Chapter-1 Trade

FITTskillsFITTskills International Trade International Trade

ResearchResearchSixth EditionSixth Edition

TR Ch 1-2

Course objectivesCourse objectives

• Describe the importance of well-planned and efficient research for guiding and promoting company activities.

• Develop research objectives that are compatible with corporate business objectives.

• Select suitable methods of acquiring data.

• Analyze and present researched data effectively.

• Based on research information, identify and evaluate international trade opportunities.

The Importance of The Importance of International Trade International Trade

ResearchResearchIncreasing the chances of international Increasing the chances of international

business successbusiness success

TR Ch 1-4

The need for market The need for market researchresearch

Market orientedstrategic planning

Assess profitpotential for anew market

Identify risks associated with

new market

Develop businessstrategy in response

TR Ch 1-5

The need for market The need for market research research (continued)(continued)

Market researchis part of strategicplanning

Identify unstablemarkets

Identify issues that could result inbusiness loss

Help effectivedecision making

The need for market The need for market research research (continued)(continued)

• Helps to conduct a cost-benefit analysis to determine profitability of venture.

• Helps to identify both foreign risk as well as risk to domestic corporation, i.e. over extending resources. This can be identified through a SWOT analysis.

• Creates the business plan and the allocation of resources.

• Research is the tool to help make a decision.

TR Ch 1-6

TR Ch 1-7

The benefits of researchThe benefits of research

TR Ch 1-8

Applications of market Applications of market researchresearch

Develop a business plan

Make informeddecisions

Make a cost-benefitanalysis

Develop products and processes

Analyze issues

Identify newopportunities

Focus effort

Monitor performance

Research & strategic Research & strategic planningplanning

• Research is used to help management make decisions.

• The marketing research is an integral part of the strategic planning process.

• Without information strategies are nothing more than a guess.

TR Ch 1-9

Marketing research & Marketing research & SWOTSWOT

• SWOT: Strengths, Weakness, Opportunities, Threats.

• SWOT is an external and internal analysis of a company.

• Research helps to answer or determine the SWOT.

TR Ch 1-10

TR Ch 1-11

Important considerations Important considerations for international tradefor international trade

Legal issues Political andeconomicstability

PricingIntellectualpropertyissues

Business culture and

etiquette