1. Export And Import Strategies

2. 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

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

4. 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

5. 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

6. 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