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Entering the US market from overseas

Page history last edited by PBworks 11 years, 8 months ago

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Entering the USA market


 see also:  market entryMarketingstrategy , Exports , Import Export business modelsexport subsidySpain market entry for cachaca , barriers to entry  , 5 forces analysis  , entering the European market from overseas





Example:  High-end furniture and objects from Brazil




Logistics: (the need to consolidate and ship by sea):


In todays macroeconomic environment of an appreciating Brazilian Real vs USD, he will need to find ways to economize the logistics operations.  No longer are we in an environment where the margins will be sufficient to justify flying products directly from factory to distributor in the US.  High fuel prices likely contribute to making this model un attainable in todays market.  Instead, what he will need to do is to team up with local producers, and try to tackle the market together. When I say "local", I mean in the same town, or same state.  The idea of having one factory in Sao Paulo, and another in Recife, and another in BH...that will not work. He will need to find a way to consolidate and ship by sea. 



Entering the US market:


Try to get assistance from the export agencies in Brazil to help sponsor or share the cost of exhibiting at a trade show.  I just saw recently that Brazil is setting up a "sovereign wealth fund" that aims to invest in BNDES and export operations of Brazilian companies overseas. I think there will be new opportunities for getting funding for exports, and doing trade shows. 



Based on my (brief) review of his website, it appeared as if his products are "high end" and are mostly "objects".  This wasn't quite our market, as we didn't focus so much on the objects, but I think he might have success in either (a) the Gift show in Atlanta , or (b) the furniture show in Las Vegas.



But the trouble again is not so much in finding US distribution, but in finding ways to ship the products to the US in an economical way so that the price is competitive (which is even more difficult in the environment discussed above).  Sharing containers is key.  To do this... I recommend finding other Brazilians that are exporting from his home town, and make a logistics deal with them.   Even if they are competitors at home...when going abroad, it only makes sense for both of them to cooperate.





Maybe consider first exporting to Europe before the US (as the Currency is more favorable).



Read more:






Players involved in Import / export business:



No matter what product you are talking about, there will always need to be two groups involved in this transactin (at least)


  1. The company that is Importing into the USA
  2. The company that is Exporting from other countries


In addition to the two principle groups, there will also be involvement with


        3. logistics companies

        4. financial institutions



Busines Models:


Import Export business models

Outsourcing business models

Furniture Industry business models





In economics, an import is any good or commodity, brought into one country from another country in a legitimate fashion, typically for use in trade. Import goods or services are provided to domestic consumers by foreign producers. Import of commercial quantities of goods normally requires involvement of the Customs authorities in both the country of import and the country of export.



Traditionally trade was regulated through bilateral treaties between two nations. For centuries under the belief in Mercantilism most nations had high tariffs and many restrictions on international trade. In the 19th century, especially in Britain, a belief in free trade became paramount and this view has dominated thinking among western nations for most of the time since then. In the years since the Second World War multilateral treaties like the GATT and World Trade Organization have attempted to create a globally regulated trade structure.


Free trade is usually most strongly supported by the most economically powerful nations in the world, though they often engage in selective protectionism for those industries which are politically important domestically, such as the protective tariffs applied to agriculture and textiles by the United States and Europe. The Netherlands and the United Kingdom were both strong advocates of free trade when they were economically dominant, today the United States, the United Kingdom, Australia and Japan are its greatest proponents. However, many other countries (such as India, China and Russia) are increasingly becoming advocates of free trade as they become more economically powerful themselves. As tariff levels fall there is also an increasing willingness to negotiate non tariff measures, including foreign direct investment, procurement and trade facilitation. The latter looks at the transaction cost associated with meeting trade and customs procedures.


Traditionally agricultural interests are usually in favour of free trade while manufacturing sectors often support protectionism. This has changed somewhat in recent years, however. In fact, agricultural lobbies, particularly in the United States, Europe and Japan, are chiefly responsible for particular rules in the major international trade treaties which allow for more protectionist measures in agriculture than for most other goods and services.


During recessions there is often strong domestic pressure to increase tariffs to protect domestic industries. This occurred around the world during the Great Depression leading to a collapse in world trade that many believe seriously deepened the depression.


The regulation of international trade is done through the World Trade Organization at the global level, and through several other regional arrangements such as MERCOSUR in South America, NAFTA between the United States, Canada and Mexico, and the European Union between 27 independent states. The 2005 Buenos Aires talks on the planned establishment of the Free Trade Area of the Americas (FTAA) failed largely due to opposition from the populations of Latin American nations. Similar agreements such as the MAI (Multilateral Agreement on Investment) have also failed in recent years.








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