Methods of establishing your products in a foreign market

- working with local experts (sole agents эксклюзивный дилер or multi-distributors многопрофильная оптовая фирма), who have a specialist knowledge of the market and sell on behalf of the company

- this leads to opening a local branch местный филиал

- selling, or giving permission to use, patents and licences for products

start by manufacturing in the export market (set up local subsidiary дочернее предприятие or joint venture совместное предприятие with local partner)

 

BARCO:

Belgian American Radio Corporation – best-known for digital projectors for computers (shift in strategic focus- company moved out of consumer’s products + concentrated on the high-value niche market, such as digital projectors for computers and specialist display system)

Penetrated India market (expansion in India) through local agents (sold kits for video monitors), then set up its own sales and service office in New Dehli. Now it has offices in Bangalore, software house, projector assembly plant.

Products are half imported + half assembled on the spot.

 

How they penetrated: more than a decade – selling kits for video monitors to national television. 4 years ago – set up its own sales + services office. Now: Small sales office in Bangalore, Software house in Chennai, A projector assembly plant in Noida

 

Plans: Sales office in Mumbai, Components factory in Noida

 

Obstacles (for those who wants to exploit the potential) India’s market remains more closed than other fast-growing markets when it comes to the bureaucracy, high import duties and tax barriers: Even 40% duties, Infamous bureaucracy. BARCO wants to produce more products within India, but it would require importing components from 20 countries, which is huge amounts of paperwork and delays. China is better fast-growing market. Cultural hurdles: Initially can be deceptive- обманчивый, After start operating – see all the complexities: there’re sensitivities between states, religions, strata of society

Nevertheless opportunities overweight disadvantages: India welcomes foreigners, people speak English, fifth of the world’s population.

 

Globalization – the tendency of the world to function as one unit

World Trade Organization: 1994 – the General Agreement on Tariffs and Trade. Aim – to maximize international trade AND to minimize the favoring of domestic industries. Laissez-faire (невмешательство правительства в дела бизнеса и производства)=deregulation, open boarders.

 

Trading blocks with no trade barriers – single market: eliminate tariff walls and customs duties: European Union, NAFTA – North American Free Trade Agreement, ASEAN – Association of Southeast Asian Nations, Mercosur – Southern Common Market.

Balance of trade - difference btw the country value of export and value of import.

Trade defici t - US import less than export to China.

Visible/invisible trade - goods and services.

Autarchy- when a country doesn’t have any trade with other countries at all. Self-sufficient country

7.Способы защиты внутреннего рынка от импорта. Понятие торгового дефицита/профицита.

Measures of trade regulation

The Protectionist measures raise the price of impoгted goods so that domestically produced goods will gаin а price advantage, so they protect domestically produced goods) – this is done by the government to protect infant industries.

Protectionist measures control international trade. The most common of them are tarrifs and quotas. Tariff (duties) – tax on imported goods.

Quota – is the maximum quantity of а product that mау bе admitted to а country during а certain period of time.

Balance of trade – the difference between the monetary value of exports and imports of output in an economy over a certain period. Trade surplus = Export > Import, trade deficit = E < I.

8.Европейское Союз. Цели и задачи. Основные этапы развития.

EU – unique political and economic community with supranational and intergovernmental dimensions.