International Sales News - As Seen on TV Products

Export Working Capital, A Barrier to Trade for African Women

noreply@blogger.com (International Sales) — Wed, 25 Jun 2008 21:23:00 +0000

African female exporters express that their largest barrier to trade is a lack of export working capital. Because most buyers are reluctant to pre-pay for a product for fear they will not receive it, these entrepreneurs simply do not have the funds necessary to develop and create their goods upfront to meet a demand. Another problem for them is a deficit in the information and education available to them that is necessary to successfully develop products to sell in the US market.

To address these issues the World Women Trade Fair has a mission to provide women entrepreneurs of third world countries with the tools they need to build their businesses and gain access to global markets. For those who lack the capital to develop their business they must rely on strong supplier-buyer relationships where they are able to work together to agree on favorable payment terms and even help them with product development. Last week the World Women Trade Fair hosted the International Gift & Home Textile Expo in Los Angeles where female exporters from around the world including Africa came with the goal to establish new business relationships and increasing their exports to the US.

Click here for more information on the World Women Trade Fair.

Visit The Potential Market

noreply@blogger.com (International Sales) — Wed, 18 Jun 2008 22:31:00 +0000

Early on in the export process it may be wise to travel to potential markets and see for yourself where your best opportunities exist. Going abroad prepared with a well thought out plan will help you to get the most out of your trip. Below are a few tips on how to do so.

You should always visit with prospective agents, distributors, or other business partners prior to entering into any agreements. And, arranging to meet with more than one will give you a better idea of the options available to you.
Plan your trip with as much time as possible in advance (at least six weeks). A good investment would be planning your trip with some in-country assistance. This will increase your chances that you will be able to meet the right agents and customers suited for your business goals.
Get all your paperwork in order. Be ready to answer questions regarding price, volumes, capacity and delivery times. Speak with local shipping agents to help determine shipping times and costs.
Read up on the country. Educate yourself on some local customs or issues so that you may ask more informed questions and build a better understanding of the market you are dealing with.
Follow-up on your visit. Within 48 hours of a business meeting contact via email or fax those you had meetings with to thank them for meeting with you and include any follow-up information requested. This will leave a good impression with the potential client that you are a professional with whom they may feel comfortable doing business with.

Commonly Used Payment Terms For International Trade

noreply@blogger.com (International Sales) — Fri, 13 Jun 2008 20:51:00 +0000

Here are some commonly used payment terms used when exporting or importing goods.

Cash In Advance - Upfront cash to the exporter prior to shipment
Letter of Credit (L/C) - A letter issued by a bank that authorizes the bearer to draw a stated amount of money from the issuing bank, its branches, or other associated banks or agencies
Open Account - An unpaid credit order
Consignment - Payment is deferred until goods are sold
Telegraphic Transfer (T/T) - Electronic transfers of funds through banks

Five Strategies For Doing Business in China

noreply@blogger.com (International Sales) — Wed, 04 Jun 2008 21:28:00 +0000

China is the third largest economy in the world and growing larger everyday. With such an enormous population and resources it is a market every businessperson needs to consider as an opportunity. Besides a language barrier the Chinese culture of doing business may be very different from one's own country. So when considering doing business with Chinese it is important to gain a general knowledge of some common Chinese business practices and norms.

Bill Quarless is president and CEO of Impact Products and has significant experience in doing business with the Chinese has compiled 5 strategies for doing business effectively in China. Below is a general summary of these strategies.

"Prepare to be patient" - Doing business in China is a long process with many meetings required to finish any deal.
"Approach with a trusted friend" - Because building a personal and trusting relationship with business partners is essential to the Chinese, having a contact who already knows the people you are trying to do business with can give you a jump start on the process.
"Socialize to build trust" - Business and friendships are intertwined in China. For the Chinese it is imperative to get to know prospective business partners on a personal level, so you should be prepared to socialize as much if not more than talk business.
"Give face to create goodwill" - Saving face is one pf the most important things to the Chinese. Losing self-control can quickly ruin a deal.
"Emphasize your value" - To speed up and increase the chances of negotiations running smoothly, express what your assets and what you can bring to the table from the beginning and often.

