • Air cargo • Containerized jumbo jets can carry over 90
tons • Costs are higher than other transportation • Fast delivery avoids need for
warehousing • Less opportunity for theft Chapter 8
19. Transportation Modes • Land transportation • Two main modes: rail and truck •
Rail typically used for bulk products • Usually require land connections to air or
ferry • Long-distance land shipments increase chance of loss, damage, delivery
uncertainty Chapter 8
20. Transportation Modes • Pipelines • Primarily for energy-related products (oil and
natural gas) • Coal can also be put into a liquid mixture (slurry) and shipped
through pilelines Chapter 8
21. Intermodal Transport • Intermodal transport involves a combination of
transportation modes. • Fishyback • Containerized shipping between trucks &
ships • Piggyback • Shipping between truck and rail • Birdyback • Shipping
between truck and air cargo Chapter 8