International Business Plan

The purpose of the International Business Plan workbook is to prepare your
business to enter the international marketplace. This workbook will serve
as a step-by-step guide to lead you through the process of exporting your
product to an international market.  The workbook is divided into sections.

Each section must be completed before you start the next section.  After
you have completed the entire workbook, you will be ready to develop an
international business plan to export your product.  Once the business plan
is completed, an in-depth analysis of your readiness to export can be
completed.

PPRODUCTS/SERVICES

STEP 1:   Select the most exportable products to be offered
internationally.

To identify products with export potential for distribution
internationally, you need to consider products that are successfully
distributed in the domestic market.  The product needs to fill a targeted
need for the purchaser in export markets according to price, value to
customer/country and market demand.

What are the major products your business sells?

1.

2.

3.

What products have the best potential for international trade?

1.

2.

3.

STEP 2:   Evaluate the products to be offered internationally.

What makes your products unique for an overseas market?

1.
2.

3.

Why will international buyers purchase the products from your company?

1.

2.
3.

How much inventory will be necessary to sell overseas?

1.

2.

3.

Exercise:
IDENTIFYING PRODUCTS WITH EXPORT POTENTIAL
List below the products you believe have export potential.  Indicate the
reasons you believe each product will be successful in the international
marketplace.

Products/Services              Reasons for Export Success

1.                             1.
2.                             2.
3.                             3.
4.                             4.
5.                             5.
6.                             6.
7.                             7.
8.                             8.
9.                             9.
10.                            10.
11.                            11.
12.                            12.
13.                            13.
14.                            14.

Decision Point:  These products have export potential.

               YES               NO

PLANNING

What is the purpose of completing this workbook?

     You know that you want to see your company grow through exporting.

Five reasons it will be worth your time and effort:
     1.   Careful completion of this workbook will help evaluate your level
of commitment to exporting.
     2.   The completed workbook can help you evaluate your product's
potential for the international trade market.
     3.   The workbook gives you a tool to help you better manage your
international business operations successfully.
     4.   The completed workbook will help you communicate your business
ideas to persons outside your business and can be an excellent starting
point for developing an international financing proposal.
     5.   Businesses managed are more successful when working from a
business plan.

Can't I hire someone to do this for me?
     No!  Nobody will do your thinking or make decisions for you. This is
your business.  If the business plan is to be useful, it must reflect your
ideas and efforts -- not those of an outsider.

Why is planning so important?
     The planning process forces you to look at your future business
operations and anticipate what will happen.  This process better prepares
you for the future and makes you more knowledgeable about your business.
Planning is vital for marketing your product in an international
marketplace.
     Any firm considering entering into international business transactions
must understand that doing business internationally is not a simple task
nor one for the faint of heart.  It is stimulating and potentially
profitable in the long-term but requires much preparation and research
prior to the first transaction.

In considering products for the international market, a business needs to
be:

     1.   Successful in its present domestic operation.
     2.   Willing to commit its resources of time, people and capital to
the program.  Entry into the international market may take as long as two
years to generate profit with cash outflow during that period.
     3.   Sensitive and aware of the cultural implications of doing
business internationally.
     Developing a business plan helps you assess your present market
situation, business goals, and commitment which will increase your
opportunities for success.

What's the bottom line for me if I do the plan?
     Research shows that small business failure rates among new businesses
are significantly lower for new businesses that have developed a business
plan.

Isn't planning just for the big companies?
     Planning is important for any organization that wants to approach the
future with a plan of action.  The future comes whether you are prepared
for it or not.  A business plan helps you anticipate the future and make
well-informed decisions because you have thought about the alternatives you
will be facing.

How often do I have to do this?
     A plan must be revised as needed, at least once a year.  Planning is
a continuous process. You will be surprised how much easier it is to
develop a business plan after the first time.  Plus, after a revision or
two you will know more about your international business market
opportunities to export products.

GOAL SETTING

     Determining your business goals can be a very exciting and often
challenging process. It is, however, a very important step in planning your
entry into the international marketplace.  The following exercise is
intended to help you clarify your short and long-term business goals.

