Brief Notes on International Trade Management

Dr.  S.  Maurer,  
MBA Professor

A world of opportunity awaits outside the U.S.  borders.  Dëspite calls for protectionism by a number of business and government leaders,  trade agreements and the reconfiguration of nations are creating a global marketplace that offers new horizons for enterprises willing to venture out.

By providing an unnecessary warranty,  the enterprise may raise the cost of the product higher than the competitors' costs.  When considering this point,  exporters should calculate the cost of servicing the warranties and adapt the warranty service so that it is in sync with local usage conditions and customer expectations.

The court also reversed the lower court’s finding that O’Hare Services and Channel Distribution were not liable,  and remanded the matter back for further proceedings to determine if they could be liable under Illinois law as bailees,  since there was evidence of very lax security precautions.

Once you have made your export commitment,  chosen your market and distribution method and established a price,  you need to translate that information into a strategic exporting plan.

Fred Budetti's United Steel Products of Corona,  New York,  is now a 50 percent partner in a Russian joint venture thanks to his relationship with a Russian engineer once assigned to his government's New York mission.  The manufacturer of steel security products,  such as commercial rolling doors and grills,  enjoyed a 15-year relationship with the mission prior to doing business overseas.

If the bank doesn’t hear from the beneficiary during the stipulated timeframe,  it will automatically assume the beneficiary has agreed to the amendment.  From the issuing bank’s perspective,  this arrangement is nice and tidy,  as they can adjust their customer’s liability for the LC at the end of the timeframe without having to do any follow up if they haven’t heard from the beneficiary.

U.S trade Representative Carla Hills say: A new world order of trade is on the horizon

With this new order come opportunities for small enterprises that now find their domestic markets have matured or are even shrinking.

The United States is virtually alone in its adherence to a non-metric system,  and U.S.  firms that compete successfully in the global market have found metric measurement to be an important detail in selling to overseas customers.

Whilst exporting requires no direct manufacturing in a foreign country,  successful exporting warrants a need for significant investments in marketing related initiatives.  Done right it can be an expensive but lucrative proposition.

Let’s imagine that the amendment appears to restrain the beneficiary.  For example,  the amendment might reduce the dollar value of the LC,  shorten the life of the LC by adding an expiration date,  or change the tenor of the LC from a sight draft to a time draft with no mention of who would pick up the expense of accepting or discounting the draft.

To be successful in marketing products in international markets,  most products require some level of adaptation or localization.

Documentation is important not only for the amount of additives,  but also the source of the product; secondary or indirect additives are also regulated in most countries.

Many kinds of equipment must be engineered in the metric system for integration with other pieces of equipment or for compliance with the standards of a given country.

If you choose to sell your commodity directly,  you can market your goods through direct mail,  advertising and promotions in magazines with overseas circulation as well as in local publications and other media.

If you choose to export directly,  you must be willing to devote more time,  money,  personnel and other enterprise resources.