Page 61 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

International Trade Procedures and Documentation

Notes 3.3.3 Approaches to Exporting

The way your company chooses to export its products can have a significant effect on its export
plan and specific marketing strategies. The basic distinction among approaches to exporting
relates to the company’s level of involvement in the export process. There are at least four
approaches, which may be used alone or in combination:

Passively filling orders from domestic buyers who then export the product. These sales
are indistinguishable from other domestic sales as far as the original seller is concerned.
Someone else has decided that the product in question meets foreign demand. That party
takes all the risk and handles all of the exporting details, in some cases without even the
awareness of the original seller. (Many companies take a stronger interest in exporting
when they discover that their product is already being sold overseas.)
Seeking out domestic buyers who represent foreign end users or customers. Many U.S.
and foreign corporations, general contractors, foreign trading companies, foreign
government agencies, foreign distributors and retailers, and others in the United States
purchase for export. These buyers are a large market for a wide variety of goods and
services. In this case a company may know its product is being exported, but it is still the
buyer who assumes the risk and handles the details of exporting.
Exporting indirectly through intermediaries. With this approach, a company engages the
services of an intermediary firm capable of finding foreign markets and buyers for its
products. EMCs, ETCs, international trade consultants, and other intermediaries can give
the exporter access to well-established expertise and trade contacts. Yet, the exporter can
still retain considerable control over the process and can realize some of the other benefits
of exporting, such as learning more about foreign competitors, new technologies, and
other market opportunities.
Exporting directly. This approach is the most ambitious and difficult, since the exporter
personally handles every aspect of the exporting process from market research and planning
to foreign distribution and collections. Consequently, a significant commitment of
management time and attention is required to achieve good results. However, this approach
may also be the best way to achieve maximum profits and long-term growth.

Did u know? With appropriate help and guidance from the Department of Commerce,
state trade offices, freight forwarders, international banks, and other service groups, even
small or medium-sized firms can export directly if they are able to commit enough staff
time to the effort.

!
Caution For those who cannot make that commitment, the services of an EMC, ETC, trade
consultant, or other qualified intermediary are indispensable.
Approaches 1 and 2 represent a substantial proportion of total U.S. sales, perhaps as much as 30
percent of U.S. exports. They do not, however, involve the firm in the export process. Consequently,
this guide concentrates on approaches 3 and 4. (There is no single source or special channel for
identifying domestic buyers for overseas markets. In general, they may be found through the
same means that U.S. buyers are found, for example through trade shows, mailing lists, industry
directories, and trade associations.)

If the nature of the company’s goals and resources makes an indirect method of exporting the
best choice, little further planning may be needed. In such a case, the main task is to find a

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