CHAPTER XXIV LOCATING PRODUCTS TO EXPORT

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CHAPTER XXIV LOCATING PRODUCTS TO EXPORT
LOCATING EXPORT MARKETS

• U. S. Exporters
• Purposes for Exporting
• Product Considerations
• Export Markets

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U. S. Exporters

• Participants in U.S. Export per Export Trading
  Company Guidebook of 1987
• 25 of U.S. exports by 50 companies
• 60 of U.S. exports by 200 companies
• 15 of U.S. exports by 24,250 companies
• Number of U.S. manufacturers 300,000 in 1980s
• 10 Exporters
• 90 Non-Exporters

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U. S. Exporters

• A Profile of U.S. Importing Exporting Companies
  by U.S. Census Bureau in 2015
• 294,800 exporting companies
• Large companies with 500 or more employees
• 2.4 of exporters but 67.1 of export value
• Small--Medium-sized companies with fewer than
  500 employees
• 97.6 of exporters but 32.9 of export value

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U. S. Exporters

• High Export Concentration
• Top 250 exporters
• 52.2 of total export value
• Top 500 exporters
• 61.5 of total export value

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U. S. Exporters

• Exporters classified by Industry
• Manufacturers 59.8 of total U.S. exporters
• Wholesalers 22.2
• Other exporters 18.0
• Trade with Related Parties
• 37.5 of total export value by multiple location
  companies
• 58.5 of exporters exported to only one foreign
  country
• Only 0.4 exported to 50 or more countries

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Purposes for Exporting

• Four purposes for exporting
• Profit
• Growth
• Market Development
• Market Diversification
• Benefits obtainable from exporting of domestic
  products
• Lowers per unit fixed cost
• Increases product life cycles
• Compensates for seasonal or geographical
  fluctuations
• Defends domestic market from foreign competition

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Product Considerations

• Specialize
• Know the products
• Start with local manufacturers
• Start with manufacturers who have not established
  export channels
• Start with manufacturers who are willing to
  modify products to meet foreign customers' needs

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Product Considerations

• As a non-manufacturing exporter, when locating
  product for established foreign markets
• Find out what products are needed in foreign
  markets with which you are familiar.
• Look for U.S. manufacturers who can supply
  products which your foreign customers want to buy
  
• Yellow pages of telephone directories
• Manufacturers' Registers or Directories of each
  State
• Thomas Register of American Manufacturers
• Internet

9
Export Markets

• All foreign nations which want U.S. products and
  have a means to pay for them (demand)
• Number of Nations of the United Nations (UN)
• 51 members in 1945
• 189 2000
• 191 2002 (Switzerland Timor-Leste)
• 193 2011 (South Sudan)

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Export Markets

• In locating export markets for domestic products
• Look for markets having similar characteristics
  of your domestic buyers and users
• Test exportability of your products by
  advertising in Export USA (replaced Commercial
  News USA in September 2013), USDC, International
  Trade Administration.
• Utilize international trade and economic
  statistics
• Participate in Catalog Video Exhibitions at the
  U.S embassies or trade offices of U.S. Dept of
  Commerce
• Participate in Trade Shows and Trade Missions

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Top 15 U.S. export markets for 2016 73.5 of
total U.S. exports

• 1. Canada
• 2. Mexico
• 3. China
• 4. Japan
• 5 United Kingdom
• 6. Germany
• 7. South Korea
• 8. Netherlands

• 9. Hong Kong
• 10. Belgium
• 11. France
• 12. Brazil
• 13. Singapore
• 14. Taiwan
• 15. Switzerland

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Top 15 U.S. import sources for 2016 79.7 of
total U.S. imports

• 1. China
• 2. Mexico
• 3. Canada
• 4. Japan
• 5. Germany
• 6. South Korea
• 7. United Kingdom
• 8. France

• 9. India
• 10. Ireland
• 11. Italy
• 12. Vietnam
• 13. Taiwan
• 14. Malaysia
• 15. Switzerland