The document provides an overview of export, including its definition as goods produced in one country being shipped to other markets. It discusses the history and process of export, identifying key actors like exporters, banks, and customs agencies. The document outlines reasons for exporting like increasing sales and diversifying sources of revenue. It also examines advantages and disadvantages as well as direct and indirect methods of export. Barriers to export and factors to consider in the export decision-making process are presented. Country-level export data is given to facilitate comparisons.
2. Summary
Introduction of export
History
Process and actors
Why export?
Advantages of exporting
Disadvantages of exporting
Ways of exporting
Barriers
Making decision
Comparison of countries
3. What is export?
Goods produced in one country are shipped to other
markets
Ship the goods and services out of the port of a
country
Foreign demand for goods produced by home country
4. Additional information
Export vs. Import Exporter X Importer
For many industries of all sizes, small, medium and big
Domestic producer foreign consumers
The most common way of serving international markets
5. History
The oldest branches of economic thought
Major component
Regularly discussed and disputed two views of int. trade
recognizes the benefits of international trade
certain domestic industries (or laborers, or culture) could be
harmed by foreign competition.
6. Process
Methods of export include a product or good or
information being
mailed hand-delivered,
shipped by air or vessel,
uploaded to an internet site,
downloaded from an internet site.
Exports also include the distribution of information
that can be sent in the form of an email, an email
attachment, a fax or can be shared during a telephone
conversation
7. Actors
Exporter (individuals or businesses)
Banks
Ministry of Foreign Trade
Customs Administration
Customs Transport Agent
8. Why export?
Increase Sales
extend the market (increase in Global Competition)
respond to overseas buyers
lengthen a product´s life cycle
Minimize competitive risks
Diversify sources of sales and supplies
Avoid changing domestic conditions
turn to different markets
9. Advantages of export
Enhance domestic competitiveness
Increase sales and profits
Gain global market share
Exploit corporate technology and know-how
Extend the sales potential of existing products
Stabilize seasonal market fluctuations
Enhance potential for corporate expansion
Sell excess production capacity
Gain information about foreign competition
10. Disadvantages of export
Develop new promotional material
Subordinate short-term profits to long-term gains
Incur added administrative costs
Allocate personnel for travel
Wait longer for payments
Modify your product or packaging
Apply for additional financing
Obtain special export licenses
11. Ways of Exporting
Direct exporting
The exporting company
may create a separate
export department to
enable its own staff to
concentrate on
Indirect exporting
developing new markets
abroad Is an independent firm that acts as
the export department of the
company
A combination export manager
A manufacturer´s export agent
12. Direct exporting
Representatives, distributors, or retailers who are
located outside the exporter´s home country
Direct exports are goods and service
Direct selling through distributors
Direct selling through foreign retailers and end users
Direct selling over the Internet
14. Barriers
Trade barriers are defined as:
government laws
regulations protect domestic products
policy from foreign competition
or stimulate exports
practices
Strategic
Tariffs
Subsidies
15. Barriers
Strategic
international agreements limit trade in, and the
transfer of, certain types of goods and
information
Tarrifs
tax placed on a specific good or set of goods
exported from or imported to a country
Subsidies
subsidize an industry or company from
government
16. Making the export decision
What does the company want to gain from exporting?
Is exporting consistent with other company goals?
What demands will exporting place on the company's key resources
management and personnel
production capacity
Finance
Are the expected benefits worth the costs, or would company
resources be better used for developing new domestic business?
17. Country comparison: Exports
Rank Country Exports / $
1. China 1,904,000,000,000
2. United States 1,497,000,000,000
3. Germany 1,408,000,000,000
4. Japan 788,000,000,000
5. France 587,100,000,000
32. Czech Republic 138,500,000,000
55. Colombia 56,220,000,000