The factors that an exporter should take into consideration when packing a lot for export are:
transport costs, which depend either on the weight or on the dimensions of the package.
the importer's instructions.
the climatic conditions.
Products are usually sold contained in our protected by some form of packaging; cushioning materials are used inside the package to prevent the goods from moving and to protect them from breakages; a partial solution of risk of damaging has proved the practice of stacking the cartons on a wooden board, called a pallet.
The most common packing containers are: bags and sacks, cartons, cases, crates, drums, barrels and bales.
Containers are large cases of standard shape and size, made of metal and built to accommodate cargo, either in bulk or packed. The advantages of transporting goods in containers are:
protection of cargo, the goods are placed in the container that is best suited to accommodate them.
speed and economy, by avoiding successive loading and discharge operations of single packages from one means of transport to another, a lot of time is saved and costs are cut.
HOW IMPORTER AND EXPORTER GET IN TOUCH
International trade is encouraged and backed by a number of institutions whose task is that of putting manufacturers and prospective importers in touch. The ICE in Italy and the British Overseas Trade Board in Britain are the main public bodies. ICE is a government agency with a world-wide organisation. Its fundamental but not unique task is to promote Italian exports by providing businessmen with market and trade information, assistance and consultancy besides strictly promotional services.
FAIRS AND EXHIBITIONS
Fairs and exhibitions are another source of contracts of paramount importance in international trade. Fairs may general when different trade sectors are represented, or specialised when all the products on show belong to a particular sector. At fairs manufacturers put their goods on display in hired stands, they confront their competitors, present their new products and attend meetings where the problems and prospects of the trade are debated.
Another means by which the exporter can make his product known are the advertising; the main channels of advertising are:
the press, the message is shown on a page of a newspaper or a magazine; relatively small and medium sized firms wishing to advertise in the foreign press usually select magazines that circulate among dealers of the trade.
circular offers, these are sent to prospective importers who might be interested in the product; advertising agencies may help by providing a list of potential customers of the goods.
broadcasting (commercials on the radio, on TV or at the cinema), street and store advertising (posters, neon signs, placards), sponsorship of arts events, sport champions or teams.
FOCUS ON PRESS ADVERTISING
Advertising in magazines and newspapers are designed to attract the attention of the reader. It is very important for advertisers to identify the prospective consumer of their products or services in order to publish the ad in the magazine which is most likely to be read by the right target; potential targets are therefore divided into categories; the main categories are based on: sex, age, income level, cultural level, profession and range of interests.
A CLOSER LOOK AT ADS
The illustration is perhaps the main element, because of its visual impact; it may just be a photograph of the product, or it may show who is likely to use the product. Ads appeal to people's ambitions or emotions and try to suggest that the "best" people, the most attractive women, the most virile men. The slogan is the second important element in an ad; a catchy slogan may make a product known and make is successful once consumers have verified that its quality is up to their expectations; slogans have standard features: they use plenty of adjectives, words are often repeated, they use new words.
LETTER OF CREDIT
STAGE 1 - IMPORTER OPENS CREDIT WITH ISSUING BANK
On receipt of a proforma invoice the importer asks his bank to open a credit in favour of the exporter and states the terms under which the latter will be able to collect the credit. The bank with which the credit is opened is called the issuing bank. The credit can be: revocable when the importer reserves the right to cancel it at any time; irrevocable when he cannot cancel the availability of the money and the issuing bank guarantees payment if the terms of the credit are met.
STAGE 2 - EXPORTER'S BANK NOTIFIED OF CREDIT
The importer's bank notifies the exporter's bank or a correspondent bank in the exporter's town that a credit has been opened in his favour.
STAGE 3 - CREDIT IS CONFIRMED BY BANK
The exporter's bank informs the exporter of the credit, sending him a Letter of Advice. This letter contains the terms under which the credit has been opened and the exporter must check that comply with the terms agreed in the contract of sale. If they do, the exporter can now safely the order as he knows that the money will be available to him in due time. An irrevocable confirmed credit is the fullest form of protection for the exporter.
STAGE 4 - EXPORTER DELIVER SHIPPING DOCUMENTS TO BANK
When the goods are ready for shipment, the exporter hands the shipping documents over o the bank in charge of payment. The basic documents are: the commercial invoice, the contract of carriage, the insurance policy and the draft. Other documents may occasionally be required are: Consular Invoice, a Certificate of Origin or of Analysis.
STAGE 5 - SHIPPING DOCUMENTS ARE CHECKED BY BANK
The bank checks the documents to make sure that the order has been fulfilled in accordance with the terms stated in the credit.
STAGE 6 - EXPORTER COLLECTS PAYMENT
At this point the exporter may either receive cash or a draft maturing at a future date drawn on the bank issuing the credit.
STAGE 7 - IMPORTER RECEIVES SHIPPING DOCUMENTS
The shipping documents are then sent, through the issuing bank, to the importer who will need them to take possession of the goods on arrival.
Unfortunately not all orders are satisfactorily carried out: a number of situations may occur for which you will find it necessary to send a letter complaining about the faulty execution of your order; the most frequent reasons for drawing up a letter of complaint are:
delayed delivery, the agreed delivery terms has expired and you have not yet received the goods.
wrong goods/wrong quantity, either the whole or part of the consignment received is formed by unrequested items of the number of the items delivered is either superior or inferior to the quantity ordered.
unsatisfactorily quality of defective goods, the quality of the goods does not correspond to what you expected, or the goods are faulty.
damaged goods, the goods are delivered in bad condition.
APPLYING FOR A JOB
A job advertisement may include some or all of this information:
description of the company searching for staff
position offered and description of duties.
qualifications and experience required from applicant.
description of ideal candidate (age, type of personality, habits).
salary and fringe benefits offered.
person to send application to.
Application letter: the do's and don'ts:
do's, try to create a good impression, make a rough copy first, type or write clearly and neatly, give all important information about yourself (age, education, experience, qualifications, skills and talents), be extremely careful with the layout elements (date, addresses, titles, signature), make sure your spelling is correct.
don'ts, use fancy letter paper, give personal details unless they are relevant, sound over - enthusiastic or childish, say why the job is right for you, say why you are right for the job, make corrections, criticise present employers, use colloquial expressions, boast or lie about you skills or experience, mix information up, be vague.
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