Microsoft Word IMEXWeek 2

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Systems of Imports Exports Week Two
(27/9/2003) Getting Start for Export Activity
o How devaluation of the home currency creates
an opportunity for exports and the associated
activities. o Exports may be the solution
of recession, where foreign demand could
compensate for the reduction in national demand.
o For businesses that produce for
domestic market but it need a significant
foreign inputs, exports is a vital solution.
o For some other businesses, exports are
inevitable. Economics of scale and level
of technology prevailed require large market
may not available domestically. However,
generally, three are three motivating factor
for exporting 1. Demand driven 2. Supply
driven 3. Entrepreneur driven o Obstacles
to exporting Success in the domestic
market requires a good marketing strategies
(the famous four p product, price, place and
promotion). Success in international market
requires more efforts. That because the
differences in culture, weather, income
level, transportation, and education. The
same standards of domestic market may not
works internationally. 1
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o Making the export decisions Making the
export decisions are not monopolised by the
large companies, as alleged before. In USA,
government statistics demonstrates that 80 of
exports are accomplished by only 250 large
companies. More precise statistics illustrates
that 71 of exports are accomplished by 3,600
companies. Besides that there are 9,900
frequent exporters, and 25,000 potential
exporters of small-and medium size businesses.
o Export decision is not the solution for
excess production o Export decision is not
the solution for lack in domestic demand o
Export decision is not the solution to write off
travelling expenses. o Successful export
decision requires 1. a commitment 2. a
realistic budget 3. time and patience 4. a
systematic informed approach o Pros and cons
of exports (very important point ) Page 8-10
summarised basic requirements , param eters and
consideration for export business. Getting
Started What are your special interest? 2
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What are your special skills? What does your
location offer?
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