STEP 1:   Define long-term goals.

A)  What are your long-term goals for this business in the next 5 years?
Examples:  increase export sales by ___% annually; develop country cultural
profiles.




B)  How will the international trade market help you reach your long-term
goals?





STEP 2:   Define short-term goals.

A)  For your international business, what are your first year goals?
Examples: attend export seminars, select a freight forwarder.




B)  What are your two-year goals for your international business
products/services?




STEP 3:   Develop an action plan to reach your short-term goals by using
international trade.




INDUSTRY ANALYSIS

STEP 1:   Determine your industry's growth for the next 3 years.

     Talk to people in the same business or industry, research
industry-specific magazines, attend trade fairs and seminars.




STEP 2:   Research how competitive your industry is in the global markets.

     Utilize the National Trade Data Bank (NTDB), obtain import/export
statistics from the Bureau of the Census, and contact the U.S. Small
Business Administration (SBA) or the U.S. Department of Commerce (DOC)
district office in your area.



STEP 3:   Find out your industry's future growth in the international
market.

     Contact the SBA or the U.S. Foreign & Commercial Service (US & FCS)
district office and contact a DOC country or industry desk in Washington,
D.C.



STEP 4:   Research federal or state government market studies that have
been conducted on your industry's potential international markets.

     Contact SBA, your state international trade office, a DOC country or
industry desk in Washington, D.C.




STEP 5:   Find export data available on your industry.

     Contact your SBA or DOC district office.




YOUR BUSINESS/COMPANY ANALYSIS

STEP 1:   Why is your business successful in the domestic market?  What's
your growth rate?




STEP 2:   What products do you feel have export potential?




STEP 3:   What are the competitive advantages of your products or business
over other domestic and international businesses?




PROS AND CONS OF MARKET EXPANSION
     Brainstorm a list of pros and cons for expanding your market
internationally.  Based on your product and market knowledge, determine
your probability of success in the international market.

Industry/Product:

Pros                                         Cons
1.                                           1.
2.                                           2.
3.                                           3.
4.                                           4.
5.                                           5.
6.                                           6.
7.                                           7.
8.                                           8.
9.                                           9.
10.                                          10.
11.                                          11.
12.                                          12.

PROBABILITY OF SUCCESS

0%             25%            50%            75%            100%

MARKETING YOUR PRODUCT
     Given the market potential for your products in international markets,
how is your product unique?


1. What are your product's advantages?




2. What are your product's disadvantages?




3. What are the competitive product's advantages?




4. What are the competitive product's disadvantages?



What are the needs that will be filled by your product in a foreign market?



What competitive products are sold abroad and to whom?



How complex is your product?  What skills or special training are required
to:

1. Install your product?


2. Use your product?


3. Maintain your product?



4. Service your product?



What options and accessories are available?

1. Has an aftermarket been developed for your product?



2. What other equipment does the buyer need to use your product?



3. What complementary goods does your product require?



If your product is an industrial good:

1. What firms are likely to use it?



2. What is the useful life of your product?



3. Is use or life affected by climate?  If so, how?



4. Will geography affect product purchase, for example transportation
problems?



5. Will the product be restricted abroad, for example tariffs, quotas or
non-tariff barriers?



If the product is a consumer good:

1. Who will consume it? How frequently will the product be bought?



2. Is consumption affected by climate?



3. Is consumption affected by geography, for example transportation
problems?



4. Will the product be restricted abroad for example tariffs, quotas or
non-tariff barriers?



5. Does your product conflict with traditions, habits or beliefs of
customers abroad?


STEP 1:
Select the best countries to market your product.

     The U.S. Small Business Administration and the United States and
Foreign Commercial Service may be of assistance in providing product market
analysis.
     Since the number of world markets to be considered by a company is
very large, it is neither possible nor advisable to research them all.
Thus, your firm's time and money are spent most efficiently by using a
sequential screening process.
     The first step in this sequential screening process for the company is
to select the more attractive countries for your product.  Preliminary
screening involves defining the physical, political, economic and cultural
environment.  Rate the following market factors in each category.

