Logistics through Freight forwarders and brokers

Companies deal with a lot of documents when delivering products to foreign countries. They normally let freight forwarders and customs brokers to do this job.

Freight forwarders — a freight forwarder helps the international trade company to improve its delivery times and customer service. Many specialize in arranging shipments to certain countries, while others concentrate on particular types of products. In the case of arranging financing through letters of credit, a good freight forwarder can help the company to clarify the conditions of the transaction.

These agencies will negotiate rates for the international trade company with shipping lines, airlines, trucking companies, customs brokers and insurance firms. They usually handle all the company’s logistical requirements.

Customs brokers — brokers clear goods through customs prepare customs documentation and remit duties owing on exported and imported goods. They are also good sources of information on recent tariff changes and other customs related developments.

International Trade Promotion

Promotion refers to all the communications tools a company uses to convince people to buy its product or service.

They are:

Advertising — carefully select the media that have an ample circulation within the target audience. If few people have televisions, is radio a better bet? Or print?

Promotional materials — carefully select the mean of communication that can reach a large clientele. Is it necessary to redesign the marketing materials and packaging to remove elements that are inappropriate, offensive or meaningless in the target market? Is it necessary to translate these materials into the native language and hire a professional translator with experience in commercial and business writing?

Direct mail — a targeted direct mail campaign can be very effective. Is it the research and experience in place that helps the company to build a base of potential buyers and clients? What is the company’s message like?

Media — publicity via the media is a good way to establish awareness, profile and credibility. Is there a media kit that introduces a profile of the company, new products and services or newsworthy activities? Where are the articles published about the company profile?

Personal visits — personal contact with potential clients is perhaps the best means of promotion. Many cultures value such contact in their business relationships. Haven’t you gone yet?

Trade shows — attending or participating in international trade shows is an excellent promotional method. It also allows you to check out the competition and do market research. When is the company planning to attend one?

Internet — it’s generally assumed that a business will have a website. How well-designed is the company’s site?

International marketing tools list

They are crucially important for an international business venture. Bear in mind the following:

Business cards

• Design: professionally intended to remember and attract prospects’ attention;

• Material: high quality;

• Lay out: easy to read; distinctive and informative; up-to-date and complete with area codes, country, telephone and fax numbers, postal code, e-mail, website addresses and other electronic social networking and blogging sites such as Skype, Linkedin, Biznik, Digg, Stumbleupon, Twitter, Myspace, Facebook and others.

• Language: in the appropriate tongues the business are conducted;

• Uniformity: consistent throughout the company;

Brochures

• Design: creative and appealing and professionally printed;

• Lay out: informative and easy to read, highlighting the company’s uniqueness;

Customer testimonials

• Examples: show that the company is highly recommended; represent your best customers; be from top executives; and be included in your brochure.

News articles

• Clear in stating that your company is a recognized leader.

• Quoted in your brochure.

• Reproduced on your letterhead.

• Displayed in your office.

• Sent to potential clients.

Videos, Podcast and other non-textual blog styles related to music, art, sketches and photos

• Sophisticated and interesting.

• Professionally produced.

• Oriented to the quality and benefits of the company’s product or service.

• Clear and concise; and easily available.

Websites

• Design: professionally and visually pleasing with broad information, e-mail enabled and capable of allowing online purchasing (if appropriate).

Maritime and International Trade Oral Presentations

Please note the evaluation criteria that will be used for oral presentations.

Read all about it in:

http://english6umc.blogspot.com/2009/05/maritime-english-oral-presentation.html

UNIT 2 - INTERNATIONAL TRADE PLAN GUIDES & TOOLS

Dear UMC Students,

As you have already noticed, we have approached learning from a different mind set:

We believe in our capacities of learning the English language through international trade study and practice, or through its reproduction and production.

For the second part of the course, we want due diligence in understanding some information as follows:

1. Methods to get Venezuelan products to international markets

http://www.austradeict.gov.au/Export-plan/default.aspx

2. Write a short version of a business plan

http://www.southaustralia.biz/library/Export%20Business%20Plan%20Template.doc

We will discuss all these topics next class.

We hope this insightful information helps you to continue moving forward to create positive results.

Yours truly,

Francisco Salinas

UNIT 1 - LISTENING ACTIVITY (Edited)

Interviewing Katherine
Star-up steps to international business

Listen to the podcast interview and do the activities that hereby follow.

