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Secrets of International Trade

Why Export?

 

Part 1

Part 2

Part 3

 

 
 

In the international market place,
the size of a company is not
an important factor.
 

Reasons for exporting
1. Increase sales and profits through new contacts (export sales may even exceed local sales).
 

2. Create market diversification and help to offset sales fluctuations in the local market.
 

3. Contribute to increase production at optimum level and allow continue growth.
 

4. Provide new opportunities and challenges to management.

 

 

 
 

How to Assess Export Potential?

Many firms has taken the exporting path and are supplying world markets with a wide variety of products.

In the international market place, the size of a company is not an important factor.

Smaller firms can be just as effective as large corporations, provided:
 

1. They have a suitable product.

2. They make a commitment to export.
 

Smaller firms often have the advantage of serving market niches. Multinational firms concentrate on expansion into markets that offer the greatest profit potential and knowingly bypass segments.
 

These bypassed segments can serve as profitable markets for the smaller exporters - they can sense, retrieve, and react to market information more quickly than the larger corporations with their multilevel hierarchy of decision making.
 

The key factor is to have a good product that will satisfy a need in the foreign market - this can be determined by having your product evaluated abroad, via sending samples to prospective agents, distributors or at a trade show.
 

If your product is doing well in your home market - it is a good sign that it will have appeal abroad.

 
You must consider how to get your product into the foreign market. This will includes:
 

 

 

 
Part 1/3 < This Page
Why Export? "In the international market place, the size of a company is not an important factor."

 
Part 2/3
Budgeting for Export, Production for Export, Organizing for Export and Export Communication

 
Part 3/3
Procedures for Exporting, Export Marketing Plan and Getting Export Information


 

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