Advantages of Exporting

In: Business and Management

Submitted By hussainqureshi
Words 384
Pages 2
The reason for your company to consider exporting is quite compelling; the following are few of the major advantages of exporting:

Increased Sales and Profits. Selling goods and services to a market the company never had before boost sales and increases revenues. Additional foreign sales over the long term, once export development costs have been covered, increase overall profitability.

Enhance Domestic Competitiveness. Most companies become competitive in the domestic market before they venture in the international arena. Being competitive in the domestic market helps companies to acquire some strategies that can help them in the international arena.

Gain Global Market Shares. By going international companies will participate in the global market and gain a piece of their share from the huge international marketplace.

Diversification. Selling to multiple markets allows companies to diversify their business and spread their risk. Companies will not be tied to the changes of the business cycle of domestic market or of one specific country.

Lower Per Unit Costs. Capturing an additional foreign market will usually expand production to meet foreign demand. Increased production can often lower per unit costs and lead to greater use ofexisting capacities.

Compensate for Seasonal Demands. Companies whose products or services are only used at certain seasons domestically may be able to sell their products or services in foreign markets during different seasons.

Create Potential for Company Expansion. Companies who venture into the exporting business usually have to have a presence or representation in the foreign market. This might require additional personnel and thus lead to expansion.

Sell Excess Production Capacity. Companies who have excess production for any reason can probably sell their products in a foreign market and not be forced to give…...

Similar Documents

Benefits of Exporting Goods

...Benefits of Exporting Goods By John F Black Ads by Google Export from China Made-in-China.com Wholesale Price from Manufacturers Join Us Today & Inquiry Directly! Export Agent Yiwu China www.Ejetgroup.com Sourcing,Translate,Buying,Inspect Warehouse, Ship, All Export Service Container Shipping Companies www.tgl.by Europe - Kazakhstan. Europe - Russia! Having a business is a difficult. You have to deal with a great deal of red tape while you are starting out. You spend all of your hard earned money on the business and you take on a small loan to get you started. Then, you worry constantly about making payments. You also need to address the problems with payroll, suppliers and customers. All the while, everyone thinks you are making out big while screwing everyone over when in fact you are working harder than anyone out there. It should be good to know that your hard work will soon pay off. You no longer need to scrounge the bottom of the barrel for a limited market full of cheapskates. There is an opportunity where you can sell your goods to a wider market and bring an untapped market to your business. You can do this with the magic of exporting. Exporting is a great way of growing your business because it opens up a multitude of opportunities for you and your business. The most obvious benefit is the additional income it provides. The more people you sell, then the higher income you would likely get. Aside from the added income there are other benefits to exporting......

Words: 541 - Pages: 3

Exporting Wine to Se Asia

...Exporting Oregon Wines to SE Asia With the increasing popularity of Oregon wines, especially its Pinot Noir, state wineries are looking abroad to new markets to expand their reach and increase sales. One of those new emerging markets is Southeast Asia, which consists of Vietnam, Thailand, Singapore, the Philippines, Indonesia, and Malaysia. For the purpose of this paper I have left out Laos, Burma, and Cambodia because of import restrictions and poor demand for imported wines. In 2010, Oregon saw an increase in the number of wine cases exported to 59,537 from 35,664 in 2009. As the fourth largest wine producing state, Oregon is still far behind California, the largest US exporter of wines at 90%. Still the emergence of New World wines, like those in Oregon, continues to increase around the world, and SE Asia is a new and expanding market that has taken a liking to these wines, especially among the affluent. Based on research, this paper will break down by country the perceptions, sociocultural acceptance, competition, taxation and restrictions, distribution channels, and marketing strategies that could be used to introduce Oregon wines. Vietnam In Vietnam, wine is beginning to make inroads with the local peoples in a country where beer and spirits have been the mainstay since the Vietnam War. It saw an increase in US wine imports of 234% between 2010 and 2011 accounting for over $18 million in sales. Most of the wine consumed in the country is by foreigners...

Words: 2562 - Pages: 11

China’s Exporting and the Effect on North America

...China’s exporting and the effect on North America Introduction While it is easy to see why China is becoming more and more powerful in terms of global trading, it is somewhat unfair to mark this country as the reason for the United States economical situation. Some authors, like Robert Scott, claim that the entrance of China into the World Trade Organization (WTO) has negatively affected the United States’ unemployment rate, the jobs production and its income per capita reduction. In the next pages, the report written by Roger E. Scott entitled: ‘Costly Trade with China. Millions of U.S. jobs with net job loss in every state’ will be analyzed to determine what China has been doing to become the number one exporter in the world, as well as the impact that China’s exporting has had in the United States. It also will be determined how costly it has been to the United States to trade with them; what other factors may have affected the United States and its trading capacity; and what the future implies for the commercial relationship between these two countries. Finally, it will be discussed whether or not the United States should seize other opportunities by creating new free trade blocks with another countries in the world, such as the North America Free Trade Agreement (NAFTA) with Mexico and Canada. Review In 2010, China became the number 1 exporter in the world. However, its inclusion in the international trade world was not easy. Its......

