Earth’s resources have always played a vital role for human communities. Resource-rich developing countries can potentially acquire development capital urgently needed by extracting and trading mineral raw materials; correspondingly, extractive industries can have a positive influence on the economy of the countries.

Trade contributes to eradicating extreme hunger and poverty (MDG 1), by reducing by half the proportion of people suffering from hunger and those living on less than one dollar a day, and to developing a global partnership for development (MDG 8), which includes addressing the least developed countries’ needs, by …

Travel and transport account for the bulk of developing economies’ exports of commercial services, totalling 37 per cent and 20.2 per cent respectively in 2015 (see Chart 6.5). Both these shares are higher than in developed economies.

Exporting and importing goods is not just the core of any large, successful business; it also helps national economies grow and expand. Once countries start exporting whatever they are rich in, as well as importing goods they lack, their economies begin developing.

Originally Answered: Is it possible to have every country on Earth be rich and prosperous? Yes—in fact we are already well on the way. Based on United Nations and World Bank data, the share of the world’s population living in extreme poverty has declined from from 90% in 1820 to 10% today.

Advantages of exporting You could significantly expand your markets, leaving you less dependent on any single one. Greater production can lead to larger economies of scale and better margins. Your research and development budget could work harder as you can change existing products to suit new markets.

Here are the three main categories of risks facing exporters and how to manage these risks.

• Economic and financial risks. Economic and financial risks are those that affect your cash flow, profits or company viability, for example:
• Social risks.
• Political risks.

Exporting offers plenty of benefits and opportunities, including:

• Access to more consumers and businesses.
• Diversifying market opportunities so that even if the domestic economy begins to falter, you may still have other growing markets for your goods and services.
• Expanding the lifecycle of mature products.

Disadvantages of direct exporting

• Greater initial outlay. The cost of doing direct export business is very high.
• Larger risks.
• Difficulty in maintenance of stocks.
• Higher distribution costs.
• Greater managerial ability.
• Too much dependence on distributors.

If you import more than you export, more money is leaving the country than is coming in through export sales. On the other hand, the more a country exports, the more domestic economic activity is occurring. More exports means more production, jobs and revenue.

When there are too many imports coming into a country in relation to its exports—which are products shipped from that country to a foreign destination—it can distort a nation’s balance of trade and devalue its currency.

Exporting is a low-risk strategy that businesses find attractive for several reasons. First, mature products in a domestic market might find new growth opportunities overseas. Smaller firms often choose exporting over other strategies because it offers a degree of control over risk, cost, and resource commitment.

Companies export because it’s the easiest way to participate in global trade, it’s a less costly investment than the other entry strategies, and it’s much easier to simply stop exporting than it is to extricate oneself from the other entry modes. Most of all, exporting gives a company quick access to new markets.

The five main modes of entry into foreign markets are joint venture, licensing agreement, exporting directly, online sales and purchasing foreign assets.

• Joint Venture.
• Licensing Agreement.
• Exporting Directly.
• Online Sales.
• Purchasing Foreign Assets.

Here are some main routes in.

• Structured exporting. The default form of market entry.
• Licensing and franchising. Licensing is giving legal rights to in-market parties to use your company’s name and other intellectual property.
• Direct investment.
• Buying a business.

Market entry methods

• Exporting. Exporting is the direct sale of goods and / or services in another country.
• Licensing. Licensing allows another company in your target country to use your property.
• Franchising.
• Joint venture.
• Foreign direct investment.
• Wholly owned subsidiary.
• Piggybacking.

Franchising: One of the most prevalent market entry strategies that is gaining popularity across the world is franchising. Franchising works well for organizations that have a trustworthy business model like McDonald’s fast food chain or Starbucks instant coffee.

2 Factors Affecting the Selection of International Market Entry…

• i) Market Size:
• ii) Market Growth:
• iii) Government Regulations:
• iv) Level of Competition:
• v) Physical Infrastructure:
• vi) Level of Risk:
• vii) Production and Shipping Costs:
• viii) Lower Cost of Production:

Major Competitors

• Sales/revenues.
• Who’s gaining or losing, and why.
• Market ranking (first, second, third; top five; top ten).
• Emerging competitors (niche, target customer, value proposition).
• Joint ventures and alliances.
• SWOT analysis.
• Strategy, as related to targeted customers or industries.

Key Takeaways

• The five most common modes of international-market entry are exporting, licensing, partnering, acquisition, and greenfield venturing.
• Each of these entry vehicles has its own particular set of advantages and disadvantages.

Internal factors that pricing are organisational factors, marketing mix, product differentiation, cost of the product and objectives of the firm. External factors that influence pricing decisions are demand, competition, suppliers, economic conditions, buyers and government.

Price Determination: 6 Factors Affecting Price Determination of…

• Product Cost: The most important factor affecting the price of a product is its cost.
• The Utility and Demand:
• Extent of Competition in the Market:
• Government and Legal Regulations:
• Pricing Objectives:
• Marketing Methods Used:

The three major influences on pricing decisions are customers, competitors, and costs. The customers influence pricing through their demand for product and services. Competitors, on the other hand, affect price by providing or not providing alternative product.

What are external factors? The economy, politics, competitors, customers, and even the weather are all uncontrollable factors that can influence an organization’s performance. This is in comparison to internal factors such as staff, company culture, processes, and finances, which all seem within your grasp.

A SWOT (strengths, weaknesses, opportunities and threats) analysis looks at internal and external factors that can affect your business. Internal factors are your strengths and weaknesses. External factors are the threats and opportunities.

Knowing how internal and external environmental factors affect your company can help your business thrive.

• External: The Economy.
• Internal: Employees and Managers.
• External: Competition from other Businesses.
• Internal: Money and Resources.
• External: Politics and Government Policy.
• Internal: Company Culture.

What are external influences?

• political.
• economic.
• social.
• technological.
• environmental.
• competitive.

What is another word for external factors?