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Antonio Gutierrez Martinez

THESE ARE SOME IMPORTANT TOOLS THAT YOU
MUST HAVE IN ORDER TO ENTER THE WORLD OF
INTERNATIONAL TRADE.
You can find it in the
principal bookstores in the
country.
UPDATED
with the new RGCE,
Annexes and the
new
RLA 2015
libros – música - videos
editorial@gripoisef.com.mx
1
www.libreriaisef.com.mx

BRICS may sound like something you use to build a house,
but they're the initials of some very important countries
with economies that affect the world.
So what countries make up the BRICS?
How did the term come about?
What impact do the BRICS have?
What are the BRICS?
2

BRIC are the letters that originally stood for
these countries: Brazil, Russia, India and China.
South Africa became part of the BRIC nations in
2010, turning BRIC into BRICS. Actually, the
BRICS were first formed on paper rather than as
a real group. Here's how it started.
The acronym has been attributed to Goldman
Sachs chief economist Jim O'Neill in a 2001
paper he wrote called,
"Building Better Global
Economic BRICs."
the four countries since 2001. They are
considered among the biggest and fastest
growing emerging markets, or those markets
still developing.
Many analysts consider the BRICS a good place
for investment because of their growing
populations, infrastructure building, and
expansive middle class.
In his paper, O'Neill
argued that since the
four BRIC countries
were developing
rapidly, by 2050 their
combined economies
could eclipse all the
economies of the richest
countries in the world.
The BRICS acronym has
come to be used as a
symbol of the shift in
global economic power
away from the
developed
G7
economies—like the
U.S.—and toward the
developing world.
The five nations if
combined would be the
largest entity on the
global stage, according
to Goldman Sachs,
which has continued to
monitor
3

Are the BRICS a true economic
bloc?
The Goldman Sachs theory isn't that these
countries are a political alliance—like the
European Union—but that they have the
potential to become a powerful economic bloc.
Currently, there are no reported formal
agreements among all the five countries. But
there have been agreements between some of the
BRICs.
Those agreements include organization between
Russia and China, which includes India as an
observer. There's also the IBSA Trilateral
Forum, in which Brazil, India, and South Africa
take part in annual talks.
There are some indications that the
BRICS are trying to actually organize
themselves as a group. On June 16,
2009, the leaders of the Russia, and
issued a declaration calling for the
establishment of an "equitable,
democratic and multipolar world
order."
Since then they have met in Brazil in
2010 and in China in 2011.
What makes the BRIC
countries powerful?
The BRICS have a lot going for
them. These countries encompass
over 25% of the world's land
coverage and 40% of the world's
population and hold a combined
gross domestic product or GDP of
18.5 trillion dollars, according to
recent statistics.
Brazil's resources include massive
amounts of oil, along with large
supplies of agricultural products.
Russia, too, has great repositories of
oil, along with coal and natural gas.
4

India has iron ore, bauxite, and copper ore and
is one of the major producers of iron in the
world.
South Africa is the
largest energy
producer and
consumer on the
African continent.
In addition to
diamonds and gold,
the country also has
reserves of iron ore,
platinum,
manganese,
chromium, copper, uranium, silver, beryllium,
and titanium.
China has coal, iron ore, petroleum, natural gas,
mercury, rare earth elements, uranium, and the
world's largest potential for hydropower.
China is currently the world’s largest
exporter. India has 10 of the 30 fastest-growing
urban areas in the world and could see 700
million people move to cities by 2050, according
to Goldman Sachs—which means greater
demand for goods and services by India's
population and faster economic growth.
The BRICS theory from Goldman believes
that China will become the world's biggest
supplier of manufactured goods, India will
become the world's dominant supplier of
services, while Brazil and Russia will become
dominant as suppliers of raw materials.
Of the five BRIC countries, China is said to have
the strongest economy, which is actually larger
than that of the four other BRIC economies
combined.
Will the BRICS expand?
Speculation that South Korea and Mexico will
become additions to the BRICS.
They were not included in Jim O'Neill's original paper
in 2001, because they looked to be more developed
nations and
5

