An awareness of the mechanics of export trade is indispensable to
the foreign marketer who engages in exporting goods from one
country to another. Although most marketing techniques are open to
interpretation and creative application, the mechanics of exporting
are exact; they offer little room for interpretation or improvisation
with the requirements of export licenses, quotas, tariffs, export documents,
packing, marking, and the various uses of commercial
payments. The very nature of the regulations and restrictions surrounding
importing and exporting can lead to frequent and rapid
change. In handling the mechanics of export trade successfully, the
manufacturer must keep abreast of all foreign and domestic changes
in requirements and regulations pertaining to the product involved.
For firms unable to maintain their own export staffs, foreign freight
forwarders can handle many details for a nominal fee.
With paperwork completed, the physical movement of goods
must be considered. Transportation mode affects total product
cost because of the varying requirements of packing, inventory
levels, time requirements, perishability, unit cost, damage and
pilfering losses, and customer service. Transportation for each
product must be assessed in view of the interdependent nature of
all these factors. To ensure optimum distribution at minimal
cost, a physical distribution system determines everything from
plant location to final customer delivery in terms of the most efficient
use of capital investment, resources, production, inventory,
packing, and transportation. The seemingly endless rules,
regulations of exporting, the demands of efficient global logistics
and the absolute necessity to comply with national security
regulations can be daunting. Fortunately, the continuous innovations
in information technology, the Internet, and software programs
can minimize much of the burden associated with global
marketing.
