How To Succeed In International Business

Chapter 0 Course Introduction

• Course Objectives
• Intended Audience
• Course Structure
• Bookmarks of all the external links that appear in the course.
• Must have JavaScript enabled browser for interactive exercises to work.
• Course Content

Chapter 1 Developing An Export Plan

• Reasons For Exporting
• Reasons For Not Exporting
• Are You Ready To Export Exercise
• Common Exporting Mistakes
• More Common Exporting Mistakes
• Strategy
• Strategy comes from the Greek
• Why Have An Export Plan
• Evaluating The Export Potential Of Your Products
• How successful are your products domestically?
• What are the unique features of your products?
• Are you losing market share to more technically advanced products?
• Is Your Company Ready To Export?
• Company Goals
• International Experience
• Management and Personnel
• Organizing For Exporting
• Ways To Organize For Exporting
• Production Capacity
• Quality and Standards
• Financial Capacity
• Available Resources and Goals
• Why Write An Export Plan
• Creating An Export Plan
• Export Plan Content
• Chapter 1 Review Questions
• Chapter 1 Review

Chapter 2 Developing A Marketing Plan

• The Importance of Market Research
• What Is Market Research
• Primary Market Research
• More on Primary Market Research
• Advantages
• Disadvantages
• Secondary Market Research
• More on Secondary Market Research
• Advantages
• Disadvantages
• Using Primary and Secondary Market Research
• Decision Making Ingredients
• Classification Systems
• Why Classify Your Products
• Where Products Are Being Imported From
• Where Products Are Being Exported To
• How Much Product Is Being Shipped
• Product Trade History
• Getting Started With Your Market Research
• Factors To Consider
• Market Size
• Population
• Total GNP
• Per capita GNP
• Rate of investment
• Local production of your product
• Market Growth
• Import history
• Trends and forecasts
• Change in per capita income
• Industrial development stage of the market
• Market Accessibility
• Import duties and tariffs
• Product standards
• Local suppliers
• Foreign suppliers
• How distribution channels work
• How to obtain import permits
• Pricing methods
• Advertising and promotional practices
• Credit terms
• Economic Stability
• Exchange rate performance
• If currency controls exist
• The balance of payments
• Foreign currency reserves
• Government debt and budget
• Rate of inflation
• Rate of unemployment
• Political Climate
• Ability to import into the market
• Attitude towards your country
• Political stability
• Cultural Climate
• Religion
• Symbols
• Numbers
• Colors
• Education
• Language
• Environmental Factors
• Temperature
• Humidity
• Altitude
• Sand
• Geographical Factors
• Travel time
• Travel costs
• Delivery time
• Shipping costs
• Legal System
• Independent judiciary
• Copyright protection
• Trademark protection
• Right to sue
• Right to own property
• Right to travel
• Analyze The Information Collected
• Making A Decision
• Choose the path of least resistance
• Choose markets that fit your resources
• Choose markets for the long term
• Avoid paralysis by analysis
• Use common sense
• Chapter 2 Review Questions
• Chapter 2 Review

Chapter 3 Exploring Exporting Options

• Approaches To Exporting
• Methods of Exporting
• Indirect Exporting
• Export Management Companies
• Export Trading Companies
• Advantages of Using an EMC/ETC
• Disadvantages of Using an EMC/ETC
• Licensing
• Franchising
• Contracting
• Piggyback Marketing
• Remarketer
• Direct Exporting
• Sales Representatives
• When to Use Sales Representatives
• Distributors
• Distributor Contract
• When to Use Distributors
• Foreign Retailer
• End User
• World Wide Web
• Other Methods of Exporting
• Subsidiary
• Joint Venture
• Strategic Alliance
• Comparing Export Partnerships
• Which Exporting Method Is Best
• Chapter 3 Review Questions
• Chapter 3 Review

