The document discusses small and medium sized enterprises (SMEs) and export consortia. It defines SMEs and explains their importance, noting they account for over 50% of employment globally. Export consortia are described as voluntary alliances of firms that work together to promote exports, helping SMEs overcome barriers to exporting like lack of knowledge, financing, and meeting quality standards. The benefits of export consortia include risk reduction through diversification, improved profitability by sharing costs, efficiency gains from pooling resources, and knowledge accumulation. The document outlines different types of export consortia based on services provided and sector/region. In conclusion, export consortia are presented as an important mechanism for SMEs in OIC countries to
Charles Hills defines globalization as "The shift towards a more integrated and interdependent world economy". Globalization has two main components - the globalization of markets and the globalization of production.
According to International Monetary Fund, globalization means "the growing economic interdependence of countries worldwide through increasing volume and variety of cross border transactions in goods and services and of international capital flows and also through the more rapid and widespread diffusion of technology. Interdependency and integration of individual countries of the world is also called as globalization”.
Introduction to International BusinessAshwin Kumar
Introduction to International Business is a comprehensive study of the various aspects of International Business. This presentation will provide better insights into the definition, nature, scope, characteristics, approaches, reasons, advantages and disadvantages.
This document provides an overview of a class on international business and trade. The class rules require students to keep their microphones muted but cameras on, and to use the chat box to greet any visitors. The objective is for students to better understand international business dimensions and opportunities in global markets, with a focus on exports and examples from local and foreign experiences. A video on the role of trade in economic growth and poverty reduction is assigned for students to watch. The document then discusses how open trade policies can promote economic growth for all.
Globalization refers to the increasing integration and interaction of economies, markets, technologies and cultures around the world. There are several key aspects of globalization, including the integration of economies and financial markets, opportunities for businesses and labor to operate internationally, and the growth of multinational corporations. While globalization can generate economic opportunities, its benefits are often unevenly distributed and can increase inequality between rich and poor. Major players in globalization include multinational firms, organizations like the WTO that negotiate trade agreements, and the World Bank and IMF that provide loans to governments. For firms to operate globally, they must consider factors like market regulations, infrastructure, government support, resources and competitors in foreign markets when deciding how to enter new countries
This document provides an overview of international business. It begins by defining international business as any business operations that cross national borders, including trade, investment, and value-addition activities across countries. It then discusses the objectives of international business such as expanding sales, acquiring resources, and diversifying risk. Modes of international business include exports/imports, foreign direct investment, and strategic alliances. The document also covers the importance of international business for national economies, exporting firms, and maintaining political/economic relations. It identifies challenges such as navigating foreign laws, currency fluctuations, and cultural differences. Finally, it discusses the concepts of liberalization and privatization as drivers of international business.
This document provides an introduction to international business. It defines international business as trade and investment activities conducted across national borders. Firms internationalize through activities like exporting, importing, and foreign direct investment. The document also discusses the key participants in international business, common reasons why firms pursue international expansion, and some of the main risks involved. Studying international business can provide firms with competitive advantages like access to new markets and resources.
The document discusses factors to consider when developing a global marketing strategy. It covers evaluating the global marketing environment, deciding whether and where to enter foreign markets, and determining how to enter markets. Key decisions include choosing standardized vs adapted global marketing, and strategies for products, pricing, promotion and distribution channels in different countries and cultures. The overall aim is to adapt the marketing mix to local conditions while maintaining a coherent global branding strategy.
Charles Hills defines globalization as "The shift towards a more integrated and interdependent world economy". Globalization has two main components - the globalization of markets and the globalization of production.
According to International Monetary Fund, globalization means "the growing economic interdependence of countries worldwide through increasing volume and variety of cross border transactions in goods and services and of international capital flows and also through the more rapid and widespread diffusion of technology. Interdependency and integration of individual countries of the world is also called as globalization”.
Introduction to International BusinessAshwin Kumar
Introduction to International Business is a comprehensive study of the various aspects of International Business. This presentation will provide better insights into the definition, nature, scope, characteristics, approaches, reasons, advantages and disadvantages.
