Making the export decision
Let’s learn about Making the export decision. Once a company determines it has exportable products, it must still consider other factors, such as the following
- What does the company want to gain from exporting?
- Is exporting consistent with other company goals?
- What demands will export place on the company’s key resources – management and personnel, production capacity, and finance – and how will these demands be met?
- Are the expected benefits worth the costs, or would company resources be better used for developing new domestic business?
Increased exports mean business growth, and business growth means more jobs. Yet, only a small percentage of potential exporters take advantage of these opportunities. It is critical for U.S. businesses to think globally. Your decision to read this book indicates an interest in exporting. However, you may have discovered your company is already competing internationally — foreign-owned companies are competing with you in your “domestic” markets. The division between domestic and international markets is becoming increasingly blurred. Your business cannot ignore international realities if you intend to maintain your market share and keep pace with your competitors. Making the export decision requires careful assessment of the advantages and disadvantages of expanding into new markets. Once the decision is made to export, an international business plan is essential.
