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International Trade Essentials for Beginners: A Guide by Mike Smith, ITRISA

This guide by Mike Smith from ITRISA covers the prerequisites for successful international trading, including market opportunities, cost reduction, and risk hedging. It also explores the differences between local and international trade, emphasizing factors such as language, documentation, tariffs, and foreign exchange. The guide provides insights on assessing a company's readiness for international trade, including management commitment, market coverage, and product adaptability. Additionally, it delves into the export process, from market development to timely delivery of goods.

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International Trade Essentials for Beginners: A Guide by Mike Smith, ITRISA

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  1. Export for the Beginner Presented by: Mike Smith, ITRISA 1

  2. Prerequisites for successful international trading Why companies should engage in international trade… • Expanded market opportunities • Local market: slow growth • More balanced production of seasonal goods (fruit, clothing, etc.) • Cost reduction (lower unit costs) • Extended product lifecycle • Improved product quality & operational efficiency • Hedging of risks • Enhanced profit potential 2

  3. Prerequisites for successful international trading Differences between trading locally and engaging in international trade.. • People and their environment: Language, customs, politics, legal systems, climate • The importance of documentation: L/Cs, transport, insurance, statutory doc. requirements • Tariffs, taxes and restrictions: Duties and permits, VAT, standards. • Foreign exchange (+ Exchange Controls) • Greater distances 3

  4. Prerequisites for successful international trading Assessing a company’s readiness for international trading • Management commitment • Market coverage • Production capacity (exports) • Knowledge and expertise • Financial resources • Product appeal • Product performance • Product adaptability

  5. Prerequisites for successful international trading The export process • Develop an export market • Handling export enquires • Establish methods and terms of delivery • Financial risk avoidance • Trade documentation • Export costing • Deliver goods timeously

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