Click to this address to start http://www.elanguages.ac.uk/activities/2EAP/01/du1s30402.htm

Part I

Practicing your listening skills regularly is important. In the first part of this interview with Katherine, a businesswoman, you will hear her talking about some of the challenges of ...

a) finding a market for a product or service
b) finding prospects for the intended market
c) setting up a business
d) getting a loan

Part II

Listen to Katherine’s interview again. Then, look at the following list and use the symbol “x” to choose the sentences that she only mentioned during the interview.

a) You need to start by identifying a service or product that your business can offer
b) You should have previous experience in sales and marketing
c) If you want to sell a product you need to market it effectively
d) If you want to sell a service it's advisable to have already worked in that sector
e) You need to have a profile of the market you are aiming at
f) You need to identify your typical customer and market specifically for him/her
g) It's important to know whether your intended market is likely to increase or not
h) You need to develop a competitive advantage

Part III

Listen and complete the interview.

Interviewer: OK, Katherine, um, we’re going to talk about _______________ _____ a business today. Can you tell me what you think are the first steps involved in setting up a business?

Katherine: Well, obviously, the first thing you have to do is you have to have an idea - you
have to have a concept. You have to see a _______________ in the market somewhere. You have to have an idea of a product or a service which you can offer either locally or nationally, or even
____________________. And normally this would be related to your own experience. Um, if you’re
going to go into the services market, then it needs to be probably something that you have
worked in the sector that you have worked in before. Not necessarily, but it’s a good idea.

Interviewer: Mm mm. OK. Um, and how do you go about defining the _______________ that you’re aiming at?

Katherine: Well, again, um, if it’s a service or a product, you have to have an idea of who
your _______________ customers or clients are going to be: you need a _______________ of them. You need to know what age group they belong to. You need to know if it’s aimed at men or women or both. Um, the kind of _______________ group that these people belong to. And perhaps nationality. Maybe it’s a national market, maybe it’s international. You also need to know, um, if your market is static or if it’s likely to _______________ and, if it’s going to grow, in which direction it will grow. You need also to have an idea of your principal competitors in the field and see what they’re doing and, once you’ve looked at what they’re doing, you have to define what is your ____________________ advantage. What makes your product or your service special? It may be cheaper price. It may be some kind of some ________________ _______________ on the product or the service. It may be a personalization of a product or a service.

Interviewer: Mm. OK. It sounds like a very complex process.

http://english7umc.blogspot.com/

UNIT 1 - (READING EXERCISE) - Edited

Basic steps on how to start an international trade business

Read the thought-provoking article and answer the given questions. Be prepared to talk about these issues with classmates and the professor in class.

First Step
Check online import and export business start-up resources and tools

Trading goods and services allows businesses around the world to compete on a global basis with their competitors.In the past, it was very costly to acquire the commercial intelligence needed to play in the global market place.Now, equipped with the internet we can access valuable market information and find foreign buyers and local suppliers, anywhere, anytime.

Second Step
Start by learning a little more about import and export

International trade training makes good business sense. Attend training programs offered by universities or take on line courses. They can open you doors to:

• Succeed in new global markets
• Strengthen your industry knowledge
• Advance your international trade career
• Increase your credibility and visibility
• Gain world-recognized credentials
• Expand and diversify your skill base
• Network with a vast group of qualified international trade professionals
  
  

Third Step
Legal aspects

Once you are convinced of the vast opportunities that the field of import export offers, you need to register your business with the government.

The use of professional services is essential to the success of a small business, whether you are buying an existing business or franchise, starting from scratch on your own, or expanding a business you presently operate. Professionals can provide the knowledge and expertise in the areas that you are limited, and they can round out your management team to ensure your business operates efficiently. One of the professionals you will want to consult with as an entrepreneur is a lawyer.

Selection of a business structure

Whether you plan to operate a home-based business or are involved in a large commercial operation, you will need to decide on which type of business structure best suits your needs.

Your options will range from sole proprietorships, partnerships, limited or incorporated companies, to co-operatives. A lawyer can help you choose the correct form of business structure, based on factors such as the number of people involved, the type of business, tax issues, liability concerns, and financial requirements of the firm. An accountant should also be consulted regarding the tax implications of the form of business structure chosen.

