EXPORT BARRIERS

Export selling vs. Export marketing

Export selling: involves selling the same product at the same price, with the same promotional tools in a different place.

Export marketing: tailors the marketing mix to international customers.

Requirement for export marketing - an understanding of the target market environment - the use of market research and identification of market potential - decisions concerning product design, pricing, distribution and channels, advertising and communication

Stages of export activities - firm is unwilling to export - firm fills unsolicited order but does not pursue other orders - firm explores feasibility of exporting - firm exports to one or more markets on a trial basis - firm becomes experienced exporter - firm pursues country focused marketing - firm evaluates global market potential before screening for the best target markets

Governments can support export activities
Tax incentives e.g US - DISC (Domestic Int’l Sales Corp) - FSC (Foreign Sales Corp) - ETI (Extra territorial income)
Subsidies e.g. France
Governmental assistance

Governments can discourage import activities - tariffs
( to product/ to generate revenue
( temporary/ permanent: tariff surcharge - Non tariffs barriers
(quotas: absolute quarter
(discriminatory procurement policies
(restrictive customs procedures
(cubitrary monetary policies
(restrictive regulations

Tariffs systems

( Single column tariff - simplest type of tariff - schedule of duties in which rate applies to imports from all countries on the same basis
( Two column tariff - general duties and special duties apply
(Preferential tariffs: reduced tariff rate applied to imports from certain countries - GATT prohibits the use, with 2 exceptions:
• historical preference arrangements already existed
• preference is part of formal economic integration trealy
•