​*Disclaimer: The names of exporters and their stories have been changed to protect their identity.  The names and expertise of our advisors are very real and often understated.   The story is funny, the advice is authentic.
 
 Dear Betty Sue,

 Confidence, California  is the home of American ingenuity ready to go global!! We design and manufacture the soon to be famous Diva-On-Demand state of the art camera for professional photographers.  Of course, it comes with faux leopard carrying case.
 
We receive inquiries daily from around the world.  We are ready to start shipping internationally today but our freight forwarder put up a big YIELD sign.  He says we might need an export license?  He gave us a copy of The Riddle of the Exporter™ workbook (excellent workbook by the way) and sent us to Step 5-Compliance.  It says there that we need to ask four questions: what is the product; where is it going; who is it going to and how will it be used? That’s a lot to answer!  Do we really need a license for this automatic air brushing camera?
 
Signed Arnie Leibovitza
Inventor of the Diva-On-Demand  Camera
 
 
Dear Arnie and the good folks in Confidence, California
 Isn’t it exciting to invent, design and sell—all from the good ol’ U.S.A.  We always want to encourage companies to sell overseas but we agree with your freight forwarder- slow down and do it right.  As my mama always said “tackle trouble before trouble tackles you.”
 
Glad you are using the workbook.  The one thing Earnie Earl and I believe in as strongly as hot dogs and fireworks on the 4th of July is that we always call the experts.  In this case, our expert is Cesar Reyna of Trade Consulting Services.  Cesar is a real “go-pro” in assisting companies with all of their compliance needs.  We asked Cesar to take us through the next steps to determine if you need a license.
 
Signed,
Betty Sue Export Queen, looking forward to my very own Diva-On-Demand photo session
 
Dear Arnie,
Betty Sue is right, you always want to make sure you have all of your t’s crossed and your I’s dotted before you export.
The Export Administration Regulations, EAR, is the regulation you will want to comply with when exporting your camera.  Determining the Export Control Classification Number (ECCN) for your product is one of the most important steps for exporting. The ECCN is a 6 digit alpha-number that tell us what the product is and why it is controlled. The ECCN along with the country, end-use and end-user will help you determine if a license is required to export your product.
 
After reviewing your specifications and consulting the Commerce Control List, (CCL) we have determined that your camera is controlled under EAR99.  EAR99 is used to control items that are not found in the Commerce Control List and is generally used for low-level technology products and will not usually require a license.
 
Wait a minute; don’t get too excited just yet....there are still other steps you need to take even when exporting EAR99 products.
 
Now that you know your products is controlled under EAR99 you still have to determine if you are exporting to an embargoed or sanctioned country, to a prohibited end-use or a prohibited end-user.  Betty Sue calls this-checking the “Bad Guy Lists.
 
The list of embargoed and sanctioned countries can change so the best source is to check Supplement Number 1 to Part 740 to find a list of the Country Groups and review Country Group E. If you are shipping to any of the countries found on this list, give us a call and we can go from there.  
 
Anytime you export the camera you should verify that the parties involved in the transaction are not considered parties of concern on the “Bad Guy Lists”. The Department of Commerce provides a great resource that allows you to check your parties at http://apps.export.gov/csl-search#/csl-search. If the companies you are doing business with come up in one of these list you should place your transaction on hold until you verify if the party you are doing business with is the same party that comes up on the list. There are several lists this resource checks and depending on the list it could mean that the export is prohibited, a license would be required or there is a red flag associated with this company. Be sure to document that you have performed this screening as part of your due diligence process by printing a copy of the results for your records.
 
Lastly, you have to ask yourself if the end-use is prohibited. Start out by going through the General Prohibitions (Part 736 of the EAR), the General Prohibitions will walk you through some of the things we just talked about and will refer you to Part 744 of the EAR to determine if your product is going to a prohibited end-use. Some of the prohibited end-uses include if your camera will be used for nuclear activities or for missile technology end-use but Part 744 will give you more details on this and other prohibited end-uses.
 