economies than Brazil, Russian India, and
China, according to O'Neill. Neither country has
officially tried to join.
Indonesia has said it might want to be part of the
BRICS at some time in the future.
Are the BRICS a true economic force?
To many observers and investors, the BRIC
countries are merely five separate emerging
markets with little in common. They are
countries developing their economies—with a
high pay off, but also with high risks.
The risks include fears that all five could fail to
live up to their economic potential. There are
political concerns over human right issues in
China and Russia that could keep out future
investors and slow their economic growth.
Looking at India, its troubled past with Pakistan
could limit government finances, increase social
unrest, and limit potential domestic economic
demand.
Brazil is said to just be getting some economic
growth back after years of limited or negative
growth, and slowing foreign investing.
And South Africa has a mixed economy
with a very high rate of poverty and low
GDP per capita.
Nonetheless, whatever the concerns, the
BRICS are drawing large
amounts of attention and
money. Report said the
BRICS were leading the world
in attracting global
investments, as of
May 2011.
6

SMALL AND MEDIUM-
SIZED ENTERPRISES
KNOWN AS
IN
8

Are businesses with great impact in Mexican
economy.
According to the 2014 Economic Census there
are 5, 664, 515 Pymes in Mexico. The 45% of this
enterprises are for the commerce sector, 36% for
financial services and 10% for manufacture.
You can differentiate between a micro, small or
medium sized enterprise by its number of
workers.
Micro: from 1 to 10
Small: from 11 to 50
Medium: from 51-100
95% of Pymes are micro
40% of Mexican jobs are from Pymes
In Mexico there are 4 million 15 thousand
enterprises from which 99.8% are Pymes that
generate 52% of the Gross National Product
(GNP) and 72% of the national jobs.
Because of its dynamism they can growth and
became a big enterprise
They contribute to local and national economy
They have a great administration
They adapt easily new technology
Some disadvantages of SMEs (PYMES) are:
The don’t use utilities to use better technology
It’s difficult to have specialized workers because
they can’t absorb the cost
They have low quality standards.
They can’t absorb the cost of capacitation.
They have problems due to their lack of
organization like hight cost and bad quality,
problems with taxes, lack of financing, non-enough
sales, etc.
Some advantages of SMEs (PYMES) are:
Are a key element for development
They have a great personal and technical
rotation
9

La Asociación Nacional de Importadores y
Exportadores de la República Mexicana, A.C.
invites you to participate in:
Map of exhibition area
The August 11, 2015
in the Mexica Hall
Register only at:
http://feriaanierm.com.mx
10

PRINTER HOTCAKES
WITH
LABEL
The draft Miguel Valenzuela has raised more than
$ 440,000 on Kickstarter; It works with software that lets
you draw any image and move it to the printer.
11

MEXICO CITY - Miguel Valenzuela wanted to
let die his project after investing more than
$ 10,000 in Pancakebot, pancakes printer to
measure the financial resources were finished
and he was not much else to do.
However, an expert in printing technology
blogged on the internet about the commercial
success that this project would someone invest
in it. Valenzuela, who was born in Mexicali just
over four decades ago, decided to make one last
effort and promote their project in Kickstarter,
the collective funding platform on the Internet
where people from all over the world contribute
to make projects a reality.
The response of the people came
almost two days later. "Within 48
hours he had already achieved $
50,000 needed for the project
initially; has been a boom in orders
not completely imagined, "Valenzuela
said in an interview with
CNNExpansión.
A few hours after the end of the call for
funds on Kickstarter, the project has
raised Pancakebot $ 440.000, nearly
6.6 million pesos.
"This project was born from the request of my daughter who wanted desayunáramos pancakes; instead
of using a traditional image, thought I could do something different, with different forms, "said
Valenzuela.
On the site there are more than 2,500 orders Pancakebot, with a trade price of $ 299, and is expected
to reach the hands of consumers in July 2015.
How does it work?
Valenzuela designed an open source application for your
computer that lets you design your own hotcake, tracing any
image with a mouse or with a special table design.
Once the design, the JPG files are stored on an SD card that is
inserted in the side. The printer is filled with the exact amount of
mixture: if it is a large pancake can stop the process, fill again
and continue printing.
The printer, which uses patent pending created by the Mexican
mix food injected into the grid and with a mixture of compressed air and vacuum injection, designed the form that
appears on the grid of the printer.
12