Source: The Art of Negotiation by Bill Quarless

Protect your Intellectual Property Rights

noreply@blogger.com (International Sales) — Wed, 28 May 2008 20:47:00 +0000

When trading products internationally today it is essentially to understand your product's intellectual property rights and how to protect them. Intellectual property is defined by the World Intellectual Property Organization (WIPO) as "creations of the mind: inventions, literary and artistic works, and symbols, names, images, and designs used in commerce." With the rapid growth of technology it has become increasingly easier for people to imitate and sell a product or trademark illegally. Furthermore, because of the international inequities in terms of protection and laws established in various countries regarding intellectual property rights, it is often difficult to protect those rights across international borders. However, there are three main manners of protection available for your intellectual property rights: patents, trademarks and copyrights.

Patent - Gives an owner exclusive rights over an invention
Trademark - Basically a brand name: a word, symbol, name or device that identifies the source of goods.
Copyright - Protection for works of authorship

These are all available to obtain in the US but only offer any protection inside the US. To protect your intellectual property rights abroad you must obtain patent rights in each individual country. Visit WIPO's Guide to Intellectual Property Worldwide, for more information on different countries' requirements on obtaining property rights.

Increased Financing for Guatemalan Buyers of US Goods and Services

noreply@blogger.com (International Sales) — Wed, 21 May 2008 22:23:00 +0000

The Central American Bank for Economic Integration (CABEI) has granted a $10.6 million credit facility to Bantrab (Banco de Los Trabajadores) a private, worker-owned Guatemalan financial institution. The credit facility is guaranteed by the US Export-Import Bank, and its purpose is to increase financing to the 800,000 shareholders of and corporate clients of Bantrab, to foster increased business between US companies and Guatemalan buyers.

The US Export-Import Bank finances the sale of US exports especially in developing countries, such as in Central America, by guaranteeing loans, providing export-credit insurance, as well as direct loans. All with the purpose of creating and sustaining US jobs.

Much of the money will be directed to Guatemalan customers who are in need to financing to purchase US goods they desire. It is hoped that the $10.6 million will increase the demand of US goods and services in Guatemala and provide a means to satisfy that demand.

International Sales Boost Earnings for Wal Mart

noreply@blogger.com (International Sales) — Wed, 14 May 2008 22:34:00 +0000

During times of economic hardship including increasing costs of food and fuel, Wal-Mart Stores, Inc. has still managed to increase earnings and even surmount first-quarter earnings predictions. Wal-Mart is attributing this to a 22% increase in the company's international sales. Net sales jumped from $85.4 billion last year to $94.1 billion. (Wal-Mart Earnings Report)

Revenue from the United States based company's international stores is continually growing and becoming a larger piece of Wal-Mart's total revenue. Currently international revenues make up a quarter of the firm's total revenues.

While not every company can realistically hope to become as large a business as Wal-Mart, they should take note at the importance of expanding their businesses globally. Especially when markets such as the US are experiencing slowdowns in sales, many US companies may be able to look to outside markets to continue increasing sales.

Source: Wal-Mart Stores Inc. Earnings Report

US Ranks 15th in Terms of Broadband Access

noreply@blogger.com (International Sales) — Wed, 07 May 2008 19:47:00 +0000

This year US has been ranked 15th when compared to other countries in terms of broadband access, speed and price. This may come as surprising to many who think of the US as a world leader in technology. However, over the past seven years the US has fallen in this ranking every single year. The ranking is part of a report released by the Information Technology and Innovation Foundation exploring broadband leadership throughout the world.

So why is the US, a country so rich in resources falling behind when compared to other nations in broadband quality and accessibility? It seems that the country is divided between two differing points of view on how to handle the issue. On one side there exists a large number of so-called "market fundamentalists" who believe the broadband market in the US should be left alone, with little or no role to be played by the government. The other side is composed of those who believe the large corporations that own the broadband companies are fostering this problem and an increase in the government's role (such as more and stricter regulations and even government ownership) is necessary to ensure growth and competition in this sector of the economy.

