What is Export? Alejandra Osorio, Lina Aza

1. EXPORT

2. WHAT IS EXPORT?
Is the act of producing goods or
services in one country and
selling or trading them to
another country.

3. IMPORTANCE OF EXPORT
 Need for survival
 Growth and profitability in the long term.
 The entrepreneur doesn’t depend exclusively
on the local market
 Diversifying the risk of operating in one
market.
 Improve corporate image to customers and
suppliers.
 New challenges

4. TYPES OF EXPORT
Exports are divided into
two main categories:
Direct Exports:
The type of exporting in which firms enter
foreign markets directly and do their own
export marketing.

5. Indirect Exports:
The export is made through an
intermediary, who in turn sell to overseas
customers.
Sales are negotiated with a trader in the
exporter's country with payment made in local
currency from the trader's office.
Examples
Manufacture Under Licence
Licensing and Franchising
Project Management
Joint Venture

6. ADVANTAGES
DIRECT EXPORT INDIRECT EXPORT
*More control over the *Provides a way to
export process penetrate foreign markets
without the complexities
*Potentially higher profits
•* Risks of direct exporting.
* Closer relationship to the
overseas buyer and
marketplace

7. BENEFITS OF EXPORT
The decision to export can have direct economic
benefits including the opportunity to
-Expand your business
-Increase profitability
-Spread your risks
-Reduce your dependence on the local
-Use excess production capacity; and
-Buffer against seasonal demand.

8. RISKS OF EXPORTING
While exporting offers great benefits, there are also new
risks you may not previously have encountered, that
need to be considered. Risks include:
Political Risk The political instability of your
destination country
Legal Risk legislation will affect all aspects of
your business transactions.
Financing Risk Credit risk - Transfer risk

9. Transport Risks  include damage, loss, theft
and, for some products, exposure to the
elements
Inadequate Resources  adequate
resources, including raw
materials, components and human and
financial resources to meet the export
requirement.

10. ACTORS INVOLVED IN THE EXPORT PROCESS
-Exporter (individuals or businesses).
-Banks.
-Ministry of Foreign Trade.
-Customs Administration.
-Customs Transport Agent.

11. http://millones.blog.terra.com.pe/2007/10/26/la-
importancia-de-exportar/
http://www.exportcentre.com.au/page18590/-
What-is-Exporting.aspx