     (1) Select 2 countries you think have the best marketpotential for
your product;
     (2) Review the market factors for each country;
     (3) Research data/information for each country;
     (4) Rate each factor on a scale of 1-5 with 5 being thebest; and
     (5) Select a target market country based on your ratings

MARKET FACTOR ASSESSMENT           COUNTRY/RATING  COUNTRY/RATING

Demographic/Physical Environment:
     . Population size, growth, density
     . Urban and rural distribution
     . Climate and weather variations
     . Shipping distance
     . Product-significant demographics
     . Physical distribution and
          communication network
     . Natural resources

Political Environment:
     . System of government
     . Political stability and continuity
     . Ideological orientation
     . Government involvement in
          business
     . Attitudes toward foreign business
          (trade restrictions, tariffs,
          non-tariff barriers, bilateral
          trade agreements)
     . National economic and
          developmental priorities

MARKET FACTOR ASSESSMENT           COUNTRY/RATING  COUNTRY/RATING

Economic Environment:
     . Overall level of development
     . Economic growth:
          GNP, industrial sector
     . Role of foreign trade in the
          economy
     . Currency:  inflation rate,
          availability, controls, stability
          of exchange rate
     . Balance of payments
     . Per capita income and distribution
     . Disposable income and
          expenditure patterns

Social/Cultural Environment:
     . Literacy rate, educational level
     . Existence of middle class
     . Similarities and differences in
          relation to home market
     . Language and other cultural
          considerations

Market Access:
     . Limitations on trade:
          high tariff levels, quotas
     . Documentation and
          import regulations
     . Local standards, practices, and
          other non-tariff barriers
     . Patents and trademark protection
     . Preferential treaties
     . Legal considerations for
          investment, taxation, repatriation,
          employment, code of laws

Product Potential:
     . Customer needs and desires
     . Local production, imports,
          consumption
     . Exposure to and acceptance
          of product
     . Availability of linking products
     . Industry-specific key indicators
          of demand
     . Attitudes toward products of
          foreign origin
     . Competitive offerings


MARKET FACTOR ASSESSMENT           COUNTRY/RATING  COUNTRY/RATING

Local Distribution and Production:
     . Availability of intermediaries
     . Regional and local transportation
          facilities
     . Availability of manpower
     . Conditions for local manufacture

     Indicators of population, income levels and consumption patterns
should be considered.  In addition, statistics on local production trends,
along with imports and exports of the product category, are helpful for
assessing industry market potential.  Often, an industry will have a few
key indicators or measures that will help them determine the industry
strength and demand within an international market.  A manufacturer of
medical equipment, for example, may use the number of hospital beds, the
number of surgeries and public expenditures for health care as indicators
to assess the potential for its products.

What are the projected growth rates for the two countries selected over the
next 3-5 years?



STEP 2:
Determine Projected Sales Levels

What is your present U.S. market percentage?



What are the projected sales for similar products in your chosen
international markets for the coming year?



What sales volume will you project for your products in these international
markets for the coming year?



What is the projected growth in these international markets over the next
five years?



STEP 3:
Identify Customers Within Your Chosen Markets

What companies, agents or distributors have purchased similar products?



What companies, agents or distributors have made recent requests for
information on similar products?



What companies, agents or distributors would most likely be prospective
customers for your export products?



STEP 4:
Determine Method Of Exporting

How do other U.S. firms sell in the markets you have chosen?



Will you sell direct to the customer?

1. Who will represent your firm?



2. Who will service the customers needs?



STEP 5:  Building A Distributor or Agent Relationship

Will you appoint an agent or distributor to handle your export market?

1. What facilities does the agent or distributor need to service the
market?



2. What type of client should your agent or distributor be familiar with in
order to sell your product?



3. What territory should the agent or distributor cover?



4. What financial strength should the agent or distributor have?





5. What other competitive or non-competitive lines are acceptable or not
acceptable for the agent or distributor to carry?



6. How many sales representatives does the agent or distributor need and
how often will they cover the territory?



Will you use an export management company to do your marketing and
distribution for you?

