International Marketing Practices

channels, they are the most appealing alternative for firms planning to enter those markets [1]. Examples of trading companies are EmitBrasil (Brazil), which trades construction machinery; Bahrawi (Saudi Arabia), which specializes in food; and Japan’s sogo soshas , a generic term for trading companies operating in Japan that manage more than half of national trade [109]. Examples of trading companies specializing in forest products are Richmond International Forest Products, which trades mostly wood-based panels and lumber [110], and International Forest Products LLC, which trades pulp and paper products, logs, lumber, and panel products [111]. • U.S. export trading companies. These can be formed to decrease risk and offer economies of scale, thanks to the Export Trading Company Act (ETCA) [112], which facilitates antitrust preclearance for companies that want to start joint export ventures. For example, the Wood Machinery Manufacturers of America was issued an Export Trade Certificate, enabling its members to collaborate on international projects normally hindered by antitrust regulations [113]. • Representatives and distributors. These intermediaries are located in the foreign markets targeted by the exporting firm. This approach requires more exporter involvement; however, it provides more control and closer contact with the overseas customers [1]. • Global retailers. These intermediaries include both brick-and-mortar stores and online sales with international reach [107]. Retailers purchase goods directly from the manufacturer or through other intermediaries and sell to the end consumers in their target markets [107, 108]. Global retailers offer an attractive entry mode for many U.S. producers that do not have significant experience exporting. The choice of which type of trade intermediary a firm may pursue depends on several factors, such as the stage of international business evolution, resources available, export volumes, risk tolerance, and desired involvement in an international marketing operation. The utilization of an intermediary can often be seen as inevitable for small to medium sized exporting firms, as firms often lack the scale and resources to engage in direct export, open foreign sales branches or warehousing facilities, or hire sales personnel in the target market. The Growing Importance of E-Commerce in International Sales e sale f goods and services via the internet, or -commerce, has experienced exponential growth. First-quarter e-commerce sales in the U.S. have grown from just under 4% of total sales in 2009 to over 10% in 2019 [114]. The growth of e- commerce at a global level has been higher than in the U.S., with e-commerce sales growing at a rate of 18% globally versus 15% in the U.S. in 2018 compared with the previous year [115]. In the forest products industry, internet adoption for marketing functions is generally limited to marketing and advertising, with relatively low adoption as an e-commerce tool [116, 117].

43