Source: "Explaining International Broadband Leadership". ITIF, May 2008.

Exporting: The Basics

noreply@blogger.com (International Sales) — Wed, 30 Apr 2008 21:03:00 +0000

The two most common methods of exporting are: indirect selling and direct selling. Indirect selling is when a business contacts an export intermediary such as an export management company like XM Works, Inc. who assumes the responsibility of finding buyers, shipping the goods, and receiving payments. In the direct selling method of exporting the domestic firm deals directly with foreign buyers.

The key factor in deciding the whether to export directly or indirectly is the amount of resources a company has to spend on the process, mainly money, time, and knowledge of the foreign markets and export process. The way a company choses to export their products has a significant effect on on the export plan and marketing strategies. There are four general approaches that may also be used jointly in the process. They are:

Selling products to domestic buyers who then export the product abroad without the explicit knowledge or consent of the seller. In this case the domestic buyer has assumed all risk and finds an oppurtunity to sell the goods abroad.
Actively seeking domestic buyers to export the products abroad. In this case the domestic buyer still assumes all risks associated with the exportation of the products.
Exporting indirectly via intermediaries, such as export management companies. The intermediaries utilize their knowledge of foreign markets and established foreign contacts to sell the products abroad while still leaving considerable control over the process to the exporter.
Exporting directly. This is the most difficult and resource-consuming method of exporting. The exporter assumes all responsibility of every step of the export process including: market research, planning, discovering distribution channels, and collecting payments.

In deciding which approach to use a company must look closely at it's available resources and goals it wishes to achieve in exporting.

Know Your Tariff Rates

noreply@blogger.com (International Sales) — Wed, 23 Apr 2008 18:49:00 +0000

Before exporting to any country it is necessary to determine any applicable tariff rates or other import fees that may be imposed on the goods by the importing country. A tariff is a tax imposed by governments on the value of imported goods. The purpose of the tariff is to increase the price of imported goods in the importing country markets thus making them less competitive with domestic goods. The tariff rate is determined at the time the goods are imported and other fees such as state and sales tax often apply in addition to the tariff.

To determine the appropriate tariff rate that will apply to imports there are two general steps to follow:

1) Find your product's HS or Schedule B number. The US Census Bureau provides an online website to help classify product's Schedule B Codes.
*Note that duty amount will also depend on the terms of trade that have been negotiated with the buyer, such as FOB, CIF, etc.

2) Using your product's HS or Schedule B number, you will be able to find the applicable tariff rate. Click here for country-specific tax information to determine various tax and tariff rates for 97 countries.

The Dollar's New Low is the Euro's New High

noreply@blogger.com (International Sales) — Wed, 16 Apr 2008 17:25:00 +0000

Today the euro reached a new high against the dollar following a revision of EU inflation rates. The rate was revised higher, as the harmonized index of consumer prices from 3.5% to 3.6%. This comes as an unanticipated record high in the inflation rate growth for the euro.

The rise prompted the euro to hit $1.5966 leaving the question of when it will break $1.6, on the horizon, and what will happen when it does. Inflation data out of the US will be what to watch for today, and if comes out lower than is expected the euro very well may reach $1.6. Traders are expecting central banks to intervene if this occurs. The strengthening of the euro was not just demonstrated against the dollar but also hit a new high against the pound.

So why does the euro continue to prosper? One reason is the expectations of lowering rates by as much as half a point by the Fed, which means that the European Central Bank may be able to maintain its rates for the remainder of the year therefore making the dollar less attractive to investors.

Freight Forwarders

noreply@blogger.com (International Sales) — Wed, 09 Apr 2008 17:14:00 +0000

What is a freight forwarder and why do you need one?
An international freight forwarder acts as an agent to an exporter moving cargo from "dock-to-door" to an overseas destination so the exporter does not have to worry about all the logistics details. They are licensed by the International Air Transport Association and the Federal Maritime Commission to handle air and ocean freight.
They provide many important services including:

Provide advice on exporting costs, such as freight costs, port fees, insurance fees, special document costs, and consular fees.
Prepare and file documents such as the bill of lading.
Suggest appropriate modes of cargo transport.
Reserve the necessary space on vessels, trains, aircrafts or trucks.
Communicate with overseas customs brokers to ensure compliance with customs regulations on goods and documents.