                    YES                 NO

If yes, have you developed an acceptable sales and marketing plan with
realistic goals you can agree to?

                    YES                 NO

Comments:





SUPPORT FUNCTIONS
     To achieve efficient sales offerings to buyers in the targeted
markets, several concerns regarding products, literature and customer
relations should be addressed.

STEP 1:
Identify product concerns.

Can the potential buyer see a functioning model or sample of your product
that is substantially the same as would be received from production?

                    YES                 NO

Comments:



What product labeling requirements must be met? (Metric measurements, AC or
DC electrical, voltage, etc.)  Keep in mind that the European Community now
requires 3 languages on all new packaging.



When and how can product conversion requirements be obtained?



Can product be delivered on time as ordered?

                    YES                 NO

Comments:



STEP 2:
Identify literature concerns.

If required, will you have literature in language other than English?

                    YES                 NO

Do you need a product literature translator to handle the technical
language?

                    YES                 NO

What special concerns should be addressed in sales literature to ensure
quality and informative representation of your product?



STEP 3:
Identify customer relations concerns.

What is delivery time and method of shipment?



What are payment terms?



What are the warranty terms?



Who will service the product when needed?



How will you communicate with your customer? . . . through a local agent,
telex or fax?






Are you prepared to give the same order and delivery preference to your
international customers that you give to your domestic customers?

                    YES                 NO

MARKETING STRATEGY
     In international sales, the chosen "terms of sale" are most important.

Where should you make the product available at your plant:  at the port of
exit, landed at the port of importation or delivered free and clear to the
customer's door?  The answer to this question involves determining what the
market requires, and how much risk you are willing to take.
     Pricing strategy depends on "terms of sale" and also considers
value-added services of bringing the product to the international market.

STEP 1:
Define International Pricing Strategy.

How do you calculate the price for each product?



What factors have you considered in setting prices?



Which products' sales are very sensitive to price changes?



How important is pricing in your overall marketing strategy?



What are your discount policies?



What terms of sales are best for your export product?



STEP 2:
Define promotional strategy

What advertising materials will you use?





What trade shows or trade missions will you participate in, if any?



What time of year and how often will foreign travel be made to customer
markets?



STEP 3:
Define customer services

What special customer services do you offer?



What types of payment options do you offer?



How do you handle merchandise that customers return?



SALES FORECAST
     Forecasting sales of your product is the starting point for your
financial projections.  The sales forecast is extremely important, so it is
important you use realistic estimates.  Remember that sales forecasts show
the expected time the sale is made.  Actual cash flow will be impacted by
delivery date and payment terms.

Step 1:
Fill in the units-sold line for markets 1, 2, and 3 for each year on the
following worksheet.

Step 2:
Fill in the sales price per unit for products sold in markets 1, 2 and 3.

Step 3:
Calculate the total sales for each of the different markets (units sold  x
sales price per unit).

Step 4:
Calculate the sales (all markets) for each year - add down the columns.

Step 5:
Calculate the five year total sales for each market - add across the rows.

SALES FORECASTS - FIRST FIVE YEARS
                                        1    2    3    4    5
Market 1
     Units Sold
     Sale Price/Unit
          Total Sales
Market 2
     Units Sold
     Sale Price/Unit
          Total Sales
Market 3
     Units Sold
     Sale Price/Unit
          Total Sales
Total Sales
     All Markets


COST OF GOODS SOLD
     The cost of goods sold internationally is partially determined by
pricing strategies and terms of sale.  To ascertain the costs associated
with the different terms of sale, it will be necessary to consult an
international freight forwarder.  For example, a typical term of sale
offered by a U.S. exporter is cost, insurance and freight (CIF) port of
destination.  Your price includes all the costs to move product to the port
of destination.  A typical cost work sheet will include some of the
following factors.  These costs are in addition to the material and labor
used in the manufacture of your product.

     export packing           forwarding
     container loading        documentation
     inland freight           consular legalization
     truck/rail unloading     bank documentation
     wharfage                 dispatch
     handling                 bank collection fees
     terminal charges         cargo insurance
     ocean freight            other misc.
     bunker surcharge         telex
     courier mail

     To complete this worksheet, you will need to use data from the sales
forecast.  Certain costs related to your terms of sale may also have to be
considered.