Now that we know your camera is going to France to Vogue Magazine for use in fashion shoots and we have screened all the parties involved, we can safely say that your camera does not need a license to export.
  
Bio
Cesar Reyna is President and Founder of Trade Consulting Services, LLC, an international trade consulting company (TCS). Prior to establishing TCS, Cesar provided his import/export proficiency to several high profile global companies, tackling the defense, telecommunications and consumer-goods market. He successfully applied his expertise to L-3 Communications as an empowered official and as a subject matter expert at Affiliated Computer Services (ACS) as well as Pier 1 Imports.
For the past 18 years, Cesar has worked in every aspect of the import/export arena gaining extensive experience with various U.S. trade regulations including the Export Administration Regulations (EAR) and International Traffic in Arms Regulations (ITAR) and U.S. Customs regulations. Cesar has also been a licensed U.S. Customs Broker since 2003
 
PRACTICE AREAS
Import / Export & International Trade
He is well versed in a wide sphere of expertise, including:

• Compliance Program Implementation & Training
• Commodity Jurisdiction
• Export Classification (USML, ECCN, USHTS and Schedule B)
• Policy and Procedure Creation
• Voluntary/Prior Disclosures

 
 
 
 

*Disclaimer: The names of exporters and their stories have been changed to protect their identity.  The names and expertise of our advisors are very real and often understated.   The story is funny, the advice is authentic.

Just to review from last time!
 Dear Betty Sue,
Did you know there are over 300 types of seaweed? We manufacture a line of spa products utilizing our local seaweed here in Steilacoom, Washington.  Last month an executive from a Colombian company tried our product while visiting on vacation.  It made her look years younger. She loved it!
 Little did we know that she is the Sr. VP of marketing for one of the largest beauty companies in Colombia.  She wants to bring the CEO to meet us!  We are so excited but so nervous.  Betty Sue, this is bigger than big and we don’t want to mess up.   What do we need to know to start off the meeting right and carry it through? Our future may depend on you, please help!
 
Signed,
Rhonda Rhodophyta

Dear Rhonda Rhodophyta
We are as proud as plump peaches for your success! International will be just one more feather in your cap. Being from the Dallas area, home to Mary Kay, we all know her famous quote, “You have only one chance to make a good first impression”, so of course, that is what we want you to do! 
 As my Mama said, if you don’t know how to dance, best find ya an expert to teach ya before ya step on any toes.  Our expert knows ALL the steps.  My friend and colleague Patricia Moore,CEO of Sentrum International has had years of protocol experience serving as Consul of Colombia to Norway and Iceland. She deals with all aspects of export services for her international clients and of course cultural questions do arise.  Let’s ask Patricia what we need to know to make a great first impression and carry it through.
 
Signed,
Betty Sue, a proud plump peach needin' a  seaweed facials

Dear Rhonda Rhodophyta, 
In our last post, Part 1, we discussed cultural protocol before you actually meet your client.  Today we will discuss protocol for when you meet in person.

 Meeting with the Client: If you were able to confirm that the CEO wants to visit your factory send a tentative agenda for her confirmation (you may find early at this stage how future negotiations will work). Complement the agenda with the list of staff and guests participating in the meeting and include general information (weather, shopping, art and culture, etc.)  Here is a good moment to ask about special meals, allergies, or other relevant information that will make her visit unforgettable. As a host you, or someone from your team, is expected to pick her up at the airport and drive her around your visits. Cultural issues will impact on the success of the negotiation.
​
 At this point you should have already identified your purpose and informed yourself of the seaweed market in Colombia including possible competitors*. Plan accordingly for the  desired outcome. Such issues may provide constraints on where and how the meeting may be held; who should be invited; who should speak and in what hierarchy order; and what food and drinks should be served if any. For Colombians, and in general for South Americans, coffee, water and herbal teas is good enough. Mugs are not as common as in the U.S. so if possible, serve them the old way with cup, saucer and spoon.
 
