Export is a term that is used to refer to the act of selling your products abroad where there is a high market for such products . Various commodities can be exported ranging from food products to non-food products and also perishable products to non-perishable products. This paper tends to discuss the various benefits that a society like mine would accrue ones it engages itself in exportation of commodities abroad.
First of all, exportation of commodities is done so as to obtain high returns as compared to the returns that would be accrued when the commodities are sold locally . Therefore, ones the society engages itself in the exportation of commodities; it is bound to get more profits considered to when it would have sold the same commodities locally. This thus means that there would be an increased amount of money in the society which would help in developing the society. The money may be pumped towards the development of infrastructure which would in turn drive the society’s economy further since the infrastructure could be used for other purposes that would add income to the society’s pockets.
The high returns realized due to exportation can also be used in the improvement of social amenities for example hospitals. This would in turn be beneficial to the society as a whole as there would be health improvement all around the society. The extra profits could also be used to improve on the education system in the society and hence the education would be influential to those in the society.
Secondly, exportation brings in diversification. Diversification is reducing risks through the investment in several assets . This is so since selling to several markets would allow the society to diverse their business activities and also spread the risk that they are subjected to. The society will not be tied to the changes of business cycle that may accrue in the domestic market.
Exportation of commodities also increases the production of commodities in large quantities. As such, the increased production would lower the per unit cost and hence the society would have saved greatly and the savings could be used to develop other things. In addition to these, the community will also be able to sell throughout the year even though some of their products may be seasonally demanded in the local market. Exportation thus ensures that business activities go on throughout the year.
Lastly, exportation of products would be beneficial to the society as it would be able to gain new experience and knowledge. By going international, they are able to get valuable ideas and information on new technologies, new marketing techniques and foreign competitors. This would help the society develop its business accordingly.
In conclusion, the above discussion on the topic export shows the various benefits that it poses to a community that adapts and practices it. Exportation of commodities would directly or indirectly influence several aspects of a community. Exportation directly impacts the economy as it is a major booster to many economies an example is in china where the export of machinery and transport equipments together with other exported commodities have enhanced the economy of china . As such, the adoption of exporting to my community and society as a whole would be of great importance for the community now and for many years to come.
References
Leeman, Joris J. A. Export Planning. Dusseldorf: BoD – Books on Demand, 2010.
Michael Czinkota, IIkka Ronkainen. Emerging Trends, Threats and Opportunities in International Marketing. New York: Business Expert Press, 2009.
Salomon, Robert. Learning from Exporting: New Insights, New Perspectives . London: Edward Elgar Publishing, 2006.
Weiss, Kenneth D. Building an Import / Export Business. New Jersey: John Wiley & Sons, 2011.