Chapter 4 Finding Trade Contacts

• Where To Look
• How Your Government Can Help You
• U. S. Department of Commerce Resources
• More U. S. Department of Commerce Resources
• Other U. S. Government Resources
• Resources Of Other Governments
• Foreign Governments
• Commercial Attaché
• Local trade and tariff laws
• Government procurement procedures
• Local business practices
• Identify potential importers, agents, distributors, and joint venture partners
• Provide information on local government tenders
• Assist with trade and investment disputes
• Local Government
• International Banks
• Trade and Industry Associations
• Chambers Of Commerce
• Export Seminars
• Trade Shows
• Exhibiting At Trade Shows
• Trade Missions
• Publications
• International Trade Consultants
• More On International Trade Consultants
• What To Look For
• Ownership
• Financial Stability
• Geographical Coverage
• Product Mix
• Customer Profile
• Sales Record
• Size Of Their Sales Force
• Sales and Marketing Practices
• Advertising and Promotion
• Facilities and Equipment
• Who Drives Who
• Chapter 4 Review Questions
• Chapter 4 Review

Chapter 5 The Voyage

• Why You Should Visit Your Target Market
• Evaluate potential partners.
• Partners evaluate you.
• Size up the competition.
• Conduct primary market research.
• If You Cannot Visit Your Target Market
• Is All This Planning Necessary?
• Creating An Agenda
• Contents Of An Agenda
• Planning The Trip
• Duration
• Travel Time
• Traveling between countries takes time.
• Today in America is tomorrow in Asia.
• Travel Time Exercise
• Jet Lag
• Coach or Business Class
• Is the cost difference worth it?
• Can you sleep on an airplane?
• High Altitude
• La Paz 3650 meters
• Quito 2800 meters
• Bogotá 2600 meters
• Mexico City 2240 meters
• Johannesburg 1750 meters
• Nairobi 1660 meters
• Denver 1610 meters
• Guatemala City 1530 meters
• Flexibility
• Time to Explore
• It may be the only time you visit this place
• When To Go
• Holidays
• In Your Country
• In Their Country
• Working Days
• Israel
• Islamic Countries
• Know Where You Are Going
• Things you should know about the country you are going to
• What language do they speak?
• What are appropriate/inappropriate gestures?
• What is the exchange rate?
• What is the electrical current?
• On what side of the road do they drive on?
• What are the units of measure?
• Miles versus kilometers
• Feet versus meters
• Gallons versus liters
• Pounds versus kilograms
• Letter versus A4 paper
• Know Where You Are Going Exercise
• Study The Map
• Get detailed directions
• Understand the distances
• In Time
• In Space
• Do Not Trust Your Travel Agent
• Have they been to where you are going?
• Have they flown internationally?
• What incentive do they have in saving you money?
• They get paid on commission
• No longer true for airfare
• Still true for car rental
• Still true for hotel
• Use the World Wide Web
• Booking The Trip
• Airfare
• Costs more on weekends
• High season or low season
• Flexibility
• Advance purchase
• Change penalties
• Last Flight Out
• Frequent Flyer Programs
• Around the world ticket
• Tourist Class Or Business Class
• Is the cost difference worth it?
• Bigger seat
• Access to airport lounge
• Better meal
• Usually a better seatmate
• Off the airplane quicker
• Seat Preference
• Emergency exit row
• Bulkhead
• You can put your feet up
• You cannot put things under the seat in front of you
• Hotel
• Where To Stay
• Image
• Proximity
• Recommendations
• Type Of Room
• Smoking
• Non-smoking
• High floor
• Low floor
• King size bed
• Two double beds
• Suite
• Adjoining rooms
• Concierge level
• Room Rate
• Corporate rate
• Costs less on weekends
• High season or low season
• Does the rate include breakfast
• Cancellation Policy
• Hotel Guest Loyalty Programs
• Ground Transportation
• Car Rental
• Class Of Vehicle
• Taxi
• Bus
• Subway
• Train
• A combination of the above
• Travel Documents
• Passport
• When does your passport expire?
• Photographs
• Forms
• Other requirements
• Obtaining A Visa
• Type Of Visa
• Immunizations
• Before You Go
• Learn The Language
• Learn some key phrases
• Listen to audio tapes in your car
• Suitcase
• Hard plastic
• Easy to lock
• Easy to identify
• Wheels
• What To Pack
• Weather
• Know The Weather Exercise
• Clothes
• Shoes
• Socks
• Underwear
• Suits
• Shirts/Blouses
• Belts
• Ties
• Sleepware
• Travel Clothes
• Casual Clothes
• Exercise Clothes
• Toiletries
• Shampoo
• Hair dryer
• Electric items
• 110v versus 220v
• Money
• Cash
• Traveler's Cheques
• Credit cards
• Know the exchange rate
• Work Materials
• Cellular Telephone
• Laptop Computer
• Business Cards
• Product Samples
• Gifts
• Do not wrap gifts until you arrive
• Disposable Camera
• Inexpensive
• Make friends
• Create memories
• Medicine
• Aspirin
• Prescription drugs
• Other Important Items
• Dictionary
• Maps
• Documents
• Photocopies
• Itineraries
• Travel Day
• What to Wear
• Comfortable clothes
• Walking shoes
• How airlines will treat you
• Getting To The Airport
• International Flights
• Domestic Flights
• Checking In
• Verify that your seat preference has been honored.
• Check to be sure your bags are tagged to the correct destination.
• Ask for customs and immigration forms.
• Leaving The Country
• Passport
• Boarding Pass
• Airport Tax Receipt
• Security
• No jokes
• How to walk though
• Be careful with your belongings
• Duty Free
• Boarding
• Board the aircraft as soon as you can
• While In Flight
• Things you can do during the flight that can save time upon arrival
• Healthy things to do in flight
• Walk around
• Drink liquids
• Sleep
• Get Off The Aircraft First
• Catching the bus or tram
• Waiting in line
• Average wait time 35 minutes in the United States
• Immigration
• Read the signs; get in the right line.
• Have your forms filled out before you get in line.
• Be patient and polite.
• Customs
• Getting Around The Airport
• Transportation
• Will someone be there at the airport to greet you?
• Which mode of transportation should I use?
• Rent A Car
• Age
• Credit card
• Some places do not accept debit cards
• Driver's License
• Photocopy is not acceptable
• Frequent Flyer Number
• Insurance
• Return empty or return full
• Taxes
• Rental Car Safety
• Air Conditioning
• Ask for a map
• Wear your seat belt
• Inspect the automobile
• License plate and expiration
• Hubcaps
• Dents and scratches
• Gas gauge
• Hotel Check In
• Requires a credit card
• Even if it is direct bill
• Always check that your reservation specifications are correct
• Hotel key
• Which floor am I on?
• Your Hotel Room
• Hotel Room Amenities
• Telephone
• Toll free
• 800
• 888
• 877
• 866
• Long Distance
• Within the country
• Dial 1 in the United States
• Dial 0 in most other countries
• International Long Distance
• Dial 011 in the United States
• Dial 00 in most other countries
• Hotel Check Out
• Hotel bill under the door
• VAT refund in Canada
• Staying Healthy
• Travelers' Diarrhea
• The most common illness among executives on the road.
• Even those staying at five star hotels get it.
• CDC estimates 10,000,000 cases a year.
• Developing nations are high risk.
• Travelers' Diarrhea Precautions
• Boil it
• Cook it
• Peel it
• Forget it
• Mosquito Borne Illnesses
• Dengue fever
• Yellow fever
• Malaria
• West Nile virus
• Altitude Sickness
• What you should do
• Stay properly hydrated
• Take it easy
• Sleep when you arrive
• Eat a high carbohydrate diet
• Potato
• Pasta
• Things to avoid
• Alcohol
• Tranquilizers
• Sleeping pills
• Overcoming Jet Lag
• Obtaining Medical Help
• Emergency Number
• 911 in the United States and Canada
• 999 in the United Kingdom
• Chapter 5 Review Questions
• Chapter 5 Review