Words: 2898 - Pages: 12

Advantages

...Advantages: The technology can allow a great development of the class, because we can find information for class activities, also play videos, listen to recordings and so on. If we give good use of this technology can help us learn in a more dynamic and easy. Disadvantages: The technology in the classroom can be a distraction for students that decentralize its attention to social networks and others. Also the technology does not allow students interact and relate with their peers, making it not can realize a group learning process. Advantages The advantage to use technology at the classroom is that you can use it to help you out with some assignment or some topic of the class and with the network you can use Technology in the classroom streamlines teaching and learning because the students engage in activities that are developed. Is also May it easy and faster to get information because you´ll have more resources, the support of visual´s help. Technology helps to develop classes for students and teachers. Disadvantages The disadvantage of using technology in class is that if you use it without having anything to do with the topic that is being developed in the classroom is a distraction for the student. Another disadvantage is that sometimes is used to chat with peers but not always so, and that’s trouble for the teacher when we’re in class, you just have to use it in class when necessary. advantage - Obtain information in real time. - Any questions you have......

Words: 520 - Pages: 3

Advantage

...important part of our lives. Entertainment and media always go hand in hand, but in addition to the entertainment, mass media also remain to be an effective medium for communication, exchange of information, advertising, marketing, and in general, for expressing and sharing views, opinions, and ideas. Mass media is a double-edged sword which means that there are positive as well as negative influences of media. Advantages : The common man gets the latest news within a fraction of seconds. The distance is not at all a barrier now. The news they get through media help them in their daily life a lot. We get the latest news in our home due to the television set. We can bring out the hidden talent, we can get public opinion about certain events, current issues. Television is quite popular because people can get easy overview from news. Television also entertains and educates people. Children’s knowledge increases by watching geographical channel, quiz programs and speeches by famous personalities of different fields. Radio has its own advantages which others do not have. People mostly listen radio in car and work station. Radio is convenient because people get short news and it is entertaining. Also, radio can be listened via mobile or MP3 player... We have the latest news and information at the click of the mouse! The Internet is such a medium that it can give many options for the kind of information required. Television, movies, Internet and the......

Words: 1644 - Pages: 7

Method of Exporting

...Exporting[edit] Exporting is the process of selling of goods and services produced in one country to other countries.[4] There are two types of exporting: direct and indirect. Direct Exports[edit] Direct exports represent the most basic mode of exporting made by a (holding) company, capitalizing on economies of scale in production concentrated in the home country and affording better control over distribution. Direct export works the best if the volumes are small. Large volumes of export may trigger protectionism. The main characteristic of direct exports entry model is that there are no intermediaries. Types[edit] Sales representatives Sales representatives represent foreign suppliers/manufacturers in their local markets for an established commission on sales. Provide support services to a manufacturer regarding local advertising, local sales presentations, customs clearance formalities, legal requirements. Manufacturers of highly technical services or products such as production machinery, benefit the most form sales representation. Importing distributors Importing distributors purchase product in their own right and resell it in their local markets to wholesalers, retailers, or both. Importing distributors are a good market entry strategy for products that are carried in inventory, such as toys, appliances, prepared food.[5] Advantages[edit] * Control over selection of foreign markets and choice of foreign representative companies * Good information feedback from......

Words: 1329 - Pages: 6

Exporting

...EXPORTING Exporting is one of several methods an international firm can use to penetrate into a foreign market. It is the function of international trade where goods and services alike are sold beyond national borders. There are two types of exporting: 1. Direct Exporting 2. Indirect Exporting Direct Exporting Direct exporting refers to the act of an international firm involving itself directly to the exporting process of foreign market research, distributing the product to the foreign market, establishing market contact and setting up pricing/promotional strategies among other marketing activities. Usually such a firm sets up an exporting department within its organization to perform these tasks. Advantages of this type of export are: 1. Unified Control: As the firm is performing all the exporting tasks; all the authority in regards to exporting is centered in one organization and is not subject to any external pressure such as international marketing intermediaries. 2. Cost and Profit Control: Owing to the fact that there is an export department situated in the organization managing the cost of exports and the profits obtained as a result is easily achieved, this way an organization can increase its efficiency in terms of how it runs its internal affairs. 3. Customer Identification: The international firm is in direct contact with the foreign market that is buying its products, this way it is easier for the firm to identify what its market requires......

