Major Factors in Foreign
- Submitted by: owhlala
- Views: 196
- Category: Politics
- Date Submitted: 12/01/2014 06:51 AM
- Pages: 2
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Explain the major factors an entrepreneur needs to consider in choosing the best distribution channel in a foreign country
Gathering information
- It’s essential for exporters to have a clear understanding of the culture, customs and economic conditions of the country where they w ant to do business.
- They need to do research, they can use online search.
- Worth consulting government sources to define buyers for your products.
Preparing an export plan
- Be sure you have an export plan before starting up your export operations.
- Export plan help you define your objectives clearly so that you can use the right tactics to reach your goals.
- Some of the most common entry strategies involve using distributors or sales representatives, or selling directly to end users
- Direct sales, involves selling your products or services directly to consumers in foreign countries. You may do this online or act on a lead from a government source.
Make the right strategic choices.
- Joining foreign market is a long term commitment that demands a lot of time, effort and money.
- Make sure that you're not competing with your partners and that they have complementary products that may give you a competitive edge.
- Specify the commission you are willing to pay and the sales volumes you expect your partner your deliver.
Understand tariffs, customs and free trade zones
- When exporting goods into a foreign market, the entrepreneur need to clearly understand the various political agreements and arrangements in play
- It is customs requirement
- Bilateral customs and trade agreements between another country
- Free trade zone
- Tariffs depend on your foreign market. It is different countries imposing different customs and tariffs to protect certain domestic goods from foreign competitions.
Gathering information
- It’s essential for exporters to have a clear understanding of the culture, customs and economic conditions of the country where they w ant to do business.
- They need to do research, they can use online search.
- Worth consulting government sources to define buyers for your products.
Preparing an export plan
- Be sure you have an export plan before starting up your export operations.
- Export plan help you define your objectives clearly so that you can use the right tactics to reach your goals.
- Some of the most common entry strategies involve using distributors or sales representatives, or selling directly to end users
- Direct sales, involves selling your products or services directly to consumers in foreign countries. You may do this online or act on a lead from a government source.
Make the right strategic choices.
- Joining foreign market is a long term commitment that demands a lot of time, effort and money.
- Make sure that you're not competing with your partners and that they have complementary products that may give you a competitive edge.
- Specify the commission you are willing to pay and the sales volumes you expect your partner your deliver.
Understand tariffs, customs and free trade zones
- When exporting goods into a foreign market, the entrepreneur need to clearly understand the various political agreements and arrangements in play
- It is customs requirement
- Bilateral customs and trade agreements between another country
- Free trade zone
- Tariffs depend on your foreign market. It is different countries imposing different customs and tariffs to protect certain domestic goods from foreign competitions.