Export And Import Strategies

Exports & Imports Exporting refers to the sale of goods or services produced by a company based in one country to customers that reside in a different country Importing is the purchase of goods or services by a company based in one country from sellers that reside in another

Advantages of Exporting Lower investment way to enter foreign markets Lower risk way to enter foreign markets Expands sales Achieves scale economies Diversifies sales

Characteristics of Exporters The probability of a company’s becoming an exporter increases with company size, but the extent of exporting does not directly correlate with size Companies export to increase sales revenues, use excess capacity, and diversify markets

Pitfalls of Exporting Companies new to exporting (and also some experienced exporters) often make many mistakes One way to avoid mistakes is to develop a comprehensive export strategy that includes an analysis of the company’s resources as well as its export potential Companies can also improve the odds of export success by working with an experienced export intermediary

Designing an Export Strategy As a company establishes its export business plan, it must: assess export potential obtain expert counseling select a country or countries where it will focus its exports formulate its strategy determine how to get its goods to market