Export and Internationalisation Exporting means marketing. Selling and distributing goods or services from one country to another country of countries. It includes importing and reselling goods or services as well. From a classical point of view exporting refers to thee ethnocentric and poly centre organisation type as defined by Perlmutter: the organisation is internationalising by means of selling product or services towards other countries. Internationalisation as a process is different from globalisation.
CHAPTER I: THEORETICAL BACKGROUND Export is a vital part in international trade which has been going for thousands of years. That a country has any product to export means there is at least one other country to import that product. Then international trade happens; in other words, international trade is the exchange of goods and services which may be tangible and intangible across national boundaries for maximizing their economic profits. It creates opportunities for countries to be involved in the international division of labor, economic development and enrichment for themselves. In many trade-dependent countries, export turnover occupies a large percentage in GDP.
Running head: PROTECTIONISM ECONOMY 1 How National Economic Protectionism Helps National Economy Growth Yuhua Li Stony Brook University Abstract Key words: economic protectionism, economic growth, challenges, profit, free trade Introduction The idea of globalization has been widely adopted by the majority of states collaborating to deliver quality products at affordable prices. The wide campaign for open markets and increased relations is for the obvious reasons including specialization and increased productivity, the creation of quality commodities and innovation, and the identification of new markets is hence improving organizational sales. However,
EXECUTIVE SUMMARY • This is a study that shows the various entry and expansion strategies that are available for a firm when choosing to go global or increase market share within the market. • There are various strategies found out , they are : Exporting and importing , Joint Ventures, Strategic Alliances, Franchising , Licensing and Foreign branching. • In exporting and importing, firms choose between direct involvement and indirect involvement. This is the level of involvement with the foreign customers. Most firms prefer direct involvement due to the costs and risk of having an intermediary do the communicating in the foreign market.
The term "export" is derived from the conceptual meaning as companies produce products in their own countries and sell goods to customers in foreign countries. Exporting allows a company to centrally produce its products for several markets and therefore to gain economies of scale since many countries do not offer a large enough opportunity to justify local production. ‘Export development is associated to high levels of cooperation between exporters and importers, high levels of trust, and communication sufﬁciency.’(Rodriguez, Wize & Martinez 2013, p.1646)One of the advantages is that makes the company less dependent on sales in its home market and provides a wider range of goods and services In addition, the potential market is bigger by selling overseas. Foreign sales over the long term, it will increase overall profitability once export development costs have been covered. Besides, exporting also provides a greater degree of control over all aspects of transaction such as design, production decisions and research.
After going through internet, I had this to quote. www.loc.gov/rr/business/BERA/issue1/trends.htm... As the economy grows slowly at home, your business may have to look at selling internationally to remain profitable. Before examining foreign markets, you have to be aware of the major trends in international business so you can take advantage of those that might favor your company. International markets are evolving rapidly, and you can take advantage of the changing environment to create a niche for your company. Growing Emerging Markets Developing countries will see the highest economic growth as they come closer to the standards of living of the developed world.
This not only allows them to make maximum profit, but also opens up a global market of people with the higher disposable income to buy more goods and services. The improved communication with the help of latest technology has spread widely throughout the world, allowing international business campaigns to be co-ordinated from a fixed base in the domestic country. The internet and other communication medium have opened up entirely new world of business with endless potential. Globalization has changed the people way of shopping, specially by encouraging online shopping from sites like www.flipkart.com , www.amazon.com etc. These online sites are providing best deals to the consumer with a vast number of variety options from global market .Globalization has intensified the competition in the market with the fact that there are many new competitors across the world in addition to domestic competitors.
This initial effort failed because of large inefficiencies in production facilities because of which the local market was unable to compete with the global market. Hence, after this, countries now rely on foreign-produced products as globalization concept suggests. The Strategy and its Aims An economy is often described as a “leaky bucket” in which the bucket
1. Introduction: Export Export is the process of shipping goods and services from your country to other. The seller of these goods and services is called exporter and the person receiving in other country is called importer as explained by Joshi, Rakesh Mohan (2005) Exporting goods includes the customs authorities of both exporting and importing countries. Some small trades can be done online by using eBay and Amazon which exclude the involvement of custom authorities because this trade has low values. Nonetheless, there is some legal restriction on this trade by exporting country.
In the history of international trade theories akin to Heckser-Ohlin model was based on extremely strong assumptions of no economies scale, constant technology, and perfect competition but after the eighties, innovative theories of trade relaxed some rigorous assumptions to examine other sources of comparative advantage. Hence in new models, some assumptions were