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International Business: Competing in the Global Marketplace Fifth Edition Chapter 15
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15
Exporting Importing and Counter Trade
Learning objectives
Outline some of the tremendous advantages and common pitfalls of exporting
Identify the primary sources of information available to firms interested in exporting
Describe the nuts and bolts of exporting
Suggest how firms can use the EXIM bank and insurance to facilitate exports
Explain in more detail the various types of counter trade and the pro and cons of engaging in counter trade
Discuss Regional economic integration in Asia and Africa.
The previous chapter presented exporting as just one of a range of strategic options for profiting from international markets. This chapter looks more at the nuts and bolts of how to export.
Exporting is not just for large enterprises; many small firms have benefited significantly from the moneymaking opportunities of exporting. In the United States, for example, nearly 89 percent of firms that exported in 2001 were small businesses that employed less than 100. Firms with less than 500 employees accounted for 97 percent of all U.S. exporters and almost 30 percent of all exports by value.
The volume of export activity in the world economy is increasing as exporting has become easier. The gradual decline in trade barriers under the umbrella of GATT and now the WTO (see Chapter 5) along with regional economic agreements such as the European Union and the North American Free Trade Agreement (see Chapter 8) have significantly increased export opportunities. At the same time, modern communication and transportation technologies have alleviated the logistical problems associated with exporting. Firms are increasingly using fax machines, the World Wide Web, toll-free 800 numbers, and international air express services to reduce the costs of exporting. Consequently, it is no longer unusual to find small companies that are t
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