Scenario: You have been hired as the international marketing manager for Z Energy, a mid-size American manufacturer of all natural soda and energy drinks (see some details below). Because of the success in the US market, they are thinking to expand internationally. Most of their success so far has been in the Asian target markets domestically, therefore they have decided to set Japan as their first global market entry point.

Here is some information about your hypothetical company:

Company employees: 1000

Company revenue: 100 Million annually

Last years profit margin: 20%

Company International Experience: zero.

No existing foreign offices

you have been hired as the international marketing manager for Z Energy, a mid-size American manufacturer of all natural soda and energy drinks. Because of the success in the US market, they are thinking to expand internationally. Most of their success so far has been in the Asian target markets domestically, therefore they have decided to set Japan as their first global market entry point. In the previous discussion forum (Discussion 2), you looked into the methods and transportation options to Japan. Now, the objective is to research the Agency and Distribution contract rules and regulations, and which Incoterms to use. You need to answer the following questions (based on your research in the previous discussion and your new research) - remember to number them clearly and accordingly:

a. Which international body of law does the target country (i.e. Japan) accept? In other words, what body of law do they use for their trade and imports?

b. Would you give exclusivity to your distributors in Japan? Why? or Why not?

c. Based on the methods of export that you chose in Discussion 2, which Incoterm would you use for your exports? Why?