Be aware of different greeting rituals such as kisses, handshakes or bows. There are differences in how close people stand to socialize, how loudly they speak. Your interest and concern in learning a different culture is graciously accepted. Meaning of words differ from culture to culture and “casual dress” almost never means jeans or flip flops in countries outside the U.S.

Meet your guest and introduce yourself by stating your name and title, shake hands and welcome her. As a host point out a chair for her saying “please sit here”.  In a working meeting, the guest of honor should be sited across the highest executive in the room and looking towards the door. No purses or briefcases should go on the table. Keep your papers organized. If she has brought a small gift or souvenir open it up immediately, thank her and, if it is the case, share it with everyone in the table.
 
Start the conversation by asking about her trip and her family members. Be sure to communicate that you will be glad to accommodate the agenda to any changes she might need.
 
To the Point: Make a brief introduction of your seaweed products with compelling reasons on why you believe its distribution will benefits both parties. Then, listen to her thoughts and address her concerns in a professional way.  As a host you will kindly close the meeting to move on to your next commitments. Take Mrs. VP back to the Airport and follow up with an email asking about her joyful return back home.
 
You will want to become a student of ongoing relations and negotiation but we will save that for another time.
 
Yours truly,
 
Patricia

P.S. Also want to try out the seaweed facial!

*Disclaimer: The names of exporters and their stories have been changed to protect their identity.  The names and expertise of our advisors are very real and often understated.   The story is funny, the advice is authentic.
 
Part 1 of 2
Dear Betty Sue Export Queen
Did you know there are over 300 types of seaweed? We manufacture a line of spa products utilizing our local seaweed here in Steilacoom (pronounced STILL-a-come), Washington.  Last month an executive from a Colombian company tried our product while visiting on vacation.  It made her look ten years younger. She loved it!
 
Little did we know that she is the Sr. VP of marketing for one of the largest beauty companies in Colombia.  She wants to bring the CEO to meet us!  We are so excited but so nervous.  Betty Sue, this is bigger than big and we don’t want to mess up.   What do we need to know to start off the meeting right and carry it through? Our future may depend on you, please help!
 
Signed,
Rhonda Rhodophyta

Dear Rhonda Rhodophyta,
We are as proud as plump peaches for your success! International will be just one more feather in your cap. Being from the Dallas area, home to Mary Kay, we all know her famous quote, “You have only one chance to make a good first impression”, so of course, that is what we want you to do! 
 
As my Mama said, if you don’t know how to dance, best find ya an expert to teach ya before ya step on any toes.  Our expert knows ALL the steps.  My friend and colleague Patricia Moore,CEO of Sentrum International has had years of protocol experience serving as Consul of Colombia to Norway and Iceland. She deals with all aspects of export services for her international clients and of course cultural questions do arise.  Let’s ask Patricia what we need to know to make a great first impression and carry it through.
 
Signed,
Betty Sue Export Queen, a proud plump peach ready to try your seaweed facial
 
 Dear Rhonda Rhodophyta,
 
There are many key points to address your concerns so we will do it in two parts.

​Mary Kay is absolutely right; this is your chance to make the right impression as long as you know which one it is. First, get rid of any stereotypes you may have about the local culture in order to make a long lasting and productive relation with the locals of Colombia.
 
E-mail first:
Most South Americans will not take a cold call from an unknown person, but since you met the VP of Marketing you may email her back and make any introduction you need to. Now you have a personal relationship that will help you “open that window”.
 
When emailing salutation is a must. Always address people in proper form and depending on which culture. Use Mrs. or courtesy titles until invited to do otherwise. Open with a nice an honest concern on a safe trip back and that all was well upon her return.  When using the subject line be friendly and direct. Ex: A pleasure reviewing a mutually beneficial opportunity. 
 
Request a mutual date and time to have a conference call and specify the reason and  time needed. Looking for foreign representative is a delicate subject and you want to take your time to go through details.
 
For the Conference Call Meeting: call the assistant ahead to remind and confirm the call. Punctuality in Latin America is not as important as it is here. If she wants to reschedule don’t take it personally and respond in a cordial way.
 
