1. REASONS FOR EXPORTING
•Dfn. A function of international
trade whereby goods produced in
one country are shipped to
another country for future sale or
trade.
•Also services can be exported too.
•Exporting gives your business
many benefits, including a wider
customer base and increased sales
and productivity, which a singular
market may not be able to deliver.
•WHY DO NATIONS EXPORT
•To offset deficit on BOT
•Increased profitability
•Spreading risks
•Economies of scale
•Enhanced innovation
2. BOT DEFICIT
• The balance of trade is
the difference between
the monetary value of
exports and imports in
an economy over a
certain period of time.
• A positive balance of
trade is known as a trade
surplus and consists of
exporting more than is
imported;
• a negative balance of
trade is known as a trade
deficit or, informally, a
trade gap
3. Increased profitability
• businesses that export are
more profitable than those
that do not export,
(Austrade)
• Foreign markets are more
diverse, with consumer
habits and needs different in
each country, and thus can
offer increase opportunities
for certain products or
services that don't currently
elicit any demand at home.
• Wine in Zim from SA
4. Spreading risks
• Don’t keep your eggs in one basket.
• Liquidity crunch in Zim and Greece.
• USA’s 2009 recession
• Seasonal fluctuations
• ECONOMIES OF SCALE
• lowered average costs as a result of
expanded operations, hence leading to
increased productivity and efficiency.
• Enhanced innovation
• Different markets invariably
have different and often new
ideas, management
practices, marketing
techniques and ways of
competing that you would
not have otherwise
experienced at home
• allow your business to
become more innovative,
competitive and poised to
cope with changing
circumstances.