HOW MUCH
MANAGEMENT PROTOCOL
FOR THE
OF
INTERNATIONAL
NEGOTIATIONS?
It is an important aspect as it
helps to improve personal
relationships between
representatives of the
companies, because despite
globalization, cultural
differences in the way we do
business are very significant
especially among Western
countries and among
traditional economies
asiatics- that they make them
the most potential market
growth in the coming years.
14

What are the most common
mistakes people make in this
regard?
The culture and tradition of each country make
people behave differently and if entrepreneurs
who visit this country know not adapt to this
behavior can cause a rejection on the other hand
to hinder or even jeopardize the success his
efforts. But basically there are two common
mistakes: failing to respect the hierarchical level
of the people with whom you negotiate (must be
given deferential treatment to people.
From the point of view of
protocol With which countries is
more difficult to negotiate?
Surely called traditional countries, in this
order: Japan, China and Arab countries.
Although to a Western executive with no
experience in these markets, you might think
there are similarities, thereality is that the
differences can not be higher. For example, the
Japanese seek global agreements that will
maintain and build long-term relationships,
while for Chinese it is financial gain in each
transaction they perform. As regards
communication guidelines, the Japanese are
impassive and educated, whereas the Chinese
gesture more, interrupt and ask a lot.
What aspects of the protocol
should note entrepreneurs when
negotiating with China
In China, the most important thing is to respect
the hierarchy and not to lose face (see answer to
question 2) also devote time to social
relationship (meals and banquets are
important) and make some gifts of different
value, depending on the charge the person to
whom it is given away.
What are your recommendations for a successful
international negotiation?
While negotiating prepare and establish a
different strategy depending on the type of
company and the country in which it is traded.
Never lose your cool, even in extreme situations,
and that weakness is
15

WHAT IS THE
OF
We as students have no idea how
important INCOTERMS, are and to
help us to help manage all operations
in international trade, therefore, this
issue is very important because many
factors here as the price is determined
merchandise and determines the
responsibilities between buyer and
seller.
17

What are Incoterms?
Are international rules, governed by the
International Chamber of Commerce, which
determine the business scopes included in the
international sales contract.
For all transactions performed in international
business Incoterms
Fix that part of the responsibility of the
purchaser and the seller of goods to avoid
conflicts.
Incoterms is also denominated price clauses,
because each term to determine the elements
that compose it. Incoterms selection influences
the cost of the contract.
What determining the
INCOTERMS?
.The Price range in that moment and where the
transfer of risk on goods from the seller to the
buyer occurs.
.The Place of delivery of the goods.
who Hires and pays transportatioN who Hires
and pays the insurance
.What Documents processed each part and its
cost.
What are the INCOTERMS there?
EXW, FAS, FCA, FOB, CFR, CIF, CPT, CIP, DAT,
DAP, and DDP
18

Incoterms are grouped into four categories: E, F, C, D.
E term: EXW: The seller makes the goods available to the buyer at the seller's own premises; that is,
direct delivery to the output.
F terms: FCA, FAS and FOB: The seller is responsible to deliver the goods to a means of transport
chosen by the buyer; that is, an indirect delivery without payment of principal transport.
C terms: CFR, CIF, CPT and CIP: The seller contracts for transportation, but without assuming the
risk of loss or damage to the goods or additional costs due to events occurring after shipment and
dispatch; that is, an indirect delivery with payment of principal transport.
D terms: DAT, DAP and DDP: The seller bears all costs and risks needed to bring the goods to the
country of destination; this is a direct delivery arrival. The costs and risks are transferred at the same
point as the terms E and F. terms
19