Words: 1002 - Pages: 5

Competitve Advantage

...Competitive Advantages Paper MGT/498 Competitive Advantages Paper In today’s global economy, more and more companies are finding it difficult to grow their business domestically. As domestic opportunities decrease, more and more organizations are finding themselves looking for opportunities in the global market searching for ways to gain a competitive advantage. In this paper, team A will analyze the competitive advantage Riordan Manufacturing, Incorporated (Riordan) has in common with other companies, and estimate which competitive strategies Riordan could use to improve innovation and sustainability of business operations both in the United States and in the global market. We will also explain why we chose these competitive strategies and estimate how they might affect sustainability of long-term organizational performance. Finally, we will explain how the global market would affect the business strategy of Riordan. Competitive Advantage Strategies The three competitive strategies that Riordan can capitalize on to improve innovation and sustainability of business operations are research and development, purchasing, and logistics. Riordan us an industry leader in the field of polymer materials solutions and polymer materials research and development and patent licensing. The company should explore strategic advantages through its research and development functions as well as through its Operations Excellence model. Riordan employs detailed process systems and...

Words: 1097 - Pages: 5

Exporting Wine to China

...Chanel Darmanin (54190 m) Management, Communication & Presentation Skills(MGT2051) Individual Assessment - Memo & Report Writing Ms. Claire Briffa Department Of Management 1/11/2011 China as The New Geographical Market To Export Melita Wines Executive Summary In this report focus is brought forward to the Chinese wine Market. A detailed analysis is done on the market, followed by the competition faced by imported products. Key locations in China for wine importation are named and the Chinese drinking habits are analyzed. The Chinese and Maltese relations are studied. And Cisk is taken as a case study as a success story of a Maltese company that is exporting beer to China and is seeing profits. Lastly, the recommendations and way forward are said as a conclusion. Table of Contents Contents Page Title Page 1 Executive Summary 2 Table of Contents 3 Chinese wine industry 4-5 Competition and Pricing 6 Key locations 7 Drinking habits 8 China- Malta relations 9 Case study 10 Recommendations 11 Bibliography 12 * Brief History of the Chinese Wine Industry While there have been commercial wineries in China since the end of the 19th Century, production has only evolved into a serious industry in the past two decades. There are now an estimated 450 wineries, although the largest four......

Words: 2241 - Pages: 9

5 Advantages & Advantages of Ecommerce

...5 Advantages and Disadvantages of E-Commerce We have a lot faster internet connectivity now, and we also get much more powerful tools on websites. It makes increase on the numbers of e-commerce fans. You may want to learn on the advantages and disadvantages so you can earn more benefits from there. The Advantages #1. Cost Effective The entire financial transactions will eventually become electronic, so sooner conversion is going to be lower on cost. It makes every transaction through e-commerce payment a lot cheaper. #2. Higher Margin E-commerce also enables us to move better with higher margin for more business safety. Higher margin also means business with more control as well as flexibility. You can also save time from the e-commerce. #3. Better Productivity Productivity here means productivity for both companies and customers. People like to find answers online because it is faster and cheaper, and it costs a lot cheaper expense as well for the company. #4. Quick Comparison E-commerce also enables you to compare price among several providers. In the end, it leads you to smart shopping. People can save more money while they shop. #5. Economy Benefit E-commerce allows us to make transaction without any needs on stores, infrastructure investment, and other common things we find. Companies only need well built website and customer service. The Disadvantages #1. Security Customers need to be confident and trust the provider of payment method. Sometimes, we......

Words: 434 - Pages: 2

Types of Exporting Smes

...TYPES OF EXPORTING SMEs Until mid-1990s, the reviewed companies in export marketing and per- formance studies were often divided into exporting and non-exporting, or to highly vs. limitedly exporting companies. The past 10 years witnessed an increasing interest toward firms which do not try first to grow and get strong market positions in their home countries and after that start foreign op- erations but rather are involved in foreign operations in their first years of operations or even straightaway start their foreign sales. These firms have been labeled quite differently in various studies: born globals (Knight & Cavusgil, 1996; Madsen & Servais, 1997; Aspelund & Moen, 2001), inter- national new ventures (INVs) (Oviatt & McDougall, 1994, 1995, 1997), global start-ups (Oviatt & McDougall, 1994), or high-technology start-ups (Jolly, Alahuhta, & Jeanet, 1992). More recently, the term born-again global firm has also been proposed, to describe long-established firms that used to focus on their domestic markets, but suddenly opt for rapid internation- alization (see e.g., Bell, McNaughton, & Young, 2001). The main driving forces for the existence of these new types of companies are (see Knight & Cavusgil, 1996; Madsen & Servais, 1997; Rialp, Rialp, & Knight, 2005): (1) the increasing role of niche markets, (2) the advances in process technology, (3) the advances in communication technology, (4) the inherent advances of small companies,...

