Transcript determinant factors of the export success (Hamwi) (PP)

Main Determinant Factors
of the Export Success
The target of this paper review is
to discussing the factors that
affect and lead to export success
What are the benefits of
export success?
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Export success would improve producer prices
Improve the cultivation practices
Encourage adopting new varieties.
Increase production in quantity and quality
Foster economic growth
Strengthen job security
Support foreign exchange
Support private sector
Create good environment for investments
Initiate source of income to a country
Increase earning of foreign currency to pay for necessary imports
Improve the standard of living
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What are the difficulties for D.C in IM to
be ES?
I M have some difficulties for DC related to export for several
reasons
:
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High competitiveness
Similarity of agricultural production in developing
countries
The fluctuation in the market prices
Developed countries subsidize their agricultural
products depressing the world prices
Developing countries rely mainly on agricultural and
textiles exports, but these have limited market
access in the developed countries.
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What are the main factors
determine export success?
Regulations and legislations
Export can be hindered by:
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Inadequate legislation
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Protection of intermediate products
raises their costs

Licensing system
I.
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II. Quality
Standardization

Lack of proper quality assurance and grading increases
the rate of rejects in destination markets
 It is very damaging to lose reputation in the
international markets because of low quality
So, it is necessary to:
1) Develop export specifications, guided by international
standards such as: ISO 9000
2) Enhance packaging and storage
3) Insist on minimum standards
4) Expand extension services
5) It is also essential for exporters to have brand-name
development
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III. Procedures
Trade distorting practices include:
 Excessive bureaucratic control of
trade
 Non-Trade tariff barriers such as:
export bans, export quotas, and the
exaggerated
documentation
requirements
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IV. Research, Studies and
Information
The most necessary step in this area is establishing institutions
assisting exporters with;
 Entering foreign markets
 Providing information on:
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Market conditions

Consumer tastes
 Training exporters
 Arranging of buyer visits
 Implementing propaganda and advertising programs in foreign
markets
 Creating proper trade environment that facilitates predictability
and, accordingly, marketing and export planning
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V. Export Facilities
It is crucial that the governments:
1) Implementing efficient essential export Infrastructure
2) Simplifying and harmonizing customs procedures
3) Providing an efficient supporting services
4) Developing
transportation
and
communications
networks
5) Reducing all the transactions costs
6) Allowing access to imported intermediate inputs at
world market prices
7) Expanding refrigerated facilities either by government or
by private sector
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VI. Relation Strengthening through Trade
Agreements
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Market access facilitated under co-operation agreements
The agreements usually allow to:
1) Achieve costs reduction
2) Enlarge market size.
3) Facilitate investment.
4) Achieve reciprocal free trade between partners
5) Complete or partial exemption of tariffs and non-tariff
measures
6) Diversify export sectors
7) Stimulate competitiveness
8) Change trade policies, laws and regulations
9) Offer an incentive for production increase
10)Activate private sector exports
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VII. Production Diversification
and Improvement
 Countries
should
concentrate
on
maximizing returns from areas in which
they have comparative advantage
 Countries
can not maintain export
successfully unless:
 Providing availability and stability of
supplies as well as price competitiveness
 Diversifying agricultural exports
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VIII. Investment
Encouragement
There are tight links between export success and investment
Export success can :
A.
Initiate opportunities for great investments
B.
Enhance investment in the field of export through establishment of
Export-Processing Zones which are generally used to achieve
three goals:
1)
Promotion of investment and employment in export-oriented
production
2)
Increase foreign exchange earnings from nontraditional exports.
3)
Benefit from free of restrictions on foreign exchange, tariff-free
imports for export production, moderate levels of taxation,
streamlined administrative procedures, and private sector
management.
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IX. Market Access
 Promoting
market access include all
the factors that affect competitiveness
and the incentives for producers to
export
 Supporting penetration to foreign
markets can be done through
avoiding antiexport bias systems
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X. Financial Aspects
Failure in export can be resulted from:
1) The absence of trade finance
2) Costly infrastructure services
3) Tax
charge on export or on
production
4) Non tariff barriers make transaction
costs excessive and discourage
export
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XI. Other Activities Related to Trade
They include:
1) Creation of specialized associations
in different fields of agriculture
2) Sustainable
Natural
Resources
wealth
3) strengthening Human Capital
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The impacts of domestic policies
on export
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Domestic policies can improve or hinder export
In some cases, domestic policies affect export
negatively
 Policies should be consistent both at micro and
macro levels and not conflict
 A proper pricing policy can be used as a tool for
agricultural
production
increase
and
quality
improvement, and then for export enhancement
 The policy of export liberalization:
1) Create pressures for increased efficiencies
2) Promote competitions
3) Accelerate overall economic growth
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Suggested National Plan to Get
Export Success
Several considerations should be taken by policy makers when planning to achieve ES:
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Comprehensive Program of Reforms in the economy
Sustainable Agricultural Trade Development Strategy
Setting up an Export Policy
Creating Specialized Associations
Initiating Export Promotion Programs focused on sectors that
demonstrate the best growth potential and highest level of
competitiveness
Identifying Companies that have export potential
Training and assisting exporters to upgrade their skills
Produce specifically for export
Establishing one unit body responsible for export
arrangements
Implementing Propaganda and Advertising Programs
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conclusion
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Nations need to promote export and the most important factors to export success are
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Modifying legislation of foreign trade
Identifying main targeted markets
Identifying main products enjoying high competitive abilities.
Allowing for promoting technology, diversifying export products
Increasing foreign investment
Strengthening trade policy institutions
Making strong contacts with trade partners
Arranging visits of delegations abroad to explore overseas market
opportunities
Organizing participation in international trade fairs
Building trust for local goods
Establishing Control Strategies ensuring high quality for export through:
Overall quality enhancement
Introducing price premiums for quality
Efficient export-inspection
Exporters insisting on higher quality
Building good reputation in the target markets
9)
10)
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a)
b)
c)
d)
e)
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Thank you all for
your kind attention
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