I (Meaning and importance of Exports) Unit Structure

(e) 
Risk in Export Market 
Export marketing is risky. Risk relates to safety and security 
of goods. The importer may not make payment, if the quality of 
imported goods is inferior or if the goods are damaged during 
transportation. This may lead to trade dispute and delay in securing 
payment from the importer. All such situations can be avoided if 
satisfactory warehousing facilities are available to the exporters. 
(f) 
Tariff Quota Regulations 

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Export countries may impose tariff quota regulations. Under 
tariff quota, certain quantity is allowed to be imported at low or no 
custom duty. Beyond that quantity higher duty is imposed. 
Overseas suppliers need to produce the goods well in advance, 
and therefore, there is a need for warehousing for such products. 
CHECK YOUR PROGRESS: 
 
1. 
Define the following terms: 
a. Channels of distribution 
b. Canalizing agencies 
c. Export consortia 
d. Merchant exporters 
e. Export houses 
f. Overseas sales agents 
g. Direct exporting channels 
h. Indirect exporting channels 
i. Warehousing 
2.
Enlist the points showing the necessity of warehousing in 
Export marketing. 
3.
Explain the following points of tools of production promotion: 
a.
Advertising 
b.
Personal selling 
c. 
Public relations 
d. 
Direct mailing 
e. 
Publicity 
f. 
Internet 
6.5 TOOLS/ELEMENTS OF PRODUCT PROMOTION 
IN EXPORT MARKETS 
The following are the tools/elements of product promotion in 
export markets. 
(a) 
Advertising 
Advertising is one popular and extensively used tool of 
product promotion in domestic and foreign markets. Advertising as 
a promotion strategy is used in every country of the world 
irrespective of its economic, political or social development. A 
manufacturer advertises his products/goods in overseas market to 
make the target buyers aware of the attributes of the product so 
that they may be induced to purchase it.