Editing Export

{{Short description|Goods produced in one country that are sold to another country}}
{{Other uses}}
{{redirect|Exportation|the logical rule|Exportation (logic)}}
{{Use dmy dates|date=January 2018}}
{{Too few opinions|date=February 2009}}
{{trading blocs}}
 
An '''export''' in [[international trade]] is a [[goods|good]] produced in one country that is sold into another country or a [[Service (business)|service]] provided in one country for a national or resident of another country. The seller of such goods or the service provider is an ''exporter''; the foreign buyer is an ''[[importer]]''.<ref>Joshi, Rakesh Mohan, International Marketing,  Oxford University Press, New Delhi and New York. {{ISBN|0-19-567123-6}}</ref> Services that figure in international trade include financial, accounting and other professional services, tourism, education as well as [[intellectual property rights]].

Exportation of goods often requires the involvement of [[customs]] authorities.

{{Toclimit|3}}

== Firms ==
For any firm, Global expansion strategies may include:

* Franchising,
* [[Turnkey|Turn Key Project]],
* Export,
* Joint Venture,
* Licensing,
* Creating an owned subsidiary,
* Acquisition,
* Merger, etc.

Exporting is mostly a strategy used by product based companies. Many [[manufacturing]] firms begin their global expansion as exporters and only later switch to another mode for serving a foreign market.<ref name="washington">{{cite book|last1=Washington|first1=Charles W. L. Hill, University of|title=International business : competing in the global. Most developing economies now focus on exportation.marketplace|date=2015|isbn=978-0-07-811277-5|page=454|publisher=McGraw-Hill Education |edition=Tenth}}</ref>

== Barriers ==
There are four main types of export barriers: motivational, informational, operational/resource-based, and knowledge.<ref name=":0">{{Cite book |last=Seringhaus| first=F. R|title=Government export promotion: A global perspective |publisher=Routledge| year=1990|isbn=0415000645|pages=1}}</ref><ref name=":1">{{Cite journal|last1=Stouraitis|first1=Vassilios|last2=Boonchoo|first2=Pattana|last3=Mior Harris|first3=Mior Harun|last4=Kyritsis|first4=Markos|date=2017|title=Entrepreneurial perceptions and bias of SME exporting opportunities for manufacturing exporters: A UK study.|url=https://www.emerald.com/insight/content/doi/10.1108/JSBED-03-2017-0095/full/html |journal=Journal of Small Business and Enterprise Development|volume=24|issue=4|pages=906–927|doi=10.1108/JSBED-03-2017-0095}}</ref>

[[Trade barrier]]s are laws, [[regulation]]s, [[policies|policy]], or practices that protect domestically made products from foreign competition. While restrictive business practices sometimes have a similar effect, they are not usually regarded as trade barriers. The most common foreign trade barriers are government-imposed measures and policies that restrict, prevent, or impede the international exchange of goods and services.<ref name="trade_barriers">{{cite web |title = Targeted Trade Barriers |url = http://www.cftech.com/BrainBank/INTERNATIONALAFFAIRS/TargTradBarr.html |publisher = cftech.com |access-date = 27 July 2015 |url-status = dead |archive-url = https://web.archive.org/web/20130429151154/http://www.cftech.com/BrainBank/INTERNATIONALAFFAIRS/TargTradBarr.html |archive-date = 29 April 2013 }}</ref>

=== Strategic ===
{{Further|Export control}}
International agreements limit trade-in and the transfer of certain types of goods and information, e.g., goods associated with weapons of mass destruction, advanced telecommunications, arms and torture and also some art and [[archaeological artifact]]s. For example:
* [[Nuclear Suppliers Group]] limits trade in nuclear weapons and associated goods (45 countries participate).
* The [[Australia Group]] limits trade in chemical and biological weapons and associated goods (39 countries).
* [[Missile Technology Control Regime]] limits trade in the means of delivering weapons of mass destruction (35 countries).
* The [[Wassenaar Arrangement]] limits trade in conventional arms and technological developments (40 countries).
Although the outbreak of [[COVID-19]] sufficiently changed the world economy, people started doing business, so international trade is a key for economic growth. Armenia's economy is dependent on international flows, tourism, and inner production. Competitive export Industries were established which helped the growth of Gross Domestic Product (GDP) to generate financial resources. The market shifted to more efficient exporters, which is the effect of trade liberalization on aggregate productivity. Due to the increase of the number of international business activities through a multilateral trading system, RA Government Program, which was approved in February 2019, the government policy became the objective of economic growth. The period established for the program was 2019-2024. Export quality is developed by developing the export volumes and services.<ref>{{Cite web|url=https://ameriaadvisory.am/armenias-export-of-goods-and-services/|title = Armenia's Export of Goods and Services|date = May 2020}}</ref>

=== Tariffs ===
[[Tariff]]s, a tax on a specific good or category of goods exported from or imported to a country, is an economic barrier to trade.<ref>{{Cite news |url=http://www.investopedia.com/terms/t/tariff.asp|title=Tariff|author=Investopedia Staff|date=24 November 2003|work=Investopedia|access-date=7 May 2017|language=en-US |url-status=live|archive-url=https://web.archive.org/web/20171206154024/https://www.investopedia.com/terms/t/tariff.asp|archive-date=6 December 2017}}</ref> A tariff increases the cost of imported or exported goods, and may be used when domestic producers are having difficulty competing with imports. Tariffs may also be used to protect an industry viewed as being of national security concern. Some industries receive protection that has a similar effect to [[subsidies]]; tariffs reduce the industry's incentives to produce goods quicker, cheaper, and more efficiently, becoming ever less competitive.