Conference call:  It is most probable that Mrs. VP had invited others to participate in the conference call without letting you know in advance. Let everyone introduce themselves and be mindful with their names and referring to them occasionally. You might end up working directly with one or all of them.
 
In Part 2 we will address cultural protocol when actually meeting with you Colombian client. 
 
Patricia Moore, CEO, Sentrum International
 
*Seaweed (marine algae), primarily for human consumption is a large and expanding industry in Japan. In contrast, seaweed culture is still in a research phase in the United States. There is production in Peru and Brazil, while Chile has succeeded in establishing a sustainable seaweed-harvesting plan for most of the economically important 
 
 

​*Disclaimer: The names of exporters and their stories have been changed to protect their identity.  The names and expertise of our advisors are very real and often understated.   The story is funny; the advice is authentic.
 
Dear Betty Sue,
Greetings from Hoople, North Dakota!  We are the #1 state for honey production! (Bees move to California for the winter!). We have developed our market here in the U.S. and have had an inquiry for our quality honey in Japan. One order is great but we need to know if there is a market there beyond just one order.
 
How do we even begin?  I am familiar with The Riddle of the Exporter™ 8 Step Process and Step #2 Market Research but this is bigger than the average hive. Do you know an expert who can give us some direction?
 
Signed
Beatty and Bernie (budding) Bee Business Bros

Dear Bee Bros,
Quality American products are in demand around the world and you are smart to capitalize on your buzzing success. Businesses who start exporting by request are what we call  “Accidental Exporters” but you are moving into “Intentional Exporters". The next key step to expansion is making sure you’re in the right country and market for your product. We want you to be successful the first time out of the gate.
 
What you need is an expert in lookin’ at the numbers and helpin’ ya make that important decision.  Let me introduce my colleague, DOUG TAECKENS, Pace Solutions International. Doug has over thirty years of international business experience working with distributors in over fifty countries and has led U.S. companies with manufacturing facilities in multiple countries. He has a MBA from the University of Michigan and today specializes in helping small to mid-size companies take their products to international markets.
 
He will tell you how he makes sense of the numbers (quantitative research) and then share some thoughts on other factors beyond the numbers (qualitative research).
 
Glad you’re using The Riddle of the Exporter™8 Step Process and especially Step #2 Market Research.  An exporter without good market research is as lost as last year’s Easter egg.
 
Signed,
Betty Sue. a fan of market research, honey and Made in America Quality
****************************************************************************************************************
Dear Betty Sue and Bee Bros,
 
Glad to help you out.  Here is how we would start.
 
The first step to approaching any export market is to do some market research.  Looking at Japan you will find that they are the third largest honey importer in the world, behind the U.S. and Germany.  If you look at their Purchasing Power Parity, as detailed in the CIA World Factbook, you will see that Japan has about 30% of the purchasing power of the U.S., so you should be able to sell about 30% of what you sell in the U.S. in Japan, right?  Well maybe not, that assumes you are as competitive in Japan as you are in the U.S. and that assumption also ignores any cultural differences between the U.S. and Japan – yet we know there are cultural differences!
 
If you dig a little deeper you will find that consumption of honey per capita is about 50% of the consumption per capita in the U.S.  Applying that percentage to the 30% of U.S purchasing power and now you are down to selling about 15% of what you sell in the U.S. in Japan.
 
You must also look at market pricing to make sure you can compete in the market, and be aware of surprises like low cost honey arriving illegally from China getting around anti-dumping laws – issues like that can disrupt your ability to compete.
 
Once you’ve looked at the numbers (quantitative) don’t forget qualitative research.  How does the Japanese consumer feel about these types of products? Supported by a Japanese government healthy living campaign, the naturally health-boosting compounds found in honey make these types of products appealing to Japanese consumers and the upward trend is likely to continue. Quality brands and small, very attractive packing is also important in the Japanese market.
 
