Import Export
Importing and Exporting: Financial Plan and Risk Assessment
Promotion Mix
Advertising will consist of distributor-oriented materials and programs for the local market and the sale of the imported coffee, while in the foreign market for the exported cotton the focus will be on specific manufacturers. Quality and price will be important factors for both products and markets, with sales promotions achieved through ongoing competitive efforts and product samples rather than specific promotional periods or programs. This will help to establish long-term and trusted relationships without the potential pitfalls of more complex variations and changes in sales promotions strategies, which is ideal when the selling mode is wholesale rather than retail focused (Ireland et al., 2005).
Letter of Credit as Possible Payment Method
Using letters of credit as the method of payment for both import and export transactions is in keeping with standard practices in international trade, and will provide the greatest amount of security and assurance possible for all parties involved (Ireland et al., 2005). Given the amount of business conducted between the United States and Brazil and the solid relationships between large-scale financial institutions in both countries, obtaining trusted and valid letters of credit for the international trades should not be difficult. For transactions between local buyers/sellers and the local import/export companies in each country, other methods of payment that are more efficient and less complex might be ideal, and would be more in keeping with standard practice (Ireland et al., 2005).
Importer Checklist
The coffee that is being imported as a part of this proposed strategy has been selected as the import product largely for the convenience factor; it is easily available in varying quantities in Brazil, which has already been selected as the target for the exportation of the domestically purchased cotton, and is easily saleable in the United States due to high volumes of consumption (ICO, 2011). As the product is a consumable good, there will also be a constant demand for the imported coffee with...
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