To find a freight forwarder you can check local business telephone listings or, you can visit the National Customs Brokers and Forwarders Association for information on their members.

Global Stocks in the 1st Quarter: The Poorest in Years

noreply@blogger.com (International Sales) — Wed, 02 Apr 2008 16:59:00 +0000

In the first quarter of this year the Dow Jones World Index (excluding the US) fell 8.7% in dollar terms while the Industrial average dropped 7.6%. It is clear that the US economic crisis has had a widespread global impact; interesting since in past years foreign markets have managed to remain relatively unscathed during times of economic hardship in the US.

So, why now have foreign markets been so dramatically affected by the recent poor performance of US? The ripple effect shows how distant markets have become increasingly interconnected in recent years. When one market experiences a slow down, chances are most others will feel it too.

Some of the worst hit have been India and China, whom last year had experienced considerable growth, now have shares down in both countries by more than 20%. It comes then as no surprise that Japan, whose economy slowed down last year, has shares falling by 18%. Even European economies as well the emerging markets that had been performing so well last year have experienced similar declines.

There does remain a strong forecast for positive growth in the World Economy. The IMF expects a 4.1% expansion this year and 6.9% for developing countries. However, most investors have not been relieved by these projections, questioning if this increased correlation between international markets could act as an avenue for the spread of economic slowdown throughout the global market, especially if there is a US recession.

Also, the continued weakening of the dollar has caused problems for foreign countries in many ways. For example just this year the dollar has dropped 10.5% against the yen. For the Japanese this has meant their exports are more expensive in dollars and therefore have become less competitive. Europe has experienced similar woes as worries increase that they more powerful euro will impact the ability of companies to compete against less expensive foreign goods.

Online Shopping Increases for Minorities

noreply@blogger.com (International Sales) — Thu, 27 Mar 2008 16:57:00 +0000

According to a recent study by The Media Audit, online shopping by minorities including: African-Americans, Asians, Hispanics and others, has significantly increased over the past five years. This is significant for marketers because of the sheer number of consumers this accounts for. The study surveyed 88 markets of which there are 145 million adults and 58 million of them are part of a minority group.

The study found that overall 55.8% of minorities shop online, an over 10% increase from five years ago. Of that number 35.7% made five or more purchases in a year, and 19.8% made 12 or more purchases in a year showing an increase in frequency of purchases in addition to the increase in overall percentage of minority online shoppers.

Of the 17.6 million African-Americans surveyed 40.6% shop online, up from 27% five years ago. Of the 9.8 million Asians surveyed, over 70% shop online, an increase of nearly 45% from five years ago. Hispanics, which are the largest minority population of the survey included 23 million people, 41.8% shop online up from 27.7% five years ago.

NBC Expands Into Mexico

noreply@blogger.com (International Sales) — Wed, 19 Mar 2008 16:52:00 +0000

After attempting for several years to establish Telemundo in Mexico, NBC was finally able to make a deal this week with Televisa, Mexico's largest television company . While the specific financial details of the deal have not been disclosed, some NBC executives involved in the deal explained that Televisa has agreed to air some Telemundo programs on one of its own broadcast channels and will also permit a new channel of all Telemundo programs to broadcast throughout Mexico.

Initially only a limited amount of Telemundo programs will air on the Mexican broadcast channel, such as a select few of the company's telenovelas. However, once the new channel for Telemundo is established there will be the opportunity to include other types of programming such as news for the Mexican audience.

The new deal is huge for NBC and Telemundo as one of their prime strategies for future growth relies on increasing their international reach, and Mexico remains the most important markets for Spanish-language programming. Also, NBC recently declared a new goal for the next two years, to increase the international portion of their revenue to account for 30% of total revenue by the year 2010 (a growth of 10%). Not a far fetched goal considering that Telemundo has been able to increase its revenue as well as its ratings consistently for the past five quarters.