After completing your market research, and if you decide to enter the market, you should explore the best way of entering.  You have several options: 1) Engage an EMC (Export Management Company), 2) Sell directly to large Japanese retailers, 3) Find and vet a Japanese distributor to import and distribute your honey.
 
Take your time and understand the market and its culture and by all means visit the market before signing any distribution agreements.
 
Doug Taeckens
Pace Solutions International, Southlake, TX
dtaeckens@pacesolutionsint.com

*Disclaimer: The names of exporters and their stories have been changed to protect their identity.  The names and expertise of our advisors are very real and often understated.   The story is funny, the advice is authentic.

Dear Betty Sue,
How ya’ll doing down there in Texas.  Greetings from Ty Ty, Georgia. We grow some of the best pecans in the U.S. (did ya know that Georgia is the #1 pecan growing state? Sure are!) We have a brand of spiced pecans called Southern Hotty and it has been a big success.  We are receiving more orders worldwide and our brand is becoming well known.  Right now we have a TM but no formal ®. 
Recently we received and email from a Chinese firm warning us that a trademark is going to be filed by another company in China.  We have no immediate need for a ® in China.  We don’t yet ship to China but we might one day soon. 
How should I respond or should I respond at all.  From what I’ve heard tell this a common scam? I read the story about Michael Jordan and it looks pretty shaky with intellectual property in China. Need some advice if you got an expert that can help us.
 
Signed
 ™ Pecan with an ® Attitude
 
Dear ™ Pecan with an ® Attitude,
 Ya know we Texans love pecans, especially Earnie Earl.  Bet he can’t wait to try some of your Southern Hotties.  I understand the Chinese are buying up pecans like lotto tickets at a 2 fer 1. 
You are right to be cautious of this well-known intellectual property scam. (See our paper on 5 top scams) but we need to look at all sides of the barn cause there could be some answers we’re missing.   
Let’s ask our expert, Mr. James Saikin.  James, a senior technologist and global operations specialist has taken the lead in start up, development and acquisition of numerous technology companies. He assists companies with intellectual property strategy, having written and assisted with over 100 patents.  James specialties include power systems, energy control systems, nano-technology, composites, applied material, semiconductors, optics and defense systems. Mr. Saikin obtained a BA in Physics from Texas A & M. His Juris Doctorate in Law from Oklahoma City University allows him to plan IP strategy while staying out of the courtroom.
 
Signed,
Betty Sue.. loving a gal with a attitude and the smarts to get good advice

Answer from James:
Dear Betty Sue and ™Pecan with an ® Attitude,
 
My clients used to receive these letters about once per month after a formal filing with the United States Patent and Trademark Office. The USPTO www.uspto.gov publishes information about trademarks (and their owners) through the Official Gazette for Trademarks (OG), which comes out each Tuesday and contains bibliographic information, a representative drawing for published trademarks, along with a list of cancelled and renewed registrations. Furthermore, information about each applied for trademark may be found in the office’s public trademark database, which is updated daily and accessible directly from the home page of the trademark office web site.
 
The very public nature of the filing plus all the information that must be filed along with a USPTO filing provides all the information necessary for, in some cases unscrupulous operators, to scam anyone. Not surprisingly, the public nature of trademarks creates a perfect opportunity for scams. Scams arise via both snail mail and e-mail, as typically enough information will be provided during the filing for either.
Most of these dubious offers are received as a result of applying for or registering a federal trademark and are in the grey area of not technically fraudulent.  A common example is the offer to be placed in some sort of alternate registry, which is often marketed in such a way to mimic “official” registration of some sort by cloaking the offer with official sounding names and associating it with symbols.

In my opinion, regardless of their nature or origin, offers by the “trademark industry” are of dubious value. With all such offers whether by letter or email your counsel is the first place to seek advice. Counsel will at least be able to determine whether there is a threat to your brand or recommend a means in which to further protect your mark (whether trade or service).
The most common form of scam I have seen is an email from China but it may be from someplace in Asia. The narrative changes over time, but mostly revolves around a notice that someone in Asia is attempting to register your trademark in various foreign countries. If you engage the scammer directly, you will be asked to provide credit card information to purchase services to stop this behavior or encourage the scammers to buy some domains, only to sell them back to you at inflated prices. There is no upside in engaging the scammers. The very best advice here is:
Do not engage directly. Immediately contact counsel and let them handle it.