Chapter 6 Introductions

• Establishing A Positive Presence
• Components Of A Proper Introduction
• Standing Up
• Handshake
• Firm
• Not too tight
• Not like a fish
• No fingertip handshake
• Shaking Hands In Other Cultures
• In the Orient
• Bow
• In the Middle East
• Opposite gender
• Eye Contact
• Smile
• Saying The Name
• Forgot A Name
• Order Of Introduction
• Always look at the most important person and say the most important person's name first.
• Introduce the next highest ranking person to the most important person.
• Say something brief about the person being introduced.
• Introduce the most important person to the other person.
• Repeat their names.
• Mention something that is of mutual interest to them.
• Business Cards
• Exchanging Business Cards
• Exchanging business cards in the Orient
• Names
• Use the formal as a sign of respect until told otherwise.
• In the Orient last names are used.
• In Australia first names are used during first meetings.
• Seating
• The most important guest should sit at your right.
• The next most important guest should sit at your left.
• Breaking The Ice
• Establish trust
• Be sincere
• Sound sincere
• A number of things you can do to begin a conversation.
• Thank them for meeting with you.
• Start with a catchy statement.
• Refer to something you read in the local newspaper.
• Tell a personal story.
• Seek a common ground.
• Talk about the weather.
• Topics To Avoid
• Chapter 6 Review Questions
• Chapter 6 Review

