Export

Export

Definition

Exports are the goods and services that are made in our country and transmitted to foreigners. It doesn't matter what the good or service is or how it is sent. It can beshipped, sent by car, or hand-carried in personal luggage on a plane. If it is produced in Ecuador and sold to someone from a foreign country, it is an export. For example, tourism products and servicesare part of exports, even though they are sold to foreigners who are visiting here.

Advantages of exporting

Ownership advantages are the firm's specific assets, international experience, and theability to develop either low-cost or differentiated products within the contacts of its value chain. The locational advantages of a particular market are a combination of market potential andinvestment risk. Internationalization advantages are the benefits of retaining a core competence within the company and threading it though the value chain rather than obtain to license, outsource, or sellit. In relation to the Eclectic paradigm, companies that have low levels of ownership advantages either do not enter foreign markets. If the company and its products are equipped with ownershipadvantage and internalization advantage, they enter through low-risk modes such as exporting. Exporting requires significantly lower level of investment than other modes of international expansion, such asFDI. As you might expect, the lower risk of export typically results in a lower rate of return on sales than possible though other modes of international business. In other words, the usual return onexport sales may not be tremendous, but neither is the risk. Exporting allows managers to exercise operation control but does not provide them the option to exercise as much marketing control. Anexporter usually resides far from the end consumer and often enlists various intermediaries to manage marketing activities.

How can we export?

* For services, exporting is so easy, it is just...