2. What is
Exporting?
• An export is an operator of global
trade whereby items made in one
country are shipped to a different
country for selling and trading in
time to come.
3. Steps of
Exporting
2.
Construct
Construct an export plan
• Define how you will enter the foreign
market by finalising your human resources
and marketing strategy, and allocate an
adequate budget to cover export start-up
costs.
1. Assess
Assess your market
• Ensure that there are demands for your
products, and that the prices set will earn
profits for your business.
• Look up on your potential competitors so
that the competition is not too strong such
that your business cannot get customers.
4. Steps of
Exporting
3. Choose
Choose your sales
presence
• Establish whether
you need a direct
sales operation, an
agent or distributor.
Plan how you will
manage your
overseas sales
presence, such as
how you will
promote your brand
overseas.
4. Promote
Promote your
product
• Strategise how you
are going to market
and sell your
product. Customise
marketing to the
target country by
defining the locals’
interests and needs
so that the goods will
seem attractive to
the respective locals
in the country.
5. Steps of
Exporting
5. Clearing the customs
Contact relevant government agency and embassy of your
destination country to clarify requirements. Make sure
your reporting practices are watertight. Ensure that you
follow and laws, rules and regulations of the country you
are planning to export to. This is to ensure that your
business will be set-up without any legal complications.
6. Transport goods effectively.
Assess and choose the most effective
transport method (e.g. shipping/air)
and make sure the goods are insured
by you or the importer.
6. Steps of
Exporting
7. After-sales policy
Regularly liaise with customers,
export agents and banks. Monitor
political unrest or other adverse
conditions in the country of
destination so that you can prepare
ahead for any possible
unfavourable economic conditions
that may affect your business.
Manage regular servicing and
warranty claims to ensure that
operations are running smoothly.
7. Advantages of Exporting
1. Diversification
• Entering the global market allows companies to expand
their business and grow their customer base, thus
increasing profits and sales.
• The transformation of the business cycle of the
domestic market would no longer be an issue. Should
there be an economic downturn in a particular country,
it would not affect the company as badly since the
company has globalized their business and have
operations in other countries.
2. New knowledge and skills
• Going global produces valuable ideas and information
about technological advances, marketing skills and
foreign rivals as countries come together to share data.
Businesses acquire new sales strategies and knowledge
by entering the global market.
8. Disadvantages of
Exporting
1. Geography and transportation
• Exporting goods to a distant country is complicated as countries in
different continents uses different systems. If your good will need
to stop by several countries before reaching its destination, there
is a need to check the norms of the respective countries to avoid
any issues or delays from arising. Types of transportation will need
to be considered as the price and time to ship the goods
differ.Shipment insurance can be bought to protect your goods but
they do not cover all countries, so multiple insurance might be
needed, thus the cost spent on insurance will also increase.
2. Payment methods
• The payment methods in different countries are also different,
thus help is needed when trading internationally.
• Currencies are different and there may be a loss in profit
depending on the exchange rates.
9. Disadvantages of
Exporting
3. Different legal norms
• Countries have different laws for trading and there is a need to
look out for that. You should stay informed regarding government
laws for goods safety, especially when you export foods. Some
regulations might delay the export-import process and create
issues for both you and the local importer.
• You might need to obtain certain licenses and permits when you
export to certain countries for the first time and some may need
to be renewed, depending on the country you are exporting to.
4. Language barriers
• Language barriers can be a real issue when trading internationally.
If your importer doesn’t speak the same language things might be
lost in the translation and there will be confusion and possible
misunderstandings.
10. Examples of
Exporting
Vietnam mainly exports crude
oil, textiles, fishery products,
footwear, and electronics to
countries such as the United
States, Japan, China, and
many European nations. The
country also imports large
quantities of refined
petroleum, steel, machinery,
and cloth.
American export that makes its way all
over the world is bourbon, a type of
whiskey originated from the U.S. The
global market has developed quite the
thirst for American bourbon in general,
particularly the 21st century. However, in
2018, trade wars between the U.S. and the
European Union and China have led to
25% tariffs being slapped on the corn-
based spirit, leaving a sour taste in the
mouths of many distillers, exporters, and
distributors.
11. Citations
• Steve J Bicknell. (2014). Will you be exporting in Export Week? Retrieved
May 9, 2019, from https://stevejbicknell.com/2014/11/10/will-you-be-
exporting-in-export-week/
• World Atlas. (2017). Top Commercial Service Exporting Countries. Retrieved
May 2, 2019, from https://www.worldatlas.com/articles/top-commercial-
service-exporting-countries.html
• nibusinessinfo.co.uk. (n.d.). Basics of Exporting. Retrieved May 2, 2019, from
https://www.nibusinessinfo.co.uk/content/ten-key-steps-successful-
exporting
• ExpertBase. (n.d.). Advantages and Challenges of Exporting. Retrieved May 2,
2019, from https://www.expertbase.org/a238-advantages-and-challenges-
of-exporting
• WaysToCap. (n.d.). Difficulties Faced by Exporters in International Trade.
Retrieved May 2, 2019, from https://www.waystocap.com/blog/difficulties-
faced-by-exporters-in-international-trade/
• TradeReady. (2016). Ten Small Countries who are Major Players in the
International Trade World. Retrieved May 2, 2019, from
http://www.tradeready.ca/2016/topics/researchdevelopment/10-small-
countries-major-players-international-trade-world/
• Investopedia. (2019). Export Definition. Retrieved May 2, 2019, from
https://www.investopedia.com/terms/e/export.asp