WHAT IS AN
AND WHAT ARE THE
TO DO SO?
21

What is Exported?
Export is sold to another
country.
As in any business to export
it requires preparation,
effort, dedication,
perseverance and learning.
You must also consider
exporting as a business that
requires long-term
commitment as the most important benefits of it
will be reflected over time and with your
international sales growth.
Advantages of Export
Access to new markets.
Development and growth of your company to
generate new revenue.
Strengthening the competitiveness of products
in quality and price.
Generating jobs and income for the country.
Mistakes to Export
Lack of market knowledge.
Lack of mechanical export.
Failure times and delivery quantities.
by some countries or by the terms of a letter of
credit to verify the country of origin.
Packing List
This details the contents of each package, this
document includes weights, measures and
detailed contents of each package. It must be
attached to the outside of a package and / or
included in the package.
Bill of Lading
It is a contract between shipper and carrier. The
bill of lading can be a negotiable no knowledge
of, or negotiable shipment, sometimes called
boot bill of lading.
Poor calculation of the export price.
Failure times and delivery quantities.
Exporter impatience for not seeing
immediate results.
Lack of mechanical export.
Poor calculation of the export price.
22

HOW TO
OUR
The experience show to the
best form to have success in
the publicity target market , is
about locate our product and
never leave our position on
the best time , the success to
any effort for locate the
products is only about the
time and the next information
explain 9 forms to locate our
product in the target market-
24

1. Sex- appeal based location
Sex-appeal based persuasion is particularly
effective on markets where teenagers abound
among costumers “ is the only thing you can sell
reiterate to this guys “ like Ken Utech said , the
Chatterm Market Investigation CEO that
produce the loves baby soft perfume leader
among teenagers “ the sexually provocative adds
always works on an institute level” 2 declares Joe
Veneglia.
2. Costumers sex based location
Okamoto industries japans preservatives sell
leaders recently have been released “beyond”
guided to female costumers publicity of general
food international coffees is specifically on
women the campaign leaders identify twenty
magazines that allowed.
3. Civil status based location
AT&T and GE based the respective advertising
campaigns on a familiar values and home
comfort Nestle attracted attention to its instant
coffee label testers choice showing a single man
and single girl each one in search of the soul
mate.
4. Season based location
The virgin island has increased its touristic visits
to 20% to promote themselves like the ideal
place to visit on winter and the same time backs
up has been declined.
5. Region based location
In 1990 KAEPA pointed California to create
demand for sport food wear the operation
resulted as good as all Latin America.
6. Temperature based location
Temperature is another positioning strategy that
can be useful slogans like “no another is as
effective as cold water “have been located artic
power like detergent than cleans in cold water.
7. Own label based location
The instant cereals before 4 years supply chain
labels has been very successful.
8. Made in
Absolut has become in the most popular brand
sold in order to campaigns used in the position
“made in“.
9. Sport based
location
Another strategic used to
show a product as an
element for sporting
people.
25

Strategies to make a business
In the business world there are many people to convince and close important business next there
are some aggressive strategies
1. Lose the control
Many people don’t want see
or listen a person losing the
control, for this reason the
strategies “losing the
control“ this strategy put in
a pressure for give up and
accept his proposes.
2. Intimidate by size
Great companies bought all
the small companies.
3. Intimidate for
reward or punished
Something and when your boss needs something and ask you, high rates.
4. Intimidate for guilt
Usually the client con feel some feelings as a culpability if you have a good relationship with him
5. Judgment day
You will have the control because you will say to different situations.
26

PERSONAL
Are a set of tools that help us to improve our
quality of life and, above all, achieve our
different goals and objectives?
28