The third basis for a tariff involves [[dumping (pricing policy)|dumping]]. When a producer exports at a loss, its competitors may term this ''dumping''. Another case is when the exporter prices a good lower in the export market than in its domestic market.<ref name="tariff">{{cite web |author = Mike Moffatt |title = The Economic Effect of Tariffs |url = http://economics.about.com/cs/taxpolicy/a/tariffs.htm |access-date = 27 July 2015 |url-status = live |archive-url = https://web.archive.org/web/20150906075517/http://economics.about.com/cs/taxpolicy/a/tariffs.htm |archive-date = 6 September 2015 }}</ref> The purpose and expected outcome of a tariff is to encourage spending on domestic goods and services rather than their imported equivalents.

Tariffs may create tension between countries, such as the [[United States steel tariff 2002|United States steel tariff in 2002]], and when China placed a 14% tariff on imported auto parts. Such tariffs may lead to a complaint with the [[World Trade Organization]] (WTO) which sets rules and attempts to resolve trade disputes.<ref name="WTO">[https://www.pbs.org/nbr/site/onair/transcripts/060330b/ US/China Trade Tensions] {{webarchive|url=https://web.archive.org/web/20110516004140/http://www.pbs.org/nbr/site/onair/transcripts/060330b/ |date=16 May 2011 }}, [[Public Broadcasting Service|Darren Gersh]]. Retrieved 21 May 2006.</ref> If that is unsatisfactory, the exporting country may choose to put a tariff of its own on imports from the other country.

[[File:Hamburg.CTA.Altenwerder.BungaRaya.wmt.jpg|thumb|300px|Vessel at Altenwerder Container Terminal (Hamburg)]]

== 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>

== Disadvantages  ==
Exporting may not be viable unless appropriate locations can be found abroad.<ref name="washington" />

High transport costs can make exporting uneconomical, particularly for bulk products.<ref name="washington" />

Another drawback is that trade barriers can make exporting uneconomical and risky.<ref name="washington" />

For [[small and medium-sized enterprises]] (SMEs) with fewer than 250 employees, export is generally more difficult than serving the domestic market. The lack of knowledge of [[trade regulation]]s, cultural differences, different languages and [[foreign exchange market|foreign-exchange]] situations, as well as the strain of resources and staff, complicate the process. Two-thirds of SME exporters pursue only one foreign market.<ref>Daniels, J., Radebaugh, L., Sullivan, D. (2007). International Business: environment and operations, 11th edition. [[Prentice Hall]]. {{ISBN|0-13-186942-6}}</ref>

Another disadvantage is the dependency on almost unpredictable exchange rates. The depreciation of foreign currency badly affects exporters. For example, Armenia exports different things - from foodstuff to software. In 2022, the country had an enormous number of Russian visitors and tourists because of the military situation in Russia. This resulted in a change in exchange rates and the appreciation of the Armenian dram. At first, it may seem that Armenia’s economy is growing. In fact, the GDP growth is expected to hit 7% by the IMF. However, exporters, who export products and get paid mostly in dollars, suffer because of the depreciation of the dollar against the Armenian dram. Moreover, Armenia’s other exporting bright spot is the IT industry, since a lot of companies and individuals work for US-based companies and get paid in US dollars. Because of the drastic change in the exchange rates, these people and companies who export their service to the US or other countries and get paid in US dollars, make around 25% less revenue.<ref>{{Cite web|url=https://eurasianet.org/armenias-economic-boom-hurts-tech-sector|title=Armenia's economic boom hurts tech sector &#124; Eurasianet|website=eurasianet.org}}</ref>

Exports could also devalue a local currency to lower export prices. It could also lead to imposition of tariffs on imported goods.<ref name=":2" />

== Motivations ==
The variety of export motivators can lead to selection bias. Size, knowledge of foreign markets, and unsolicited orders motivate firms to along specific dimensions (research, external, reactive).<ref name=":0" /><ref name=":1" />

== Macroeconomics ==
In [[macroeconomics]], net exports (exports minus imports) are a component of [[gross domestic product]], along with domestic [[consumption (economics)|consumption]], [[investment (macroeconomics)|physical investment]], and [[government spending]]. Foreign demand for a country's exports depends positively on income in foreign countries and negatively on the strength of the producing country's currency (i.e., on how expensive it is for foreign customers to buy the producing country's [[currency]] in the [[foreign exchange market]]).

== See also ==
{{Portal|Business and economics|Politics|Business}}
{{div col|colwidth=25em}}
* [[Comparative advantage]]
* [[Commodity currency]]
* [[Commodity Classification Automated Tracking System]]
* [[Demand vacuum]]
* [[E-commerce]]
* [[Embargo]]
* [[Export-oriented industrialization]]
* [[Export control]]
* [[Export performance]]
* [[Export promotion]]
* [[Export strategy]]
* [[Export subsidy]]
* [[Export Yellow Pages]]
* [[Free trade]]
* [[Free trade agreement]]
* [[Free trade area]]
* [[Import]]
* [[Infant industry argument]]
* [[International trade]]
* [[List of countries by exports]]
* [[Protectionism]]
* [[Sales]]
* [[Trade barrier]]
** [[Tariff]]
** [[Non-tariff barriers to trade]]
{{div col end}}

== References ==
{{Reflist|30em|refs=
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== External links ==
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* [http://www.export.org.uk UK Institute Of Export]
* [http://wits.worldbank.org/CountryProfile/Country/WLD/Year/LTST/TradeFlow/Import World Bank Top exporters]

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[[Category:Export| ]]
[[Category:Freight transport]]
[[Category:International trade]]