EXPORT – IMPORT

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EXPORT – IMPORT Methods of exporting:

EXPORT – IMPORT Methods of exporting Presented to : Prof. Neha Mehta

Slide 2:

Sr.No Roll.no . Name Topic 1 42 Ankit Shetty . Direct exporting; Meaning, Advantage and Disadvantage. 2 08 Ajay Soni . Indirect Exporting; Meaning, Advantage and Disadvantage. 3 53 Ajit Yadav . Difference between Domestic and Export marketing. 4 16 Dinesh Sunkapaka . Licensing, Meaning, Advantage and Disadvantage.

Slide 3:

What is direct exporting??

Direct exporting:

Direct exporting The manufacture directly exports goods on his own, to his foreign buyers. Such exporter are known as manufacturer exporter. It is usually under taken by large sized manufacturing companies. Eg . Of direct exporters are, The TATA Group, The Aditya Birla Group, and The Kirloskar Group.

Advantages:

Advantages High profit margin. Intensive use of selected market. Benefits of government incentives. No dependence on the middle-men. Optimum use of production capacity.

Disadvantages:

Disadvantages Higher risk. Higher investment. Lack of specialization. Higher overheads. Not suitable for small manufactures. Absence of specification.

Indirect Exporting:

Indirect Exporting The manufacture does not directly export to the foreign buyers. The manufacture makes use of the middle man. Organization generally uses indirect exporting if it’s a small scale business, availability of limited capital and resourced, lack of knowledge and expertise.

Advantages:

Advantages Limited investment. Relief from actual exporting. Benefit of service of middlemen. Limited business risk. Specialization. Less overheads.

Disadvantages:

Disadvantages Non availability of middle-men. Sales target may not be achieved. Dependence on middle-men. Non-benefits of export incentives. Non-availability of reliable market information.

Difference between Direct and Indirect Exporting:

Difference between Direct and Indirect Exporting Meaning Export prices. Risk involved. Specialization.

Slide 11:

Market information. Control on market. Investment required. Benefit of incentive. Suitability.

Licensing.:

Licensing. Licensing can be used as a method for initial entry in the foreign market. Here, the manufacturer enter into an agreement with then firm in the importing country this gives him the right to use the manufacturing process, a patent design or a trademark or any item of value for a consideration. Licensing is a quick method for enter in overseas market. The licensor gets entry into the foreign market without any expenses.

Advantages of licensing.:

Advantages of licensing. Simple method. Gets guaranteed income. Gets profit through marketing the product that is already popular. Cheaper alternative to direct and indirect exporting. Trade restrictions have no effects on licensing.

Disadvantages of licensing.:

Disadvantages of licensing. Profit earned by licensing is more. Long term profit. licensor may suffer loss on long term basis. Royalties/fees paid by the licensee may be very less. It is available only to the reputed firm. Limited control on the licensee.

THANK- YOU:

THANK- YOU

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