Step 1:
Fill in the units-sold line for market 1, 2, and 3 for each year.


Step 2:
Fill in the cost per unit for products sold in markets 1, 2, and 3.


Step 3:
Calculate the total cost for each of the products - (units sold x cost per
unit).


Step 4:
Calculate the cost of goods sold - all products for each year - add down
the columns.


Step 5:
Calculate the five-year cost of goods for each market - add across the
rows.


COST OF GOODS SOLD - FIRST FIVE YEARS
                                        1    2    3    4    5

Market 1
     Units Sold
     Sale Price/Unit
          Total Cost
Market 2
     Units Sold
     Sale Price/Unit
          Total Cost
Market 3
     Units Sold
     Sale Price/Unit
          Total Cost
Cost of Goods Sold
     All Markets


INTERNATIONAL OVERHEAD EXPENSES
     To determine overhead costs for your export products, you should be
certain to include costs that pertain only to international marketing
efforts.  For example, costs for domestic advertising of service that do
not pertain to the international market should not be included.  Examples
of most typical expense categories for an export business are listed on the
next page.  Some of these expenses will be first year start-up expenses,
and others will occur every year.

Step 1:
Review the expenses listed on the next page.  These are expenses that will
be incurred because of your international business. There may be other
expense categories not listed -- list them under "other expenses."


Step 2:
Estimate your cost for each expense category.



Step 3:
Estimate any domestic marketing expense included that is not applicable to
international sales.



Step 4:
Calculate the total for your international overhead expenses.



EXPENSE                 COST
                        Market 1  Market 2  Market 3  Total Yr 1 Legal Fees
Accounting Fees
Promotional Material
Travel
Communication
 Equip/Telex
Advertising Allowances
Promotional Expenses
 (e.g., trade shows, etc.)
Other Expenses



Total Expenses
Less Domestic Expenses
 Included Above, if any
Total International
 Start-up Expenses



PROJECTED INCOME STATEMENT - YEAR 1 to 5, ALL MARKETS
     You are now ready to assemble the data for your projected income
statement.  This statement will calculate your net profit or net loss
(before income taxes) for each year.

Step 1:
Fill in the sales for each year. You already estimated these figures; just
recopy them on the work sheet.

Step 2:
Fill in the cost of goods sold for each year. You already estimated these
figures, just recopy on the work sheet.

Step 3:
Calculate the Gross Margin for each year (Sales minus Cost of Goods Sold).

Step 4:
Calculate the Total Operating Expenses for each year.

Step 5:
Calculate the Net Profit or Net Loss (Before Income Taxes) for each year
(Gross Margin minus Total Operating Expenses).

PROJECTED INCOME STATEMENT - YEAR 1 to 5, ALL MARKETS

                                        1    2    3    4    5
International Sales
Cost of Goods Sold
Gross Margin

International Operating Expenses:
Legal
Accounting
Advertising
Travel
Trade shows
Promotional Material
Supplies
Communication Equipment
Interest
Insurance
Other

Total International Operating Expenses



BREAK-EVEN ANALYSIS
     The break-even is the level of sales at which your total sales exactly
covers your total costs and operating expenses.  This level of sales is
called the Break-Even Point Sales Level (BEP sales).
     In other words, at the BEP sales level, you will make a zero profit.
If you sell more than the BEP sales level, you will make a net profit.  If
you sell less than the BEP sales level, you will have a net loss.
     The worksheet will calculate your BEP sales level for any year of
operations.  The steps listed below will assume that you are calculating
the BEP sales level for Year 1.

Step 1:
Fill in your Total Sales, Total Cost of Goods Sold, and Total Gross Margin
for Year 1 on the following page.

Step 2:
Calculate the Gross Margin percent using the formula which is given on the
work sheet. The Gross Margin percent tells you what percentage of each
dollar of sales results in Gross Margin.

Step 3:
Fill in the Total Operating Expenses for Year 1.

