Strategy for Exporting a U.S. Product to Venezuela Term Paper

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exporting water filters to Venezuela will vary depending on the size of the initial entry into the Venezuelan market: whether the entire country is targeted or just the principal cities. This will have an effect on the cost of shipment, and therefore cannot be accurately estimated until the planned market entry is made more exact. However, certain costs can be estimated, based on generally available information.

Initial market exploration and business set-up costs:

It would be advisable to purchase a detailed business climate report from a reputable company. The cost of this will be between $1,500 and $2,500.

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The executive in charge of creating the Venezuelan operation, including contracting with a local distributor and setting in motion advertising plans, will need to make a minimum of four trips to Venezuela. The estimated cost of these trips, assuming five days' duration each and departure from Los Angeles, is:

$1,475 (hotel and lodging)

600 (ground transportation)

500 (meals and entertainment)

Total:

$2,575

Times 4

$10,300

The above estimates were derived from entering flight and hotel requests on Travelocity, departing Los Angeles, arriving Caracas, Venezuela.

An initial payment to the local distributor should fall within the $3,000 to.....

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