This document provides an overview of a class on international business and trade. The class rules require students to keep their microphones muted but cameras on, and to use the chat box to greet any visitors. The objective is for students to better understand international business dimensions and opportunities in global markets, with a focus on exports and examples from local and foreign experiences. A video on the role of trade in economic growth and poverty reduction is assigned for students to watch. The document then discusses how open trade policies can promote economic growth for all.
Globalization refers to the increasing integration and interaction of economies, markets, technologies and cultures around the world. There are several key aspects of globalization, including the integration of economies and financial markets, opportunities for businesses and labor to operate internationally, and the growth of multinational corporations. While globalization can generate economic opportunities, its benefits are often unevenly distributed and can increase inequality between rich and poor. Major players in globalization include multinational firms, organizations like the WTO that negotiate trade agreements, and the World Bank and IMF that provide loans to governments. For firms to operate globally, they must consider factors like market regulations, infrastructure, government support, resources and competitors in foreign markets when deciding how to enter new countries
This document provides an overview of international business. It begins by defining international business as any business operations that cross national borders, including trade, investment, and value-addition activities across countries. It then discusses the objectives of international business such as expanding sales, acquiring resources, and diversifying risk. Modes of international business include exports/imports, foreign direct investment, and strategic alliances. The document also covers the importance of international business for national economies, exporting firms, and maintaining political/economic relations. It identifies challenges such as navigating foreign laws, currency fluctuations, and cultural differences. Finally, it discusses the concepts of liberalization and privatization as drivers of international business.
This document provides an introduction to international business. It defines international business as trade and investment activities conducted across national borders. Firms internationalize through activities like exporting, importing, and foreign direct investment. The document also discusses the key participants in international business, common reasons why firms pursue international expansion, and some of the main risks involved. Studying international business can provide firms with competitive advantages like access to new markets and resources.
The document discusses factors to consider when developing a global marketing strategy. It covers evaluating the global marketing environment, deciding whether and where to enter foreign markets, and determining how to enter markets. Key decisions include choosing standardized vs adapted global marketing, and strategies for products, pricing, promotion and distribution channels in different countries and cultures. The overall aim is to adapt the marketing mix to local conditions while maintaining a coherent global branding strategy.
This document discusses international business management. It defines international business as business operations conducted across more than one country that requires specialized knowledge of different business regulations, customs, laws, and managing transactions across currencies. Key features of international business discussed include large scale operations, integrating economies across countries, domination by developed countries and multinational corporations, benefits to participating countries, and keen global competition. The document also covers internationalization of business, advantages of internationalization, differences between internationalization and globalization, and factors driving globalization of businesses like reduced trade barriers and growth of the internet and multinational corporations.
This document provides an overview of international business and trade. It discusses the objectives and meaning of international business courses. The key types of international business are export/import trade, foreign direct investment, licensing, franchising, and management contracts. Franchising and licensing are described in more detail. The document also covers the need for and drivers of internationalization, as well as the differences between international and domestic business. It discusses various approaches to international business such as ethnocentric, polycentric, and regiocentric approaches. Globalization and its impacts are also summarized.
Small businesses constitute over half the businesses and employment in many developed economies. While definitions of small business vary, they are generally defined as having fewer than 500 employees. There are incremental stages of internationalization that small businesses may go through, from passive exporting to establishing production facilities abroad. Overcoming barriers to internationalization like limited resources requires developing a global culture, gaining experience, and leveraging advantages like flexibility and speed. New small business international strategies include being a first mover, copycatting successful products, or pursuing technological leadership.
Displays the description of the model of export consortia in a perspective of internationalization of companies. Additionally shown several cases of Export Consortia in Latin America, developed under the auspices of UNIDO
The document discusses various strategies that companies can use to enter and compete in foreign markets, including exporting, importing, licensing, franchising, foreign direct investment, strategic alliances, joint ventures, and consortia. It describes the reasons why companies expand internationally, factors that shape foreign market strategy choices, and how government policies and market conditions vary between countries.
This document discusses different types of companies and methods for raising capital. It differentiates between goods producing and service businesses, and identifies small and medium enterprises (SMEs) as making up over 98% of companies globally and playing a key economic role. The document also examines franchising as a capital raising method, describing it as a contractual relationship where a franchisee operates under a franchisor's brand and guidance in exchange for fees. Lastly, it outlines various options for company financing, including venture capital, business angels, initial public offerings, incubators, and crowdfunding.