Step 4:
Calculate the BEP sales level using the formula which is given. Your need
to reach this level of sales just to break even.

     Note: In addition to a break-even analysis, it is highly recommended
that a profit and loss statement be generated for the first few actual
international transactions. Since there are a great number of variables
relating to costs of goods, real transactions are required to establish
actual profitability and minimize the risk of losses.

STEP 1:
     Total Sales                        $
     Total Cost of Goods Sold           $
     Total Gross Margin                 $

STEP 2:
     Total Gross Margin                 $
     Gross Margin %                     $
     Total Sales                        $

     Gross Margin % = 0.
     (Leave the Gross Margin $ in a decimal format.  The format is 0.347 -
not 34.7%).

STEP 3:
     Total Operating Expenses           $

STEP 4:
     Total Operating Expenses           $
     BEP Sales Level                    $
     Gross Margin %                     $
     BEP Sales Level                    $



TIMETABLE
     This is a worksheet that you will need to work on periodically as you
progress in the workbook.  The purpose is to ensure that key tasks are
identified and completed to increase the success of your international
business.

STEP 1:
Identify key activities
     By reviewing other portions of your business plan, compile a list of
tasks that are vital to the successful operation of your business.  Be sure
to include travel to your chosen market as applicable.

STEP 2:
Assign responsibility for each activity
     For each identified activity, assign one person primary responsibility
for the completion of that activity.

STEP 3:
Determine scheduled start date
     For each activity determine the date when work will begin. You should
consider how the activity fits into your overall plan as well as the
availability of the person responsible.

STEP 4:
Determine scheduled finish date
     For each activity determine when the activity must be completed.




ACTION PLAN
PROJECT/TASK             PERSON         START DATE/FINISH DATE








SUMMARY

STEP 1:
Verify completion of previous pages.
     You should have finished all the other sections in the workbook before
continuing any further.

STEP 2:
Identify your business plan audience.
     What type of person are you intending to satisfy with this business
plan?  The summary should briefly address all the major issues that are
important to this person.  Keep in mind that this page will probably be the
first read by this person.  It is extremely important the summary be brief
yet contain the information most important to the reader.  This section
should make the reader want to read the rest of your plan.

STEP 3:
Write a one-page summary.
     You will now need to write no more than a page summarizing all the
previous work sheets you have completed.
     Determine which sections are going to be most interesting to your
reader.  Write one to three sentences that summarize each of the important
sections.
     These sentences should appear in the order of the sections of your
business plan.  The sentences must fit together to form a summary and not
appear to be a group of loosely related thoughts.
     You may want to have several different summaries, depending on who
will read the business plan.

INTERNATIONAL BUSINESS PLAN SUMMARY:





PREPARING AN EXPORT PRICE QUOTATION
     Setting proper export prices is crucial to a successful international
sales program; prices must be high enough to generate a reasonable profit,
yet low enough to be competitive in overseas markets.  Basic pricing
criteria - costs, market demand, and competition - are the same for
domestic and foreign sales.  However, a thorough analysis of all cost
factors going into a cost, insurance and freight (CIF) quotation may result
in prices that are different from domestic ones.
     "Marginal cost" pricing is the most realistic and frequently used
pricing method.  Based on a calculation of incremental costs, this method
considers the direct out-of-pocket expenses of producing and selling
products for export as a floor beneath which prices cannot be set without
incurring a loss.  There are important principles that should be followed
when pricing a product for export, summarized below.

