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Introduction to Exporting - Part 3

Chapter 3   Developing Your Export Plan Why We Need Export Plan? If you plan your export project thoroughly, you’ll have a better chance of doing well in your target market. Bad planning (or no planning) will undermine your prospects of success, and keep in mind that a major failure abroad could severely damage your domestic operations as well. Financial institutions and other lending agencies will not normally provide funds to a business that lacks a well-developed export plan. At other stages of the export process, potential partners and investors may commit themselves only if your plan clearly sets out your objectives along with the processes and resources you’ll use to achieve them. It can seem that exporting is too complicated, but remember that you don’t have to do everything yourself. You can use outside experts such as export management companies, overseas agents, foreign distributors or freight forwarders. While you’re getting established as an exporter, they can ...

Introduction to Exporting - Part 2

Chapter 2 Joining a Global Value Chain   Introduction to Globalization Economic globalization refers to the rapid expansion of international trade and capital flows that has been occurring since the early 1990s and to the increase in foreign direct investment (FDI) that has accompanied this expansion. As a result, the economies of the world’s countries have become much more closely integrated than ever before. That’s the abstract way of looking at globalization. In concrete terms, globalization has caused myriads of businesses to divide their products or services into components. Then, instead of producing the components themselves or obtaining them from domestic suppliers, they outsource certain aspects of the work and acquire these goods or services from suppliers, partners or affiliates in other countries. These components, together with the activities that create them, make up the links of what economists call a global value chain.   Understanding Glob...

Introduction to Exporting - Part 1

1. ASSESSING YOUR EXPORT POTENTIAL Exporting The globalization of the world’s economies has been proceeding rapidly since the early 1990s. Many companies that once used little but domestic materials and labor to manufacture their products or services now go to markets abroad to acquire the resources they need. These developments, coupled with the steady dismantling of trade barriers around the world, have opened up the global marketplace to an unprecedented degree. There are several good reasons would a company that’s already doing well consider becoming an exporter. These reasons including as below: Increased Sales —if domestic sales are good, exporting is a way to expand your market and take advantage of demand around the world. You may also find foreign niche markets where your product is rare or unique. Higher Profits —if you can cover fixed costs through domestic operations or other types of financing, your export profits can grow very quickly. Economi...