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Frequent questions about Export

1. How does a company sell to a foreign market?
2. How the price mark up is calculated?
3. How my company and products can be promoted in the international market?
4. Is the export process complicated?
5. What are the risks involved in the export operation?
6. How can one be sure that the products will be accepted in the international market?
7. Does my company have structure to start exporting?

Frequent questions about Import


1. How my company can import products?

2. What are the advantages of importing a product?
3. What are the disadvantages to import a product?
4. How a company can identify and assure the seriousness of an international supplier?
5. How the importation can help a company in its development and improvement of products?
6. Does my company need to create an international department to these issues?

Asnwers about Export

1. How does a company sell to a foreign market?

The sale to a foreign market is the result of some commercial actions, through the marketing of a company outside its country of origin.

2. How the price mark up is calculated?
The price of products destined to the international market has some special features different from the local market. It will depend upon the legislation of each country and also if there is some special treatment, benefits or reduction of duties. Anyway, the most important thing is to include export costs in the mark-up, depending upon the kind of negotiation and the shipper’s liability to the delivery of merchandise.

3. How my company and products can be promoted in the international market?
The promotion of a company and products happens during the works of international business prospect. There are several resources that help you to get it right, anyway, one of the most efficient and cheaper is the printing of an international catalogue of products. When you have a good presentation of your company and products, it will raise the interest of from the buyer in knowing the product. Another choice is the participation in trade fairs of specific sectors, but it requires more investment and planning.

4. Is the export process complicated?
Like selling to the local market, in the export trade you must respect some criteria in order conclude successfully the operation for both sides. In fact this is a bit more complex because there are other issues, but it becomes methodic when you understand and know the operations procedures.

5. What are the risks involved in the export operation?
The exportation, like any other sale to the local market, has some risks of that are part of the business. Although, there are procedures that can reduce unpredictable situations, assuring that operation can be closed fulfilling its goals. We can list the risks as the default of country (non external payments), delays at merchandise clearing through customs, compliance of delivery date, etc.

6. How can one be sure that the products will be accepted in the international market?
The best reference to guide if products are well accepted at local or international market is their exposition. Definitely, who determines if a product will be successful is the final consumer, anyway, before that step, it is necessary that company buyers are convinced that these products have same or better quality as their competitors, always guided for competitive prices.

7. Does my company have structure to start exporting?
This answer drives to some question like:
a) Did my company already grow up enough in the local market?
b) Does my company want to keep supplying the local market and part of international market?


Answers about Import

1. How my company can import products?
After verifying which product needed by your company is not available the country at technical features, quality and price, the company start searching for new suppliers in the international market. The import of any product means an international purchase, so, it involves some other procedures. Each country has its own legislation, laws, federal and state controls, financial controls, customs, government departments, etc. In order to coordinate the operation accordingly, the company can work by itself or appoint an international company who can handle this operation.

2. What are the advantages of importing a product?

The import of any product may attempt different purposes for each company. For some companies, the quality of the product manufactured abroad is the main reason that adds value to the corporate image in the local market. There are also those who believe that imported articles can improve the mix of products from its product lines, increasing their sales and differentiating the company form its competitors. Also we will find companies that use raw materials or spare parts in their production what can reduce costs. The guidance is that companies are aware of benefits and adding value to their business.

3. What are the disadvantages to import a product?

Like any other business transaction, there are some risks in the operation. For example, if the goods do not meet the technical specifications of purchase. Besides, it is subject to some happenings in the international market who can influence currency fluctuation. Also, the delay in delivering the goods, damages during the transport and some other situations out of control (strikes, governmental decisions, import duties, wars, accident with boat or airplane, etc) can make difficult these operations. Anyway, every company which purchase in international market or those who only works with imported products do have an operation planning to reduce such risks.

4. How a company can identify and assure the seriousness of an international supplier?

Every company which sells in the international market, due to the strong competition, normally remains at a high level of quality and clear working procedures. But unfortunately, some are not so engaged with the needs of their customers. This way, before a company decides to purchase a product from a new supplier, there are some steps to be followed in order to help in this identification.

5. How the importation can help a company in its development and improvement of products?

Every time that a company faces a competitor, no matter if it belongs to the local or international market, it tries to identify the advantages of its products, thus, deciding upon a strategy to stand out to its customers, weaken the actions of their competitors. Generally, the reduction of prices, better quality of products and even the release of new products, which may require investments in the production line. In this scenery, the importation of machines and equipments may benefit the company through best credit line or even reduction of duties.

6.
Does my company need to create an international department to these issues?
Trader One allows that the companies may reduce investments in the international area, hiring these services. This way, they can concentrate in their core business and constantly improve products.

   



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