Introduction to Export Promotion
INTRODUCTION TO EXPORT PROMOTION
The objectives of this session are to introduce the concept of export promotion and export development and to explain how responsibilities are distributed among various organizations and agencies to formulate, approve and implement policies that promote and develop exports. This session will also describe and list the components of foreign trade and trade promotion policies and other factors affecting foreign trade. The various levels of export promotion strategies for example; the enterprise, industrial, and national levels will be introduced together with explanations of the SWOT approach to export strategies. Newly emerging developing countries have been unable to significantly increase their export volume on their own. There are many reasons related to the level of national economic development to explain this. One main reason is the lack of knowledge about the many complex challenges involved in marketing abroad. International marketing is a much more complicated process than marketing and selling in the domestic economy. To encourage growth of exports, governments can step in and provide business communities with needed support in various ways. Governments have many different policies, programmes and activities to help develop competitive products and increase export sales.
B. Justification for export promotion activities
Governments can assist businesses in the private sector with a wide range of services, from simply providing information about current opportunities in the world market to giving specialized assistance to design and implement marketing programmes and sales campaigns abroad. These activities may be described by the words "export promotion" or "export development." The activities are usually carried out by a trade promotion organization (TPO). In most countries, TPOs concentrate most of their efforts on export promotion; that is, a set of actions aimed at promoting export of the country's existing production. The basic objective of
export promotion activities is to encourage increased sales of products that are currently available for export. All promotional efforts are based on existing production and aim at increasing the value of foreign sales by a given target. In recent years, some governments have focused on programmes of export development. Governments were responding to greater liberalization of foreign trade regulations and increased competition from abroad. Export development is different from export promotion, because export development aims at producing new export products and/or penetrating new markets that were not accessible before. The aim of export development activities is to identify existing opportunities and encourage new industries or production facilities to be set up in order to meet newly identified demands in the international market. To a great extent, export development can concentrate on product adaptation; that is, use of existing production capacity to manufacture new products when better markets are found for those products than for traditional products. The export development approach clearly requires more effort, resources, and persistence than the simple traditional export promotion approach. One consequence is that export development cannot always be fully adopted, given limits that might exist in many countries. In this manual, the two different definitions will be kept for export promotion and export development, but they will not always be kept separate as distinct activities. Most developing countries make export promotion and development a priority in order to achieve economic development goals. Governments expect that sustained export promotion and development efforts will help earn additional foreign exchange needed to cover the cost of imports, solve balance of payments problems, help reduce the burden of increased foreign...
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