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A trade barrier is a government-imposed restriction on the international exchange of goods or services. Barriers to trade are often called “protection” because their stated purpose is to shield or advance particular industries or segments of an economy.

When a country feels another country is “dumping” products into their market unfairly, it can impost import duties/tariffs to offset the discount and protect its domestic suppliers.

Categories of trade barriers:

• Import policies
• Government procurement policies
• Export subsidies
• Lack of intellectual property protection
• Services barriers
• Investment barriers
• Government-tolerated anti-competitive conduct of state-owned or private firms
• Trade restrictions affecting electronic commerce

The Seven ‘Ps’ of International Marketing:

• Product: the packaging design, branding, trademarks, warranties, guarantees, and life cycles of a product or service
• Price: setting profitable and justifiable prices
• Place: the physical distribution of goods
• Promotion: personal selling, advertising, and sales promotion
• Portability: how easily a product or service travels
• Politics: regulations, logistics, or local practices that may impact or prevent sales in a foreign market
• People: the amount of disposable income and interest in your product or service

Some U.S. companies have found that foreign manufacturers have copied their products, packaging, and business plans, even though they had never done business abroad. Any business that exports its IP protected products abroad or sources its products overseas must take into account the potential for IP theft. For this reason, it is a good idea to get the appropriate forms of IP protection before doing business in another country.

In 2011, the top categories of products that infringed upon intellectual property rights included: pharmaceuticals, health/personal care, eye-wear, critical technology components, electronic articles, and transportation/parts.

All U.S. exports are regulated by the U.S. Federal Government. In order to comply with federal law, your company must determine which government agency has jurisdiction over its exports.

The two most important export control laws are: Export Administration Regulations (EAR) (U.S. Department of Commerce) and International Traffic in Arms Regulations (ITAR) (U.S. Department of State). To determine which agency regulates your exports, use the tables on the Export Regulations guide.

Additional export compliance considerations:

• U.S. exporters may not participate in international boycotts not sanctioned by the U.S.
• U.S. exporters must comply with foreign trade embargoes
• Exporters should be aware of restrictions on “re-exports” and “deemed exports”

Shipping your product to a foreign country requires an understanding of packing, labeling, insurance, Incoterms, and documentation. Many companies use freight forwarders to assist with shipping and documentation. A freight forwarder is an agent for moving cargo to a foreign country. Freight forwarders can provide companies with quotes for shipments, make freight arrangements, and product export documents.

Sales inquiries from potential customers in foreign countries can be quite different than what companies are accustomed to receiving from domestic sources. Responding to a reputable sales inquiry requires careful consideration of many elements, including pricing, export regulations, and payment terms.

This guide provides an overview of:

• Reviewing inquires
• Determining how to respond
• Developing pricing and quotations