Words: 2159 - Pages: 9

Exporting Beans

...Contents Executive Summary 2 A-1 Trading Company 3 Global production of beans that our company export 4 Importing Countries 5 Exporting Countries 6 Production of Myanmar 6 Export of Myanmar 7 Vision of the A-1 Trading Company 7 Mission of the A-1 Trading Company 7 Cross-cultural business between Myanmar and India 8 Information about India 9 Absolute advantage of the company 10 Addressing international trade to expand our company 11 Attracting FDI to fund and expand our company 12 Taking advantage on International Opportunities 13 Benefits to consumers 13 Strategies 14 Corporate Strategy 14 Business Strategy 14 Distribution Channel 15 Markets and Segments 16 Customer Segmentation 17 Customer Value Proposition 17 Conclusion 19 Executive Summary The purpose of this assignment is to develop a business strategy for our company, A1 Company Limited. Our company export beans and pulses to India and planning to attract FDI on strategic assets of company to produce value added products made of bean. In this report includes business relationship between Myanmar and India, the advantages we currently have and opportunities for entering other international markets. Also, our marketing plan of targeting customer segments, our company value to customers and our plans to help our suppliers with sophisticated technologies which will be a great help in improving the quality of our products. Finally, our future plan for producing value added......

Words: 4537 - Pages: 19

Ib Exporting a Product

...tones and for the year 2011 it is estimated to be 39.000 tones. In China, the domestic consumption of raisins for the year 2009 was 150.300 tones, for the year 2010 we notice that there was a slight decrease to 126.200 tones but for the year 2011 the consumption increased again in 139.000 tones. In India, the consumption for the year 2009 was 9.300 tones, for the year 2010 was 9.500 and for the year 2011 we observe an increase of the consumption, reaching the 12.000 tones. Moreover, those mentioned countries have low or no production of raisins. For example, China in 2009 had a production of 160.000 tones from which 50.000 tones were used for exporting, having as a result not to be capable of satisfying the domestic demand of the 126.200 tones. Australia in 2009 had a production of 13.600 tones from which 2.800 tones were used for exporting, thus the remaining 10.800 of its production plus the imports which were 22.700 tones were used to cover the domestic demand. India in the other hand, has no raisin production. (USDA, 2011). According to ERS (2010) the estimated per person consumption for raisin is 0,58 kilograms (1,3 pounds) which is significantly low compared to the 1980's (2,1 pounds – 0,95 kilograms). Following these outcomes and the continuously increasing demand for raisin, especially from the BRIC countries, it is decided that the company should pursue to export the Vostizza currant in China, India and Australia. Country Analysis China China is a huge country......

Words: 1978 - Pages: 8

Advantages and Dis Advantages of Recruiting

...Advantages and Dis Advantages of Recruiting The difference between informal and formal recruiting. When using informal recruiting they use advertising public or private employment agencies and help wanted signs in front of a business. The focus is that Informal recruitment is not as costly and it eliminates finder’s fees and other search related expenses that they might incur and the time used to do it. According to Mencken and Winfield (1998) “Informal provides job seekers with access to details about a position and prospective employer that an agency would not know, the informal working environment, or the direction the organization is heading” (p137). The advantage of formal recruiting is that it generates a large pool of applicants which increases the pool of candidates that might need minimal training and procedures and gives more output. It also serves and organization that wants more diversity in there applicant pool. Organizational practices formal recruitment requires a substantial investment of organizational resources and the quality of the recruitments is not assured and the turnover rate is always higher creating a long term cost that some companies cannot afford. The disadvantage of informal recruiting is that there is a small applicant pool which in turn limits the applicants that you will recruit these overall advantages of informal and formal recruiting are the volume of applicants and the quality that they recruit. The disadvantages of......

Words: 348 - Pages: 2

Direct Exporting: Advantages and Disadvantages to Direct Exporting

...Direct exporting means you export directly to a customer interested in buying your product. You are responsible for handling the market research, foreign distribution, logistics of shipment and for collecting payment. The advantages of this method are: Your potential profits are greater because you are eliminating intermediaries. You have a greater degree of control over all aspects of the transaction. You know who your customers are. Your customers know who you are. They feel more secure in doing business directly with you. Your business trips are much more efficient and effective because you can meet directly with the customer responsible for selling your product. You know whom to contact if something isn't working. Your customers provide faster and more direct feedback on your product and its performance in the marketplace. You get slightly better protection for your trademarks, patents and copyrights. You present yourself as fully committed and engaged in the export process. You develop a better understanding of the marketplace. As your business develops in the foreign market, you have greater flexibility to improve or redirect your marketing efforts. The disadvantages: It takes more time, energy and money than you may be able to afford. It requires more "people power" to cultivate a customer base. Servicing the business will demand more responsibility from every level of your organization. You are held accountable for whatever happens. There is no......

Words: 315 - Pages: 2