Globalization refers to the increasing integration of economies around the world through cross-border trade and financial flows. It allows businesses to expand internationally to access new markets, raw materials, lower costs, and talent. While globalization increases productivity and living standards, it also results in job losses and increased competition. For businesses and countries to benefit from globalization, they require an open policy environment, infrastructure, government support, resources and competitiveness. Multinational companies play a major role in globalization by operating in multiple countries.
The document discusses different aspects of international business. It begins by defining international business as all commercial transactions that occur between two or more countries, including sales, investments, and transportation. It then explains the four main types of international business: 1) exporting, 2) licensing, 3) franchising, and 4) foreign direct investment (FDI). FDI refers to building new facilities in another country and can take the form of joint ventures or wholly-owned subsidiaries. The document provides details on each of the four types of international business.
Global market place, discuss barriers in marketing,
1. Looking at the Global Marketing Environment
2. Deciding Whether to Go Global:-
3. Deciding Which Markets to Enter
4. Deciding How to Enter the Market
5. Deciding on the Global Marketing Organization
In this presentation we will discuss all the methods by which we can be able to inter in the global market.........
Internationl Business and how businesses go internationalSampath Sredharran
International business involves commercial transactions that cross national borders, such as exports, imports, foreign direct investment, and international trade agreements. It differs from domestic business in several key ways: international business operates on a global scale, faces more restrictions and regulations between countries, and must consider factors like multiple currencies, cultures, and quality standards. Conducting business internationally requires huge capital investments but also provides access to large customer bases around the world.
Introduction international trade and globalization Sujan Oli
International business involves commercial transactions that occur between two or more countries. It includes exports and imports of goods, services, technology, capital, and managerial knowledge. Companies that conduct international business, known as multinational corporations, have several options for doing business abroad, such as exporting, licensing, joint ventures, foreign direct investment through branches or subsidiaries, and providing services. International business integrates the economies of many countries and allows companies to take advantage of resources and markets globally. However, it also faces challenges such as restrictions, competition, and sensitivity to changes in political and economic conditions.
Its aim is for businesses in developing countries to become more competitive in global markets, speeding economic development and contributing to the achievement of the UN’s (MDGs)
Contributing to poverty reduction by boosting trade is a key objective of ITC’s trade related technical assistance (TRTA). This is also the focus of the Aid for Trade agenda.
This document discusses the requirements for small companies to be successful in internationalization. It outlines criteria for defining small businesses and notes that internationalization is driven by small domestic markets and saturation. Two models of internationalization are described: the Uppsala model of incremental stages and "born global" firms that directly enter global markets from inception. Successful internationalization requires understanding factors that allow small companies to overcome resource constraints.
This document discusses firms and their classification, growth, and economics of scale. It begins by classifying firms by industry, sector, ownership, and size. Small firms exist for several reasons like market size, consumer preferences, and flexibility. Firms can grow internally or externally through mergers. Mergers can be horizontal, vertical, or conglomerate, and are often done to achieve rationalization. Economics of scale refer to lower costs from increased production, while diseconomies refer to higher costs. Both internal and external scales can impact firms and industries.
This document discusses various global production, marketing, financial and human resource management strategies for businesses. It covers four main location strategies for global production networks: centralized global production, regional production, regional specialization, and vertical transnational integration. It also discusses global supply chain issues and management. Other topics include scale of operations, sources of funding, exchange rate risk management, strategic orientation approaches, selecting and roles of expatriate managers, international training and development, and make-or-buy decisions.
HP pursues a diversification strategy operating in multiple industries globally. It has a wide range of computing and printing products. While it has strong brand recognition and innovative products, it faces threats from competitors' pricing and technology. To mitigate risks, HP expands retail stores, pursues joint ventures, and develops easy-to-use products for retirees. It also works to improve technology and compatibility. Overall, HP's diversification strategy provides opportunities for growth but also comes with challenges in managing risks from competitors and changes in different markets and industries.
As companies, both large and small, search for new
international markets in today’s global economy, they appreciate the differences between trading in their home market, with its known parameters, and marketing products overseas
This document provides information about tuberculosis (TB) including how it spreads, the difference between TB infection and disease, testing procedures, and treatment options. It explains that TB is caused by airborne germs which spread through prolonged contact with an active case. Testing determines whether a person has been exposed but not infected, or infected but not yet sick. Those infected can be treated to prevent active disease, while active TB requires medication to cure it. Contact tracing helps identify others who may have been exposed for testing.