While we may all assume it is a scam, it is always preferable to establish a legal basis at this juncture to assist in the defense of a potential future infringement claim if it is not a scam or least let others know you are vigilante in protecting your brand.
In my opinion, the only sensible course of action is to seek a trusted advisor who is knowledgeable in these matters to assist who can guide you in this very complex and ever changing area of law. Your mark whether it is trade or service is your brand and should be where you spend legitimate expenses including international trademark registrations, and trademark renewals, as well as monitoring for infringement and competing trademarks.

Respectfully yours,
James Saikin, Leadership Insight
 

Let’s recap from last week...
 
Dear Betty Sue,
 
Howdy from Bumblebee, Arizona.  You’ve got us so excited about exporting that we’ve started our very own, Betty Sue Export Club.  People from all over the area come together to share ideas on how we can export our products successfully.  Like you, I have a food product Desert Dip spice mix; Barbara Jean has designed driftwood tables and lamps with turquoise insets (eager that some big international Dubai hotel will purchase a large order); Mel has a unique patented corrosion inhibitor for machine parts (perfected here in the dry heat of Arizona, home to several aircraft graveyards). He has is convinced he can expand to global markets 
 
Our next monthly meeting focuses on ways to enter  international markets.  Can you give us some direction on how to expand globally? We have so many different types of products.
 
Signed:
Norma and the Betty Sue Export Club Members
 
Dear Norma and Members of the Betty Sue Export Club,
My, oh my, there are some really industrious people in Arizona. Guess that desert air brings out the entrepreneur in ya.  Figuring out how to get your product to market can be as befuddling as trying to find your boyfriend at the Texas State Fair when you’re at one end and he’s way far at the other.
 
As my Mama says, if you’re missing a step in your plan, find an expert who can plan your steps.  A good friend and colleague is Mr. Lee Mulkey, CEO of ALM Company, an advisory firm serving global manufacturers and distributors. Mr. Mulkey’s resume of success is packed like a mule horse heading out for a long trip. Lee has served as President and CEO of three global companies. He earned his BBA from University of Texas at Arlington and MBA in International Business from the University of Dallas . He’s usually on the road dealing with some big company but as a favor to Betty Sue, he said he would love to help you prepare for next month’s meeting. Due to the complex answer, Lee will answer your question in two parts.
 
Signing off and tuning in to learn from Lee
Betty Sue
 
*Disclaimer: The names of exporters and their stories have been changed to protect their identity.  The names and expertise of our advisors are very real and often understated.   The story is funny, the advice is authentic.
 
 Part 2:
 
Dear Betty Sue, Norma and the Betty Sue Export Club,
 
Last time we talked about some key things that must be thought through before deciding on the best market entry strategy. This week in Part 2, we will talk about  the multiple ways to enter each product’s market.
 
Let’s recap first before we begin. Your export club has picked three very good product examples to talk about. Food products are typically thought of as a consumer product and have special requirements that the other two products don’t have. Specialty furniture as you describe is ultimately a consumer product, but has a marketing channel through big box retail distributors, wholesale distributors or interior designers. And finally, the corrosion inhibitor for machine parts would be an industrial product with marketing channels through big box retailers and industrial wholesale distributors.
 
Ok, now lets talk about market entry strategy. There are lots of ways to expand your business into foreign markets. We will start with the easiest first, and then expand into the more complicated:
 
E-Commerce – This is the easiest, but it may not be the best way to grow your international business. Developing a digital commerce website is very common today and there are companies that can help you develop country specific websites. By using US Dollar transactions you can take payments by credit cards, PayPal, wire transfers and LC’s. Small business social media marketing sites like Etsy and Pentrist are ideal for small companies to get started with e-commerce, including export sales.
 