That is why they are so important. So they are
also personal: because we all have different
needs and goals.
To apply those tools, you must enter into a
planning process, which helps us to know our
current financial situation, determine our goals
and objectives and to develop strategies that will
guide us toward achieving those goals.
Left office recently CFO of Super Dry brand in
London, to declare bankruptcy; that is, who he
ran a company with a turnover of around 585
million euros was unable to properly carry its
economy. How many Mexican executives they
will be going something similar? There are few.
This phenomenon has surprised all the time
despite having outstanding expertise in finance
and know how to manage a business, many fall
in domestic problems to the degree of collapse.
Any financial problem can be
corrected here are some tips.
1. Educate
Take the time to educate yourself about various
personal finance topics. Agenda appointments
'money' each week on yourself and spend a few
hours in managing your personal finances and
read books, magazines, websites or blogs
finances. The more you know about your own
finances, the more confidence you will have to
manage your money in the long run.
If you need more help, consider hiring a
financial coach who can help you understand
your situation in terms of the money and create
a financial plan to help you achieve your goals.
2. Check your credit regularly
Your credit report is like a file about you and
your credit history. Basically it tells lenders how
risky are and whether or not to lend you money. When
it comes to buying a car or a house, you want your credit
report is in top form, so you can qualify for good rates.
Take the habit of checking your history at least once a
year to confirm that everything is correct. Do it on a
special date (such as your birthday) so that makes you
easy to remember and maintain monitoring. You can
access your history in places such as the Credit Bureau.
3. Hits a budget
Although this sounds very basic, many
entrepreneurs do not have an estimate as to
monitor your monthly income and expenses.
You can use online systems like mint.com to
monitor your personal finances or simply an
Excel document. No matter which one you
choose, make sure it works for you and your
lifestyle.
If you really want to fix your finances and stay
ahead financially, you should devote time and
energy to update your budget each week. This
will help ensure you do not spend more than you
earn and that you are able to save for your
financial goals.
4. Automates your finances
He technology facilitates managing finances
every day. Set your finances so that most of the
process is automatic. You can use automatic
online transfers or pay your bills online each
month. This will help you not stress about
paying your bills on time and earn interest or
extra fees.
If you're worried automate paying your bills,
then you can do is to set alarms on your calendar
(on your computer or smartphone) that remind
you of payments. The more you can automate
your finances, you'll have fewer worries daily.
29

Certification of Origin
of goods for Import and Export
with presence in more than
120 countries
Service is to ensure that a product either imports or exports comply with
the specific rules of origin of the country of which he holds as originating.
30

THE
OF GRUPO
MODELO
It is a leader in the manufacture, distribution and sale
of beer in Mexico and is the seventh area -Busch
Anheuser InBev, a leading global company.
31

It has an annual installed capacity in Mexico to
61.5 million hectoliters of beer; It has 14 brands
that include: Corona Extra, Modelo Especial,
Victoria, Pacifico and Negra Modelo. Exports 7
brands and is present in over 180 countries.
It is the importer in Mexico of Budweiser, Bud
Light and O'Doul's nonalcoholic beer produced
by Anheuser InBev -Busch also imported
Chinese beer Tsingtao and Danish Carlsberg
Spanish Mahou five star.
In 2011, the sale of beer through Modeloramas
grew apace as a result in part of the expansion in
the number of outlets and the improvements
made in his image, which brought our products
to different regions in the country. Furthermore,
in Extra stores we focus on strengthening
processes, improve the shopping experience
through differentiation, implying offer new
services and greater product variety. At year end
we have 960 Extra stores in the country.
Being through their different brands owns 68%
of the beer market in Mexico. Mexican
shareholders who control model could be
coming to an agreement to sell which would
allow them to share in a global company
operated as transnational go shopping and
consolidating the sector. Model Group
continually examines a variety of strategic
options to create value for their actions; These
discussions may or may not result in the
consummation of a transaction and any
speculation on the terms and conditions is
premature. The Wall Street Journal that
Anheuser -Busch public InBev was close to a
deal to buy 50% stake in Grupo Modelo it
does not already own.
COSTS
CONTROL
It also quotes as American Depositary Receipts
(ADR) under the ticker GPMCY in the US OTC
markets and in Latibex in Spain under the
symbol XGMD.
Through a strategic alliance with Nestlé Waters,
it produces and distributes in Mexico the bottled
water brands Santa María and Nestlé Pureza
Vital.
According to the New York Times , the
transaction amount to over 10,000 million (
MDD) .
The economic participation of -Busch Anheuser
InBev is 50.2 % and owns 43.9 % of the shares of
the Mexican company whose share value came
to Grupo Modelo increased by more than 12 % so
the Mexican stock exchange proceeded to
suspend temporarily its price .
Model group had a market value of 22 , 300
(MDD ) and the multiple in which trading and
included a scenario in which InBev got a 100 %
Mexican company ; It has always been very
attractive profit margins and handling are
superior to most breweries worldwide flow
margin is at 30.1 % above 23 % of the sector
internationally.
32