Malaria is caused by parasites transmitted via mosquito bites. While malaria was once widespread, concerted control efforts have led to its elimination in 99 countries. However, malaria remains endemic in many parts of the world, killing over 600,000 people annually. Ongoing challenges to elimination include drug and insecticide resistance, environmental changes, and sustaining funding and commitment. Continued research into new tools and strategies aims to drive transmission down to zero and achieve global eradication of this disease.
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This document discusses international business management. It defines international business as business operations conducted across more than one country that requires specialized knowledge of different business regulations, customs, laws, and managing transactions across currencies. Key features of international business discussed include large scale operations, integrating economies across countries, domination by developed countries and multinational corporations, benefits to participating countries, and keen global competition. The document also covers internationalization of business, advantages of internationalization, differences between internationalization and globalization, and factors driving globalization of businesses like reduced trade barriers and growth of the internet and multinational corporations.
This document provides an overview of international business and trade. It discusses the objectives and meaning of international business courses. The key types of international business are export/import trade, foreign direct investment, licensing, franchising, and management contracts. Franchising and licensing are described in more detail. The document also covers the need for and drivers of internationalization, as well as the differences between international and domestic business. It discusses various approaches to international business such as ethnocentric, polycentric, and regiocentric approaches. Globalization and its impacts are also summarized.
Small businesses constitute over half the businesses and employment in many developed economies. While definitions of small business vary, they are generally defined as having fewer than 500 employees. There are incremental stages of internationalization that small businesses may go through, from passive exporting to establishing production facilities abroad. Overcoming barriers to internationalization like limited resources requires developing a global culture, gaining experience, and leveraging advantages like flexibility and speed. New small business international strategies include being a first mover, copycatting successful products, or pursuing technological leadership.
Displays the description of the model of export consortia in a perspective of internationalization of companies. Additionally shown several cases of Export Consortia in Latin America, developed under the auspices of UNIDO
The document discusses various strategies that companies can use to enter and compete in foreign markets, including exporting, importing, licensing, franchising, foreign direct investment, strategic alliances, joint ventures, and consortia. It describes the reasons why companies expand internationally, factors that shape foreign market strategy choices, and how government policies and market conditions vary between countries.
This document discusses different types of companies and methods for raising capital. It differentiates between goods producing and service businesses, and identifies small and medium enterprises (SMEs) as making up over 98% of companies globally and playing a key economic role. The document also examines franchising as a capital raising method, describing it as a contractual relationship where a franchisee operates under a franchisor's brand and guidance in exchange for fees. Lastly, it outlines various options for company financing, including venture capital, business angels, initial public offerings, incubators, and crowdfunding.
Globalization refers to the increasing integration of economies around the world through cross-border trade and financial flows. It allows businesses to expand internationally to access new markets, raw materials, lower costs, and talent. While globalization increases productivity and living standards, it also results in job losses and increased competition. For businesses and countries to benefit from globalization, they require an open policy environment, infrastructure, government support, resources and competitiveness. Multinational companies play a major role in globalization by operating in multiple countries.
The document discusses different aspects of international business. It begins by defining international business as all commercial transactions that occur between two or more countries, including sales, investments, and transportation. It then explains the four main types of international business: 1) exporting, 2) licensing, 3) franchising, and 4) foreign direct investment (FDI). FDI refers to building new facilities in another country and can take the form of joint ventures or wholly-owned subsidiaries. The document provides details on each of the four types of international business.
Global market place, discuss barriers in marketing,
1. Looking at the Global Marketing Environment
2. Deciding Whether to Go Global:-
3. Deciding Which Markets to Enter
4. Deciding How to Enter the Market
5. Deciding on the Global Marketing Organization
In this presentation we will discuss all the methods by which we can be able to inter in the global market.........
Internationl Business and how businesses go internationalSampath Sredharran
International business involves commercial transactions that cross national borders, such as exports, imports, foreign direct investment, and international trade agreements. It differs from domestic business in several key ways: international business operates on a global scale, faces more restrictions and regulations between countries, and must consider factors like multiple currencies, cultures, and quality standards. Conducting business internationally requires huge capital investments but also provides access to large customer bases around the world.