Here are some of the drawbacks for export focused e-commerce: to be the most effective and target your customer base you need to have a website with a front end designed for that country or region. Freight costs have to be calculated while the transaction is being made and warranty and returns can get complicated.
 
Industry Trade Group – Many companies belong to one or more industry trade groups. These can be a good way to connect with foreign distributors or possible partners within your industry. Check with your industry trade group(s) to see if they have connection with trade groups in your target countries.
 
Foreign Distributor or Licensee – Finding the right foreign distributor, manufacturer’s rep or licensee is more complicated, but does not require a full time presence in the targeted country(s). It may not even require a foreign corporation be set up. Foreign distributors, reps and licensees must be carefully vetted and performance measurements clearly defined and enforceable. Cultural differences and personal relationships will play a big part in selecting the right company to represent you and the legal system must be in place to enforce the contract. You should get help from a global business expert to find the right foreign partner and to develop and negotiate the contract. You will also have to regularly do on-site visits to develop personal relations, refine marketing plans and conduct performance reviews. 
 
Resident Sales Office – If your strategy requires a physical presence in the targeted countries think first of a residence sales office. These are generally easy to set up in your target country(s) and most importantly; they can be closed quickly if things don’t work out. You can only conduct sales related functions in these offices. You can advertise, make sales calls and quote projects, but you can’t manufacturer, perform value added functions or keep inventory in country. This is a great way to build momentum for your product without a lot of financial risk.
 
Establish Foreign Subsidiary, Acquire Foreign Company or Joint Venture with a Partner – This option involves jumping in with both feet into the target foreign country(s). You establish a foreign company and operate a business in the targeted country or you acquire a foreign company already doing business in the targeted country or find a joint venture partner to start or acquire a company in the country of choice. All of these options are complicated and have much higher risks than the others discussed previously. This set of options should only be taken if you have the firm knowledge that your product will be successful and you have the financial and management resources to risk in the venture. You will have a foreign company(s), foreign employees, bank accounts, and foreign assets including property, equipment and inventory. You will have foreign currency translation, accounting and tax issues and be subject to the FCPA. You should get help from a global business expert before undertaking this option.
 
Greenfield Manufacturing Project – This takes the options just discussed and adds more complication and risk by setting up manufacturing in the target company. When you build or acquire manufacturing facility(s) there is significantly more local government involvement and financial investment which increases both political and economic risk. You should get help from a global business expert before undertaking this option.
 
So now we have discussed the primary types of market entry strategies. Which strategy or strategies are right for you?
Based on my experience I can offer some suggestions:
 
Food Product:

1. First option to explore would be to find a distributor in your target market. The distributor already knows the market and can help you with the packaging design and government requirements. The right distributor agreement with clear performance matrix will be critical.
2. Second option to explore would be an E-commerce website targeted for the country of choice. Depending on the customers, inventory could be shipped from the US at time of order or stored in country and shipped by a local 3PL service.

 
Custom Furniture and Lamps:
            This is a product normally sold through wholesale distributors and interior designers (The Trade) and through big box retailers. The marketing channel options here are limited by geographics. US, Europe and Middle East have established networks of distributors and designers. Asia for the most part does not. There are also great distances involved in the Asian market making it difficult to serve by a direct sales force, so the E-commerce website could be the best option here.
 
Corrosion Inhibitor for Machine Parts:                                                                                                                                                                                                                                                                                                                                                                                                              
This product has multiple channels for entry into foreign markets and more than one can be used at the same time. The options for first consideration are:

1.Foreign distributor or licensee
2.E-commerce website targeted for the country
3.Residence Sales Office 
I think the first two options could both be done at the same time.
 
Well that’s it; I hope your export club has some useful information and options to consider.
 
Lee
 
Lee Mulkey is the Founder and CEO of ALM Company, an advisory firm serving global manufacturers, distributors and marketing companies. Lee has served as President and CEO of three global companies. He earned his BBA from University of Texas at Arlington and MBA in International Business from the University of Dallas.,