PROCEDURES and ADVICE for
PROPER USE.
33

MIX
Also known as
promotional mix is
a fundamental part
of marketing
strategies for
product
differentiation,
positioning, market
segmentation and
brand management,
among others,
require effective
advocacy to produce
results.
34

In short, the promotion mix is the combination of certain tools such as advertising, personal selling,
sales promotion, public relations, direct marketing, merchandising and white advertising, to achieve
specific goals for the company or organization.
To develop promotional mix we have the following tools advertising.
Advertising
Personal Selling
Sales Promotion
Direct Marketing
Merchandising
Public Relations
Advertising White
Dictionary of Marketing of Cultural
S.A,
The promotional mix is an element of the
marketing mix of the company that serves
to inform the market and persuade
regarding their products and services
It is noteworthy that when making a market study which will be useful and necessary tools for the
promotion of the product or service you’re offering is determined.
In all companies using the promotion, always looking, either, persuade, inform or remind customers
something about your products or services, this occasion to draw attention of customers towards
their organization, raise the sales of a particular product, brand positioning a new product or
redefine the previous one, creating an image of both the product and the company itself, looking for
this buy your product and not the competition.
35

Advertising
Personal Selling
Sales Promotion
Any paid form of nonpersonal
presentation
and promotion of
ideas, goods or services
by an identified
sponsor
Form of sale in which
there is a direct
relationship between
buyer and seller
It consists of short-term
Incentives that encourage
the purchase or sale of a
product or service.
Direct Marketing
Merchandising
Public Relations
Is to establish direct
communication with
individual consumers,
cultivating direct
relationships with them
using the phone, fax, email,
among others.
Is the set of techniques to
manage the selling point for
the rotation of certain
products?
It is to cultivate good
relations with the various
stakeholders (shareholders,
employees, suppliers,
customers, etc. ...)
Advertising White
Is the impersonal way to
stimulate demand or influence
opinion or attitude toward a
group company, through a
communication media that does
not pay the company or
organization that benefits from it.
36

MEDIA MOST
IN THE
38

Television is one of the most important media that has existed and
this is so because thanks to its free as well as easy access allows
millions of people around the world can use it immediately and
easily.
TELEVISION
Radio is all because , at that that listening , constantly
generates mental images that , unlike those other pictures
featuring film, television , print, photograph or video games
, to name a few , are not limited by spaces , or by screens , or
color , or by sounds . And they are not limited by any means,
by radio language; a language which, as we shall see, has a
great expressive richness and extraordinary potential for
exploitation. RADIO
Radio The Internet is another easy: everyone can
communicate their opinions through the network. It is
difficult for individuals involved with the mass media
because it is not easy to ' go ' to them. See in Costa Rica, for
example, get a job in the Nation Group or newscasts hard
time, sometimes years. But with the Internet everyone can
create their own page in order to inform, either about an
academic issue as courses and others, or about events where
they live. Moreover, this medium ensures due on
bidirectional communication scheme since, by means of
what is known Messenger, emails, and forums, individuals
can discuss an issue and exchange information, opinions,
ideas and even other sources of information.
INTERNET
39

A newspaper printed a means of communication that
allows readers to inform, clearly and honestly, what
happens around them. It can be daily, weekly,
biweekly, monthly, bimonthly, semiannually, annually,
etc. Unlike other media, the newspaper can go deeper
into the information, include more issues remain in
time and space, be read as often as desired.
MAGAZINE AND NEWS PAPER
TELEVISION
60%
Magazine and
Newspaper
10%
RADIO
20%
INTERNET
10%
40

(Taiwan, South Korea, Singapore and Hong
Kong)
"Tigers First Generation" were Taiwan, South Korea, Singapore and
Hong Kong, where the latter, went from being a British colony, to be
currently part of continental China.
42

