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basic-guide-to-exporting_Latest_eg_main_086196

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You can also contact the Office of Trade Agreements N<strong>eg</strong>otiations and Compliance (TANC). TANCsystematically moni<strong>to</strong>rs, investigates, and evaluates foreign government compliance with ourinternational trade agreements <strong>to</strong> ensure that U.S. companies and workers receive the full benefi<strong>to</strong>f these agreements. This free program is available <strong>to</strong> assist all U.S. exporters or inves<strong>to</strong>rs facingtrade barriers, but it is particularly valuable <strong>to</strong> small and medium-sized companies, which oftenlack the resources or expertise <strong>to</strong> deal with these problems. It is the U.S. government’s one-s<strong>to</strong>pshop for getting help reducing or eliminating those barriers.The TANC website includes a fully searchable database containing the texts of approximately 250international trade agreements. To assist, TANC provides examples of the most common foreigngovernment-imposed trade barriers at 1.usa.gov/1yRJbr5. This service enables U.S. exporters <strong>to</strong>file complaints about foreign government-imposed trade barriers or unfair trade situations inforeign markets.Buyer preferences in a foreign market may also lead you <strong>to</strong> modify your product. Local cus<strong>to</strong>ms,such as religious practices or the use of leisure time, often determine whether a product ismarketable. The sensory impression a product makes, such as taste, smell, or a visual effect,may also be a critical fac<strong>to</strong>r. For example, Japanese consumers tend <strong>to</strong> prefer certain kinds ofpackaging, leading many U.S. companies <strong>to</strong> redesign car<strong>to</strong>ns and packages that are destined forthe Japanese market. Body size may also be an issue. If a product is made for U.S. body types, itmay not work for people of smaller statures.Market potential must be large enough <strong>to</strong> justify the direct and indirect costs involved in productadaptation. Your company should assess the costs <strong>to</strong> be incurred and, though it may be difficult,should determine the increased revenues expected from adaptation. The decision <strong>to</strong> adapt aproduct is based partly on the d<strong>eg</strong>ree of commitment <strong>to</strong> the specific foreign market; a companywith short-term goals will probably have a different perspective than a company with longtermgoals.Engineering and RedesignIn addition <strong>to</strong> adaptations related <strong>to</strong> cultural and consumer preferences, your company should beaware that even fundamental aspects of products may require changing. For example, electricalstandards in many foreign countries differ from those in the United States. It’s not unusual <strong>to</strong> findphases, cycles, or voltages (for both residential and commercialuse) that would damage or impair the operating efficiency ofequipment designed for use in the United States. Electricalstandards sometimes vary even within the same country.Knowing the requirements, the manufacturer can determinewhether a special mo<strong>to</strong>r must be substituted or if a differentdrive ratio can be achieved <strong>to</strong> meet the desired operatingrevolutions per minute.Electrical standards can vary wildlybetween, and sometimes within,different international markets.Similarly, many kinds of equipment must be engineered in the metric system for int<strong>eg</strong>ration withother pieces of equipment or for compliance with the standards of a given country. The UnitedStates is virtually alone in its adherence <strong>to</strong> a nonmetric system, and U.S. companies that competesuccessfully in the global market realize that conversion <strong>to</strong> metric measurement is an importantdetail in selling <strong>to</strong> overseas cus<strong>to</strong>mers. Even instruction or <strong>main</strong>tenance manuals should provideChapter 8: Preparing Your Product for Export93

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