Fourth Step
Setting up an office

Most businesses initially start out from leased premises rather than incurring the major capital investment of buying or constructing a new building. However, leases still constitute one of your largest expenses, and usually represent a long-term commitment. As such, your signed lease agreement is a very important legal document. Leases can vary from a simple one-page agreement to a lengthy complex document; depending on the space you are renting (e.g. mall space vs. separate building). The other choice you have is to run your business as a home-based operation.

Fifth Step
Get international trade information

Usually government offices and non-government organizations (Ngo’s) provide excellent international trade information and resources for starting, operating, and growing your business. For further information, also check out the import export links found on the internet.

Manage your business from start to finish

• Careful planning is fundamental to success
• Successfully managing a business requires specific management skills in addition to knowledge of key business practices
• Make sure you build a knowledge-based information system that allows you to be well organized
• Write your business plan, which is a guide to starting and running your business. This plan will encourage loans, promote growth, and provide a map for you to follow
• Set up a bookkeeping system to keep good records about the business financial position and the business daily income and expenses, which can help you to make good decisions and comply with government regulations
• Use benchmarking tools to improve your business performance by identifying problems, finding their solutions while furthering opportunities
  

Sixth Step
Funding Sources and Loan Programs

Explore your financing options.

To obtain funding or apply for a government program you will need a Business Plan. Developing a strategic Marketing or Business Plan is the key to succeeding in any business. Research and planning are especially important for global ventures. It allows you to identify your opportunities and risks.

There are two type of financing available to business: equity and debt. Simply stated, equity is the money that you put into your business. Debt is what you borrow from others to invest in your business.

(Please note that there is a hybrid type of financing known as "mezzanine financing" which is somewhere between equity and debt. For instance, the investors lend with the right to convert their loans into shares of the company when the company eventually goes public, or after some definite period of time has elapsed. However, this typically only applies to larger firms who intend to go public at some future point.).

Sources of funding

Personal: credit cards, personal lines of credit and overdraft facilities, all of which can be used by the owner to finance his business. In effect, the funds so used become loans from the owner to the business

Suppliers and clients: Negotiate terms with your regular suppliers so that you can expand your sources of funds. Ask for a good faith deposit to cover part of the fees that you will earn related to a contract, and progress payments on the work completed, instead of waiting for completion of the contract to collect your fees. You could ask for equalized billings especially in cases of long-term clients who use services occasionally or at cyclical peaks.

Friends, Relatives and Business Acquaintances: Since they know your character and your business knowledge, they may be prepared to advance you funds.

Government Loan and Grants: Governments have loan, guarantee, or grant programs for any or all of the following: creation of jobs or technology; exporting; training; venture capital, start-ups, innovation and increasing capacity

Operating line of credit: The financial institution agrees to make available a specified amount, where the amount borrowed can fluctuate regularly within the limit depending on the company's cash flow.

Term Loans: the financial institution agrees to make available a specified amount for the financing of long-term fixed assets.

Equipment financing: Computer equipment, office equipment and automobiles could be financed either by buying or leasing these assets from the finance subsidiaries of the companies who manufacture the equipment or from third party finance/leasing companies.

Answer to the following questions

Should I go into business?

Preliminary question analysis

1. Are you a good loser?
2. Do you enjoy working on projects that will take 5-10 years to successfully achieve?
3. Have you ever participated in the setting up of entities such as cooperatives, community organizations, fund-raising projects, etc.?
4. Do you like being in charge of other people?
5. Do you take risks just for the thrill of it?
6. Do you believe in organizing your tasks before getting started?
7. Do you like to take care of details?
8. Do you blame others when something goes wrong?
9. Do you enjoy competition?
10. Are you likely to work long hours to reach a goal?
11. Can you accept failure without admitting defeat?
12. Can you take advice from others?
13. Do you have a savings account and other assets?
14. Are you good at managing your time?
15. Do you take advantage of on line resources?
16. Are you taking international trade classes?
17. Are you willing to reinvest your salary/business profits to help your business grow?
18. Are you committed to make things work?
19. Why do you want to start your own business?
20. When are you starting your own business?

Note: A "yes" response to questions would indicate that you have what it takes for succeeding in business.

Competency Profile Questions

1. What can I do if I start an international trade home-based business?
2. Since English is the international trade communication language, what results am I willing to get in order to master this language?
3. How can I build a knowledge-based information system?
4. What opportunities and risks do I have when setting up an international trade business?

Should you need to verify your "starting business vocabulary", please check the glossary on this page:

http://www.sba.gov/smallbusinessplanner/plan/getready/serv_sbplanner_gready_glossory.html