Verified Document

Import Export Importing And Exporting: Financial Plan Essay

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...

This means there will be no need to provide support services after wholesaling the coffee to distributors fur further sale before retail sales and eventual consumption by end users.
Competition certainly exists in the coffee market, presenting perhaps the single greatest substantial risk to the proposed importing activities (ICO, 2011). The degree of consumption and the availability of the product in Brazil makes coffee still an ideal product for import as long as effective strategies for reaching distributors can be achieved, possibly through price competition (Ireland et al., 2005). Many large retail coffee brewers and sellers engage in their own import activities, but there are a variety of other retailers that rely on distributors as sales organizations, and competition here is less fierce and less crowded (ICO, 2011). There are no property right issues that the importer will need to contend with.

Exporter Checklist

Soft infrastructure in Brazil is unevenly developed depending on region and socioeconomic status, but this is not expected to interrupt company operations at all (CIA, 2011). Given the relatively low level of agriculture as a percentage of Brazil's GDP, much of which is taken up by coffee itself, it does not appear that any commercial production of cotton occurs in Brazil, but rather it must all be imported; sales will be likely to increase if it is made more available (CIA, 2011). While there are many other textiles that can be used as substitutes to cotton, there are a variety of fashion shows and other trade events that can be used to highlight the use of cotton cloths in addition to the demand that already exists. However as this business is primarily focused on sales to manufacturers, it will primarily be through coordination with other industry operators that such shows can be taken advantage of.

For the manufacturing customers that will be sought for the exporters products, warehousing is kept at a minimum and demand is kept at a…

Sources used in this document:
References

CIA. (2011). Brazil. World Factbook. Accessed 5 December 2011. https://www.cia.gov/library/publications/the-world-factbook/geos/br.html

ICO. (2011). International Coffee Organization. Accessed % December 2011. http://www.ico.org/trade_statistics.asp

Ireland, R., Hoskisson, R. & Hitt, M. (2005). Understanding business Strategy. Mason, OH: Cengage.
Cite this Document:
Copy Bibliography Citation

Related Documents

Export Business Plan
Words: 4891 Length: 15 Document Type: Business Plan

Export Business Plan: Moldovan Cellular Phones Purpose-Why has the plan been written? The plan has been written in order to guide our mobile phone export business. Cell phones in Moldova are rapidly overtaking land phones as many cellular phones now provide Internet access and cell phone computers. SMS, MMS and broadband are becoming standard features on cell phones. Nonetheless, mobile phones are expensive in Moldova and not everyone can afford them. Furthermore,

Export Business Plan International Expansion
Words: 1363 Length: 4 Document Type: Business Plan

Exchange Rate Trends: The Canadian dollar has been consistently, slightly less valuable than the U.S. dollar for many years and is poised to stay that way. The opportunity for exchange goods and production has remained rather high for this reason. "Canadian dollars per U.S. dollar - 1.3015 (2004), 1.4011 (2003), 1.5693 (2002), 1.5488 (2001), 1.4851 (2000)" (CIA World Factbook "Canada," 2005, NP) Import Restrictions: Import restrictions in Canada are relatively low, as a

Export Plan for Annie's, Inc. Cheddar Bunnies
Words: 1945 Length: 5 Document Type: Business Plan

Export Plan for Annie's, Inc. Cheddar Bunnies SITUATION ANALYSIS Description of the Firm Description of the Product Competitive Situation in the Industry Resources to be used EXPORT MARKETING PLAN Long-term and Short-term Goals Characteristics of Ideal Markets Characteristics of the target market Economic Overview Demographic and Socio Cultural Trends Market Position of USA Competitive Analysis EXPORT STRATEGIES Product Pricing Strategy Marketing and Promotional Strategies Action Plan The company aims at exporting its cheddar bunnies to exploit the market of Mexico. The organization aims at increasing its sales by 5%

Financial Environment This Year the
Words: 1393 Length: 4 Document Type: Research Proposal

S. Treasuries (Gjelten, 2009). What hasn't happened "officially," i.e. The establishment of a formal IMF SDR world currency system or some other form of a supranational currency, seems to be occurring in the market anyway, but just in a more informal fashion. For instance, already central banks throughout the world are favoring euros and the yen over the dollar as illustrated by the following numbers (Euro, yen to replace dollar as

Export Strategy Expansion of Highest
Words: 3137 Length: 9 Document Type: Term Paper

39 It was against this background that ASEAN Foreign Ministers during their retreat at Cebu in the Philippines in April 2005 decided to lay down three main criteria for the membership of the EAS: 1. Substantive relations with ASEAN; 2. Full Dialogue Partner status; and 3. Accession to the ASEAN's Treaty of Amity and Co-operation. The Foreign Minister of Singapore had stated that, India obviously qualifies on all three counts

Financial System Reforms Over the
Words: 10927 Length: 30 Document Type: Literature Review

3.2.3 Portfolio Diversification of Investment in Global Property Markets Because the global property markets are affected by globalization and specific country / regional factors, means that the overall amounts of risks will vary, the most notable include: transparency and efficiency. Where, each country / region has different on laws and regulations pertaining to the real estate markets. This means that the risks in a number of different markets will depend upon

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now