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# Exporting and Global Sourcing ## Exporting The strategy of producing products or services in one country (often the producer's home country), and selling and distributing them to customers located in other countries. ### Assess Global Market Opportunity (step 1) Managers assess the firm's readi...

# Exporting and Global Sourcing ## Exporting The strategy of producing products or services in one country (often the producer's home country), and selling and distributing them to customers located in other countries. ### Assess Global Market Opportunity (step 1) Managers assess the firm's readiness to internationalize and choose the most appropriate country markets and partners. ### Organize Exporting (step 2) Managers make decisions about the degree of the firm's evolution resources to be committed, and the type of domestic and foreign intermediaries to hire. ### Acquire needed skills and competencies (step 3) The firm acquires skills and competencies to handle export operations trains staff, and engages appropriate facilitating firms. ### Implement exporting strategy (step 4) Managers make decisions about product adaptation, marketing communications adaptation, pricing, and support to foreign intermediaries. ### Indirect exporting Exporting that is accomplished by contracting with intermediaries located in the firm's home market. ### Direct exporting Exporting that is accomplished by contracting with intermediaries located in the foreign market. ## Company-owned subsidiary A representative office of the focal firm that handles marketing, physical distribution, promotion, and customer service activities in the foreign market. ## Importing or global sourcing The procurement of products or services from independent suppliers or company-owned subsidiaries located abroad for consumption in the home country or a third country. ## Documentation Official forms and other paperwork required in export transactions for shipping and customs procedures. ## Commercial invoice The actual demand for payment the exporter issues when a sale is made. ## Bill of lading The basic contract between exporter and shipper. ## Certificate of origin The birth certificate of the goods being shipped and indicates the country of origin. ## Incoterms Universally accepted terms of sale that specify how the buyer and the seller share the cost of freight and insurance in an international transaction and at which point the buyer takes title to the goods. ## FOB "Free on Board" (port of shipment) It means that delivery will take place when the goods pass the ship's rail at the named port of shipment, that is, the port of origin in the seller's home country. ## CIF "Cost, Insurance, and Freight" (port of destination) It implies that the seller pays the cargo insurance and delivery of goods to a named port of destination.