main determinant factors of the export success the target of this paper review is to discussing the...

Main Determinant Factors Main Determinant Factors of the Export Successof the Export Success

The target of this paper review is The target of this paper review is to discussing the factors that to discussing the factors that affect and lead to export successaffect and lead to export success

May19,2005May19,2005 Export Success, Basheer HamwiExport Success, Basheer Hamwi 22

What are the benefits of What are the benefits of export success? export success?

1)1) EExport success would improve producer pricesxport success would improve producer prices2)2) Improve the cultivation practicesImprove the cultivation practices3)3) Encourage adopting new varieties. Encourage adopting new varieties. 4)4) Increase production in quantity and quality Increase production in quantity and quality 5)5) Foster economic growthFoster economic growth6)6) Strengthen job securityStrengthen job security7)7) Support foreign exchangeSupport foreign exchange8)8) Support private sector Support private sector 9)9) Create good environment for investmentsCreate good environment for investments10)10) Initiate source of income to a countryInitiate source of income to a country11)11) Increase earning of foreign currency to pay for necessary importsIncrease earning of foreign currency to pay for necessary imports12)12) Improve the standard of living Improve the standard of living


What are the difficulties for D.C in IM to What are the difficulties for D.C in IM to be ES?be ES?

I M have some difficulties for DC related to export for several I M have some difficulties for DC related to export for several

reasonsreasons::1)1) High competitivenessHigh competitiveness2)2) Similarity of agricultural production in developing Similarity of agricultural production in developing

countriescountries 3)3) TThe fluctuation in the market priceshe fluctuation in the market prices 4)4) DDeveloped countries subsidize their agricultural eveloped countries subsidize their agricultural

products depressing the world prices products depressing the world prices 5)5) Developing countries rely mainly on agricultural and Developing countries rely mainly on agricultural and

textiles exports, but these have limited market textiles exports, but these have limited market access in the developed countriesaccess in the developed countries. .


What are the main factors What are the main factors determine export success?determine export success?

I.I. Regulations and legislationsRegulations and legislations

EExport can be hindered by:xport can be hindered by: Inadequate legislation Inadequate legislation PProtection of intermediate products rotection of intermediate products

raises their costs raises their costs Licensing system Licensing system


II.II. Quality StandardizationQuality Standardization Lack of proper quality assurance and grading increases Lack of proper quality assurance and grading increases

the rate of rejects in destination marketsthe rate of rejects in destination markets It is very damaging to lose reputation in the It is very damaging to lose reputation in the

international markets because of low quality international markets because of low quality So, it is necessary to:So, it is necessary to:1)1) DDevelop export specifications, guided by international evelop export specifications, guided by international

standards such as: ISO 9000standards such as: ISO 90002)2) Enhance packaging and storageEnhance packaging and storage3)3) Insist on minimum standards Insist on minimum standards 4)4) Expand extension servicesExpand extension services5)5) It is also essential for exporters to have brand-name It is also essential for exporters to have brand-name

developmentdevelopment


III. ProceduresIII. Procedures

TTrade distorting practices include: rade distorting practices include: Excessive bureaucratic control of Excessive bureaucratic control of

trade trade Non-Trade tariff barriers such as: Non-Trade tariff barriers such as:

export bans, export quotas, and the export bans, export quotas, and the exaggerated documentation exaggerated documentation requirementsrequirements


IV. Research, Studies and IV. Research, Studies and InformationInformation

The most necessary step in this area is establishing institutions The most necessary step in this area is establishing institutions assisting exporters with;assisting exporters with;

Entering foreign marketsEntering foreign markets Providing information on:Providing information on: Market conditions Market conditions Consumer tastesConsumer tastes Training exporters Training exporters Arranging of buyer visitsArranging of buyer visits Implementing Implementing propaganda and advertising programs in foreign propaganda and advertising programs in foreign

markets markets Creating proper trade environment that facilitates predictability Creating proper trade environment that facilitates predictability

and, accordingly, marketing and export planningand, accordingly, marketing and export planning