The future of China and digital TV

noreply@blogger.com (International Sales) — Wed, 12 Mar 2008 18:21:00 +0000

China is currently, and has been for many years, one of the fastest growing digital TV markets in the world. China's rates of digital TV viewership is accelerating rapidly especially in preparation for the upcoming summer 2008 Olympics in Beijing. This past November BigBand Networks announced the addition of five more Chinese cable operators to their list of customers now deploying its Broadband Multimedia-Service Router (BMR) to deliver digital TV service throughout the country.

The new Chinese customers of BMR are using it to improve bandwidth efficiency and increase the picture quality of their digital television services. BigBand is one of the most widely-used video networking platforms in the world. It is easily upgraded and reconfigured as needed which is a huge plus for the Chinese service providers who can do so as China continues to grow to provide their customers with increasingly advanced technology such as switched digital video and video-on-demand abilities. And the Chinese cable operators are pleased with the quality and relaibility of BMR and look forward to being able to advance the technology as it becomes avaliable to to generate increased returns on capital investment.

Effective Export Marketing

noreply@blogger.com (International Sales) — Wed, 05 Mar 2008 19:20:00 +0000

Marketing is a crucial aspect of the export process because it is essentially the potential client's first impression of your business. By presenting your product and company well you can gain a significant competitive advantage in your target market.

We all know first impressions are the most important since they often become the basis for how we view someone or something. Here are some critical factors to ensure a great first impression:

Have confidence (If you don't, why should a consumer?)
Be responsive and deliver quick and efficient replies to potential clients
Be polite and professional
Educate yourself on the culture of the target market and be sensitive to cultural factors

Below are some suggestions on how to effectively begin marketing abroad:

Emails can be critical; They should use direct language that also stands out to a reader. Photos and other graphics can be a helpful attention-grabber when introducing a product. Emails should also include some quick response formats that entice the readers to immediately and easily seek additional information.
Practice meetings; When working in a new and unfamiliar culture it may be a good idea to seek a meeting advisor who is familiar with the local business ettiquette. In a meeting, your company's objectives should be stated up front. Never underestimate the importance of listening and being sensitive to the prospective customer. Dress well and when in doubt wear a suit.
Develop a good website; This often is the only visual a person has of your company. It should be well-developed while not being over-loaded with information. It should be neatly laid-out and easily navigable, and include some interesting graphics. Listed below are just a few of the benefits a good website:

Contact potential overseas customers from home
Convey your business as professional and modern
Avoid time difference problems with 24-hour availability
Introduce and promote new products
Sell products directly to customers

Business cards; These are absolutely essential for overseas business. They are an almost universal practice (especially in Asia where they are critical documents). A business card should contain all pertinent contact information including your business logo and international telephone contact details.
Brochures; Beneficial for high-volume promotion of your products and company

The Harmonized Tariff System (HTS)

noreply@blogger.com (International Sales) — Mon, 03 Mar 2008 21:58:00 +0000

The Harmonized Tariff System is a series of 6-digit codes assigned and used classify exports/imports for customs purposes. Most countries recognize the 6-digit codes and some add extra digits to the end for more precise classification such as the United States that uses a 10-digit number known as the "Schedule B number".

There are three main reasons an exporter should be aware of their product's Schedule B and HS number:

To find if and what the import tariff rate is for the product, and also determine whether or not the product falls under a preferential tariff under a Free Trade Agreement.
The Schedule B number is required for the Shipper's Export Declaration, Certificates of Origin, and other various shipping documents.
The HS number is also sometimes required on shipping documents such as the Certificate of Origin.

To determine your prodcut's Schedule B number visit the FTD's Schedule B Search Engine.

Exporting: Where to Start

noreply@blogger.com (International Sales) — Wed, 20 Feb 2008 19:13:00 +0000

The export process may seem very overwhelming and complicated to a first-timer. So, below are some first steps to take to ensure you are successful in your exporting.

