Why Import Or Export

Páginas: 3 (614 palabras) Publicado: 18 de febrero de 2013
ESSAY
Why EXPORT or IMPORT

When companies are growing see the necessity of internationalization or many businesses are forced into international selling due to the competitive environment.
Themain purpose of a business is to make money, so for do that it has to seek to increase or stabilize profits, which partly depends on foreign sales or foreign resources (raw material or commodities).It´s like a rule if you want to stay in the same position or size, you will lose customers and give them in a silver tray to your competitors that have grown, which will have more variety and will makeproducts cheaper.
There are 4 major operating objectives that may cause companies to develop international business: expand sales, acquire resources, diversify sources of sales and diversifysources of supplies. There are many reasons why international business has grew enormously but essentially is for the help and facilities that receive the companies nowadays, for example the technology,that allows to maintain a near communication with the customers and suppliers, and can be used for optimize resources or process such as in manufacturing, in delivering products, transportation,packaging, etc.; support of the government with trade policies liberalized (less restrictive) and some international institutions like the WTO, IMF, OECD, etc.; and also for the global competition that isincreasing.
Some companies are proactive in international business, proactive - means to act in advance, to anticipate something happening, and plan for the situation. Companies who are proactive ininternational business are, in most cases, better positioned than companies that simply react. If you simply react you might make a mistake and not do things properly because you are stressed for time,money or manpower.
Proactive reasons for going international include: expanding sales by strategically seeking out advantages, access to resources or network which may save on shipping or processing...
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