V. Export FacilitiesV. Export Facilities

IIt is crucial that the governments:t is crucial that the governments:1)1) Implementing efficient essential export InfrastructureImplementing efficient essential export Infrastructure2)2) Simplifying and harmonizing customs procedures Simplifying and harmonizing customs procedures 3)3) Providing an efficient supporting servicesProviding an efficient supporting services4)4) Developing transportation and communications Developing transportation and communications

networks networks 5)5) Reducing all the transactions costs Reducing all the transactions costs 6)6) Allowing access to imported intermediate inputs at world Allowing access to imported intermediate inputs at world

market prices market prices 7)7) Expanding refrigerated facilities either by government or Expanding refrigerated facilities either by government or

by private sectorby private sector


VI. Relation Strengthening through Trade VI. Relation Strengthening through Trade AgreementsAgreements

Market access facilitated under co-operation agreementsMarket access facilitated under co-operation agreements TThe agreements usually allow to: he agreements usually allow to: 1)1) Achieve costs reduction Achieve costs reduction 2)2) Enlarge market size.Enlarge market size.3)3) Facilitate investment.Facilitate investment.4)4) Achieve reciprocal free trade between partnersAchieve reciprocal free trade between partners5)5) Complete or partial exemption of tariffs and non-tariff Complete or partial exemption of tariffs and non-tariff

measuresmeasures6)6) Diversify export sectorsDiversify export sectors7)7) Stimulate competitiveness Stimulate competitiveness 8)8) Change trade policies, laws and regulations Change trade policies, laws and regulations 9)9) Offer an incentive for production increaseOffer an incentive for production increase10)10)AActivate private sector exports ctivate private sector exports


VII. Production Diversification VII. Production Diversification and Improvementand Improvement

CCountries should concentrate on ountries should concentrate on maximizing returns from areas in which maximizing returns from areas in which they have comparative advantagethey have comparative advantage

Countries can not maintain export Countries can not maintain export successfully unless:successfully unless:

Providing availability and stability of Providing availability and stability of supplies as well as price competitivenesssupplies as well as price competitiveness

Diversifying agricultural exportsDiversifying agricultural exports


VIII. Investment VIII. Investment EncouragementEncouragement

There are tight links between export success and investmentThere are tight links between export success and investmentExport success can :Export success can :A.A. Initiate opportunities for great investmentsInitiate opportunities for great investmentsB.B. Enhance investment in the field of export through establishment Enhance investment in the field of export through establishment

of Export-Processing Zones which are generally used to achieve of Export-Processing Zones which are generally used to achieve three goals:three goals:

1)1) Promotion of investment and employment in export-oriented Promotion of investment and employment in export-oriented productionproduction

2)2) Increase foreign exchange earnings from nontraditional exports.Increase foreign exchange earnings from nontraditional exports.3)3) Benefit from free of restrictions on foreign exchange, tariff-free Benefit from free of restrictions on foreign exchange, tariff-free

imports for export production, moderate levels of taxation, imports for export production, moderate levels of taxation, streamlined administrative procedures, and private sector streamlined administrative procedures, and private sector management.management.


IX. IX. Market AccessMarket Access PPromoting market access include all romoting market access include all

the factors that affect competitiveness the factors that affect competitiveness and the incentives for producers to and the incentives for producers to exportexport

Supporting penetration to foreign Supporting penetration to foreign markets can be done through markets can be done through avoiding antiexport bias systemsavoiding antiexport bias systems


X.X. Financial AspectsFinancial Aspects

Failure in export can be resulted from:Failure in export can be resulted from:1)1) TThe absence of trade finance he absence of trade finance 2)2) Costly infrastructure services Costly infrastructure services 3)3) Tax charge on export or on Tax charge on export or on

production production 4)4) Non tariff barriers make transaction Non tariff barriers make transaction

costs excessive and discourage costs excessive and discourage exportexport


XI. Other Activities Related to TradeXI. Other Activities Related to Trade

They include:They include:

1)1) Creation of specialized associations Creation of specialized associations in different fields of agriculture in different fields of agriculture

2)2) Sustainable Natural Resources Sustainable Natural Resources wealthwealth

3)3) strengthening Human Capitalstrengthening Human Capital


The impacts of domestic policies The impacts of domestic policies on exporton export

Domestic policies can improve or hinder export Domestic policies can improve or hinder export In some cases, domestic policies affect export In some cases, domestic policies affect export

negativelynegatively Policies should be consistent both at micro and Policies should be consistent both at micro and

macro levels and not conflict macro levels and not conflict A proper pricing policy can be used as a tool for A proper pricing policy can be used as a tool for

agricultural production increase and quality agricultural production increase and quality improvement, and then for export enhancement improvement, and then for export enhancement

The policy of export liberalization:The policy of export liberalization:1)1) CCreate pressures for increased efficienciesreate pressures for increased efficiencies2)2) Promote competitionsPromote competitions3)3) Accelerate overall economic growthAccelerate overall economic growth


Suggested National Plan to Get Suggested National Plan to Get Export SuccessExport Success

Several considerations should be taken by policy makers when planning to achieve ES:Several considerations should be taken by policy makers when planning to achieve ES:

1)1) Comprehensive Program of Reforms in the economy Comprehensive Program of Reforms in the economy 2)2) Sustainable Agricultural Trade Development Strategy Sustainable Agricultural Trade Development Strategy 3)3) Setting up an Export Policy Setting up an Export Policy 4)4) Creating Specialized Associations Creating Specialized Associations 5)5) Initiating Export Promotion Programs focused on sectors that Initiating Export Promotion Programs focused on sectors that

demonstrate the best growth potential and highest level of demonstrate the best growth potential and highest level of competitiveness competitiveness

6)6) Identifying Companies that have export potential Identifying Companies that have export potential 7)7) Training and assisting exporters to upgrade their skillsTraining and assisting exporters to upgrade their skills8)8) Produce specifically for export Produce specifically for export 9)9) Establishing one unit body responsible for export Establishing one unit body responsible for export

arrangementsarrangements10)10) Implementing Propaganda and Advertising ProgramsImplementing Propaganda and Advertising Programs


conclusionconclusion Nations need to promote export and the most important factors to export success are Nations need to promote export and the most important factors to export success are

1)1) MModifying legislation of foreign trade odifying legislation of foreign trade 2)2) Identifying main targeted markets Identifying main targeted markets 3)3) Identifying main products enjoying high competitive abilities. Identifying main products enjoying high competitive abilities. 4)4) Allowing for promoting technology, diversifying export products Allowing for promoting technology, diversifying export products 5)5) Increasing foreign investment Increasing foreign investment 6)6) Strengthening trade policy institutionsStrengthening trade policy institutions7)7) Making strong contacts with trade partners Making strong contacts with trade partners 8)8) Arranging visits of delegations abroad to explore overseas market Arranging visits of delegations abroad to explore overseas market

opportunitiesopportunities9)9) Organizing participation in international trade fairsOrganizing participation in international trade fairs10)10) Building trust for local goods Building trust for local goods 11)11) Establishing Control Strategies ensuring high quality for export through:Establishing Control Strategies ensuring high quality for export through:a)a) Overall quality enhancement Overall quality enhancement b)b) Introducing price premiums for qualityIntroducing price premiums for qualityc)c) Efficient export-inspection Efficient export-inspection d)d) Exporters insisting on higher quality Exporters insisting on higher quality e)e) Building good reputation in the target marketsBuilding good reputation in the target markets


Thank you all for Thank you all for your kind attentionyour kind attention

main determinant factors of the export success the target of this paper review is to discussing the...

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