Export Management Certificate
48 Hours

Description

In today's fast-paced, complex global market, it is necessary to equip yourself with the very best resources and knowledge to not only compete, but to excel. Have you recently been promoted and you need to learn about exporting quickly? Would you like to add Continuing Education Units (CEUs) to your resume for a future promotion - or a new job? Would you like to start your own export business? You can achieve these goals by taking individual courses or by completing the Six-Course Program, passing the Final Certification Examination and earning a prestigious Certificate in Export Management. 48 hours/12 months access. Instructor supported. Manuals included.

The information is presented in a logical, step-by-step format that you will find easy to read, understand and use. You will be able to take advantage of the following unique features that are only available through our Certificate Program:


Outline

IDENTIFYING YOUR EXPORT MARKETS (2008)

Table Of Contents

I.

MAJOR BENEFITS OF EXPORTING:
 

As an employee, present these benefits to top management to convince them to investigate exporting as a means of increasing company sales and profits. If you are an entrepreneur starting out as an export sales agent, include these benefits in your formal presentation to convince potential clients to use your services to introduce their products into world markets.

II.

EVALUATE YOUR EXPORT READINESS:
 

A. Are Your Current Products Exportable?
  1. Major reason why products fail in foreign markets
2. Key indicator of your product's export potential
3.Table:Determine Product Readiness For Export
 

B. Are Your Personnel Ready For Export?
  1. Importance of continuous employee training
2. Two types of export experience
3. Table: Determine Personnel Readiness For Export
 

C. Is Your Company Ready For Export?
  1. What organizational changes are needed?
2. Table: Determine Company Readiness For Export

III.

COMMON MISTAKES YOU MUST AVOID TO BE SUCCESSFUL:
 

Ten potentially costly errors that you want to avoid. Being aware of them before you launch your export marketing program could save your company or clients thousands of dollars!

IV.

THE TEN BIGGEST DON'TS OF EXPORTING:
 

Refer to this valuable list often and you will become a successful exporter much quicker.

V.

SECURE EXPORT IDENTIFICATION NUMBERS:
  A. Harmonized System (HS) Number
  1. Purpose and Use
2. How to determine the HS Number for your product
  B. Export Control Classification Number (ECCN)
  1. Purpose and Use
2. How to determine the ECCN Number for your product

VI.

CONDUCT INTERNATIONAL MARKET RESEARCH:
 

A. Primary Market Research Methods

B. Secondary Market Research Techniques

C. Sources of Export Market Information:
  1. Governmental sources
2. Non-governmental sources
3. Other sources available on the Internet

VII.

SELECT YOUR MOST PROFITABLE EXPORT MARKETS:
 

A. List: Checklist for Evaluating Potential Export Markets

B. Reduce your potential export markets to twelve countries

C. Select your initial six export target markets for initial penetration

VIII.

HARMONIZED PRODUCT STANDARDS:
 

A. ISO 9000 Product Standards Series

B. U. S. Product Standards Organizations

C. International Product Standards Organizations

IX.

INTERNATIONAL TRADE AGREEMENTS:
 

A. North American Free Trade Agreement (NAFTA)

B. Free Trade Area of the Americas (FTAA)

C. Western Hemisphere Regional Trade Pacts

D. World Trade Organization (WTO)

E. European Union (EU)

F. East and Central Asian Markets (APEC and ASEAN)

G. Association of Southeast Asian Nations (ASEAN)




LOCATING YOUR EXPORT SALES REPRESENTATIVES (2008)

Table of Contents

I.

FACTORS THAT WILL DETERMINE THE TYPES OF EXPORT SALES REPRESENTATIVES YOU WILL NEED:

A. What financial risks are you willing to take in future export transactions?
B. How much control over the sale of your products do you want to retain?
C. Do you want representatives to take physical possession and title to goods?

II.

TYPES OF EXPORT SALES REPRESENTATIVES THAT YOU CAN USE:

A. Commission Export Sales Agents (CESA):
1. Definition and characteristics of a CESA
2. Table: Services Provided and Not Provided by a CESA

B. Export Management Company (EMC) or Export Trading Company (ETC):
1. Definitions and characteristics of an EMC and an ETC
2. Table: Services Provided and Not Provided by an EMC or an ETC
3. Flow Chart: Complete Export Transaction Using an EMC or an ETC
4. Illustration: Price Quotation/Proforma Invoice Using an EMC or an ETC

C. Full Stocking Distributor (FSD):
1. Definition and characteristics of a FSD
2. Table: Services Provided and Not Provided by a FSD
3. Flow Chart: Complete Export Transaction Using a FSD
4. Illustration: Price Quotation/Proforma Invoice Using a FSD

D. What Marketing Responsibilities are involved in exporting?
1. Summary Table: Marketing Functions to be Considered in Selecting Your Export Sales Representatives

III.