The "East Asian Tigers" (NPI), who in recent
decades surprised the world for its economic
development, as well as its technological
advances, put aside the reality of agricultural
economies, becoming key parts in the
international economic scenario, as
industrialized countries.
These countries implemented economic
elements of the pioneer in the region Japan, for
their own development;
• Maximum savings and investment
• Industry directed mainly export
• Cheap labor and long hours, severe labor
discipline and few social and labor benefits,
again favoring the training of the workforce.
• Economic policy directed towards import
substitution, later becoming exporting
economies. South Korea and Taiwan also receive
strong US funding.
• In Hong Kong, (former British colony, now
owned by China); foreign investment, had a
strong control by the State.
• In Taiwan, mechanical and petrochemical
industries considered strategic belong to public
companies, controlling imports greater than
exports.
• There is a strong protectionism industry from
foreign competition and even to capital inflows
in Korea.
• In Singapore, multinationals occupy a central
place in the rest of the region.
Low wages and lack of job guarantees are great
attractions for multinational companies and
foreign investment, mainly American and
Japanese, plus the government always played a
major role; with a strong protectionism their
industries, control modernization and foreign
investment, as well as inspection and control of
strategic industries such as energy among
others. The developed industries were directed
and controlled by the state, both for the
domestic market, and the external playing a key
role, as its growth had not been substantiated by
any other sector, due to its limitation in land and
natural resources
43

1. GENERAL; THE FOUR TIGERS OR DRAGONS ASIAN
While it can be said that the location of South Korea, Taiwan, Hong Kong and Singapore are similar,
ie, they are located in Southeast Asia, with tropical climate and sub-tropical humid with few mineral
resources, few floors fertile land area and also scarce; the historical situation of these four countries
are different, which is necessary to make a separate study of each country when it came to the real
economic take-off3 in the 70s of the success of these countries it has been based on:
1. The abundance of labor.
2. Low wages (with long workdays)
3. The lack of labor rights.
4. The establishment of port zones, where companies are exempt from taxes, customs duties and
offered a special labor legislation.
44

National and International
Coverage.
45

WHAT ARE THE
OF FOREIGN
TRADE?
46

Foreign trade enables each country to
specialize in the production of those goods
and services for which it has the greatest
relative advantages in comparison with
other countries.
Such geographical specialization helps to
improve the productivity and quality of
goods and services. It also leads to lower
cost of production.
1. GEOGRAPHICAL SPECIALIZATION
Foreign trade helps each country to make
optimum use of its national resources. Each
country can concentrate on production of
those goods for which its resources are best
suited. It can exchange its surplus for those
goods which it is not suited to produce. In
this way wastage of resources is avoided.
2. OPTIMUM USE OF RESOURCES
Foreign trade enables developing countries
like India to import machinery, equipment
and technology for rapid industrialization.
With the help of advanced technology and
capital goods from abroad an
underdeveloped country can use its natural
resources and increase rate of growth. Japan,
United Kingdom and USA have achieved
remarkable economic progress through
imports of raw materials and exports of
manufactured goods.
A country can earn valuable foreign exchange
through exports. Foreign trade also increases
income of government in the form of customs
duty.
3. ECONOMIC DEVELOPMENT
Foreign trade helps each country to produce
not only for home consumption but for
export to other countries also. It creates a
very wide market for the surplus output of a
country.
Every country can sell its surplus goods in
foreign markets. This leads to large scale
production which provides several
advantages.
4. ECONOMIES OF SCALE
Foreign trade generates employment
opportunities by assisting the expansion and
growth of agricultural and industrial
activities. It also offers direct employment to
a large number of intermediaries employed
in export and import trade.
5. GENERATION OF EMPLOYMENT
47