Introduction international trade and globalization Sujan Oli
International business involves commercial transactions that occur between two or more countries. It includes exports and imports of goods, services, technology, capital, and managerial knowledge. Companies that conduct international business, known as multinational corporations, have several options for doing business abroad, such as exporting, licensing, joint ventures, foreign direct investment through branches or subsidiaries, and providing services. International business integrates the economies of many countries and allows companies to take advantage of resources and markets globally. However, it also faces challenges such as restrictions, competition, and sensitivity to changes in political and economic conditions.
Its aim is for businesses in developing countries to become more competitive in global markets, speeding economic development and contributing to the achievement of the UN’s (MDGs)
Contributing to poverty reduction by boosting trade is a key objective of ITC’s trade related technical assistance (TRTA). This is also the focus of the Aid for Trade agenda.
This document discusses the requirements for small companies to be successful in internationalization. It outlines criteria for defining small businesses and notes that internationalization is driven by small domestic markets and saturation. Two models of internationalization are described: the Uppsala model of incremental stages and "born global" firms that directly enter global markets from inception. Successful internationalization requires understanding factors that allow small companies to overcome resource constraints.
This document discusses firms and their classification, growth, and economics of scale. It begins by classifying firms by industry, sector, ownership, and size. Small firms exist for several reasons like market size, consumer preferences, and flexibility. Firms can grow internally or externally through mergers. Mergers can be horizontal, vertical, or conglomerate, and are often done to achieve rationalization. Economics of scale refer to lower costs from increased production, while diseconomies refer to higher costs. Both internal and external scales can impact firms and industries.
This document discusses various global production, marketing, financial and human resource management strategies for businesses. It covers four main location strategies for global production networks: centralized global production, regional production, regional specialization, and vertical transnational integration. It also discusses global supply chain issues and management. Other topics include scale of operations, sources of funding, exchange rate risk management, strategic orientation approaches, selecting and roles of expatriate managers, international training and development, and make-or-buy decisions.
HP pursues a diversification strategy operating in multiple industries globally. It has a wide range of computing and printing products. While it has strong brand recognition and innovative products, it faces threats from competitors' pricing and technology. To mitigate risks, HP expands retail stores, pursues joint ventures, and develops easy-to-use products for retirees. It also works to improve technology and compatibility. Overall, HP's diversification strategy provides opportunities for growth but also comes with challenges in managing risks from competitors and changes in different markets and industries.
As companies, both large and small, search for new
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A proprietary approach developed by bringing together the best of learning theories from Psychology, design principles from the world of visualization, and pedagogical methods from over a decade of training experience, that enables you to: Learn better, faster!
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPRAHUL
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
environment for investigating the changes in vegetation cover dynamics. Our study utilizes
advanced technologies such as GIS (Geographic Information Systems) and Remote sensing to
analyze the transformations that have taken place over the course of a decade.
The complex relationship between human activities and the environment has been the focus
of extensive research and worry. As the global community grapples with swift urbanization,
population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
these activities. As the most crucial natural resource, its utilization by humans results in different
'Land uses,' which are determined by both human activities and the physical characteristics of the
land.
The utilization of land is impacted by human needs and environmental factors. In countries
like India, rapid population growth and the emphasis on extensive resource exploitation can lead
to significant land degradation, adversely affecting the region's land cover.
Therefore, human intervention has significantly influenced land use patterns over many
centuries, evolving its structure over time and space. In the present era, these changes have
accelerated due to factors such as agriculture and urbanization. Information regarding land use and
cover is essential for various planning and management tasks related to the Earth's surface,
providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
these patterns indicate shifts in economic and social conditions. Monitoring such changes with the
help of Advanced technologies like Remote Sensing and Geographic Information Systems is
crucial for coordinated efforts across different administrative levels. Advanced technologies like
Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
structure of plant communities across different temporal and spatial scales. These changes can
occur natural.
বাংলাদেশের অর্থনৈতিক সমীক্ষা ২০২৪ [Bangladesh Economic Review 2024 Bangla.pdf] কম্পিউটার , ট্যাব ও স্মার্ট ফোন ভার্সন সহ সম্পূর্ণ বাংলা ই-বুক বা pdf বই " সুচিপত্র ...বুকমার্ক মেনু 🔖 ও হাইপার লিংক মেনু 📝👆 যুক্ত ..