ESTABLISH YOUR EXPORT PRICING POLICIES:
A. Importance of having firm export prices when seeking export sales representatives:
1. Refer to the next course Pricing Your Products and Budgeting for Export

IV.

SELECT YOUR EXPORT SALES REPRESENTATIVES:

A. Conduct an international market research program to identify candidates using:
1. Governmental sources of information
2. Non-Governmental sources of information
3. Other resources available on the Internet
4. Use information secured in previous course Identifying Your Export Markets
 

B. Contact up to six preliminary candidates that appear to have the best qualifications:
  1.List: Guidelines for Effective International Correspondence
 

C. Analyze responses and select the three best candidates for final evaluation:
  1.List: Checklist for Evaluating Potential Export Sales Representatives
2.Illustrations: Samples of Letters to Potential Export Sales Representatives
 

D. Interview and evaluate the final three candidates:
  1. Prepare for the interviews and take along important reference information.
2. Important questions to ask and topics to avoid during personal interviews.
3. Visit their facilities to observe their organization and personnel firsthand.
 

E. Appoint an export sales representatives for each of your target markets:
  1.Select the best candidate. Advise them that you would like to work with them.
2. Sign the representation contract as soon as possible after the final interview.
3. Thank each unsuccessful candidate in writing for their time and cooperation.
4. Make it a firm policy to visit each export sales representative regularly.



PRICING YOUR PRODUCTS AND BUDGETING FOR EXPORT (2008)

Table of Contents

I.

PRICING YOUR PRODUCTS COMPETITIVELY FOR EXPORT:

 

A. Allocate Actual Costs to Your Export Prices:

 

 1. Exclude certain costs that you have already included in your domestic price, i.e., indirect
manufacturing overhead, general and administrative expenses (G & A) and marketing costs.

 

B. Five Basic Export Pricing Methods:

 

 1. U. S. Standard Ex Works Price Method:
a. Flow Chart:Profit Analysis and Projected Market Performance
2. U. S. Standard Ex Works Price Plus Export Costs Method:
a. Flow Chart:Profit Analysis and Projected Market Performance
3. G & A Overhead and Discounted Profit Margin Method:
a. Flow Chart:Profit Analysis and Projected Market Performance
4. G & A Overhead Without Profit Margin Method:
a. Flow Chart:Profit Analysis and Projected Market Performance
5. Floor Price Without G & A Overhead Method (Marginal Costing):
a. Flow Chart:Profit Analysis and Projected Market Performance

 

C. Export Pricing Flow Charts:

 

1.

Three flow charts detailing the costs to move goods from the exporter's facility to the final customer (end-user) in the foreign market.

 

a. Flow Chart #1:

Costs to Produce and Move Product from the Exporter's Facility Through the U. S. Port of Export to the Foreign Port of Import
 

b. Flow Chart #2:

Costs To Move Product from the Foreign Port of Import to the Final Customer in the Foreign Market
 

c. Summary Chart #3:

Accumulated Costto Produce and Deliver Product to the Final Customer in the Foreign Market.

II.

SEVEN MARKET ENTRY PRICING STRATEGIES:

 

A. Exploiting the Market: Highest profit margin for as long as possible. Then leave when profits decline.

 

B. High-Quality Pricing: Systematic development of market with excellent products and customer service.

 

C. Life-Cycle Pricing: Coordination of prices and profit margins to the anticipated life cycle of the product

 

D. Sharing the Market: Setting prices that will not create a competitive imbalance in the local market.

 

E. Matching Competitive Prices: Maintaining margins to meet competitive prices in the market.

 

F. Developing the Market: Systematic market development with competitive prices over period of time.

 

G. Buying the Market: Disposal of excess or obsolete products at very low prices as quickly as possible.

III.

DETERMINE YOUR STANDARD EXPORT EX WORKS PRICE AND PRE- TAX PROFIT MARGIN:

 

A. Flow Chart: Worksheet to Determine Your Standard Export Ex Works Price and Pre-Tax Profit Margin

 

1.

Includes your production cost, U. S. marketing costs, incremental export costs, gross export ex works price before discounts and sales commissions have been deducted, and net export ex works price after discounts and sales commissions (and all other price concessions) have been deducted from the export price.

IV.

CREATE YOUR OWN INTERNATIONAL PRICE SHEET:

 

A. Illustration: Sample of an Export Ex Works International Price

 

1.