Learn how foreign markets operate and how your company will be able to adapt to the different environment. Research into the foreign target market is key. You need to be sure the market will be beneficial to your company because exporting is a large resource-consuming activity, taking lots of time and money.
Develop and Commit to a business strategy. Every new business venture requires commitment especially in exports. Be sure to develop a comprehensive strategy and include all staff to the commitment.
Meet with an accountant early. Because the export process requires financial resources it is important to talk with an accountant to determine your company's ability to finance expansion and help to build a budget strategy for the early stages.
Get assistance and attend workshops. Their are many government agencies designed to aid business through this complicated process. When starting out it is a good idea to find an primary export adviser to work with and who can help direct you to other important sources you may need. Workshops are also a great way to attain the basic skills for exporting. It is also important to involve all the staff in these functions as it is a company-wide venture and everyone should be involved.
Check out what other businesses are doing. Research your competition and see how they are handling the export process. Find out in what markets they are successful and where they are not. It is a good way to see what strategies have been effective for others and learn from them.

Below is a link to U.S. Government Export Portal where you can find many great resources to help expand your business internationally:
http://www.export.gov/Advocacy/early_project_dev.html

Why Export?

noreply@blogger.com (International Sales) — Wed, 13 Feb 2008 17:38:00 +0000

There are many reasons why a business should consider exporting. Especially in our era of ever increasing globalization there are many opportunities for businesses to expand and grow. By expanding operations outside of the domestic market a company can:

Spread its risk and reduce dependency on the home market
Increase productivity and efficiency
Learn new management practices and marketing techniques.

All of the above benefits of exporting can increase the profitablilty of a company as well as allow them to become more competitive in their domestic market . It is a fact that companies that export have more growth opportunities, a more highly skilled staff, and are more flexible and possess a better ability to adapt to changes in technologies and business practices. Even small companies can become global brands by taking advantage of foreign markets.

Stay tuned because in coming blogs we will go through the various steps of the export processes.

More Important Shipping Terms

noreply@blogger.com (International Sales) — Wed, 06 Feb 2008 17:38:00 +0000

Here are some more important shipping terms...

CPT (Carriage Paid To) - Seller pays the freight for the carriage of the goods to the named destination. The risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered to the carrier, is transferred from the seller to the buyer when the goods have been delivered into the custody of the carrier. If subsequent carriers are used for the carriage to the agreed upon destination, the risk passes when the goods have been delivered to the first carrier. The CPT term requires the seller to clear the goods for export.
CIP (Carriage and Insurance Paid To) - Seller has the same obligations as under CPT, but with the addition that the seller has to procure cargo insurance against the buyer's risk of loss of or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium. The buyer should note that under the CIP term the seller is required to obtain insurance only on minimum coverage. The CIP term requires the seller to clear the goods for export.
DAF (Delivered at Frontier) - Seller fulfill their obligation to deliver when the goods have been made available, cleared for export, at the named point and placed at the frontier, but before the customs Terms of Sale border of the adjoining country.
DDU (Delieverd Duty Unpaid) - Seller fulfills his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the costs and risks involved in bringing the goods thereto (excluding duties, taxes and other official charges payable upon importation) as well as the costs and risks of carrying out customs formalities. The buyer has to pay any additional costs and to bear any risks caused by failure to clear the goods for in time.
DDP (Delivered Duty Paid) - Seller fulfills his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the risks and costs, including duties, taxes and other charges of delivering the goods thereto, clear for importation. While the EXW term represents the minimum obligation for the seller, DDP represents the maximum.
DES (Delivered Ex Ship) - Seller fulfills his/her obligation to deliver when the goods have been made available to the buyer on board the ship, uncleared for import at the named port of destination. The seller has to bear all the costs and risks involved in bringing the goods to the named port destination.
DEQ (Delivered Ex Quay, [Duty Paid]) - When the goods have been available to the buyer on the quay (wharf) at the named port of destination, cleared for importation. The seller has to bear all risks and costs including duties, taxes and other charges of delivering the goods thereto.

