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An overview of exporting, and its pros and cons


Provided by Potential.com, Content Partner for SME Toolkit UAE


“Exporting” means shipping goods/services out of the port of a country, by a domestic seller referred to as an "exporter", to an overseas-based buyer referred to as an “importer”. Deemed export means supplying goods/services to another entity, while physical export refers to shipping goods/services out of the country.

So how can you reinforce your business stability and profitability through exporting?

 

Realize the advantages of exporting: enhancing domestic competitiveness, diminishing dependence on local markets & expanding into new ones, lengthening the product life cycle, raising awareness of foreign competition, stabilizing seasonal market fluctuations, selling excess production capacity, increasing sales & profits, and gaining global market share.

Be prepared to deal with the challenges as well: modifying the product or optimizing packaging, developing new promotional material, allocating personnel for travel purposes, obtaining certain export licenses, incurring extra administrative costs, requesting additional financing, and waiting longer for payments!

Perceive the core elements of exporting by: building and reflecting a solid corporate identity, learning about terms of trade and delivery, international payment methods, ethics of international trade... etc, training your staff well or recruiting experienced people, establishing a professional website, and conducting a structured market demand analysis so as to evaluate the desirability of goods/services within a given demographic.

Remember the fact that every market has different demands, and that market demand is never constant, but changes every few years!

 

The prime goal of export ventures is to maximize profitability by grasping opportunities in untapped foreign markets that don't exist in the domestic market!

 

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