In different sources various explanations of a term “EXPORT” can be found. So, what really is Export, and what does it mean?
Originally a term ‘export’ comes from late 15th century in the sense of ‘take away’ from Latin exportare, from ex- ‘out’ + portare ‘carry’.
Current senses of the term ‘export’ are dated from the 17th century.
We hereby offer you to see the most common definitions and explanations:
- Export – A function of international trade whereby goods produced in one country are shipped to another country for future sale or trade. The sale of such goods adds to the producing nation’s gross output. If used for trade, exports are exchanged for other products or services.
- Export – The oldest form of economic transfers, and occurs on a large scale between nations that have fewer restrictions on trade, such as tariffs or subsidies.
- Export – To send goods or services across national frontiers
- Export – Goods and services that are produced domestically and sold to buyers in another country, for the purpose of selling and realizing foreign exchange.
- Export – To send or transport goods abroad out of a customs territory; to sever them from the mass of things belonging to one country with the intention of uniting them to the mass of things belonging to a foreign country.
- Export – Goods or any articles of trade or commerce sent out of a country to another country.
- Export and Import are two main aspects of international trade.
- The ability to export goods helps an economy to grow by selling more overall goods and services.
- “The key is to actively seek for the markets – only actively searching will result in opportunities.” /K.Karins, Member of European Parliament/
- “Export markets for rendered products are a good example of challenges and opportunities. The opportunities are endless if we can just overcome the challenges. Market potential can only become a reality if we are able to conquer the numerous trade barriers that keep rendered products out of certain markets.” /T.Cook, President of US National Renderers Association/
- “Exporting companies are the foundation of our prosperity – it gives people jobs and tax revenues to state.” /K.Karins, Member of European Parliament/
- “Export markets do not come easily, whether it is for beef or rendered products, but the rewards are there. It takes time and a whole lot of patience since exporting is far more complicated than it needs to be. There are few, if any, foreign markets opened without extensive negotiations on everything from quotas, licensing, feed ingredient, and health requirements, just to name a few.” /T.Cook, President of US National Renderers Association/
- “I see great potential, which can and should be developed, especially for export markets. It is one of the priorities – to strengthen the position here and build outward. The world is open, there are so many options.” /G.Aboltins-Abolins, AS “Latvijas balzams” General Director/
- “In order to find new export markets, those young entrepreneurs should be like cockroaches – they must be agile, a bit ugly and virtually indestructible,
also focused on developing their brand.” /N.Bergs, Chamber of Commerce Export Council Chairman/
Why export is needed
If you are not sure, whether to export or not, we offer you to look at some advantages export has:
- Increased Sales and Profits. Selling goods and services to a market the company never had before, it boosts sales and increases revenues. Additional foreign sales over the long term, once export development costs have been covered, increase overall profitability.
- Gain Global Market Shares. By going international companies will participate in the global market and gain a piece of their share from the huge international marketplace.
- Diversification. Selling to multiple markets allows companies to diversify their business and spread their risk. Companies will not be tied to the changes of the business cycle of domestic market or of one specific country.
- Lower Per Unit Costs. Capturing an additional foreign market will usually expand production to meet foreign demand. Increased production can often lower per unit costs and lead to greater use of existing capacities.
- Compensate for Seasonal Demands. Companies whose products or services are only used at certain seasons domestically may be able to sell their products or services in foreign markets during different seasons.
- Create Potential for Company Expansion. Companies who venture into the exporting business usually have to have a presence or representation in the foreign market. This might require additional personnel and thus lead to expansion.
- Sell Excess Production Capacity. Companies who have excess production for any reason can probably sell their products in a foreign market and not be forced to give deep discounts or even dispose of their excess production.
- Gain New Knowledge and Experience. Going international can yield valuable ideas and information about new technologies, new marketing techniques and foreign competitors. The gains can help a company’s domestic as well as foreign businesses.
- Expand Life Cycle of Product. Many products go through various cycles namely introduction, growth, maturity and declining stage that is the end of their usefulness in a specific market. Once the product reaches the final stage, maturity in a given market, the same product can be introduced in a different market where the product was never marketed before.