Commonly Used Shipping Terminology

noreply@blogger.com (International Sales) — Wed, 30 Jan 2008 23:49:00 +0000

When importing and/or exporting it is essential to be familiar with various shipping terms that may be demanded by a buyer or seller. Defined below are some commonly used terms:

EXW (Ex Works) - Seller fulfills the obligation to deliver when he or she has made the goods available at his/her premises (i.e., works, factory, warehouse, etc.) to the buyer. In particular, the seller is not responsible for loading the goods in the vehicle provided by the buyer or for clearing the goods for export, unless otherwise agreed. The buyer bears all costs and risks involved in taking the goods from the seller's premises to the desired destination. This term thus represents the minimum obligation for the seller.
FCA (Free Carrier) - Seller fulfills their obligation when he or she has handed over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place or point. If no precise point is indicated by the buyer, the seller may choose, within the place or range stipulated, where the carrier should take the goods into their charge.
FAS (Free Alongside Ship) - Seller fulfills his obligation to deliver when the goods have been placed alongside the vessel on the quay or in lighters at the named port of shipment.This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that moment.
FOB (Free on Board) - Seller fulfills his or her obligation to deliver when the goods have passed over the ship's rail at the named port of shipment. This means that the buyer has to bear all costs and risks to loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export.
CFR (Cost and Freight) - Seller pays the costs and freight necessary to bring the goods to the named port of destination, Terms of Sale but the risk of loss of or damage to the goods, as (continued) well as any additional costs due to events occurring after the time the goods have been delivered on board the vessel, is transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment. The CFR term requires the seller to clear the goods for export.
CIF (Cost, Insurance and Freight) - Seller has the same obligations as under the CFR but also has to procure marine insurance against the buyer's risk of loss or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium. The CIF term requires the seller to clear the goods for export.

Effective Advertising in China

noreply@blogger.com (International Sales) — Wed, 23 Jan 2008 20:25:00 +0000

More traditional mediums for advertising such as television and print ads have shown to be a less effective way to reach the younger generation. As Gary Wang (founder/CEO of Tudou, the leading video portal in China) explains, a recent Netpop survey found that 58% of purchases are the result of positive word-of-mouth consumer reviews, blogs, and product ratings sites. In China the population of the highly-targeted group of 18-28 year olds is 176 million! And among them it is said that video-sharing sites are becoming more popular than TV.

So what is the best way to target this population especially with the up-coming 2008 Olympics? Banners and pop-ups have become a inefficient use of advertising budgets because of their lack of flexibility in shape and creativity and the emergence of hundreds of products that preemptively block them. The company Tudou recommends wallpaper ads and 3 second screen insertions to more effectively reach your target audience without the annoyance factor associated with pop ups.

Whichever methods are chosen it is of the utmost importance to understand user behavior and know your target audience in order to best choose which platform will best suit your product and budget.

Source:
How To Effectively Advertise In China; Gary Wang; Adotas.com 2008

Barriers To Trade

noreply@blogger.com (International Sales) — Tue, 15 Jan 2008 00:52:00 +0000

There are many trade barriers and unfair practices one should be aware of including , but not limited to:
1. Intellectual Property Infringement (copyrights, trademakrs, etc.)
2. Inconsistent customs procedures
3. Lack of competition in foreign government bidding
4. Bribery and corruption

It is important to report these unfair practices with the Trade Compliance Center at www.export.gov/tcc.

Euro holding strong against US Dollar

noreply@blogger.com (International Sales) — Wed, 02 Jan 2008 19:23:00 +0000

1 Euro today is 0.6790 US Dollars.

The BBC announced that investors think that the European Central Bank (ECB) will not do anything to weaken the Euro, while the US is thought to favor a declining dollar.

The dollar has weakened sharply since September when it traded about $1.20 against the euro. It has lost approx. 7% this year, while against the Japanese yen it is also down 3.2%.

To convert more currencies, please see the currency conversion page.