COST FACTORS
     In calculating an export price, be sure to take into account all the
cost factors for which you, the exporter, are liable.
     1.  Calculate direct materials and labor costs involved in producing
the goods for export.
     2.  Calculate your factory overhead costs, prorating the amount of
overhead chargeable to your proposed export order.
     3.  Deduct any charges not attributable to the export operation (i.e.,
domestic marketing costs, domestic legal expenses), especially if export
sales represent only a small part of total sales.
     4.  Add in the other out-of-pocket expenses directly tied to the
export sales, such as:
     travel expenses
     catalogs, slide shows, video presentations
     promotional material
     export advertising
     commissions
     transportation expenses
     packing materials
     legal expenses*
     office supplies*
     patent and trademark fees*
     communications*
     taxes*
     rent*
     insurance*
     interest*
     provision for bad debts
     market research
     credit checks
     translation costs
     product modification
     consultant fees
     freight forwarder fees

*These items will typically represent the cost of the total operation, so
be sure to prorate these to reflect only the cost of producing the goods
for export.
     5.  Allow yourself a realistic price margin for unforeseen costs,
unavoidable risks, and simple mistakes that are common in any new
undertaking.
     6.  Also allow yourself a realistic profit or mark-up.

OTHER FACTORS TO CONSIDER
     Market Demand - As in the domestic market, product demand is the key
to setting prices in a foreign market.  What will the market bear for a
specific product or service?  What will the estimated consumer price for
your product be in each foreign market?  If your prices seem out of line,
try some simple product modifications to reduce the selling price, such as
simplification of technology or alteration of product size to conform to
local market norms.  Also keep in mind that currency valuations alter the
affordability of goods.  A good pricing strategy should accommodate
fluctuations in currency.

     Competition - As in the domestic market, few exporters are free to set
prices without carefully evaluating their competitor's pricing policies.
The situation is further complicated by the need to evaluate the
competition's prices in each foreign market an exporter intends to enter.
In a foreign market that is serviced by many competitors, an exporter may
have little choice but to match the going price or even go below it to
establish a market share.  If, however, the exporter's product or service
is new to a particular foreign market, it may be possible to set a higher
price than normally charged domestically.

QUOTE PREPARATION
     An Export Costing Worksheet that may guide you in preparing export
price quotations follows.


EXPORT COSTING WORKSHEET
Reference Information

 1. Our Reference                  2. Customer Reference

Customer Information:

 3. Name                           5. Cable Address
 4. Address                        6. Telex No.
                                   7. Fax No.

Product Information:                         SIC Code:

 8. Product                       12. Dimensions ____ x____ x____   9. No.
of Units    13. Cubic Measure ____ (sq.in.) 10. Net Weight (unit)    14.
Total Measure
11. Gross Weight                  15. H.S. No.

Product Charges:

16. Price (or cost) per unit ______ x units _____Total__________
17. Profit (or markup)
18. Sales Commissions
19. FOB FACTORY PRICE

Fees-Packing, Marking, Inland Freight:

20. Freight Forwarder
21. Financing Costs
22. Other charges
23. Export Packing
24. Labeling/Marking
25. Inland Freight to
26. Other charges (identify)
27. FOB, PORT CITY PRICE (EXPORT PACKED)

Port Charges/Document

28. Unloading (heavy lift)
29. Terminal
30. Other (identify)
31. Consular Document (if required)
32. Certificate of Origin (if required)
33. Export License (if required)
34. FAS VESSEL (OR AIRPLANE) PRICE

Freight

35. Based on ________  weight _________  measure
36. Ocean ___________  Air ____________
37. On Deck _________  Under Deck _____
38. Rate ____________  Minimum ________  Amount _________

Insurance

39. Coverage required _________________
40. Basis ___________  Rate____________  Amount _________

41. CIF, PORT OF DESTINATION PRICE




WORKSHEET

EXPORT PROGRAMS & SERVICES
     This worksheet helps you identify organizational resources that can
provide programs and services to assist you in developing your
international business plan and increase your export sales.



             ORGANIZATIONS
_________________________________________________________________SERVICES
   SBA     USDOC    SBDC    Trade   University    World
   Office  Office           Assoc   CommCollege   Trade
                                                  Ctr
_________________________________________________________________
Readiness to
Export
Assessment
_________________________________________________________________
Market Research
Studies
_________________________________________________________________
Counseling
_________________________________________________________________
Training Seminars
_________________________________________________________________
Education Programs
_________________________________________________________________
Publications
_________________________________________________________________
Export Guides
_________________________________________________________________
DataBanks
_________________________________________________________________
Trade Shows
_________________________________________________________________
Financing
_________________________________________________________________