Includes product models/part numbers, product descriptions, ex works price and price expiration dates. Does not include costs to ship the goods from your facility. Also excludes payment terms and conditions because they will be provided later in the price quotation/proforma invoice.

V.

FIVE-YEAR EXPORT FORECAST:

 

A. Table: Sample Five-Year Export ales Forecast

 

1.

Breaks down five-year sales projections into territories, delivery dates of first orders and individual/cumulative annual sales volumes over a five-year period.

 

VI.

FIVE-YEAR EXPORT BUDGET:

 

A. Table: Sample Five-Year Export Budget

 

1.

Item-by-Item analysis of the 23 major categories and 30 sub-categories included in an accurate and complete Five-Year Export Budget. Will assist you in determining your total export administration expenses, incremental costs to export, and annual and cumulative profit/(loss) before income taxes.



WRITING YOUR EXPORT MARKETING AGREEMENTS (2008)

Table of Contents

I.

MAJOR PROVISIONS OF AN EXPORT MARKETING AGREEMENT:

 

A. Identification of Parties to the Agreement

 

B. Effective Date of the Agreement

 

C. Termination of the Agreement:

 

1.

Items covered:Termination on a specific date, termination upon written notice, and termination for cause.

 

D. Sales Territory, Products and Restrictions:

 

1.

Items covered:Country or geographical area, and sole and exclusive rights.

 

 

E. Identification of Products

 

F. Types of Sales Excluded from the Agreement:

 

1.

Items covered: House accounts, Original Equipment Manufacturers (OEMs),
and will you allow the sale of competitive or complementary products?

 

G. Pricing of Products:

 

1.

Items covered:Currency and prices quoted in agreement, sales commission and discounts, notification of price changes, order acceptance, shipping and delivery of merchandise, and penalties for late delivery.

 

H. Payment Terms

 

I. Inventory Stocking Requirements:

 

1.

Items covered: Stocking requirements for spare parts and components, minimum size of orders, and repurchase of slow moving items.

 

J. Warranty Agreement:

 

1.

Items covered:Warranty period, place of warranty work, products covered, improper use, outside suppliers, inventory maintenance, design changes, advice of warranty, assignment of warranty, hold harmless clause, and force majeure.

 

K. After-Sale Service

 

L. Emergency Trips by Service Representatives:

 

1.

Items covered: Sufficient advance notice, length of stay in territory, payment of expenses for emergency trips, and special treatment for new representatives.

 

 

M. Training Programs for Export Sales Representatives

 

N. Information to the Provided by Parties to the Agreement:

 

1.

Items covered: Sales projections, competitive activities reports, political climate reports and provision of contact information on customers within export markets.

 

O. Force Majeure

 

P. Hold Harmless Statement

 

Q. Settlement of Disputes

 

R. Cancellation of All Previous Agreements and Assignment of Agreement.

II.

REVIEW AND LEGAL APPROVAL OF THE AGREEMENT:

 

A. Questions to ask yourself about the export marketing agreement.

 

B. Is the agreement mutually beneficial to both parties?

 

C. Would you sign the agreement if you were the export sales representative?

 

D. Present the agreement to a qualified international attorney for final approval.

III.

SAMPLE EXPORT MARKETING AGREEMENTS:

 

A.

Sample Contract: Distributor Agreement
Used when: Representative takes title and physical possession of goods.

B.

Sample Contract: Agency Agreement
Used when: Representative does not take title and physical possession of goods.

C.

Sample Contract: Consignment Agreement
Used when: Goods are shipped to the export sales representative without prior payment so that they will be available for immediate delivery to the customer - after which the agent pays the exporter.

D.

Sample Contract: Product Warranty Agreement

E.

Sample Contract: Confidentiality Agreement



SHIPPING YOUR PRODUCTS OVERSEAS (2008)

Table of Contents

I.

DUTIES OF A FOREIGN FREIGHT FORWARDER:

 

A. Normal Functions and Responsibilities:

 

 1. As your agent, arranges shipment of your goods to a specified foreign location.
2. Arranges for cargo insurance and advises you of required marking and labeling.
3. Prepares and examines shipping documents for accuracy and completeness.
4. Distributes shipping documents and, if requested, arranges for payment at bank.
5. Clears your import shipments through U. S. Customs (as Customhouse Broker).

II.

EVALUATING AND SELECTING YOUR FOREIGN FREIGHT FORWARDER:

 

A. Location of their nearest office

 

B. Branches and affiliates in the United States

 

C. Branches and affiliates in Your Export Markets

 

D. Are They a Full Service Forwarder? Can they provide the following services?

 

1.

