What is Export?
Export is the event that a person or institution
sells the goods or services produced abroad. Export, which is one of the most
important titles of foreign trade, together with its opposite import, creates
the foreign trade balance of a country.
What is the Difference Between Import and Export?
International trade has two main activities which
are import and export. While import refers to bringing goods or services into a
country from abroad, export involves sending goods or services to another
country for sale.
Basically, export meaning centers on
selling domestically produced products in foreign markets. For example, when a
Turkish company sells textiles to a European retailer, it engages in export
business.
On the other hand, importing is about purchasing
products from overseas suppliers to meet domestic needs. Both processes play a
critical role in global trade, ensuring countries access resources and
products.
What is the Importance of Exports?
Exports are essential for a nation’s economic
growth and global competitiveness. With the help of exports, countries generate
revenue, create job opportunities and reduce trade deficits. A strong export
sector boosts a country’s GDP and contributes to its international reputation.
Exports also do more than bring financial
gains. They drive innovation as companies adapt to global market demands. This
strengthens businesses and improves countries' wealth.
Benefits of Export
Exporting has numerous advantages for
businesses and economies such as:
1. Market Expansion: Selling products abroad enables
companies to tap into larger markets, increasing their potential customer base.
2. Revenue Growth: Diversifying revenue streams through exports
minimizes risks associated with relying solely on domestic markets.
3. Brand Recognition: Competing internationally enhances
a company’s brand visibility and credibility.
4. Economic Contribution: Exporting businesses support local
economies by creating jobs and driving innovation.
For instance, companies involved in exporter
business often leverage types of export marketing, such as direct
sales or online platforms, to expand their reach.
What are Types of Exporting in International Business?
Exporting mainly be of two types:
- Direct Exporting
- Indirect Exporting
1. Direct Exporting
Direct exporting means selling products abroad
without intermediaries. In direct exporting, a firm undertakes to sell its
products abroad and is responsible for dealing directly with foreign customers.
A company may carry on direct exporting by any
of the following modes:
- By establishing company’s own corporate
export provision,
- By appointing foreign sales representative
and agent,
- Through foreign based distributors and
retailers/ agents,
- Through foreign based state trading
corporation,
- Through overseas sales branches.
2. Indirect Exporting
Indirect exporting means the sale of goods
abroad through intermediaries. Indirect exporting involves using the help of
independent middlemen and sales intermediaries that take the responsibility of
sending the products to foreign countries.
Some major types of intermediaries of indirect
exporting are as follows:
- Commission agents
- Domestic based export merchants or export
trade companies
- Buying or purchasing agents
- Export agents
- Export Management Companies (EMCs)
- Cooperative organizations
There are two types of indirect exporting:
- Occasional (Passive) exporting
- Active exporting
Occasional or Passive exporting takes place
when company exports from time to time either on its own initiative or in
response to unsolicited orders from abroad.
Active exporting takes place when the company
commits to expand its exports to a particular market.
In addition, indirect exporting has some
advantages over direct exporting.
- Indirect exporting involves less investment.
The manufacturer does not have to develop an export department, an overseas
sales force, or a set of foreign contracts.
- Indirect exporting also involves less risk.
International trade marketing intermediaries bring know how and services to the
relationship, the seller will normally make fewer mistakes.
How to Become an Exporter?
An exporter definition is an individual,
company or entity that sells goods or services to a foreign country. The
following steps should be taken into account in order to become an exporter.
1. Identify Products to Export
The first thing to do to become an exporter is
to determine the product or products to be exported and to determine whether
there is a suitable market for these products.
2. Assess the Risk of Exporting
After deciding on the products and the market,
it should be investigated whether there are restrictions on exports to the
determined country or countries and the risk of doing business there should be
evaluated.
3. Determine Market Entry
After the risk is determined, the products are
ready for export. In this step, how to export should be determined. It should
be decided whether to sell directly or to find a distributor.
4. Get Acquainted with the Major Players
In order to make a start towards export, it is
necessary to get acquainted with the major players in international trade. The
quickest way to do this is to research their websites.
5. Get Export Training
There are trainings available for all levels of
exporters- from those just getting started to experienced professionals.
- Seminars and trainings organized by
government institutions can be useful.
- Private organizations can help for a faster,
smarter, more profitable export process.
- Consultants can be preferred as another
option.
Official procedures for becoming an exporter
differ in each country. Individuals or companies that will export can learn
these procedures or necessary documents from the official websites of the
Ministry of Commerce of the relevant country or by applying to the relevant
public institutions.
Which Countries are the Biggest Exporters?
Several nations dominate the export market
internationally. Countries like China, the United States and Germany lead as
major exporters, driven by their robust manufacturing sectors and trade
agreements. For example:
- China is known for its diverse production
portfolio, including electronics, machinery, textiles and cars.
- Germany is famous for high-quality automotive
and engineering products.
- The United States is a leader in aerospace,
pharmaceuticals and agricultural products.
How TradeAtlas Can Support Your Export Journey
Understanding export definition,
tracking market trends and identifying potential buyers are crucial for
thriving in international trade. At this point, TradeAtlas serves as a
comprehensive global trade platform offering export examples at the
company level and data on global trade flows. With TradeAtlas, businesses can
discover new markets, analyze their competitors' activities and enhance their
export marketing strategies. By leveraging TradeAtlas, companies can simplify
their export journey and unlock their full potential in the global market.
For
detailed information on the subject of target market selection in export, you
can review the content “Things to Consider in Export Contracts”.