Chapter 7 Managing The Meeting

• Why Am I Here?
• Clarify The Objectives
• Build A Consensus
• Why Have A Meeting Agenda
• Contents Of A Meeting Agenda
• What A Meeting Agenda Should Be
• Meeting Minutes Or Action Notes
• Action notes are not as formal as meeting minutes
• Meeting Minutes
• Action Notes
• Leadership
• Leadership is required to:
• Motivate
• Inspire
• Capture their imaginations
• Develop their loyalty
• Navigate through change
• Sell your product
• Successful Meetings
• Successful meeting take time to prepare.
  • The success of an event depends on the amount of preparation put into it.
  • A successful meeting is one that inspires as well as accomplishes.
  • Remember to include the bigger picture in every meeting.
  • Remind people what they are striving for not just what they are up against.
• Prepare
• Type Of Meeting
• Negotiation
• Presentation
• Communicating
• Ending The Meeting
• Follow Up
• Meetings To Avoid
• Chapter 7 Review Questions
• Chapter 7 Review

Chapter 8 International Selling

• How To Succeed
• To succeed in international sales you need to know what you are doing and why.
• International sales is more challenging because of:
  • Cultural issues
  • Language barriers
  • Government regulations and tariffs
• Basics Of Selling
• Sell Yourself
• Sell Your Company
• Sell Your Product
• More On The Basics Of Selling
• Establish trust
• Fail To Listen
• Buying Modes
• Growth
• Trouble
• Steady State
• Euphoria
• Complex Sale
• Owner Buyer
• Releases the money.
• Approves the sale.
• Has to live with the consequences of the deal.
• Financial Buyer
• Releases the money.
• Finances the deal.
• Technical Screener
• Screens out sellers.
• Looks at product specifications.
• End User
• Judges impact your product on the job.
• Uses the product.
• Advisor
• Guides you through the sales process.
• What The Owner Buyer Wants
• Owner buyers are paid to predict the future.
• Owner buyers want knowledge.
• Owner buyers want trust.
• Owner buyers are generalists.
• Owner buyers do not buy products, they buy concepts.
• What Is A Concept Sale
• Make The Concept Sale First
• Results
• Identifying The Owner Buyer
• More On Identifying The Owner Buyer
• Preparing To Meet The Owner Buyer
• Cannot Meet The Owner Buyer
• Ask The Buyer
• Objective questions
• Attitudinal questions
• Always ask
• Comparing Answers
• Your Advisor
• A good advisor is essential to good strategy.
• Can help you find the real buyers.
• Identify your areas of strength.
• Help you understand the buyer's perception of reality.
• Cultural issues.
• Can help you understand the results each buyer needs to win.
• What Makes A Good Advisor
• Your credibility.
• Your advisor's credibility.
• Your advisor wants you to succeed.
• False Advisors
• Helpful people.
• Your friends.
• The government.
• Best Advisor
• The more advisors you have the better off you are.
• Test Your Advisor
• Does you advisor trust you?
• Has your advisor had any success in this market?
• How is your advisor's self interest served by your success?
• Asking For Advice
• Type Of Customer
• Customers are neither good nor bad, but somewhere in the middle.
• Identify the customer that matches your strength.
• Customer Interests
• Long Term
• Performance
• Price/Performance
• Price
• Good Customer
• Trusts you
• Innovative and progressive management
• Loyal to vendors selected
• Committed to quality
• Willing to pay for the added value of your product
• Highest business ethics and integrity
• Wants a win-win relationship with every sale
• Bad Customer
• Inflexible on price
• Slow in deciding
• Not loyal to vendors selected
• Only interested in price
• Not interested in the product
• Authoritarian management system
• Wants a lose-win relationship
• Secretive
• Unwilling to cooperate
• Keys To Success
• Chapter 8 Review Questions
• Chapter 8 Review

