Free Online Course in International Business

Calculating Costs International transactions include additional expenditures over domestic transactions. The following is not meant to be a complete list but a minimum checklist to evaluate when determining costs in the planning process.

• Marketing and sales
- Foreign travel
- Added communication costs (phone, fax, couriers, etc.)
- Trade fairs and exhibitions
- Analyzing credit worthiness of foreign buyers
- Legal and language services

• Manufacturing
- Product modifications to meet foreign market needs

• Delivery
- Labeling and packaging for the foreign market (size, materials and graphics)
- Packing of goods for shipment
- Freight forwarding
- Cargo insurance
- Documentation (invoice, packing list, certificate of origin, etc.)
- Transport, loading and unloading of goods
- Customs
- Storage and warehousing

• Distribution
- Sellers' and agents' services
- Account services for foreign accounts

• Finance
- Financial instruments (such as letters of credit and documentary collections)
- Export credit insurance
- Foreign exchange rate fluctuations

• Debt servicing and cash flow analysis

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