export
TRANSCRIPT
ExportRadek Danč
Summary
Introduction of export
History
Process and actors
Why export?
Advantages of exporting
Disadvantages of exporting
Ways of exporting
Barriers
Making decision
Comparison of countries
What is export?
Goods produced in one country are shipped to
other markets
Ship the goods and services out of the port of a
country
Foreign demand for goods produced by home
country
Additional information
Export vs. Import Exporter X Importer
For many industries of all sizes, small, medium and
big
Domestic producer foreign consumers
The most common way of serving international
markets
History
The oldest branches of economic thought
Major component
Regularly discussed and disputed two views of int. trade
recognizes the benefits of international trade
certain domestic industries (or laborers, or culture) could be
harmed by foreign competition.
Process
Methods of export include a product or good or information being
mailed hand-delivered, shipped by air or vessel, uploaded to an internet site, downloaded from an internet site.
Exports also include the distribution of information that can be sent in the form of an email, an email attachment, a fax or can be shared during a telephone conversation
Actors
Exporter (individuals or businesses)
Banks
Ministry of Foreign Trade
Customs Administration
Customs Transport Agent
Why export?
Increase Sales
extend the market (increase in Global Competition)
respond to overseas buyers
lengthen a product´s life cycle
Minimize competitive risks
Diversify sources of sales and supplies
Avoid changing domestic conditions
turn to different markets
Advantages of export
Enhance domestic competitiveness
Increase sales and profits
Gain global market share
Exploit corporate technology and know-how
Extend the sales potential of existing products
Stabilize seasonal market fluctuations
Enhance potential for corporate expansion
Sell excess production capacity
Gain information about foreign competition
Disadvantages of export
Develop new promotional material
Subordinate short-term profits to long-term gains
Incur added administrative costs
Allocate personnel for travel
Wait longer for payments
Modify your product or packaging
Apply for additional financing
Obtain special export licenses
Ways of Exporting
Direct exporting
The exporting company may create a separate export department to enable its own staff to concentrate on developing new markets abroad
Indirect exporting
Is an independent firm that acts as the export department of the company
A combination export manager A manufacturer´s export agent
Direct exporting
Representatives, distributors, or retailers who are located outside the exporter´s home country
Direct exports are goods and service
Direct selling through distributors
Direct selling through foreign retailers and end
users Direct selling over the Internet
Indirect exporting
selling goods to or through an independent domestic intermediary
customers foreign markets
Barriers
Trade barriers are defined as:
government laws regulations policy practices
protect domestic products from foreign competition
or stimulate exports
StrategicTariffsSubsidies
Barriers
Strategic international agreements limit trade in, and
the transfer of, certain types of goods and information
Tarrifs tax placed on a specific good or set of goods
exported from or imported to a country
Subsidies subsidize an industry or company from
government
Making the export decision
What does the company want to gain from exporting?
Is exporting consistent with other company goals?
What demands will exporting place on the company's key
resources
management and personnel
production capacity
Finance
Are the expected benefits worth the costs, or would company
resources be better used for developing new domestic business?
Country comparison: Exports
Rank Country Exports / $
1. China 1,904,000,000,000
2. United States 1,497,000,000,000
3. Germany 1,408,000,000,000
4. Japan 788,000,000,000
5. France 587,100,000,000
32. Czech Republic 138,500,000,000
55. Colombia 56,220,000,000
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