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তাই একজন নাগরিক হিসাবে এই তথ্য গুলো আপনার জানা প্রয়োজন ...।
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Communicating effectively and consistently with students can help them feel at ease during their learning experience and provide the instructor with a communication trail to track the course's progress. This workshop will take you through constructing an engaging course container to facilitate effective communication.
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Temple of Asclepius in Thrace. Excavation resultsKrassimira Luka
The temple and the sanctuary around were dedicated to Asklepios Zmidrenus. This name has been known since 1875 when an inscription dedicated to him was discovered in Rome. The inscription is dated in 227 AD and was left by soldiers originating from the city of Philippopolis (modern Plovdiv).
1. Small and Medium Sized Enterprises:
Global Problems of Financing
Presentation by
Mr. Amadou Ciré SALL
In Charge of trade & Information System
Islamic Centre for Development of Trade
Email: cire@icdt-oic.org
Workshop on Microcredit-Financing and Poverty Alleviation
in OIC Member States
Istanbul, 9-10 July 2007
2. The Definition of SME
• Small and Medium-sized Enterprises, are
defined as enterprises which:
• Employ fewer than 250 persons and
• Have an annual turnover not
exceeding EUR 50 million or
• An annual balance sheet total not
exceeding EUR 43 million.
3. SMALL AND MEDIUM SIZED ENTERPRISES
• Small and medium-sized enterprises (SMEs) are a very heterogeneous
group of businesses usually operating:
– in the service,
– trade,
– agri-business,
– and manufacturing sectors.
• They include a wide variety of firms such as:
– village handicraft makers,
– small machine shops,
– and computer software firms that possess a wide range of
sophistication and skills.
• Some are dynamic, innovative, and growth-oriented while others are
satisfied to remain small and perhaps family owned.
• SMEs usually operate in the formal sector of the economy and employ
mainly wage-earning workers.
• SMEs are often classified by the number of employees and/or by the
value of their assets.
• The size classification varies within regions and across countries
relative to the size of the economy and its endowments. It is important
to note that there is a minimum as well as a maximum size for SMEs.
4. Importance of SMEs
• SMEs are the Engine of Growth
• SMEs are Essential for a Competitive and
Efficient Market
• SMEs are Critical for Poverty Reduction
• SMEs Play a Particularly Important Role in
Developing Countries
5. Importance of SMEs
• 99% OF THE WORLD’S ECONOMIC ENTERPRISES ARE SMEs
•AROUND THE WORLD, SMEs ACCOUNT FOR 55-95% OF COUNTRY GDP
•MORE THAN 50% OF THE WORLD’S LABOR FORCE IS EMPLOYED BY
SMEs
•GLOBALLY, SMEs GENERATE THE LARGEST NUMBER OF NEW
EMPLOYMENT OPPORTUNIES EACH YEAR
•SMEs ARE THE MOST DYNAMIC COMPONENTS OF THE WORLD
ECONOMY
•SMEs ARE ESSENTIAL FOR ECONOMIC AND SOCIAL PROGRESS
6. SMEs are the Engine of Growth
• SME sector is the largest provider of
employment in most countries, especially of
new jobs
• SMEs are a major source of technological
innovation and new products
7. SMEs are Important for Poverty Reduction
• SMEs tend to employ poor and low-income workers
• SMEs are sometimes the only source of employment in poor
regions and rural areas
• Self-employment is the only source of income for many poor
• SMEs play a particularly important role in developing countries
where poverty is most severe
8. The Definition EXPORT
• Commodities carried or sent to another country
• To ship a product outside a country or region
9. 9
EXPORTS – “PULL OPTION”
• EXPORTS act as a “PULL” factor to
bring the SME’s together because
in domestic market they are already
competing with each other but in
exports they need help / advise !
10. 10
EXPORT CONSORTIA
• A tool to increase SME exports
• SMEs usually have difficulty exporting to foreign markets: they
may lack the necessary knowledge and financing, may not meet
foreign regulatory requirements, or may produce products in
quantities or quality that are not adequate for foreign buyers,
among many other potential problems. However, these problems
can often be overcome through cooperation among SMEs. By
combining their knowledge, financial resources and contacts
within an export consortium, SMEs can significantly improve their
export potential and reduce the costs and risks involved in
penetrating foreign markets.
