International
Business
Trip
Planning
This tool will help small
and medium-sized companies to:
- define their business
travel objectives;
- explore sources of
financial assistance for
international business
travel;
- make all preparations
necessary for a
successful trip;
- follow up on a
business trip abroad.
Using this guide should
help to make international
business travel more
cost-effective, productive and
results oriented. It should
reduce some of the
uncertainties and help
anticipate some of the risks
associated with international
business trips. Finally, it
will help small and
medium-sized enterprises (SMES)
make better use of the
services of the U.
S. Commercial Service both
abroad and in the United
States.
The following are the most
important tasks involved in
preparing for an international
business trip:
Task 1 - Define objectives
- What is it that you hope to
achieve by traveling to the
target country?
Task 2 - Identify sources
of financial assistance - Are
there any organizations that
can provide financial support
for your business travel
abroad?
Task 3 - Pre-travel
consultations - There are many
sources of expertise,
information and advice that
can help you plan your trip.
Task 4 - Prepare for trip -
This step-by-step guide can
help ensure that you do not
overtook anything important in
making your travel
preparations and assuring a
successful trip.
Task 5 - Specific tasks to
be completed during visit -
Develop a clear list of
objectives and tasks for your
trip before you leave.
Task 6 - Review items that
may need follow-up after trip
- The success of a trip
depends on the follow-up that
occurs after it is completed.
To ensure that the
significant amounts of time
and money involved in your
international business trip
are well spent, it's a good
idea to define your travel
objectives. Be absolutely
clear as to what you expect
from the trip and make sure
you have a way of measuring
the trip's success. The
following are some of the most
important reasons for
traveling to a foreign market.
Which of them apply to your
company? Click on any of the
following elements of a
successful international
business trip:
Determining
your objective is considered
by many to be the most
important part of planning an
international business trip.
Don't try to take on more than
you can accomplish. We
recommend that you be
conservative in developing new
markets and that you plan for
success, not excess. The
following sites may be of
assistance:
- http://www.export.gov/comm_svc/
- Homepage for the US
Commercial Service of the
U. S. Department of
Commerce - Hotlinks to
market research, duties,
industry specific
information and more.
Please keep in mind that
many of the services
offered by the Department
of Commerce are time
sensitive - plan ahead.
- http://strategis.ic.gc.ca/engdoc/main.html
- Homepage for Strategis
published by the Canadian
Ministry of Industry. Some
information furnished by
the US Department of
Commerce will be found in
addition to original
research by the Canadian
Government.
- http://www.internationalist.com
- Source for books,
directories, reports, etc.
on international business.
- http://www.i-trade.com
- Information on how to
export/import, target
global prospects, how to
take advantage of NAFTA
Go to
Index
Many
business travelers go to a
foreign market to confirm that
there are real opportunities
for them in that market. They
want to get a sense of how big
the market is for their
product or service.
- Is it growing, and if
so, how fast?
- Who are the customers?
- How can they be reached?
Go to
Index
Even
though a market may be
attractive in terms of size
and demand, there may be
difficulties in gaining
access. Traveling to a country
can help get a sense of the
political environment and how
the government views foreign
business people.
- What is the social and
economic climate in the
country?
- Can you do business
given the country's
regulatory framework
(rules on foreign
exchange,, repatriation of
profits, taxes, tariffs,
standards, inspections
etc.)?
- How will the country's
infrastructure
(transportation,
telecommunications,
institutions etc.) affect
your business?
- What logistical
arrangements would you
have to make to deliver
your products or services?
Go to
Index
In
many cases, products or
services have to be adapted to
suit local conditions. This
may be something as simple as
putting labels in the local
language on a product. Or it
can be as complicated as
redesigning a product to match
local technical requirements.
You may want to use the trip
to the target market as a way
of checking on the suitability
of any of the following:
- Product or service name
- does it translate
appropriately?
- Appearance, shape,
color?
- Marketing approach,
slogans, materials?
approach to distribution,
sales, delivery,
after-sales service
- Functionality - does it
conform to local needs and
expectations?
- Technical standards - do
they conform to local
standards?
Go to
Index
Foreign
trips can be used to assess
the competition.
- What similar products or
services are already
available in the target
market?
- Who provides them -
domestic firms or foreign
suppliers?
- What share of the market
does each competitor
control?
- Is competition intense?
- What are the
capabilities, assets and
strengths of the competing
firms?
- Can your firm match
them?
