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EXPORT
WHAT IS EXPORT?


Is the act of producing goods or
    services in one country and
     selling or trading them to
          another country.
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
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.
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
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
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.
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
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.
ACTORS INVOLVED IN THE EXPORT PROCESS


-Exporter (individuals or businesses).
-Banks.
-Ministry of Foreign Trade.
-Customs Administration.
-Customs Transport Agent.
http://millones.blog.terra.com.pe/2007/10/26/la-
  importancia-de-exportar/
http://www.exportcentre.com.au/page18590/-
  What-is-Exporting.aspx

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E x p o r t

  • 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.