11. 11
WHAT IS AN EXPORT CONSORTIUM?
• An export consortium is a voluntary alliance of firms with the
objective of promoting the goods and services of its members
abroad and facilitating the export of these products through joint
actions.
• Members of a consortium realize that cooperation must prevail over
competition in order to access key markets and the latest
technology.
• An export consortium can be seen as a formal medium- to long-
term strategic cooperation between firms that acts as a service
provider specialized in facilitating access to foreign markets.
• Most consortia are non-profit entities.
12. 12
WHAT IS AN EXPORT CONSORTIUM?
• Export consortia not only exist among firms in the manufacturing
sector, but can also be found in the service sector as well as among
artisans. In Italy, the country with the most extensive consortia
experience, the main operating sectors of export consortia are:
• Plant, machinery and engineering;
• Textiles, clothing, leatherwear, footwear;
• Food, wine, beverages;
• Chemicals;
• Wood and furniture;
• Glass, crystalware;
• Construction industry and related sectors;
• Electronic goods, electro technology and optical instruments;
• Jewellery, costume jewellery.
13. 13
WHY OPT FOR AN EXPORT CONSORTIUM?
• SMEs often have considerable difficulties to enter foreign markets. Export
consortia cannot only assist their members to achieve an export presence,
but can also entail significant additional benefits.
• SMEs usually have difficulty exporting to foreign markets: they may lack:
– the necessary knowledge and financing,
– may not meet foreign regulatory requirements,
– or may produce products in quantities or quality that are not adequate
for foreign buyers, among many other potential problems.
• However, these problems can often be overcome through cooperation
among SMEs.
• By combining their:
– knowledge,
– financial resources and
– contacts within an export consortium,
• SMEs can significantly improve their:
– export potential
– and reduce the costs and risks involved in penetrating foreign markets.
14. Export Consortia: A Possible Solution
• By cooperating within an export consortium,
which combines the expertise and financial
means of several firms, SMEs can overcome
the obstacles and effectively enter and develop
foreign markets at reduced cost and risk.
• At the same time, members can improve their
profitability, achieve efficiency gains and
accumulate knowledge.
15. Risk reductions
• By improving firms’ access to information on foreign
markets and by leading to a greater diversification of
exports, export consortia can significantly reduce the risk of
exporting and of exploring new business opportunities
abroad. Diversification is achieved through an increase in
the number of markets targeted as well as through a
reduction of seasonal fluctuations in exports, especially
when markets are geographically dispersed.
By improving firms’ access to information on foreign markets and by leading to a greater diversification of exports, export consortia can
16. Improved profitability
• Participation in an export consortium can greatly improve the profit
margins of member firms through a variety of savings, the development
of an export strategy and the achievement of stable exports.
• Within export consortia, members share administrative and promotional
costs and thus avoid the expenses of establishing their own export
department. By jointly using transportation and other export facilities,
additional time and cost savings can be achieved.
• In addition, consortia help their members to move from simply
supplying products to customers (“reactive” exporting) towards
developing a true export strategy where domestic marketing activities
can be extended and technical specifications and/or prices are not
simply prescribed by clients (“active” exporting).
17. Efficiency gains
• Inter-firm cooperation of the type found in
consortia allows SMEs to overcome the
challenges arising from their small size and to
exploit economies of scale and scope, which
cannot be attained by the individual firm.
• By pooling financial and human resources and by
sharing information and experiences, members of
a consortium can improve and intensify their
promotional activities abroad.
• In addition, activities can be undertaken that
individual firms may not be able to carry out on
their own, such as market research and product
development.
18. Knowledge Accumulation
• One of the most important benefits of export consortia is linked
to the accumulation of know-how. Firms participating in export
consortia typically have limited export experience and are in
the early stages of export market entry or expansion.
• By participating in an export consortium, members can improve
their knowledge of how to operate in foreign markets, how to
improve business operations in areas not related to exporting
and of how to participate in alliances.
• Exporting is a classical example of “learning by doing”. By
participating in an export consortium, members can tap the
different export-relevant resources and skills within the
individual firms.
