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  1. 1. Export Radek Danč
  2. 2. Summary Introduction of export History Process and actors Why export? Advantages of exporting Disadvantages of exporting Ways of exporting Barriers Making decision Comparison of countries
  3. 3. What is export? Goods produced in one country are shipped to other markets Ship the goods and services out of the port of a country Foreign demand for goods produced by home country
  4. 4. Additional information Export vs. Import Exporter X Importer For many industries of all sizes, small, medium and big Domestic producer foreign consumers The most common way of serving international markets
  5. 5. History The oldest branches of economic thought Major component Regularly discussed and disputed two views of int. trade  recognizes the benefits of international trade  certain domestic industries (or laborers, or culture) could be harmed by foreign competition.
  6. 6. Process Methods of export include a product or good or information being  mailed hand-delivered,  shipped by air or vessel,  uploaded to an internet site,  downloaded from an internet site. Exports also include the distribution of information that can be sent in the form of an email, an email attachment, a fax or can be shared during a telephone conversation
  7. 7. Actors Exporter (individuals or businesses) Banks Ministry of Foreign Trade Customs Administration Customs Transport Agent
  8. 8. Why export? Increase Sales  extend the market (increase in Global Competition)  respond to overseas buyers  lengthen a product´s life cycle Minimize competitive risks Diversify sources of sales and supplies Avoid changing domestic conditions  turn to different markets
  9. 9. Advantages of exportEnhance domestic competitivenessIncrease sales and profitsGain global market shareExploit corporate technology and know-howExtend the sales potential of existing productsStabilize seasonal market fluctuationsEnhance potential for corporate expansionSell excess production capacityGain information about foreign competition
  10. 10. Disadvantages of exportDevelop new promotional materialSubordinate short-term profits to long-term gainsIncur added administrative costsAllocate personnel for travelWait longer for paymentsModify your product or packagingApply for additional financingObtain special export licenses
  11. 11. Ways of Exporting Direct exporting The exporting company may create a separate export department to enable its own staff to concentrate on Indirect exporting developing new markets abroad  Is an independent firm that acts as the export department of the company  A combination export manager  A manufacturer´s export agent
  12. 12. Direct exporting Representatives, distributors, or retailers who are located outside the exporter´s home country Direct exports are goods and service Direct selling through distributors Direct selling through foreign retailers and end users Direct selling over the Internet
  13. 13. Indirect exporting selling goods to or through an independent domestic intermediary customers foreign markets
  14. 14. Barriers Trade barriers are defined as:  government laws  regulations protect domestic products  policy from foreign competition or stimulate exports  practices Strategic Tariffs Subsidies
  15. 15. Barriers Strategic  international agreements limit trade in, and the transfer of, certain types of goods and information Tarrifs  tax placed on a specific good or set of goods exported from or imported to a country Subsidies  subsidize an industry or company from government
  16. 16. Making the export decision What does the company want to gain from exporting? Is exporting consistent with other company goals? What demands will exporting place on the companys key resources  management and personnel  production capacity  Finance Are the expected benefits worth the costs, or would company resources be better used for developing new domestic business?
  17. 17. Country comparison: ExportsRank Country Exports / $ 1. China 1,904,000,000,000 2. United States 1,497,000,000,000 3. Germany 1,408,000,000,000 4. Japan 788,000,000,000 5. France 587,100,000,00032. Czech Republic 138,500,000,00055. Colombia 56,220,000,000
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