Go to
Index
Visiting
a target market can be
useful in developing valuable
contacts and leads. Which of
the following would be most
helpful to your firm’s
export strategy:
- brokers and
intermediaries
- agents
- distributors
- suppliers
- partners
- potential clients
- trade associations
- trade magazines
- trade fairs
Go to
Index
A
trip can provide insight
into the various risks
associated with a business
venture. The following are
some of the types of risks you
might want to investigate:
- Political: - this
includes dangers such as
seizure of assets, changes
in the law, changes in
government, mid political
pressure;
- Business risks such as
defaults by clients and
customers, partners,
suppliers; nonperformance,
illegal activity by
associates;
- Exchange rate
fluctuations can have an
impact on the
profitability of a
transaction. We always
recommend quoting in US
Dollars unless competitive
pressures prevail. Then do
so only by hedging your
currency risk. A
good place to check
currency rates is http://www.xe.com/.
Go to
Index
Companies
may wish to visit a target
market as part of the process
of developing a market entry
strategy, and choosing the
best mix of policies relating
to product, price, promotion,
distribution and service, In
light of the information
gathered during the visit,
which of the following
strategies seems most
appropriate:
- indirect exporting
through a trading house;
- exporting through agents
on commission;
- entering into agreements
with local distributors;
- export through a
consortium of associated
firms;
- engage an export
management company;
- hire additional staff to
manage the export effort;
- establish a branch
office in the target
market;
- rely on occasional sales
trips to the foreign
market;
- enter into a
joint-venture with a local
partner;
- or purchase a local firm
or sell a license or
franchise.
Go to
Index
Before You Leave...
Is you passport current?
If not you might want to check
here.
There are many different
individuals who can help you
plan your business trip
abroad. See if you can
identify other US / Michigan
firms that have done business
in the target market and talk
to them about their
experiences. A good source of
information about such firms
are the bilateral business
councils set up to promote
trade between The US and
various countries or regions.
Find out if such a council
exists for the country in
which you are interested.
You might start your search
at the nearest US
Commercial Service office.
A local Chamber of Commerce
may be able to help you
identify sectoral business
associations which can also be
helpful in identifying
companies active in foreign
markets.
A separate issue to
consider is whether or not
there are trade missions being
organized from the US into the
target market. If so, you may
wish to participate in such a
mission. Similarly, trade
shows, commercial fair or
exhibitions offer a good way
of making contact, evaluating
a market or getting known. You
may wish to time your visit to
coincide with such an event.
Once you have done
sufficient preliminary
research to know what you are
looking for, you may wish to
contact the appropriate
country desk officers at the
U. S. Department of Commerce,
your local US Commercial
Service Office and US
commercial staff at the post
in the target country.
Travel Information &
Advisory Reports
The following websites list
numerous online travel
agencies. Many have links to
specific site locations,
hotel, weather, currency
converters, travel advisories,
etc.:
Careful preparation is
needed to ensure the success
of a foreign business trip.
The following is a checklist
that can be used to guide
travel preparations.
Check travel conditions in
target country. The
following are good sources of
information:
For specific country
information concerning
personal safety, health, visa
requirements, cost estimates
and more, you may want to
check out the following before
you go:
| "Travel
Health Online"
offers destination
information, traveler
information including
potential health
problems and listings
of medical
practitioners should
the need arise. |
http://www.tripprep.com/ |
| Geographic
Health Recommendations
from the Center for
Disease Control. |
http://www.cdc.gov/travel/ |
| Maximum
Travel Per Diem
Allowances for Foreign
Areas |
http://www.state.gov/www/ |
| This
listing is for U.S.
citizens traveling on
tourism or
business and does not
apply to persons
planning to emigrate
to foreign countries. |
http://www.travel.state.gov/ |
Select itinerary
- Decide on where you want
to go.
- Which cities do you want
to visit and in what
order? What are they
like? Find out here
or here.
- What are the airports
like that you'll be
visiting. You can
find out here.
- Visit the Travel Agency
sites to examine maps of
the countries you
selected.
Book travel reservations
- What connections are
available between Michigan
and your intended
destinations?
- When do you want to
travel?
- Are discounts or seat
sales available?
You'll need airport codes
to search for many of the
bargains. They can
be found here.
- What are your airline
choices?
- What's the weather like?
You might try The
Weather Channel.
Make hotel reservations
- What events might
conflict?
- How far are you from
your clients?
- How's access to the
airport, mass transit?
Go to the bank
- Get at least enough
local currency to pay for
baggage handling, airport
arrivals and customs
charges and a cab to your
hotel. Green backs
(singles) make good tips
for baggage handlers, but
may not be enough for the
cab. If you're
carrying commercial
samples, make sure that
you have enough cash to
post the necessary bonds
with Customs or prearrange
with a Customs House
Broker.
- Try to charge as much as
possible on your credit
cards to assure the most
advantageous exchange
rates.
Follow Up!
One of the quickest ways to
ruin a successful business
trip is the failure to follow
up with your prospects on your
return by providing them the
information that they need.
If they extended hospitality
to you, send them an
appropriate "thank
you", whether a gift, a
card or a letter.
Likewise, if you're serious
about doing business with that
contact, include them in your
itinerary for your next trip.
Relax and have a good
trip!
Date Updated: March 27, 2007
|