• Additionally, members may exchange knowledge in several
areas such as on how to negotiate with banks or on how to
implement certain technical standards.
19. TYPES OF EXPORT CONSORTIA
• Export consortia differ with respect to the services they provide.
• There are those that offer only basic secretariat functions, assist
with translations and/or provide market research.
• There are, however, also those that help members develop a
complete export strategy and provide a wider range of services,
including collective purchases of inputs, legal assistance, the
creation of a consortium brand and other forms of marketing.
• The two main types of consortia that can be distinguished
are promotional and sales consortia.
• Within this classification, several varieties of export
consortia can be identified:
– Single-sector and multi-sector consortia;
– Consortia grouping competitors and those offering complementary
goods and services;
– Regional consortia and those comprising members from several
regions;
– Consortia targeting a specific region and those active on a global
scale.
20. Promotional and sales consortia
• Whereas the former refers to an alliance created to explore
specific export markets by sharing promotional and logistic
costs, the latter represents an entity that channels the
members’ exports. Promotional consortia thus confine
themselves to promoting the products of their members and to
assist these in accessing foreign markets. Sales are directly
performed by the associated companies.
• Sales consortia, on the other hand, perform business
promotion activities and organize the sale of member firms’
products. To ensure a certain image, these types of consortia
often control the quality of the marketed products. While the
number of member firms is typically limited in a sales
consortium, promotional consortia usually have a significant
number of members.
• Within sales consortia, member firms delegate the authority to
do business in their name to the managers of the consortium.
Two types of sales consortia exist: (a)trading consortia, i.e.
those that purchase the products from the member firms in
order to resell them, and (b) consortia acting as export agents.
21. Single-sector and multi-sector consortia
• Single-sector consortia allow activities to focus on member firms’ products,
as these are more homogeneous than those of firms belonging to multi-
sector consortia. In addition, firms active in a specific sector tend to be
acquainted with each other and to have greater knowledge of each other’s
businesses than those operating in several sectors. This is likely to
improve cooperation among members.
• The main benefit of multi-sector consortia is that a wider range of products
can be offered. For example, a consortium might be able to offer a
complete range of hotel supplies (lifts, furniture, decorations, lighting and
kitchen equipment). Cost savings are attainable for these types of
consortia, provided that products are sufficiently close so that the same
promotional methods can be applied to all goods and services.
• Despite the variety of firms within a multi-sector consortium, the group
should be able to portray a common image. It is thus essential that
members’ products are compatible with respect to design and quality.
• Whereas the main binding elements between members of single-sector
consortia are their familiarity with each other and the products they
produce, members of multi-sector consortia often only share the will to
access foreign markets.
22. Regional consortia and those comprising
members from several regions
• Whether consortia comprise members of a specific region
or of several regions typically depends on whether the
initiative to establish a consortium comes from a national
organization of enterprises in a specific sector or a local
chamber of commerce. National consortia have the
advantage that they can bring geographically dispersed
firms into contact. They are thus more representative and
may result in less competition between members than
regional groups.
• Regional consortia, on the other hand, often have a
specific local purpose, e.g. the promotion of typical food
products or artisan goods. These types of consortia often
emerge out of industrial districts.
23. CONCLUSIONS
• Experience has shown that particularly small firms and those at
the early stages of export activities can derive the greatest
benefits from participation in an export consortium.
• They are most in need of assistance and thus the most
motivated to participate actively.
• Particularly in OIC Member States, export consortia can be an
important mechanism to promote exports. Firms in these
countries often do not have the infrastructure and the access to
information and other resources that their counterparts in
industrialized countries have.
• Most importantly, establishing a consortium may initiate a
process and not just create an entity. By fostering inter-firm
cooperation, also in areas unrelated to exports, consortia
improve the business environment for SMEs and enhance the
capacity of firms to take advantage of market opportunities.
• Export consortia can thus be a first step of a comprehensive
strategy to strengthen the competitiveness of SMEs through
inter-firm cooperation.
24. THANK YOU
Mr. Amadou Ciré SALL
In Charge of trade & Information System
Islamic Centre for Development of Trade
Email: cire@icdt-oic.org
Workshop on Microcredit-Financing and Poverty Alleviation
in OIC Member States
Istanbul, 9-10 July 2007