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10 Cards in this Set
- Front
- Back
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U.S. producer deals directly with a foreign buyer.
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Direct
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An export intermediary such as an EMC or ETC assumes responsibility for finding overseas buyers, shipping products, and getting paid.
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Indirect
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Deciding whether to market directly or indirectly?
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-Level of resources a company is willing to devote to its international marketing effort.
-Size of the firm. -Nature of its products. -Previous export experience and expertise. -Business conditions in the selected overseas markets. |
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Advantages of direct exporting?
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-More control over the export process.
-Higher profits. -Closer relationship to the overseas buyer. |
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Disadvantage of direct exporting?
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-Significant commitment of management time.
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Advantage of indirect exporting?
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-Export experience and expertise NOT required.
-Penetrate foreign markets without the complexities and risks. |
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Disadvantage of indirect exporting?
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-May lose control over foreign sales.
-Less profits. |
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A quotation, subject to the buyer's approval.
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Pro Forma Invoice
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You should clarify what details on the Pro Forma Invoice?
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-Final shipping date.
-Expiration date of letter of credit. -Other deadlines, if any, that are important to the buyer. -What documents are needed. -Special inspections or certifications involved. -Specific packing or labeling requirements. |
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What should be on the Checklist for a Pro Forma Invoice?
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-Description of product
-Price -Terms of sale -Terms (Methods) of payment -Length of time prices are valid -Length of time needed for shipping |
