Editing Export (section)

== Advantages  ==
Exporting avoids the cost of establishing manufacturing operations in the target country.<ref name="hill2015">{{cite book|last1=Hill|first1=Charles W.L. |title=International Business: competing in the global marketplace |date=2015 |publisher=McGraw Hill|location=New York|isbn=978-0078112775|page=454|edition=15th}}</ref>

Exporting may help a company achieve [[experience curve effects]] and [[economics of location|location economies]] in their home country.<ref name="hill2015" /> Ownership advantages include the firm's [[asset]]s, international experience, and the ability to develop either [[Porter generic strategies#Cost Leadership Strategy|low-cost]] or [[Porter generic strategies#Differentiation Strategy|differentiated products]]. The locational advantages of a particular market are a combination of costs, [[Gap analysis#Market potential|market potential]] and [[financial risk|investment risk]]. [[Internationalization]] advantages are the benefits of retaining a [[core competence]] within the company and threading it though the value chain rather than to [[license]], [[outsource]], or sell it.

In relation to the [[eclectic paradigm]], companies with meager ownership advantages do not enter foreign markets. If the company and its products are equipped with ownership advantage and internalization advantage, they enter through low-risk modes such as exporting. Exporting requires significantly less investment than other modes, such as [[foreign direct investment|direct investment]]. Export's lower risk typically reduces the [[rate of return]] on sales versus other modes. Exporting allows managers to exercise production control, but does not provide them the option to exercise as much marketing control. An exporter enlists various intermediaries to manage [[marketing management and marketing activities]].
Exports also has effect on the Economy. Businesses export goods and services where they have a competitive advantage. This means they are better than any other country at providing that product or have a natural ability to produce either due to their climate or geographical location etc.<ref name=":2">{{Cite web|last1=Amadeo|first1=Kimberly|title=3 Ways Countries Increase Exports.|url=https://www.thebalance.com/exports-definition-examples-effect-on-economy-3305838|access-date=2020-09-21|website=The Balance|language=en}}</ref>