Items covered: Ocean freight, air freight, consolidation, banking and ability to process foreign imported goods on your behalf (as a Customhouse Broker).

 

E. Will they extend credit terms?

 

F. Operating hours

 

G. Customer references

 

H. Sources of information on Foreign Freight Forwarders

 

I. Illustration:Checklist for Evaluating Potential Forwarders

III.

FOREIGN TRADE TERMS (INCOTERMS) - RESPONSIBILITIES OF SELLER AND BUYER:

 

A.

Flow Chart:Breakdown Dividing Responsibilities and Charges Between the Seller (Exporter) and the Buyer (Importer)

IV.

MAJOR INTERNATIONAL SHIPPING DOCUMENTS:

 

A. Sample documents, who normally completes them, and how they are used:

 

 1. Shipper's Letter of Instructions
2. Commercial Invoice
3. Packing List
4. Shipper's Export Declaration (SED)
5. Pre-Inspection Certificate (PIC)
6. Certificate of Insurance
7. Certificate of Origin
8. Consular Invoice
9. Dock Receipt
10. Ocean Bill of Lading
11. Air Waybill of Lading
12. Apostille (International Notarization)

V.

SECURE AN EXPORT LICENSE:

 

A. U.S. Export Administration Regulations (EAR)

 

B. U.S. Economic and Trade Sanctions

 

C. U.S. Anti-Boycott Laws and Foreign Corrupt Practices Act

VI.

FOREIGN IMPORT DUTIES AND TAXES:

 

A. How to calculate landed cost including import duties and taxes.



RECEIVING PAYMENT FOR YOUR EXPORT SALES (2008)

Table of Contents

I.

FACTORS TO BE CONSIDERED IN DETERMINING THE METHODS OF EXPORT PAYMENT YOU WILL ACCEPT:

 

A. What is the competitive situation in individual export markets?
B. Does your profit margin justify extending credit or should you raise prices?
C. How will deferred payments affect your cash flow and day-to-day operations?
D. What is the stability and financial risk involved in dealing with each country?

II.

METHODS OF PAYMENT FOR YOUR EXPORT SALES:

 

A. Cash in Advance of Shipment:

 

 1. Transaction Flow Chart: Cash in Advance of Shipment

 

B. Letter of Credit (L/C):

 

 1. Parties involved in a letter of credit transaction
2. Advised, confirmed and irrevocable letters of credit
3. List: Exporter's Checklist for Analyzing Letters of Credit
4. Amendments and correction of discrepancies in letters of credit
5. Common discrepancies in letters of credit received by banks
6. Transaction Flow Chart: Payment by Sight Draft with Letter of Credit
7. Transaction Flow Chart: Payment by Time Draft with Letter of Credit
8. Example of: Transferable Letter of Credit
9. Example of: Assignment of Proceeds Letter of Credit
10. Example of: Back-To-Back Letter of Credit
11. Example of: Red Clause Letter of Credit
12.Example of: Revolving Letter of Credit
13. Example of: Standby Letters of Credit

 

C. Collections (without the use of a letter of credit):

 

 1. Transaction Flow Chart: Documents Against Payment (D/P) by Sight Draft
2. Transaction Flow Chart: Documents Against Payment (D/P) by Time Draft

 

D. Open Account:

 

 1. Transaction Flow Chart: Consignment of Goods

 

E. Consignment of Goods:

 

 1. Transaction Flow Chart: Consignment of Goods

III.

HEDGING AGAINST FOREIGN CURRENCIES

 

A. Example of: Hedging of an Export Transaction (Open Account)

IV.

FINANCING OR SELLING EXPORT ACCOUNTS RECEIVABLE:

 

A. Example of Direct Financing of Accounts Receivable
B. Example of: Factoring of Accounts Receivable
C. Example of: Forfeiting of Accounts Receivable

V.

BARTER OR COUNTERTRADE:

 

A. Barter:

 

B. Countertrade:

 

 1. Compensation Transaction
2. Counter purchase
3. Offset
4. Product Buyback


Course Material

Textbook Included:  The Export Sales & Marketing Manual 2008 (21st) Edition

Instructor

Instructor: John R. Jagoe - one of the most experienced international traders in the United States. A graduate of Thunderbird, The Gavin School of International Management, he has worked as an executive in eight countries: Australia, Costa Rica, Guatemala, Puerto Rico, Panama, Italy, England and Germany. He has appointed 300 agents and distributors for U.S. exporters in 60 countries around the world.