Chapter 9 Negotiating

• What Makes A Good Negotiator
• Negotiating Paradigm
• Communicating
• Body Language, Gestures, And Behaviors
• Body language communicates more than words.
• Body language shows others how much you like them and how you see yourself.
• It is important to recognize the meaning associated with certain behaviors.
• These behaviors vary from culture to culture.
• The more you understand their culture, the better you will be able to negotiate.
• Negotiating From Strength
• Need
• Investment
• Options
• Time
• Knowledge
• Skill
• International Negotiations
• Chapter 9 Review Questions
• Chapter 9 Review

Chapter 10 International Law And Contracts

• International Business Transactions
• International Trade
• Foreign Investments
• Export License
• Determining Export License Requirements
• Classification
• Destination
• End User
• End Use
• Conduct
• Know Your Customer
• Keeping Records
• Importing
• Informed Compliance
• Import Permits
• Duty
• Customs
• Letter Of Intent
• Contracts
• Contract Contents
• More On Contract Contents
• Bribery
• Evergreen Contract
• Rolling Contract
• International Trade Lawyer
• Chapter 10 Review Questions
• Chapter 10 Review

Chapter 11 Shipping

• Freight Forwarder
• Freight Forwarder Costs
• Questions To Ask A Freight Forwarder
• More Questions To Ask A Freight Forwarder
• Customs Broker
• Incoterms
• Incoterms Groups
• Buyer and Seller Obligations
• Group E: Departure Term.
• EXW - EX WORKS (... named place)
• EXW - EX WORKS Responsibilities
• Group F: Shipment Terms - Main carriage unpaid.
• FCA - FREE CARRIER (... named place)
• FCA - FREE CARRIER Responsibilities
• FAS - FREE ALONGSIDE SHIP (... named port of shipment)
• FAS - FREE ALONGSIDE SHIP Responsibilities
• FOB - FREE ON BOARD (... named port of shipment)
• FOB - FREE ON BOARD Responsibilities
• Group C: Shipment Terms - Main carriage paid.
• CFR - COST AND FREIGHT (... named port of destination)
• CFR - COST AND FREIGHT Responsibilities
• CIF - COST, INSURANCE AND FREIGHT (... named port of destination)
• CIF - COST, INSURANCE AND FREIGHT Responsibilities
• CPT - CARRIAGE PAID TO (... named place of destination)
• CPT - CARRIAGE PAID TO Responsibilities
• CIP - CARRIAGE AND INSURANCE PAID TO (... named place of destination)
• CIP - CARRIAGE AND INSURANCE PAID TO Responsibilities
• Group D: Arrival Terms.
• DAF - DELIVERED AT FRONTIER (... named place)
• DAF - DELIVERED AT FRONTIER Responsibilities
• DES - DELIVERED EX SHIP (... named port of destination)
• DES - DELIVERED EX SHIP Responsibilities
• DEQ - DELIVERED EX QUAY (... named port of destination)
• DEQ - DELIVERED EX QUAY Responsibilities
• DDU - DELIVERED DUTY UNPAID (... named place of destination)
• DDU - DELIVERED DUTY UNPAID Responsibilities
• DDP - DELIVERED DUTY PAID (... named place of destination)
• DDP - DELIVERED DUTY PAID Responsibilities
• Which Incoterm To Use
• Incoterm Buyer/Seller Responsibilities
• Incoterms Exercise
• Chapter 11 Review Questions
• Chapter 11 Review

Chapter 12 Getting Paid

• Pricing Your Product
• Packing Costs
• Shipping Costs
• Shipping Costs Exercise
• Calculate Shipping Costs
• International Sales Contract
• Order Acknowledgement
• Pro Forma Invoice
• Payment Terms
• Payment In Advance
• Letter Of Credit
• Letter Of Credit Origin
• Parties To A Letter Of Credit
• Buyer
• Opening Bank
• Advising Bank
• Confirming Bank
• Paying Bank
• Beneficiary
• Letter Of Credit Types
• Revocable versus Irrevocable
• Confirmed versus Advised
• Straight versus Negotiation
• Sight versus Usance
• Requesting A Letter Of Credit
• Sample Form For Requesting A Letter Of Credit
• Receiving A Letter Of Credit
• Presenting A Letter Of Credit
• Common Mistakes Made With Letters Of Credit
• Documentary Collection Against Payment
• Open Account
• Minimum Guarantee
• Consignment
• Which Payment Term
• Financing Exports Through Your Bank
• Chapter 12 Review Questions
• Chapter 12 Review

Chapter 13 Conclusion