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1、Chapter4PlanningandPreparationsforExportPlanningandPreparationsforExportASSESSINGANDSELECTINGTHEPRODUCTAlthoughthebasicfunctionsofexportinganddomesticsellingarethesame,internationalmarketsdifferwidelybecauseofgreatvariationsincer-tainuncontrollableenvironmentalforces.Theseincludecurrencyexchangecont
2、rols/risks,taxation,tariffs,andinflation,whichhappentooriginateout-sidethebusinessenterprise.Suchvariationsrequiremanagerswhoareawareofglobalthreatsandopportunities.Ifacompanyalreadymanufacturesaproductorservice,itisreasonabletoassumethatitsproductorserviceiswhatwillbeexported.However,companiesmustf
3、irstdeterminetheexportpotentialofaproductorservicebeforetheyinvesttheirresourcesintothebusinessofforeigntrade.Toes-tablishtheexportpotentialofaproduct,firmsmustconsiderthefollowingfactors:thesuccessoftheproductindomesticmarkets,participationinoverseastradeshows,advertising,andmarketdata.Ifaproductis
4、successfulinthedomesticmarket,thereisagoodchancethatitwillbesuccessfulinmarketsabroad.However,acarefulanalysisofaproduct’soverseasmarketpotentialisneeded.Onecouldstartbyassessingthedemandforsimilarproductsdomesticallyandabroad,aswellasdeter-miningtheneedforcertainadaptationsorimprovements.Tradestati
5、sticsprovideapreliminaryindicationofmarketsforaparticularproductinmostcountries.Forproductsorservicesthatarenotnew,low-costmarketresearchisoftenavailablethatcanhelpdeterminemarketpotential.Productsthatarelesssophisticatedandthathaveadecliningdemandindevelopedcountries’marketsoftenencounterahealthyde
6、mandindevelopingnationsbecausethegoodsarelessexpensiveandeasytohandle(Weiss,1987).Participationinoverseastradeshowsisagoodwaytotesttheexportpo-tentialofproductsorservices.ArecentstudycommissionedbyAmericanBusinessMediafoundthatsevenoutoftenbusinessexecutivespurchasedorExport-ImportTheory,Practices,a
7、ndProcedures,SecondEdition6970EXPORT-IMPORTTHEORY,PRACTICES,ANDPROCEDURESrecommendedthepurchaseofaproductorserviceafterlookingatanadver-tisementorpromotionatatradeshow(Schwartz,2006).However,ifanasses
