Main Determinant Factors of the Export Success

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Main Determinant Factors of the Export Success

• The target of this paper review is to discussing
  the factors that affect and lead to export success

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What are the benefits of export success?

• Export success would improve producer prices
• Improve the cultivation practices
• Encourage adopting new varieties.
• Increase production in quantity and quality
• Foster economic growth
• Strengthen job security
• Support foreign exchange
• Support private sector
• Create good environment for investments
• Initiate source of income to a country
• Increase earning of foreign currency to pay for
  necessary imports
• Improve the standard of living

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What are the difficulties for D.C in IM to be ES?

• I M have some difficulties for DC related to
  export for several reasons
• High competitiveness
• Similarity of agricultural production in
  developing countries
• The fluctuation in the market prices
• Developed countries subsidize their agricultural
  products depressing the world prices
• Developing countries rely mainly on agricultural
  and textiles exports, but these have limited
  market access in the developed countries.

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What are the main factors determine export
success?

• Regulations and legislations
• Export can be hindered by
• Inadequate legislation
• Protection of intermediate products raises their
  costs
• Licensing system

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II. Quality Standardization

• Lack of proper quality assurance and grading
  increases the rate of rejects in destination
  markets
• It is very damaging to lose reputation in the
  international markets because of low quality
• So, it is necessary to
• Develop export specifications, guided by
  international standards such as ISO 9000
• Enhance packaging and storage
• Insist on minimum standards
• Expand extension services
• It is also essential for exporters to have
  brand-name development

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III. Procedures

• Trade distorting practices include
• Excessive bureaucratic control of trade
• Non-Trade tariff barriers such as export bans,
  export quotas, and the exaggerated documentation
  requirements

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IV. Research, Studies and Information

• The most necessary step in this area is
  establishing institutions assisting exporters
  with
• Entering foreign markets
• Providing information on
• Market conditions
• Consumer tastes
• Training exporters
• Arranging of buyer visits
• Implementing propaganda and advertising programs
  in foreign markets
• Creating proper trade environment that
  facilitates predictability and, accordingly,
  marketing and export planning

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V. Export Facilities

• It is crucial that the governments
• Implementing efficient essential export
  Infrastructure
• Simplifying and harmonizing customs procedures
• Providing an efficient supporting services
• Developing transportation and communications
  networks
• Reducing all the transactions costs
• Allowing access to imported intermediate inputs
  at world market prices
• Expanding refrigerated facilities either by
  government or by private sector

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VI. Relation Strengthening through Trade
Agreements

• Market access facilitated under co-operation
  agreements
• The agreements usually allow to
• Achieve costs reduction
• Enlarge market size.
• Facilitate investment.
• Achieve reciprocal free trade between partners
• Complete or partial exemption of tariffs and
  non-tariff measures
• Diversify export sectors
• Stimulate competitiveness
• Change trade policies, laws and regulations
• Offer an incentive for production increase
• Activate private sector exports

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VII. Production Diversification and Improvement

• Countries should concentrate on maximizing
  returns from areas in which they have comparative
  advantage
• Countries can not maintain export successfully
  unless
• Providing availability and stability of supplies
  as well as price competitiveness
• Diversifying agricultural exports

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VIII. Investment Encouragement

• There are tight links between export success and
  investment
• Export success can
• Initiate opportunities for great investments
• Enhance investment in the field of export through
  establishment of Export-Processing Zones which
  are generally used to achieve three goals
• Promotion of investment and employment in
  export-oriented production
• Increase foreign exchange earnings from
  nontraditional exports.
• Benefit from free of restrictions on foreign
  exchange, tariff-free imports for export
  production, moderate levels of taxation,
  streamlined administrative procedures, and
  private sector management.

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IX. Market Access

• Promoting market access include all the factors
  that affect competitiveness and the incentives
  for producers to export
• Supporting penetration to foreign markets can be
  done through avoiding antiexport bias systems

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X. Financial Aspects

• Failure in export can be resulted from
• The absence of trade finance
• Costly infrastructure services
• Tax charge on export or on production
• Non tariff barriers make transaction costs
  excessive and discourage export

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XI. Other Activities Related to Trade

• They include
• Creation of specialized associations in different
  fields of agriculture
• Sustainable Natural Resources wealth
• strengthening Human Capital

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The impacts of domestic policies on export

• Domestic policies can improve or hinder export
• In some cases, domestic policies affect export
  negatively
• Policies should be consistent both at micro and
  macro levels and not conflict
• A proper pricing policy can be used as a tool for
  agricultural production increase and quality
  improvement, and then for export enhancement
• The policy of export liberalization
• Create pressures for increased efficiencies
• Promote competitions
• Accelerate overall economic growth

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Suggested National Plan to Get Export Success

• Several considerations should be taken by
  policy makers when planning to achieve ES
• Comprehensive Program of Reforms in the economy
• Sustainable Agricultural Trade Development
  Strategy
• Setting up an Export Policy
• Creating Specialized Associations
• Initiating Export Promotion Programs focused on
  sectors that demonstrate the best growth
  potential and highest level of competitiveness
• Identifying Companies that have export potential
• Training and assisting exporters to upgrade their
  skills
• Produce specifically for export
• Establishing one unit body responsible for export
  arrangements
• Implementing Propaganda and Advertising Programs

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conclusion

• Nations need to promote export and the most
  important factors to export success are
• Modifying legislation of foreign trade
• Identifying main targeted markets
• Identifying main products enjoying high
  competitive abilities.
• Allowing for promoting technology, diversifying
  export products
• Increasing foreign investment
• Strengthening trade policy institutions
• Making strong contacts with trade partners
• Arranging visits of delegations abroad to explore
  overseas market opportunities
• Organizing participation in international trade
  fairs
• Building trust for local goods
• Establishing Control Strategies ensuring high
  quality for export through
• Overall quality enhancement
• Introducing price premiums for quality
• Efficient export-inspection
• Exporters insisting on higher quality
• Building good reputation in the target markets

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• Thank you all for your kind attention