1. Export Paper Research BASM530

2. Components Demand in destination market Competitive advantage of exporting country/firm Trade costs Marketing issues

3. Demand in destination market Economic growth: Countries that are growing rapidly will buy more of everything. –Economic development: As countries get richer (higher income per capita) they will consume relatively more luxury goods Sector growth: Has consumption of goods in the relevant product sector been growing? Has the sector that uses this product as an input been growing?

4. Demand in destination market Potential demand: You might be able to benchmark against another country. If consumption of a goods per capita is low relative to an international standard (cars, fast food, wine, etc.), then demand may be expected to grow. Import growth Complementary goods: Some goods require complementary goods (e.g., cars need roads). Be sure that the complementary goods are in place.

5. Competitive advantage Factor abundance: Are factors abundant that are used intensively in production of the good? Industry/firm growth Export performance: Have exports of the product been growing? –Is the country a net exporter of the good? –Revealed comparative advantage

6. Trade costs Tariffs Shipping costs Exchange rates: Volatile? Trending?

7. Marketing issues Product: Will the product need to be adapted? Will the firm focus on particular varieties? Promotion: Are there trade fairs/exhibitions? Distribution: Will you market through a local retailer/distributor?

8. Sources of information Lots of links under “Country Research” and “More info” on course webpage What follows are some particular useful ones

9. Demand Business Source Complete: search by using keywords “datamonitor”, industry name, and country name International market research reports from Industry Canada Market Reports from Canada’s Department of Foreign Affairs and International Trade (DFAIT) Global Market Information Database: Very detailed product information Earthtrends: Useful but a bit out-of-date World Development Indicators: Detailed country information

10. Trade/tariff data Canada/US: Use Strategis Other countries: Use Commodity trade Lots of links to tariff schedules Freight costs: may be able to get quotes from shipping companies

11. Exchange rates World Development Indicators has historical information for almost 200 countries My colleague Werner Antweiler maintains a website with current (as well as some historical data).

12. Have fun and good luck!