Through foreign trade every country can
obtain the goods and services which are not
produced within the country. Citizens of a
country can enjoy a more variety of goods and
services. Therefore, exchange of goods and
services between countries leads to a higher
standard of living for all.
6. HIGHER STANDARD OF LIVING
Foreign trade helps to equalize prices of
commodities throughout the world markets
after making allowance for transport and
customs duties. Whenever the price of a
commodity tends to rise in a country, imports
can be increased to check the rise in prices.
Similarly, whenever prices of a commodity
decline sharply, the commodity can be
exported in larger quantities to check the fall
in prices. In this way violent fluctuations in
prices can be reduced.
7. PRICE EQUALIZATION
Natural calamities such as famine, flood,
earthquakes, etc. may affect the production of
goods in a country. Deficiency in supply of
essential commodities in the country can be
met by imports from other countries. Foreign
trade can protect a country from starvation.
Food and medicines can be imported from
other countries during emergent conditions.
8. SECURITY FROM FAMINE
Foreign trade requires the best means of
transportation and communication. It
causes development of modern means of
transportation and communication.
10. DEVELOPMENT OF
TRANSPORTATION AND
COMMUNICATION
Through foreign trade people of different
countries come in contact with each other.
There is exchange of culture and ideas and
mutual understanding. Foreign trade,
therefore, contributes to international
cooperation and peace.
It develops cultural and social relations, in
addition to business relations, between
people belonging to different countries.
9. INTERNATIONAL BROTHERHOOD
48

To complement your knowledge in International
Trade and have the world in your hands you can
buy these books:
libros – música - videos
editorial@gripoisef.com.mx
49
www.libreriaisef.com.mx

WHY STUDY
FOREIGN
TRADE ?
WE GIVE 5
50

Few careers today have profitability degree in Foreign Trade,
because after those hard years of investment and study, graduates
find a fertile field work and great opportunities to create their own
business and not be dependent .
New generations of exporters are very interested in exporting
value-added products and rescue traditional products of their
countries , giving them international exposure. As well as with the
tequila , how many products will be waiting to be discovered by
European and Asian markets ?
Mexico has 49 customs 19 in the northern border and two in the
south, 17 offshore and 11 inland . It is one of the countries with
most airports in the world , with a total of 85 , of which 59 are
international ; also it has 19 ports of height . The geographical
position and territorial extension make Mexico a bridge that links
the Atlantic to the Pacific and North America with Central and
South America.
Mexico has 1270 treaties, bilateral 653 , 617 and 12 multilateral free
trade agreements . Tariff preference has more than 46 countries ,
representing a market of one billion consumers , or 60 percent of
global GDP.
National diplomacy is very important for the political and
economic game on the planet. The country is actively involved in
multilateral and regional organizations and forums such as the
World Trade Organization ( WTO), the Asia - Pacifc Mechanism
(APEC ) Economic Cooperation , the Organization for Economic
Cooperation and Development (OECD ) and the Latin American
Association integration ( ALADI) .
51

STRATEGIC
The economy we live in today,
with the technological
development and the opening of
markets means that companies
have to adapt to a dynamic
environment.
The competence and leadership of competitive
advantages, make every day, the structure and
strategies of enterprises to adapt to them.
Consistent with this, there are new directions and
referrals for management and organizational
practices: human resource management,
motivation, culture and leadership among others.
53

It is well known that the structure of an
organization, strategy precedes it, therefore,
when an organization decides to enter new
corporate and business plans and goals, also
suffers from internal changes to enable it to
benefit from this decision .
Today, competition and the entry of new
competitors into the market means that
companies are constantly looking for
opportunities that allow them to not only stay in
the market but highly compete with their
products or services: growth, diversification,
integration, renovation and competitive
advantages are some of these practices.
Within a diversification strategy and corporate
integration are the strategic alliances are formal
connections between two or more companies
that aim, to join forces to achieve a common goal
to which both benefit. We refer to the purchase
or diversification as casting other companies, in
this case related. And growth, which refers to
increased business with the vertical and
horizontal integration of other companies.
Strategic alliances are formal connections
between two or more organizations that are
intended to carry out the formation of
partnerships to help strengthen the
competitiveness of enterprises. They are also
understood as forms of cooperation between
some of the entities that directly influence their
behavior, suppliers, distributors, customers,
new participants, among others.
Partnerships: Partnerships between companies licensing, supply agreements, venture capital
initiatives, joint procurement and many other forms of cooperation, aimed at eliminating or reducing
a significant degree the confrontation between competitors, suppliers, customers, new participants,
and potential producer’s assortment.
54